<?xml version="1.0" encoding="UTF-8"?>
<FEDREG xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="FRMergedXML.xsd">
    <VOL>89</VOL>
    <NO>30</NO>
    <DATE>Tuesday, February 13, 2024</DATE>
    <UNITNAME>Contents</UNITNAME>
    <CNTNTS>
        <AGCY>
            <EAR>
                Agriculture
                <PRTPAGE P="iii"/>
            </EAR>
            <HD>Agriculture Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Food and Nutrition Service</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Forest Service</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Rural Business-Cooperative Service</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Rural Housing Service</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Rural Utilities Service</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>The U.S. Codex Office</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Army</EAR>
            <HD>Army Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>10052-10053</PGS>
                    <FRDOCBP>2024-02957</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Centers Disease</EAR>
            <HD>Centers for Disease Control and Prevention</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Hearings, Meetings, Proceedings, etc., </DOC>
                    <PGS>10079-10083</PGS>
                    <FRDOCBP>2024-02882</FRDOCBP>
                      
                    <FRDOCBP>2024-02883</FRDOCBP>
                      
                    <FRDOCBP>2024-02884</FRDOCBP>
                      
                    <FRDOCBP>2024-02885</FRDOCBP>
                      
                    <FRDOCBP>2024-02873</FRDOCBP>
                      
                    <FRDOCBP>2024-02874</FRDOCBP>
                      
                    <FRDOCBP>2024-02875</FRDOCBP>
                      
                    <FRDOCBP>2024-02876</FRDOCBP>
                      
                    <FRDOCBP>2024-02877</FRDOCBP>
                      
                    <FRDOCBP>2024-02878</FRDOCBP>
                      
                    <FRDOCBP>2024-02880</FRDOCBP>
                      
                    <FRDOCBP>2024-02881</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Children</EAR>
            <HD>Children and Families Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Social Services Block Grant Post-Expenditure Report, Pre-Expenditure Report, and Intended Use Plan, </SJDOC>
                    <PGS>10083-10084</PGS>
                    <FRDOCBP>2024-02851</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Civil Rights</EAR>
            <HD>Civil Rights Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Arkansas Advisory Committee, </SJDOC>
                    <PGS>10030</PGS>
                    <FRDOCBP>2024-02938</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nebraska Advisory Committee, </SJDOC>
                    <PGS>10029-10030</PGS>
                    <FRDOCBP>2024-02937</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Coast Guard</EAR>
            <HD>Coast Guard</HD>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <DOCENT>
                    <DOC>Shipping Safety Fairways Along the Atlantic Coast; Geographic Information System Files, </DOC>
                    <PGS>10019</PGS>
                    <FRDOCBP>2024-02769</FRDOCBP>
                </DOCENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>10088-10089</PGS>
                    <FRDOCBP>2024-02895</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Commerce</EAR>
            <HD>Commerce Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Foreign-Trade Zones Board</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>International Trade Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Oceanic and Atmospheric Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Patent and Trademark Office</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Commodity Futures</EAR>
            <HD>Commodity Futures Trading Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Meetings; Sunshine Act, </DOC>
                    <PGS>10051</PGS>
                    <FRDOCBP>2024-02997</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Comptroller</EAR>
            <HD>Comptroller of the Currency</HD>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <DOCENT>
                    <DOC>Business Combinations Under the Bank Merger Act, </DOC>
                    <PGS>10010-10018</PGS>
                    <FRDOCBP>2024-02663</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Consumer Product</EAR>
            <HD>Consumer Product Safety Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Consumer Focus Groups and Other Qualitative Studies, </SJDOC>
                    <PGS>10051-10052</PGS>
                    <FRDOCBP>2024-02901</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Defense Department</EAR>
            <HD>Defense Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Army Department</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Engineers Corps</P>
            </SEE>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>10053-10059</PGS>
                    <FRDOCBP>2024-02941</FRDOCBP>
                      
                    <FRDOCBP>2024-02942</FRDOCBP>
                      
                    <FRDOCBP>2024-02945</FRDOCBP>
                      
                    <FRDOCBP>2024-02946</FRDOCBP>
                      
                    <FRDOCBP>2024-02949</FRDOCBP>
                      
                    <FRDOCBP>2024-02953</FRDOCBP>
                      
                    <FRDOCBP>2024-02954</FRDOCBP>
                      
                    <FRDOCBP>2024-02955</FRDOCBP>
                      
                    <FRDOCBP>2024-02956</FRDOCBP>
                </DOCENT>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Defense Advisory Committee on Investigation, Prosecution, and Defense of Sexual Assault in the Armed Forces, </SJDOC>
                    <PGS>10054-10055</PGS>
                    <FRDOCBP>2024-02890</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Employment and Training</EAR>
            <HD>Employment and Training Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Trade Adjustment Assistance Administrative Collection of States, </SJDOC>
                    <PGS>10100-10101</PGS>
                    <FRDOCBP>2024-02892</FRDOCBP>
                </SJDENT>
                <SJ>Labor Certification Process for the Temporary Employment of H-2A and H-2B Foreign Workers in the United States:</SJ>
                <SJDENT>
                    <SJDOC>Allowable Monetary Charges for Agricultural Workers' Meals and for Travel Subsistence Reimbursement, Including Lodging, </SJDOC>
                    <PGS>10101-10102</PGS>
                    <FRDOCBP>2024-02893</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Energy Department</EAR>
            <HD>Energy Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Energy Regulatory Commission</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Engineers</EAR>
            <HD>Engineers Corps</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>National Wetland Plant List, </DOC>
                    <PGS>10059-10061</PGS>
                    <FRDOCBP>2024-02903</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Environmental Protection</EAR>
            <HD>Environmental Protection Agency</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>National Environmental Youth Advisory Council, </SJDOC>
                    <PGS>10070-10071</PGS>
                    <FRDOCBP>2024-02889</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Aviation</EAR>
            <HD>Federal Aviation Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Special Conditions:</SJ>
                <SJDENT>
                    <SJDOC>Gulfstream Aerospace Corporation Model GVIII-G700 and GVIII-G800 Series Airplanes; Electronic Flight Control System: Control Surface Position Awareness., </SJDOC>
                    <PGS>10005-10006</PGS>
                    <FRDOCBP>2024-02943</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Noise Certification Documents for International Operations, </SJDOC>
                    <PGS>10148-10149</PGS>
                    <FRDOCBP>2024-02879</FRDOCBP>
                </SJDENT>
                <SJ>Airport Property:</SJ>
                <SJDENT>
                    <SJDOC>Pellston Regional Airport, Pellston, MI, </SJDOC>
                    <PGS>10148</PGS>
                    <FRDOCBP>2024-02911</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Communications</EAR>
            <HD>Federal Communications Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>10071-10075</PGS>
                    <FRDOCBP>2024-02871</FRDOCBP>
                      
                    <FRDOCBP>2024-02872</FRDOCBP>
                      
                    <FRDOCBP>2024-02886</FRDOCBP>
                      
                    <FRDOCBP>2024-02967</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Deposit</EAR>
            <HD>Federal Deposit Insurance Corporation</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Meetings; Sunshine Act, </DOC>
                    <PGS>10075</PGS>
                    <FRDOCBP>2024-03109</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Energy</EAR>
            <HD>Federal Energy Regulatory Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Application:</SJ>
                <SJDENT>
                    <SJDOC>Idaho Power Co., </SJDOC>
                    <PGS>10063-10064</PGS>
                    <FRDOCBP>2024-02921</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <PRTPAGE P="iv"/>
                    <DOC>Combined Filings, </DOC>
                    <PGS>10061-10063</PGS>
                    <FRDOCBP>2024-02916</FRDOCBP>
                      
                    <FRDOCBP>2024-02919</FRDOCBP>
                </DOCENT>
                <SJ>Environmental Issues:</SJ>
                <SJDENT>
                    <SJDOC>Columbia Gulf Transmission, LLC, Amoco South Pecan Lake Abandonment Project, </SJDOC>
                    <PGS>10064-10068</PGS>
                    <FRDOCBP>2024-02918</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Meetings; Sunshine Act, </DOC>
                    <PGS>10069-10070</PGS>
                    <FRDOCBP>2024-03058</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Highway</EAR>
            <HD>Federal Highway Administration</HD>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <SJ>National Performance Management Measures:</SJ>
                <SJDENT>
                    <SJDOC>Extenuating Circumstances, Highway Performance Monitoring System Data Field Names, Safety Performance Measure, Pavement Condition Measure, and Freight Performance Measure, </SJDOC>
                    <PGS>10018-10019</PGS>
                    <FRDOCBP>2024-02835</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Railroad</EAR>
            <HD>Federal Railroad Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Petition for Waiver of Compliance, </DOC>
                    <PGS>10149</PGS>
                    <FRDOCBP>2024-02920</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Reserve</EAR>
            <HD>Federal Reserve System</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Change in Bank Control:</SJ>
                <SJDENT>
                    <SJDOC>Acquisitions of Shares of a Bank or Bank Holding Company, </SJDOC>
                    <PGS>10075-10076</PGS>
                    <FRDOCBP>2024-02848</FRDOCBP>
                      
                    <FRDOCBP>2024-02947</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Trade</EAR>
            <HD>Federal Trade Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Analysis of Proposed Consent Order To Aid Public Comment:</SJ>
                <SJDENT>
                    <SJDOC>Blackbaud, Inc., </SJDOC>
                    <PGS>10076-10079</PGS>
                    <FRDOCBP>2024-02970</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Fish</EAR>
            <HD>Fish and Wildlife Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Alaska Subsistence Regional Advisory Council, </SJDOC>
                    <PGS>10095-10096</PGS>
                    <FRDOCBP>2024-02905</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Food and Drug</EAR>
            <HD>Food and Drug Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Guidance:</SJ>
                <SJDENT>
                    <SJDOC>Use of Data Monitoring Committees in Clinical Trials, </SJDOC>
                    <PGS>10084-10087</PGS>
                    <FRDOCBP>2024-02849</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Food and Nutrition</EAR>
            <HD>Food and Nutrition Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Special Supplemental Nutrition Program for Women, Infants, and Children:</SJ>
                <SJDENT>
                    <SJDOC>2024/2025 Income Eligibility Guidelines, </SJDOC>
                    <PGS>10022-10024</PGS>
                    <FRDOCBP>2024-02922</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Foreign Assets</EAR>
            <HD>Foreign Assets Control Office</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Sanctions Action, </DOC>
                    <PGS>10159-10161</PGS>
                    <FRDOCBP>2024-02855</FRDOCBP>
                      
                    <FRDOCBP>2024-02857</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Foreign Trade</EAR>
            <HD>Foreign-Trade Zones Board</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Application for Expansion of Subzone:</SJ>
                <SJDENT>
                    <SJDOC>Givaudan Fragrances Corp., Foreign-Trade Zone 44, Mount Olive, NJ, </SJDOC>
                    <PGS>10030</PGS>
                    <FRDOCBP>2024-02896</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Oldach Associates, LLC, Foreign-Trade Zone 61, Catano, Puerto Rico, </SJDOC>
                    <PGS>10031</PGS>
                    <FRDOCBP>2024-02897</FRDOCBP>
                </SJDENT>
                <SJ>Proposed Foreign-Trade Zone Under Alternative Site Framework:</SJ>
                <SJDENT>
                    <SJDOC>Iberia Parish, LA, </SJDOC>
                    <PGS>10031</PGS>
                    <FRDOCBP>2024-02898</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Forest</EAR>
            <HD>Forest Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Directive Publication, </DOC>
                    <PGS>10025-10026</PGS>
                    <FRDOCBP>2024-02853</FRDOCBP>
                </DOCENT>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Alaska Subsistence Regional Advisory Council, </SJDOC>
                    <PGS>10095-10096</PGS>
                    <FRDOCBP>2024-02905</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Trinity County Resource Advisory Committee, </SJDOC>
                    <PGS>10024-10025</PGS>
                    <FRDOCBP>2024-02894</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>General Services</EAR>
            <HD>General Services Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Acquisition Regulation:</SJ>
                <SJDENT>
                    <SJDOC>Standardizing Federal Supply Schedule Clause and Provision Prescriptions; Correction, </SJDOC>
                    <PGS>10006-10007</PGS>
                    <FRDOCBP>2024-02808</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Environmental Impact Statements; Availability, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Alcan Land Port of Entry Expansion and Modernization in Alcan, AK; Withdrawal, </SJDOC>
                    <PGS>10079</PGS>
                    <FRDOCBP>2024-02847</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Saint Lawrence</EAR>
            <HD>Great Lakes St. Lawrence Seaway Development Corporation</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Development Corp. Advisory Board, </SJDOC>
                    <PGS>10154-10155</PGS>
                    <FRDOCBP>2024-02664</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Health and Human</EAR>
            <HD>Health and Human Services Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Centers for Disease Control and Prevention</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Children and Families Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Food and Drug Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Health Resources and Services Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Institutes of Health</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Health Resources</EAR>
            <HD>Health Resources and Services Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Update to the Bright Futures Periodicity Schedule as Part of the Health Resources and Services Administration-Supported Preventive Services Guidelines for Infants, Children, and Adolescents; Correction, </DOC>
                    <PGS>10087-10088</PGS>
                    <FRDOCBP>2024-02959</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Homeland</EAR>
            <HD>Homeland Security Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Coast Guard</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Housing</EAR>
            <HD>Housing and Urban Development Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Annual Indexing of Basic Statutory Mortgage Limits for Multifamily Housing Programs, </DOC>
                    <PGS>10089-10090</PGS>
                    <FRDOCBP>2024-02870</FRDOCBP>
                </DOCENT>
                <SJ>Requests for Nominations:</SJ>
                <SJDENT>
                    <SJDOC>Iron, Steel, Construction Materials, and Manufactured Products Used in Housing Programs Pursuant to the Build America, Buy America Act, </SJDOC>
                    <PGS>10090-10094</PGS>
                    <FRDOCBP>2024-02900</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Institute</EAR>
            <HD>Institute of American Indian and Alaska Native Culture and Arts Development</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Requests for Nominations:</SJ>
                <SJDENT>
                    <SJDOC>Board of Trustees, </SJDOC>
                    <PGS>10094</PGS>
                    <FRDOCBP>2024-02975</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Interior</EAR>
            <HD>Interior Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Fish and Wildlife Service</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Land Management Bureau</P>
            </SEE>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <DOCENT>
                    <DOC>Natural Resource Damages for Hazardous Substances, </DOC>
                    <PGS>10019-10020</PGS>
                    <FRDOCBP>2024-02665</FRDOCBP>
                </DOCENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Requests for Nominations:</SJ>
                <SJDENT>
                    <SJDOC>Exxon Valdez Oil Spill Public Advisory Committee, </SJDOC>
                    <PGS>10096</PGS>
                    <FRDOCBP>2024-02960</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>International Trade Adm</EAR>
            <HD>International Trade Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Antidumping or Countervailing Duty Investigations, Orders, or Reviews:</SJ>
                <SJDENT>
                    <SJDOC>Aluminum Foil From the Republic of Armenia, </SJDOC>
                    <PGS>10036-10037</PGS>
                    <FRDOCBP>2024-02928</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <PRTPAGE P="v"/>
                    <SJDOC>Brass Rod From India, </SJDOC>
                    <PGS>10032-10034</PGS>
                    <FRDOCBP>2024-03073</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Emulsion Styrene-Butadiene Rubber From Mexico, </SJDOC>
                    <PGS>10037-10038</PGS>
                    <FRDOCBP>2024-02915</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Finished Carbon Steel Flanges From India; Correction, </SJDOC>
                    <PGS>10031-10032</PGS>
                    <FRDOCBP>2024-02969</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Truck and Bus Tires From the People's Republic of China, </SJDOC>
                    <PGS>10034-10036</PGS>
                    <FRDOCBP>2024-02929</FRDOCBP>
                </SJDENT>
                <SJ>Sales at Less Than Fair Value; Determinations, Investigations, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Certain Pea Protein From the People's Republic of China, </SJDOC>
                    <PGS>10038-10042</PGS>
                    <FRDOCBP>2024-02965</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Justice Department</EAR>
            <HD>Justice Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Capital Punishment Report of Inmates Under Sentence of Death, </SJDOC>
                    <PGS>10098-10099</PGS>
                    <FRDOCBP>2024-02924</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Community Oriented Policing Services Application Package, </SJDOC>
                    <PGS>10099-10100</PGS>
                    <FRDOCBP>2024-02846</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Labor Department</EAR>
            <HD>Labor Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Employment and Training Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Mine Safety and Health Administration</P>
            </SEE>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>General Inquiries to State Agency Contacts, </SJDOC>
                    <PGS>10102-10103</PGS>
                    <FRDOCBP>2024-02891</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Land</EAR>
            <HD>Land Management Bureau</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Protection, Management, and Control of Wild Horses and Burros, </SJDOC>
                    <PGS>10097-10098</PGS>
                    <FRDOCBP>2024-02952</FRDOCBP>
                </SJDENT>
                <SJ>Requests for Nominations:</SJ>
                <SJDENT>
                    <SJDOC>San Juan Islands National Monument Advisory Committee; Establishment, </SJDOC>
                    <PGS>10097</PGS>
                    <FRDOCBP>2024-02939</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Mine</EAR>
            <HD>Mine Safety and Health Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Petition:</SJ>
                <SJDENT>
                    <SJDOC>Modification of Application of Existing Mandatory Safety Standards, </SJDOC>
                    <PGS>10103-10104</PGS>
                    <FRDOCBP>2024-02931</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>NASA</EAR>
            <HD>National Aeronautics and Space Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Heliophysics Advisory Committee; Space Weather Council, </SJDOC>
                    <PGS>10104-10105</PGS>
                    <FRDOCBP>2024-02869</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Credit</EAR>
            <HD>National Credit Union Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Meetings; Sunshine Act, </DOC>
                    <PGS>10105</PGS>
                    <FRDOCBP>2024-02994</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Highway</EAR>
            <HD>National Highway Traffic Safety Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Petition for Exemption From the Federal Motor Vehicle Theft Prevention Standard:</SJ>
                <SJDENT>
                    <SJDOC>Toyota Motor North America, Inc., </SJDOC>
                    <PGS>10152-10154</PGS>
                    <FRDOCBP>2024-02866</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Volkswagen Group of America, Inc., </SJDOC>
                    <PGS>10149-10152</PGS>
                    <FRDOCBP>2024-02865</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Institute</EAR>
            <HD>National Institutes of Health</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>National Advisory Child Health and Human Development Council Task Force on Research Specific to Pregnant Women and Lactating Women Implementation Working Group, </SJDOC>
                    <PGS>10088</PGS>
                    <FRDOCBP>2024-02904</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Oceanic</EAR>
            <HD>National Oceanic and Atmospheric Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Atlantic Highly Migratory Species:</SJ>
                <SJDENT>
                    <SJDOC>Atlantic Bluefin Tuna Fisheries; Closure of the Angling Category Southern Area Trophy Fishery for 2024, </SJDOC>
                    <PGS>10007-10008</PGS>
                    <FRDOCBP>2024-02910</FRDOCBP>
                </SJDENT>
                <SJ>Fisheries of the Exclusive Economic Zone off Alaska:</SJ>
                <SJDENT>
                    <SJDOC>Pacific Cod by Vessels Using Pot Gear in the Central Regulatory Area of the Gulf of Alaska, </SJDOC>
                    <PGS>10008-10009</PGS>
                    <FRDOCBP>2024-02888</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Southeast Region Individual Fishing Quota Programs, </SJDOC>
                    <PGS>10042-10043</PGS>
                    <FRDOCBP>2024-02968</FRDOCBP>
                </SJDENT>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Pacific Fishery Management Council, </SJDOC>
                    <PGS>10042</PGS>
                    <FRDOCBP>2024-02867</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Nuclear Regulatory</EAR>
            <HD>Nuclear Regulatory Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Identity, Credential, and Access Management System, </SJDOC>
                    <PGS>10105-10106</PGS>
                    <FRDOCBP>2024-02933</FRDOCBP>
                </SJDENT>
                <SJ>Environmental Impact Statements; Availability, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Duke Energy Carolinas, LLC; Oconee Nuclear Station, Units 1, 2, and 3, </SJDOC>
                    <PGS>10107-10109</PGS>
                    <FRDOCBP>2024-02963</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Meetings; Sunshine Act, </DOC>
                    <PGS>10106</PGS>
                    <FRDOCBP>2024-02983</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Patent</EAR>
            <HD>Patent and Trademark Office</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Guidance:</SJ>
                <SJDENT>
                    <SJDOC>Inventorship Guidance on AI-Assisted Inventions, </SJDOC>
                    <PGS>10043-10051</PGS>
                    <FRDOCBP>2024-02623</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Personnel</EAR>
            <HD>Personnel Management Office</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Questionnaire for Public Trust Positions and Supplemental Questionnaire for Selected Positions; Correction, </SJDOC>
                    <PGS>10109</PGS>
                    <FRDOCBP>2024-02887</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Postal Regulatory</EAR>
            <HD>Postal Regulatory Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>New Postal Products, </DOC>
                    <PGS>10109-10110</PGS>
                    <FRDOCBP>2024-02909</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Railroad Retirement</EAR>
            <HD>Railroad Retirement Board</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Meetings; Sunshine Act, </DOC>
                    <PGS>10110</PGS>
                    <FRDOCBP>2024-03062</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Rural Business</EAR>
            <HD>Rural Business-Cooperative Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Request for Application:</SJ>
                <SJDENT>
                    <SJDOC>Strategic Economic and Community Development Program for Fiscal Year 2024, </SJDOC>
                    <PGS>10026-10029</PGS>
                    <FRDOCBP>2024-02782</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Rural Housing Service</EAR>
            <HD>Rural Housing Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Request for Application:</SJ>
                <SJDENT>
                    <SJDOC>Strategic Economic and Community Development Program for Fiscal Year 2024, </SJDOC>
                    <PGS>10026-10029</PGS>
                    <FRDOCBP>2024-02782</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Rural Utilities</EAR>
            <HD>Rural Utilities Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Request for Application:</SJ>
                <SJDENT>
                    <SJDOC>Strategic Economic and Community Development Program for Fiscal Year 2024, </SJDOC>
                    <PGS>10026-10029</PGS>
                    <FRDOCBP>2024-02782</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>
                Securities
                <PRTPAGE P="vi"/>
            </EAR>
            <HD>Securities and Exchange Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>10110, 10114-10117</PGS>
                    <FRDOCBP>2024-02856</FRDOCBP>
                      
                    <FRDOCBP>2024-02906</FRDOCBP>
                      
                    <FRDOCBP>2024-02950</FRDOCBP>
                </DOCENT>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Market Data Infrastructure, </SJDOC>
                    <PGS>10115-10116</PGS>
                    <FRDOCBP>2024-02951</FRDOCBP>
                </SJDENT>
                <SJ>Application:</SJ>
                <SJDENT>
                    <SJDOC>
                        BIP Ventures Evergreen BDC 
                        <E T="03">et al.</E>
                        , 
                    </SJDOC>
                    <PGS>10146</PGS>
                    <FRDOCBP>2024-02936</FRDOCBP>
                </SJDENT>
                <SJ>Self-Regulatory Organizations; Proposed Rule Changes:</SJ>
                <SJDENT>
                    <SJDOC>BOX Exchange LLC, </SJDOC>
                    <PGS>10544-10582</PGS>
                    <FRDOCBP>2024-01181</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe BYX Exchange, Inc., </SJDOC>
                    <PGS>10138-10145, 10963-11000</PGS>
                    <FRDOCBP>2024-01197</FRDOCBP>
                      
                    <FRDOCBP>2024-02860</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe BZX Exchange, Inc., </SJDOC>
                    <PGS>10121-10129, 10392-10430</PGS>
                    <FRDOCBP>2024-01177</FRDOCBP>
                      
                    <FRDOCBP>2024-02858</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe C2 Exchange, Inc., </SJDOC>
                    <PGS>10430-10468</PGS>
                    <FRDOCBP>2024-01178</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe EDGA Exchange, Inc., </SJDOC>
                    <PGS>10468-10506</PGS>
                    <FRDOCBP>2024-01179</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe EDGX Exchange, Inc., </SJDOC>
                    <PGS>10129-10137, 10506-10544</PGS>
                    <FRDOCBP>2024-01180</FRDOCBP>
                      
                    <FRDOCBP>2024-02859</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe Exchange, Inc., </SJDOC>
                    <PGS>10887-10925</PGS>
                    <FRDOCBP>2024-01195</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Financial Industry Regulatory Authority, Inc., </SJDOC>
                    <PGS>10850-10887, 11153-11161</PGS>
                    <FRDOCBP>2024-01194</FRDOCBP>
                      
                    <FRDOCBP>2024-01251</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Investors Exchange LLC, </SJDOC>
                    <PGS>11039-11078</PGS>
                    <FRDOCBP>2024-01200</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Long-Term Stock Exchange, Inc., </SJDOC>
                    <PGS>10582-10620</PGS>
                    <FRDOCBP>2024-01182</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>MEMX LLC, </SJDOC>
                    <PGS>10697-10735</PGS>
                    <FRDOCBP>2024-01190</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Miami International Securities Exchange, LLC, </SJDOC>
                    <PGS>10925-10963</PGS>
                    <FRDOCBP>2024-01196</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>MIAX Emerald LLC, </SJDOC>
                    <PGS>11001-11039</PGS>
                    <FRDOCBP>2024-01199</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>MIAX PEARL, LLC, </SJDOC>
                    <PGS>10658-10697, 11116-11153</PGS>
                    <FRDOCBP>2024-01184</FRDOCBP>
                      
                    <FRDOCBP>2024-01203</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Municipal Securities Rulemaking Board, </SJDOC>
                    <PGS>10110-10114</PGS>
                    <FRDOCBP>2024-02862</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq BX, Inc., </SJDOC>
                    <PGS>10773-10812</PGS>
                    <FRDOCBP>2024-01192</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq GEMX, LLC, </SJDOC>
                    <PGS>10278-10315</PGS>
                    <FRDOCBP>2024-01174</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq ISE, LLC, </SJDOC>
                    <PGS>10239-10278</PGS>
                    <FRDOCBP>2024-01173</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq MRX, LLC, </SJDOC>
                    <PGS>10201-10239</PGS>
                    <FRDOCBP>2024-01172</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq PHLX LLC, </SJDOC>
                    <PGS>10117-10121, 10164-10200</PGS>
                    <FRDOCBP>2024-01171</FRDOCBP>
                      
                    <FRDOCBP>2024-02861</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>New York Stock Exchange LLC, </SJDOC>
                    <PGS>11078-11116</PGS>
                    <FRDOCBP>2024-01201</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>NYSE American LLC, </SJDOC>
                    <PGS>10620-10658</PGS>
                    <FRDOCBP>2024-01183</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>NYSE Arca, Inc., </SJDOC>
                    <PGS>10735-10773</PGS>
                    <FRDOCBP>2024-01191</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>NYSE Chicago, Inc., </SJDOC>
                    <PGS>10315-10353</PGS>
                    <FRDOCBP>2024-01175</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>NYSE National, Inc., </SJDOC>
                    <PGS>10353-10392</PGS>
                    <FRDOCBP>2024-01176</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>The Nasdaq Stock Market LLC, </SJDOC>
                    <PGS>10812-10850</PGS>
                    <FRDOCBP>2024-01193</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Social</EAR>
            <HD>Social Security Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Fiscal Year 2021 Service Contract Inventory, </DOC>
                    <PGS>10146-10147</PGS>
                    <FRDOCBP>2024-02850</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>State Department</EAR>
            <HD>State Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Shipping Coordinating Committee Meeting in Preparation for International Maritime Organization Marine Environmental Protection Committee 81 Meeting, </SJDOC>
                    <PGS>10147</PGS>
                    <FRDOCBP>2024-02925</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Surface Transportation</EAR>
            <HD>Surface Transportation Board</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Temporary Overhead Trackage Rights:</SJ>
                <SJDENT>
                    <SJDOC>Pan Am Southern LLC; Boston and Maine Corp. and Springfield Terminal Railway Corp., </SJDOC>
                    <PGS>10147</PGS>
                    <FRDOCBP>2024-02927</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Tennessee</EAR>
            <HD>Tennessee Valley Authority</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Meetings; Sunshine Act, </DOC>
                    <PGS>10148</PGS>
                    <FRDOCBP>2024-03115</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Codex</EAR>
            <HD>The U.S. Codex Office</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Codex Alimentarius Commission, Committee on Food Additives, </SJDOC>
                    <PGS>10021-10022</PGS>
                    <FRDOCBP>2024-02913</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Transportation Department</EAR>
            <HD>Transportation Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Aviation Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Highway Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Railroad Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Great Lakes St. Lawrence Seaway Development Corporation</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Highway Traffic Safety Administration</P>
            </SEE>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Advisory Committee on Human Trafficking, </SJDOC>
                    <PGS>10158</PGS>
                    <FRDOCBP>2024-02908</FRDOCBP>
                </SJDENT>
                <SJ>Learning Agenda Supplement:</SJ>
                <SJDENT>
                    <SJDOC>Fiscal Years 2024-2026, </SJDOC>
                    <PGS>10155-10158</PGS>
                    <FRDOCBP>2024-02669</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Treasury</EAR>
            <HD>Treasury Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Comptroller of the Currency</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Foreign Assets Control Office</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>African</EAR>
            <HD>United States African Development Foundation</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Board of Directors, </SJDOC>
                    <PGS>10021</PGS>
                    <FRDOCBP>2024-02914</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Veteran Affairs</EAR>
            <HD>Veterans Affairs Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Decision Review Request: Supplemental Claim, </SJDOC>
                    <PGS>10161</PGS>
                    <FRDOCBP>2024-02944</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <PTS>
            <HD SOURCE="HED">Separate Parts In This Issue</HD>
            <HD>Part II</HD>
            <DOCENT>
                <DOC>Securities and Exchange Commission, </DOC>
                <PGS>10164-11161</PGS>
                <FRDOCBP>2024-01181</FRDOCBP>
                  
                <FRDOCBP>2024-01197</FRDOCBP>
                  
                <FRDOCBP>2024-01177</FRDOCBP>
                  
                <FRDOCBP>2024-01178</FRDOCBP>
                  
                <FRDOCBP>2024-01179</FRDOCBP>
                  
                <FRDOCBP>2024-01180</FRDOCBP>
                  
                <FRDOCBP>2024-01195</FRDOCBP>
                  
                <FRDOCBP>2024-01194</FRDOCBP>
                  
                <FRDOCBP>2024-01251</FRDOCBP>
                  
                <FRDOCBP>2024-01200</FRDOCBP>
                  
                <FRDOCBP>2024-01182</FRDOCBP>
                  
                <FRDOCBP>2024-01190</FRDOCBP>
                  
                <FRDOCBP>2024-01196</FRDOCBP>
                  
                <FRDOCBP>2024-01199</FRDOCBP>
                  
                <FRDOCBP>2024-01184</FRDOCBP>
                  
                <FRDOCBP>2024-01203</FRDOCBP>
                  
                <FRDOCBP>2024-01192</FRDOCBP>
                  
                <FRDOCBP>2024-01174</FRDOCBP>
                  
                <FRDOCBP>2024-01173</FRDOCBP>
                  
                <FRDOCBP>2024-01172</FRDOCBP>
                  
                <FRDOCBP>2024-01171</FRDOCBP>
                  
                <FRDOCBP>2024-01201</FRDOCBP>
                  
                <FRDOCBP>2024-01183</FRDOCBP>
                  
                <FRDOCBP>2024-01191</FRDOCBP>
                  
                <FRDOCBP>2024-01175</FRDOCBP>
                  
                <FRDOCBP>2024-01176</FRDOCBP>
                  
                <FRDOCBP>2024-01193</FRDOCBP>
            </DOCENT>
        </PTS>
        <AIDS>
            <HD SOURCE="HED">Reader Aids</HD>
            <P>Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.</P>
            <P>To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription.</P>
        </AIDS>
    </CNTNTS>
    <VOL>89</VOL>
    <NO>30</NO>
    <DATE>Tuesday, February 13, 2024</DATE>
    <UNITNAME>Rules and Regulations</UNITNAME>
    <RULES>
        <RULE>
            <PREAMB>
                <PRTPAGE P="10005"/>
                <AGENCY TYPE="F">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 25</CFR>
                <DEPDOC>[Docket No. FAA-2023-2443; Special Conditions No. 25-855-SC]</DEPDOC>
                <SUBJECT>Special Conditions: Gulfstream Aerospace Corporation Model GVIII-G700 and GVIII-G800 Series Airplanes; Electronic Flight Control System: Control Surface Position Awareness</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final special conditions; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>These special conditions are issued for the Gulfstream Aerospace Corporation (Gulfstream) Model GVIII-G700 and GVIII-G800 series airplanes. These airplanes will have a novel or unusual design feature when compared to the state of technology envisioned in the airworthiness standards for transport-category airplanes. This design feature is an electronic flight-control system providing control-surface awareness to the flightcrew. The applicable airworthiness regulations do not contain adequate or appropriate safety standards for this design feature. These special conditions contain the additional safety standards that the Administrator considers necessary to establish a level of safety equivalent to that established by the existing airworthiness standards.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This action is effective on Gulfstream on February 13, 2024. Send comments on or before March 29, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Send comments identified by Docket No. FAA-2023-2443 using any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRegulations Portal:</E>
                         Go to 
                        <E T="03">www.regulations.gov</E>
                         and follow the online instructions for sending your comments electronically.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Send comments to Docket Operations, M-30, U.S. Department of Transportation (DOT), 1200 New Jersey Avenue SE, Room W12-140, West Building Ground Floor, Washington, DC 20590-0001.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery or Courier:</E>
                         Take comments to Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         Fax comments to Docket Operations at 202-493-2251.
                    </P>
                    <P>
                        • 
                        <E T="03">Docket:</E>
                         Background documents or comments received may be read at 
                        <E T="03">www.regulations.gov</E>
                         at any time. Follow the online instructions for accessing the docket or go to Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Troy Brown, Performance and Environment Unit, AIR-621A, Technical Policy Branch, Policy and Standards Division, Aircraft Certification Service, Federal Aviation Administration, 1801 S Airport Rd., Wichita, KS 67209-2190; telephone and fax 405-666-1050; email 
                        <E T="03">troy.a.brown@faa.gov</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The substance of these special conditions has been published in the 
                    <E T="04">Federal Register</E>
                     for public comment in several prior instances with no substantive comments received. Therefore, the FAA finds, pursuant to 14 CFR 11.38(b), that new comments are unlikely, and notice and comment prior to this publication are unnecessary.
                </P>
                <HD SOURCE="HD1">Privacy</HD>
                <P>
                    Except for Confidential Business Information (CBI) as described in the following paragraph, and other information as described in title 14, Code of Federal Regulations (14 CFR) 11.35, the FAA will post all comments received without change to 
                    <E T="03">https://www.regulations.gov/,</E>
                     including any personal information you provide. The FAA will also post a report summarizing each substantive verbal contact received about these special conditions.
                </P>
                <HD SOURCE="HD1">Confidential Business Information</HD>
                <P>
                    Confidential Business Information (CBI) is commercial or financial information that is both customarily and actually treated as private by its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public disclosure. If your comments responsive to these special conditions contain commercial or financial information that is customarily treated as private, that you actually treat as private, and that is relevant or responsive to these special conditions, it is important that you clearly designate the submitted comments as CBI. Please mark each page of your submission containing CBI as “PROPIN.” The FAA will treat such marked submissions as confidential under the FOIA, and the indicated comments will not be placed in the public docket of these special conditions. Send submissions containing CBI to the individual listed in the 
                    <E T="02">For Further Information Contact</E>
                     section above. Comments the FAA receives, which are not specifically designated as CBI, will be placed in the public docket for these special conditions.
                </P>
                <HD SOURCE="HD1">Comments Invited</HD>
                <P>The FAA invites interested people to take part in this rulemaking by sending written comments, data, or views. The most helpful comments reference a specific portion of the special conditions, explain the reason for any recommended change, and include supporting data.</P>
                <P>The FAA will consider all comments received by the closing date for comments and will consider comments filed late if it is possible to do so without incurring delay. The FAA may change these special conditions based on the comments received.</P>
                <HD SOURCE="HD1">Background</HD>
                <P>On December 31, 2019, Gulfstream applied for an amendment to Type Certificate No. T00015AT to include the new Model GVIII-G700 and GVIII-G800 series airplanes. These airplanes, which are derivatives of the Model GVI currently approved under Type Certificate No. T00015AT, are twin-engine, transport-category airplanes, with a maximum seating for 19 passengers, and a maximum take-off weight of 107,600 pounds (GVIII-G700) and 105,600 pounds (GVIII-G800).</P>
                <HD SOURCE="HD1">Type Certification Basis</HD>
                <P>
                    Under the provisions of title 14, Code of Federal Regulations (14 CFR) 21.101, Gulfstream must show that the Model GVIII-G700 and GVIII-G800 series 
                    <PRTPAGE P="10006"/>
                    airplanes meet the applicable provisions of the regulations listed in Type Certificate No. T00015AT, or the applicable regulations in effect on the date of application for the change, except for earlier amendments as agreed upon by the FAA.
                </P>
                <P>
                    If the Administrator finds that the applicable airworthiness regulations (
                    <E T="03">i.e.,</E>
                     14 CFR part 25) do not contain adequate or appropriate safety standards for the Gulfstream Model GVIII-G700 and GVIII-G800 series airplanes because of a novel or unusual design feature, special conditions are prescribed under the provisions of § 21.16.
                </P>
                <P>Special conditions are initially applicable to the model for which they are issued. Should the type certificate for that model be amended later to include any other model that incorporates the same novel or unusual design feature, or should any other model already included on the same type certificate be modified to incorporate the same novel or unusual design feature, these special conditions would also apply to the other model under § 21.101.</P>
                <P>In addition to the applicable airworthiness regulations and special conditions, the Gulfstream Model GVIII-G700 and GVIII-G800 series airplanes must comply with the exhaust-emission requirements of 14 CFR part 34, and the noise-certification requirements of 14 CFR part 36.</P>
                <P>The FAA issues special conditions, as defined in 14 CFR 11.19, in accordance with 14 CFR 11.38, and they become part of the type certification basis under § 21.101.</P>
                <HD SOURCE="HD1">Novel or Unusual Design Features</HD>
                <P>The Gulfstream Model GVIII-G700 and GVIII-G800 airplanes will incorporate the following novel or unusual design feature:</P>
                <P>Electronic flight-control system providing control-surface awareness to the flightcrew.</P>
                <HD SOURCE="HD1">Discussion</HD>
                <P>Gulfstream Aerospace Corporation is intending to utilize an electronic flight-control system (including side-stick controllers for pitch and roll control) (EFCS) in its new Model GVIII-G700 and GVIII-G800 series airplanes. With an EFCS and no direct coupling from the flightdeck controller to the control surface, the pilot may not be aware of the actual surface position. Some unusual flight conditions, arising from atmospheric conditions, airplane malfunctions, or engine failures, may result in full or nearly full control surface deflection. Unless the flightcrew is made aware of excessive deflection or impending control surface limiting, piloted or auto-flight system control of the airplane might be inadvertently continued in such a manner as to cause loss of airplane control, or other unsafe stability or performance characteristics. The airworthiness standards do not contain adequate or appropriate safety standards for the conditions that result from the EFCS and lack of direct coupling from the flight deck controller to the control surface.</P>
                <P>
                    To establish a level of safety equivalent to that established in the regulations, these special conditions are established. These special conditions require that the flightcrew receive suitable flight-control position annunciation when a condition exists in which nearly full surface authority (not crew commanded) is being utilized. Suitability of such an alerting must take into account that some pilot-demanded maneuvers (
                    <E T="03">e.g.,</E>
                     rapid roll) are necessarily associated with intended full performance, which may saturate the surface. Therefore, simple alerting systems, which would function in either intended or unexpected control-limiting situations, must be properly balanced between necessary crew awareness and unwanted nuisance factors. A monitoring system that might compare airplane motion, surface deflection, and pilot demand could be helpful in reducing nuisance alerting.
                </P>
                <P>These special conditions contain the additional safety standards that the Administrator considers necessary to establish a level of safety equivalent to that established by the existing airworthiness standards.</P>
                <HD SOURCE="HD1">Applicability</HD>
                <P>As discussed above, these special conditions are applicable to the Gulfstream Model GVIII-G700 and GVIII-G800 series airplanes. Should Gulfstream apply at a later date for a change to the type certificate to include another model that incorporates the same novel or unusual design feature, or should any other model already included on the same type certificate be modified to incorporate the same novel or unusual design feature, these special conditions would apply to that model as well.</P>
                <HD SOURCE="HD1">Conclusion</HD>
                <P>This action affects only a certain novel or unusual design feature on Gulfstream Model GVIII-G700 and GVIII-G800 series of airplanes. It is not a rule of general applicability.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 14 CFR Part 25</HD>
                    <P>Aircraft, Aviation safety, Reporting and recordkeeping requirements.</P>
                </LSTSUB>
                <HD SOURCE="HD1">Authority Citation</HD>
                <P>The authority citation for these special conditions is as follows:</P>
                <AUTH>
                    <HD SOURCE="HED">Authority: </HD>
                    <P>49 U.S.C. 106(f), 106(g), 40113, 44701, 44702, and 44704.</P>
                </AUTH>
                <HD SOURCE="HD1">The Special Conditions</HD>
                <P>Accordingly, pursuant to the authority delegated to me by the Administrator, the following special conditions are issued as part of the type certification basis for Gulfstream Model GVIII-G700 and GVIII-G800 airplanes.</P>
                <P>In addition to compliance with §§ 25.143, 25.671, 25.672, and 25.1322, the following special condition applies:</P>
                <P>The system design must ensure that the flightcrew is made suitably aware whenever the primary control means nears the limit of control authority.</P>
                <NOTE>
                    <HD SOURCE="HED">Note:</HD>
                    <P>The term “suitably aware” indicates annunciations provided to the flightcrew are appropriately balanced between nuisance and that necessary for crew awareness.</P>
                </NOTE>
                <SIG>
                    <DATED>Issued in Kansas City, Missouri, on February 7, 2024.</DATED>
                    <NAME>Patrick R. Mullen,</NAME>
                    <TITLE>Manager, Technical Innovation Policy Branch, Policy and Innovation Division, Aircraft Certification Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02943 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">GENERAL SERVICES ADMINISTRATION</AGENCY>
                <CFR>48 CFR Part 538</CFR>
                <DEPDOC>[GSAR Case 2022-G514; Docket No. 2023-0009; Sequence No. 1]</DEPDOC>
                <RIN>RIN 3090-AK58</RIN>
                <SUBJECT>General Services Acquisition Regulation (GSAR); Standardizing Federal Supply Schedule Clause and Provision Prescriptions; Correction</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Acquisition Policy, General Services Administration (GSA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>On January 12, 2024, GSA published a final rule amending the General Services Administration Acquisition Regulation (GSAR) to clarify when GSAR clauses apply to Federal Supply Schedule contracts. Some text inadvertently appeared in a section revision, and inadvertently omitted amendatory text. This correction removes that text and adds the omitted language.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This correction is effective February 12, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Ms. Adina Torberntsson, Procurement Analyst, at 720-475-0568 or 
                        <PRTPAGE P="10007"/>
                        <E T="03">gsarpolicy@gsa.gov,</E>
                         for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755 or 
                        <E T="03">gsaregsec@gsa.gov.</E>
                         Please cite GSAR Case 2022-G514.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>GSA is making a correction to a paragraph in the revision of 48 CFR 538.273 published in a final rule on January 12, 2024. The words “the Handicapped.” erroneously appeared in amendatory instruction number 4, in paragraph (b)(1) of the section. Also, the amendatory text for paragraph (d)(37) was erroneously omitted.</P>
                <HD SOURCE="HD1">Correction</HD>
                <REGTEXT TITLE="48" PART="538">
                    <AMDPAR>In FR Doc. 2024-00519, starting on page 2172 in the issue of January 12, 2024, on page 2173, in the second column, and page 2174, in the second column, section 552.238-73 is corrected by revising paragraph (b)(1) and adding paragraph (d)(37) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>538.273</SECTNO>
                        <SUBJECT>[Corrected]</SUBJECT>
                        <STARS/>
                        <P>(b) * * *</P>
                        <P>(1) 552.238-73, Identification of Electronic Office Equipment Providing Accessibility for Individuals with Disabilities. Use only in FSS solicitations for electronic office equipment.</P>
                        <STARS/>
                        <P>(d) * * *</P>
                        <P>(37) 552.238-117, Price Adjustment—Failure to Provide Accurate Information. Use only in FSS solicitations and contracts under the MAS program. This clause is used when the contract contains the basic clause 552.238-80, Industrial Funding Fee and Sales Reporting.</P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <NAME>Jeffrey A. Koses,</NAME>
                    <TITLE>Senior Procurement Executive, Office of Acquisition Policy, Office of Government-wide Policy, General Services Administration.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02808 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6820-61-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 635</CFR>
                <DEPDOC>[Docket No. 220919-0193; RTID 0648-XD679]</DEPDOC>
                <SUBJECT>Atlantic Highly Migratory Species; Atlantic Bluefin Tuna Fisheries; Closure of the Angling Category Southern Area Trophy Fishery for 2024</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary rule; closure.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        NMFS closes the Angling category southern area fishery for large medium and giant (“trophy” (
                        <E T="03">i.e.,</E>
                         measuring 73 inches (185 centimeters (cm)) curved fork length or greater)) Atlantic bluefin tuna (BFT). The southern area trophy fishery is defined as south of 39°18′ N lat., and outside of the Gulf of Mexico. This action applies to Highly Migratory Species (HMS) Angling and HMS Charter/Headboat permitted vessels when fishing recreationally.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective 11:30 p.m., local time, February 9, 2024, through December 31, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Larry Redd, Jr., 
                        <E T="03">larry.redd@noaa.gov,</E>
                         or Ann Williamson, 
                        <E T="03">ann.williamson@noaa.gov,</E>
                         301-427-8503.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    BFT fisheries are managed under the 2006 Consolidated HMS Fishery Management Plan (FMP) and its amendments, pursuant to the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act; 16 U.S.C. 1801 
                    <E T="03">et seq.</E>
                    ) and consistent with the Atlantic Tunas Convention Act (ATCA; 16 U.S.C. 971 
                    <E T="03">et seq.</E>
                    ). HMS implementing regulations are at 50 CFR part 635. Section 635.27 divides the U.S. BFT quota, established by the International Commission for the Conservation of Atlantic Tunas (ICCAT) and as implemented by the United States among the various domestic fishing categories, per the allocations established in the 2006 Consolidated HMS FMP and its amendments. NMFS is required under the Magnuson-Stevens Act at 16 U.S.C. 1854(g)(1)(D) to provide U.S. fishing vessels with a reasonable opportunity to harvest quotas under relevant international fishery agreements such as the ICCAT Convention, which is implemented domestically pursuant to ATCA.
                </P>
                <P>Under § 635.28(a)(1), NMFS files a closure notice with the Office of the Federal Register for publication when a BFT quota (or subquota) is reached or is projected to be reached. Retaining, possessing, or landing BFT under that quota category is prohibited on and after the effective date and time of a closure notice for that category, for the remainder of the fishing year, until the opening of the subsequent quota period or until such date as specified.</P>
                <P>The 2024 BFT fishing year, which is managed on a calendar-year basis and subject to an annual calendar-year quota, began January 1, 2024. The Angling category season opened January 1, 2024, and continues through December 31, 2024. As described in § 635.27(a), the current baseline U.S. BFT quota is 1,316.14 metric tons (mt) (not including the 25 mt ICCAT allocated to the United States to account for bycatch of BFT in pelagic longline fisheries in the Northeast Distant Gear Restricted Area per § 635.27(a)(3)). The Angling category baseline quota is 297.4 mt, of which 9.2 mt (3.1 percent of the annual Angling category quota) is sub-allocated for the harvest of large medium and giant (trophy) BFT by vessels fishing under the Angling category quota, with 2.3 mt (25 percent of the annual large medium and giant BFT Angling category quota) allocated for each of the following areas: North of 42° N lat. (the Gulf of Maine area); south of 42° N lat. and north of 39°18′ N lat. (the southern New England area); south of 39°18′ N lat., and outside of the Gulf of Mexico (the southern area); and the Gulf of Mexico region. Trophy BFT measure 73 inches (185 cm) curved fork length or greater. This closure action applies to the southern area.</P>
                <HD SOURCE="HD1">Angling Category Large Medium and Giant Southern “Trophy” Fishery Closure</HD>
                <P>
                    Based on landings data from the NMFS Automated Catch Reporting System and the North Carolina Tagging Program, as well as average catch rates and anticipated fishing conditions, NMFS projects the Angling category southern area trophy BFT subquota of 2.3 has been reached and exceeded. Therefore, retaining, possessing, or landing large medium or giant (
                    <E T="03">i.e.,</E>
                     measuring 73 inches (185 cm) curved fork length or greater) BFT south of 39°18′an N lat. and outside the Gulf of Mexico by persons aboard HMS Angling and HMS Charter/Headboat permitted vessels (when fishing recreationally) must cease at 11:30 p.m. local time on February 9, 2024. This closure will remain effective through December 31, 2024. This action applies to HMS 
                    <PRTPAGE P="10008"/>
                    Angling and HMS Charter/Headboat permitted vessels when fishing recreationally for BFT, and is taken consistent with the regulations at § 635.28(a)(1). This action is intended to prevent further overharvest of the Angling category southern area trophy BFT subquota.
                </P>
                <P>
                    If needed to ensure available quotas or subquotas are not exceeded or to enhance fishing opportunities, subsequent Angling category adjustments or closures will be published in the 
                    <E T="04">Federal Register</E>
                     per §§ 635.27(a)(7) and 635.28(a)(1). Information regarding the Angling category fishery for Atlantic tunas, including daily retention limits for BFT measuring 27 inches (68.5 cm) to less than 73 inches (185 cm), and any further Angling category adjustments, is available at 
                    <E T="03">https://www.hmspermits.noaa.gov.</E>
                     During a closure, fishermen aboard HMS Angling and HMS Charter/Headboat permitted vessels when fishing recreationally may continue to catch and release (or tag and release) BFT of all sizes, subject to the requirements of the catch-and-release and tag-and-release programs at § 635.26. All BFT that are released must be handled in a manner that will maximize survival, and without removing the fish from the water, consistent with requirements at § 635.21(a)(1). For additional information on safe handling, see the “Careful Catch and Release” brochure available at 
                    <E T="03">https://www.fisheries.noaa.gov/resource/outreach-and-education/careful-catch-and-release-brochure/.</E>
                </P>
                <HD SOURCE="HD1">Monitoring and Reporting</HD>
                <P>
                    NMFS will continue to monitor the BFT fisheries closely. Per § 635.5(c)(1), HMS Angling and HMS Charter/Headboat permitted vessel owners are required to report the catch of all BFT retained or discarded dead, within 24 hours of the landing(s) or end of each trip, by accessing 
                    <E T="03">https://www.hmspermits.noaa.gov,</E>
                     using the HMS Catch Reporting app, or calling (888) 872-8862 (Monday through Friday from 8 a.m. until 4:30 p.m.).
                </P>
                <HD SOURCE="HD1">Classification</HD>
                <P>NMFS issues this action pursuant to section 305(d) of the Magnuson-Stevens Act and regulations at 50 CFR part 635 and is exempt from review under Executive Order 12866.</P>
                <P>The Assistant Administrator for NMFS (AA) finds that pursuant to 5 U.S.C. 553(b)(B), it is impracticable and contrary to the public interest to provide prior notice of, and an opportunity for public comment on, this action for the following reasons. Specifically, the regulations implementing the 2006 Consolidated HMS FMP and its amendments provide for inseason retention limit adjustments and fishery closures to respond to the unpredictable nature of BFT availability on the fishing grounds, the migratory nature of this species, and the regional variations in the BFT fishery. Providing for prior notice and opportunity to comment is impracticable and contrary to the public interest as this fishery is currently underway and, based on landings information, the Angling category southern area fishery subquota has been reached and exceeded. Delaying this action could result in further excessive trophy BFT landings that may result in future potential quota reductions for the Angling category, depending on the magnitude of a potential Angling category overharvest. NMFS must close the southern area trophy BFT fishery before additional landings of these sizes of BFT occur. Taking this action does not raise conservation and management concerns, and would support effective management of the BFT fishery. NMFS notes that the public had an opportunity to comment on the underlying rulemakings that established the U.S. BFT quota and the inseason adjustment criteria.</P>
                <P>For all of the above reasons, the AA also finds that pursuant to 5 U.S.C. 553(d), there is good cause to waive the 30-day delay in effectiveness.</P>
                <AUTH>
                    <HD SOURCE="HED">Authority: </HD>
                    <P>
                        16 U.S.C. 971 
                        <E T="03">et seq.</E>
                         and 1801 
                        <E T="03">et seq.</E>
                    </P>
                </AUTH>
                <SIG>
                    <DATED> Dated: February 7, 2024.</DATED>
                    <NAME>Everett Wayne Baxter,</NAME>
                    <TITLE>Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02910 Filed 2-8-24; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 679</CFR>
                <DEPDOC>[Docket No. 230224-0053]</DEPDOC>
                <RIN>RTID 0648-XD651</RIN>
                <SUBJECT>Fisheries of the Exclusive Economic Zone Off Alaska; Pacific Cod by Vessels Using Pot Gear in the Central Regulatory Area of the Gulf of Alaska</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary rule; closure.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>NMFS is prohibiting directed fishing for Pacific cod by vessels using pot gear in the Central Regulatory Area of the Gulf of Alaska (GOA). This action is necessary to prevent exceeding the A season allowance of the 2024 total allowable catch (TAC) of Pacific cod by vessels using pot gear in the Central Regulatory Area of the GOA.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective 1200 hours, Alaska local time (A.l.t.), February 9, 2024, through 1200 hours, A.l.t., June 10, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Abby Jahn, 907-586-7228.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>NMFS manages the groundfish fishery in the GOA exclusive economic zone according to the Fishery Management Plan for Groundfish of the Gulf of Alaska (FMP) prepared by the North Pacific Fishery Management Council under authority of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act). Regulations governing fishing by U.S. vessels in accordance with the FMP appear at subpart H of 50 CFR part 600 and 50 CFR part 679.</P>
                <P>The A season allowance of the 2024 Pacific cod TAC apportioned to vessels using pot gear in the Central Regulatory Area of the GOA is 2,726 metric tons (mt) as established by the final 2023 and 2024 harvest specifications for groundfish in the GOA (88 FR 13238, March 2, 2023) and inseason adjustment (88 FR 88840, December 26, 2023).</P>
                <P>In accordance with § 679.20(d)(1)(i), the Regional Administrator has determined that the A season allowance of the 2024 Pacific cod TAC apportioned to vessels using pot gear in the Central Regulatory Area of the GOA will soon be reached. Therefore, the Regional Administrator is establishing a directed fishing allowance of 2,716 mt and is setting aside the remaining 10 mt as bycatch to support other anticipated groundfish fisheries. In accordance with § 679.20(d)(1)(iii), the Regional Administrator finds that this directed fishing allowance has been reached. Consequently, NMFS is prohibiting directed fishing for Pacific cod by vessels using pot gear in the Central Regulatory Area of the GOA.</P>
                <P>While this closure is effective the maximum retainable amounts at § 679.20(e) and (f) apply at any time during a trip.</P>
                <HD SOURCE="HD1">Classification</HD>
                <P>
                    NMFS issues this action pursuant to section 305(d) of the Magnuson-Stevens Act. This action is required by 50 CFR part 679, which was issued pursuant to 
                    <PRTPAGE P="10009"/>
                    section 304(b), and is exempt from review under Executive Order 12866.
                </P>
                <P>Pursuant to 5 U.S.C. 553(b)(B), there is good cause to waive prior notice and an opportunity for public comment on this action, as notice and comment would be impracticable and contrary to the public interest, as it would prevent NMFS from responding to the most recent fisheries data in a timely fashion and would delay the closure of Pacific cod by vessels using pot gear in the Central Regulatory Area of the GOA. NMFS was unable to publish a notice providing time for public comment because the most recent, relevant data only became available as of February 7, 2024.</P>
                <P>The Assistant Administrator for Fisheries, NOAA also finds good cause to waive the 30-day delay in the effective date of this action under 5 U.S.C. 553(d)(3). This finding is based upon the reasons provided above for waiver of prior notice and opportunity for public comment.</P>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P>
                        16 U.S.C. 1801 
                        <E T="03">et seq.</E>
                    </P>
                </AUTH>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Everett Wayne Baxter,</NAME>
                    <TITLE>Acting Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02888 Filed 2-9-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </RULE>
    </RULES>
    <VOL>89</VOL>
    <NO>30</NO>
    <DATE>Tuesday, February 13, 2024</DATE>
    <UNITNAME>Proposed Rules</UNITNAME>
    <PRORULES>
        <PRORULE>
            <PREAMB>
                <PRTPAGE P="10010"/>
                <AGENCY TYPE="F">DEPARTMENT OF THE TREASURY</AGENCY>
                <SUBAGY>Office of the Comptroller of the Currency</SUBAGY>
                <CFR>12 CFR Part 5</CFR>
                <DEPDOC>[Docket ID OCC-2023-0017]</DEPDOC>
                <RIN>RIN 1557-AF24</RIN>
                <SUBJECT>Business Combinations Under the Bank Merger Act</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Comptroller of the Currency (OCC), Treasury.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of proposed rulemaking.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The OCC is inviting comment on a proposed rule to increase the transparency of the standards that apply to the agency's review of business combinations involving national banks and Federal savings associations. In particular, the proposed rule would amend the procedures and would add, as an appendix, a policy statement that summarizes the principles the OCC uses when it reviews proposed bank merger transactions under the Bank Merger Act.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received by April 15, 2024.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Commenters are encouraged to submit comments through the Federal eRulemaking Portal. Please use the title “Business Combinations under the Bank Merger Act” to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal—“Regulations.gov”:</E>
                    </P>
                    <P>
                        Go to 
                        <E T="03">https://regulations.gov/.</E>
                         Enter “Docket ID OCC-2023-0017” in the Search Box and click “Search.” Public comments can be submitted via the “Comment” box below the displayed document information or by clicking on the document title and then clicking the “Comment” box on the top-left side of the screen. For help with submitting effective comments, please click on “Commenter's Checklist.” For assistance with the 
                        <E T="03">Regulations.gov</E>
                         site, please call 1-866-498-2945 (toll free) Monday-Friday, 9 a.m.-5 p.m. ET, or email 
                        <E T="03">regulationshelpdesk@gsa.gov.</E>
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Chief Counsel's Office, Attention: Comment Processing, Office of the Comptroller of the Currency, 400 7th Street SW, Suite 3E-218, Washington, DC 20219.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery/Courier:</E>
                         400 7th Street SW, Suite 3E-218, Washington, DC 20219.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         You must include “OCC” as the agency name and “Docket ID OCC-2023-0017” in your comment. In general, the OCC will enter all comments received into the docket and publish the comments on the 
                        <E T="03">Regulations.gov</E>
                         website without change, including any business or personal information provided such as name and address information, email addresses, or phone numbers. Comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not include any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure.
                    </P>
                    <P>You may review comments and other related materials that pertain to this action by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Viewing Comments Electronically—Regulations.gov:</E>
                    </P>
                    <P>
                        Go to 
                        <E T="03">https://regulations.gov/.</E>
                         Enter “Docket ID OCC-2023-0017” in the Search box and click “Search”. Click on the “Dockets” tab and then the document's title. After clicking the document's title, click the “Browse All Comments” tab. Comments can be viewed and filtered by clicking on the “Sort By” drop-down on the right side of the screen or the “Refine Comments Results” options on the left side of the screen. Supporting materials can be viewed by clicking on the “Browse Documents” tab. Click on the “Sort By” drop-down on the right side of the screen or the “Refine Results” options on the left side of the screen checking the “Supporting &amp; Related Material” checkbox. For assistance with the 
                        <E T="03">Regulations.gov</E>
                         site, please call 1-866-498-2945 (toll free) Monday-Friday, 9 a.m.-5 p.m. ET, or email 
                        <E T="03">regulationshelpdesk@gsa.gov.</E>
                    </P>
                    <P>The docket may be viewed after the close of the comment period in the same manner as during the comment period.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Valerie Song, Assistant Director, Christopher Crawford, Special Counsel, Elizabeth Small, Counsel, Chief Counsel's Office 202-649-5490; or Yoo Jin Na, Director for Licensing Activities 202-649-6260, Office of the Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219. If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Background</HD>
                <P>
                    The Bank Merger Act (BMA), section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)), and the OCC's implementing regulation, 12 CFR 5.33, govern the OCC's review of business combinations of national banks and Federal savings associations with other insured depository institutions (institutions) that result in a national bank or Federal savings association.
                    <SU>1</SU>
                    <FTREF/>
                     Under the BMA, the OCC must consider the following factors: competition, the financial and managerial resources and future prospects of the existing and proposed institutions, the convenience and needs of the community to be served, the risk to the stability of the United States banking or financial system, and the effectiveness of any insured depository institution involved in combatting money laundering activities, including in overseas branches.
                    <SU>2</SU>
                    <FTREF/>
                     The BMA generally requires public notice of the transaction to be published for 30 days.
                    <SU>3</SU>
                    <FTREF/>
                     OCC regulations require the public notice include essential details about the transaction and instructions for public comment. The regulations incorporate the statutory 30-day public notice period and provide a 30-day public comment period, which the OCC may extend.
                    <SU>4</SU>
                    <FTREF/>
                     The OCC may also hold a public hearing, public meeting, or private meeting on an application.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         A business combination for these purposes includes assumption of deposits in addition to mergers or consolidations.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         12 U.S.C. 1828(c)(5), (11).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         12 U.S.C. 1828(c)(4).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         12 CFR 5.8(b), 5.10(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         12 CFR 5.11.
                    </P>
                </FTNT>
                <P>
                    The OCC has issued several publications that provide additional information about the procedures that the OCC follows in reviewing and acting on proposed business combinations. For example, the “Business Combinations” 
                    <PRTPAGE P="10011"/>
                    booklet of the 
                    <E T="03">Comptroller's Licensing Manual</E>
                     details the OCC's review of applications under the BMA. The “Public Notice and Comments” booklet of the 
                    <E T="03">Comptroller's Licensing Manual</E>
                     sets forth policies and requirements related to the public notice and comment process, including hearings and meetings. The 
                    <E T="03">Comptroller's Licensing Manual</E>
                     provides OCC staff, institutions, and the public with information about the procedures applicable to corporate applications filed with the OCC.
                </P>
                <P>
                    After completing a review of these materials, the OCC has determined that additional transparency regarding the standards and procedures that the agency applies to its review of bank business combinations may be helpful to institutions and to the public. For example, the 
                    <E T="03">Comptroller's Licensing Manual</E>
                     does not describe all of the OCC's considerations regarding the BMA statutory factors and its related processes such as the considerations for holding public meetings.
                </P>
                <P>To better reflect the OCC's view that a business combination is a significant corporate transaction, the OCC is proposing amendments to 12 CFR 5.33 to remove provisions related to expedited review and the use of streamlined applications. Additionally, to provide additional clarity and guidance to national banks, Federal savings associations, other institutions, and the public, the OCC is proposing to add a policy statement as appendix A to 12 CFR part 5, subpart C, that would discuss general principles the OCC uses in its review of applications under the BMA and discuss the OCC's consideration of the financial stability, financial and managerial resources and future prospects, and convenience and needs factors. Proposed appendix A would also discuss the criteria informing the OCC's decision on whether to hold a public meeting on an application subject to the BMA.</P>
                <HD SOURCE="HD1">II. Description of the Proposed Policy Statement and Regulatory Amendments</HD>
                <HD SOURCE="HD2">Regulatory Amendments</HD>
                <P>
                    The OCC is proposing two substantive changes to its business combination regulation, 12 CFR 5.33. First, the OCC proposes to remove the expedited review procedures in § 5.33(i). Paragraph (i) currently provides that a filing that qualifies as a business reorganization as defined in paragraph (d)(3) or that qualifies as a streamlined application under paragraph (j) is deemed approved as of the 15th day after the close of the comment period, unless the OCC notifies the applicant that the filing is not eligible for expedited review, or the expedited review process is extended, under § 5.13(a)(2).
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The provisions in 12 CFR 5.13(a)(2) regarding adverse comments would no longer apply to business combination applications as these provisions are applicable only to filings qualifying for expedited review.
                    </P>
                </FTNT>
                <P>
                    The OCC reviews business combination applications to determine whether applicable procedural 
                    <SU>7</SU>
                    <FTREF/>
                     and substantive 
                    <SU>8</SU>
                    <FTREF/>
                     requirements are met. The OCC believes that any business combination subject to a filing under § 5.33 is a significant corporate transaction requiring OCC decisioning, which should not be deemed approved solely due to the passage of time. The principles currently articulated by § 5.33(i), such as certain transactions possessing indicators that are likely to satisfy statutory factors and do not otherwise raise supervisory or regulatory concerns, are contained within section II of proposed appendix A and will continue to guide OCC processing of business combination applications. As the term “business reorganization” as defined in § 5.33(d)(3) is only used to define a class of applications eligible for expedited review under paragraph (i), the OCC also proposes to remove paragraph (d)(3).
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See, e.g.,</E>
                         12 U.S.C. 215a (procedures for mergers resulting in a national bank).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See, e.g.,</E>
                         12 U.S.C. 1828(c) (BMA).
                    </P>
                </FTNT>
                <P>
                    Second, the OCC proposes to remove § 5.33(j). Paragraph (j) currently specifies four situations in which an applicant may use the OCC's streamlined business combination application rather than the full Interagency Bank Merger Act Application.
                    <SU>9</SU>
                    <FTREF/>
                     The streamlined application requests information about similar topics as the Interagency Bank Merger Act Application, but it only requires an applicant to provide detailed information if the applicant answers yes to one of a series of yes or no questions. A transaction eligible for a streamlined application also currently qualifies for expedited review, which the OCC proposes to remove. Given the nature of review of business combinations, the factors for which are discussed in proposed appendix A, it appears that the fuller record provided through the Interagency Bank Merger Act Application provides the appropriate basis for the OCC to review a business combination application. Further, the removal of the streamlined business combination form should not significantly increase the burden on applicants because information requested in the Interagency Bank Merger Act Application may be tailored as appropriate. For example, there may be situations where discussion of all items in the Interagency Bank Merger Act Application may not be appropriate, such as purchase and assumption transactions from an insured depository institution in Federal Deposit Insurance Corporation receivership. In these circumstances, the OCC can use its discretion to reduce the information that the applicant needs to provide to the OCC.
                    <SU>10</SU>
                    <FTREF/>
                     As the entirety of paragraph (j) concerns the streamlined application, the OCC also proposes removing paragraph (j).
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Paragraph (j) authorizes use of a streamlined application if: (i) At least one party to the transaction is an eligible bank or eligible savings association, and all other parties to the transaction are eligible banks, eligible savings associations, or eligible depository institutions, the resulting national bank or resulting Federal savings association will be well capitalized immediately following consummation of the transaction, and the total assets of the target institution are no more than 50 percent of the total assets of the acquiring bank or Federal savings association, as reported in each institution's Consolidated Report of Condition and Income filed for the quarter immediately preceding the filing of the application; (ii) The acquiring bank or Federal savings association is an eligible bank or eligible savings association, the target bank or savings association is not an eligible bank, eligible savings association, or an eligible depository institution, the resulting national bank or resulting Federal savings association will be well capitalized immediately following consummation of the transaction, and the filers in a prefiling communication request and obtain approval from the appropriate OCC licensing office to use the streamlined application; (iii) The acquiring bank or Federal savings association is an eligible bank or eligible savings association, the target bank or savings association is not an eligible bank, eligible savings association, or an eligible depository institution, the resulting bank or resulting Federal savings association will be well capitalized immediately following consummation of the transaction, and the total assets acquired do not exceed 10 percent of the total assets of the acquiring national bank or acquiring Federal savings association, as reported in each institution's Consolidated Report of Condition and Income filed for the quarter immediately preceding the filing of the application; or (iv) In the case of a transaction under § 5.33(g)(4) of this section, the acquiring bank is an eligible bank, the resulting national bank will be well capitalized immediately following consummation of the transaction, the filers in a prefiling communication request and obtain approval from the appropriate OCC licensing office to use the streamlined application, and the total assets acquired do not exceed 10 percent of the total assets of the acquiring national bank, as reported in the bank's Consolidated Report of Condition and Income filed for the quarter immediately preceding the filing of the application.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Under 12 CFR 5.2(b), the OCC may adopt materially different procedures for a particular filing, or class of filings as it deems necessary, for example, in exceptional circumstances or for unusual transactions, after providing notice of the change to the filer and to any other party that the OCC determines should receive notice. The OCC may use this authority, if appropriate, to reduce informational requirements in transactions involving a failing bank due to the short time for preparation of applications.
                    </P>
                </FTNT>
                <PRTPAGE P="10012"/>
                <HD SOURCE="HD2">Policy Statement</HD>
                <P>
                    As discussed in Section I, 
                    <E T="03">Introduction,</E>
                     of proposed appendix A, the proposed policy statement would provide institutions and the public with a better understanding of how the OCC reviews applications subject to the BMA and thus provide greater transparency, facilitate interagency coordination, and enhance public engagement. To this end, proposed appendix A would expand upon the information currently included in the 
                    <E T="03">Comptroller's Licensing Manual.</E>
                     Specifically, proposed appendix A would outline general principles the OCC applies when reviewing applications and provide information about how the OCC considers the BMA statutory factors of financial stability, financial and managerial resources, and convenience and needs of the community.
                    <SU>11</SU>
                    <FTREF/>
                     Additionally, proposed appendix A would provide transparency regarding the public comment period and the factors the OCC considers in determining whether to hold public meetings.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         Proposed appendix A would not address the BMA statutory factors of competition and the effectiveness of any insured depository institution involved in combatting money laundering activities, including in overseas branches. 12 U.S.C. 1828(c)(5), (11). The OCC's review of the competition factor is guided by the process described in the interagency document, Bank Merger Competitive Review—Introduction and Overview (1995), Department of Justice, Antitrust Division. 
                        <E T="03">See https://www.justice.gov/sites/default/files/atr/legacy/2007/08/14/6472.pdf.</E>
                         The Federal Financial Institution Examination Council's 
                        <E T="03">Bank Secrecy Act/Anti-Money Laundering Examination Manual</E>
                         details the OCC's examination of institutions' anti-money laundering activities. 
                        <E T="03">See https://bsaaml.ffiec.gov/manual.</E>
                    </P>
                </FTNT>
                <P>
                    Section II, 
                    <E T="03">General Principles of OCC Review,</E>
                     of proposed appendix A would discuss the OCC's review of an action on applications. Overall, the OCC aims to act promptly on all applications. This section of proposed appendix A would indicate that potential actions by the OCC include approval, denial, or requesting that an applicant withdraw the application because any shortcomings are unlikely to be resolved in a timely manner. Proposed appendix A identifies certain indicators that, in the OCC's experience, applications that are consistent with approval generally feature. These indicators include: (i) attributes regarding the acquirer's financial condition, size, Uniform Financial Institution Ratings System (UFIRS) 
                    <SU>12</SU>
                    <FTREF/>
                     or risk management, operational controls, compliance, and asset quality (ROCA) 
                    <SU>13</SU>
                    <FTREF/>
                     ratings, Uniform Interagency Consumer Compliance Rating System (CC Rating System) rating, Community Reinvestment Act (CRA) rating, the effectiveness of the Bank Secrecy Act/anti-money laundering program, and the absence of fair lending concerns; (ii) the attributes regarding target's size and status as a eligible depository institution, as defined in § 5.3; (iii) the transaction clearly not having a significant adverse effect on competition; and (iv) the absence of significant CRA or consumer compliance concerns, as indicated in any comments or supervisory information.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         UFIRS is also known as the CAMELS system.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         The ROCA System is the interagency uniform supervisory rating system for U.S. branches and agencies of foreign banking organizations.
                    </P>
                </FTNT>
                <P>
                    The 
                    <E T="03">General Principles of OCC Review</E>
                     section of proposed appendix A would also recognize that there are indicators that raise supervisory or regulatory concerns. Based on the OCC's experience, if any of these indicators are present, the OCC is unlikely to find the statutory factors under the BMA to be consistent with approval unless and until the applicant has adequately addressed or remediated the concern. Proposed appendix A would state that these indicators include: (i) the acquirer has a CRA rating of Needs to Improve or Substantial Noncompliance; (ii) the acquirer has a UFIRS or ROCA composite or management rating of 3 worse; (iii) a consumer compliance rating of 3 or worse; (iv) the acquirer is a global systemically important banking organization, or subsidiary thereof; 
                    <SU>14</SU>
                    <FTREF/>
                     (v) the acquirer has an open or pending Bank Secrecy Act/Anti-money Laundering enforcement or fair lending action, including referrals or notification to other agencies; 
                    <SU>15</SU>
                    <FTREF/>
                     (v) failure by the acquirer to adopt, implement, and adhere to all the corrective actions required by a formal enforcement action in a timely manner; or (vi) multiple enforcement actions against the acquirer executed or outstanding during a three-year period.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         The Basel Committee on Bank Supervision annually identifies banking organizations as global systemically important.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         For example, the OCC is required to institute an enforcement action or make a referral if it makes certain supervisory findings with respect to the Bank Secrecy Act or fair lending laws. 
                        <E T="03">See, e.g.,</E>
                         12 U.S.C. 1818(s)(3); 15 U.S.C. 1691e(g).
                    </P>
                </FTNT>
                <P>
                    Section III, 
                    <E T="03">Financial Stability,</E>
                     of proposed appendix A would provide additional information about how the OCC considers “the risk to the stability of the United States banking or financial system” as required by the BMA, including (i) the factors the OCC considers, which are currently described in the “Business Combinations” booklet of the 
                    <E T="03">Comptroller's Licensing Manual;</E>
                     (ii) the balancing test the OCC applies; and (iii) the OCC's ability to consider imposing conditions on the approval of any such transaction. The OCC's approach to considering the risk to the stability of the financial system that would be set forth in proposed appendix A is consistent with longstanding OCC practice and principles.
                    <SU>16</SU>
                    <FTREF/>
                     Specifically, the OCC considers (i) whether the size of the combined institutions would result in material increases in risk to financial stability; (ii) any potential reduction in the availability of substitute providers for the services offered by the combining institutions; (iii) whether the resulting institution would engage in any business activities or participate in markets in a manner that, in the event of financial distress of the resulting institution, would cause significant risks to other institutions; (iv) the extent to which the combining institutions contribute to the complexity of the financial system; (v) the extent of cross-border activities of the combining institutions; (vi) whether the proposed transaction would increase the relative degree of difficulty of resolving or winding up the resulting institution's business in the event of failure or insolvency; and (vii) any other factors that could indicate that the transaction poses a risk to the U.S. banking or financial system.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See, e.g.,</E>
                         OCC Conditional Approval #1298 (November 2022); OCC Corporate Decision #2012-05 (April 2012).
                    </P>
                </FTNT>
                <P>
                    Section III, 
                    <E T="03">Financial Stability,</E>
                     of proposed appendix A would clarify that the OCC applies a balancing test when considering the financial stability factor and weighs the financial stability risk of approving the proposed transaction against the financial stability risk of denying the proposed transaction, particularly if the proposed transaction involves a troubled target. Specifically, the OCC would consider each factor individually and in combination. Even if only a single factor indicates a risk to the stability of the U.S. banking or financial system, the OCC may determine that the proposal would have an adverse effect on the stability of the U.S. banking or financial system.
                    <SU>17</SU>
                    <FTREF/>
                     The OCC would also consider whether the proposed transaction would provide any stability benefits and whether enhanced prudential standards applicable as a result of the proposed transaction would offset any potential risks.
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See, e.g.,</E>
                         FRB Order No. 2012-2 at 30
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See, e.g.,</E>
                         FRB Order No. 2021-04 (May 14, 2021) at 24.
                    </P>
                </FTNT>
                <P>
                    Section III also would note that, consistent with current OCC practice,
                    <FTREF/>
                    <SU>19</SU>
                     the OCC's review of the financial 
                    <PRTPAGE P="10013"/>
                    stability factors may result in a decision to approve a proposed transaction, subject to conditions that are enforceable under 12 U.S.C. 1818. These conditions, which may include asset divestitures or higher minimum capital requirements, are intended to address and mitigate financial stability risk concerns.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See, e.g.,</E>
                         OCC Conditional Approval #1298 (November 2022).
                    </P>
                </FTNT>
                <P>
                    Further, the OCC's review of the financial stability factors considers the impact of the proposed transaction in the context of the recovery planning standards applicable to the resulting institution pursuant to 12 CFR 30, appendix D, “OCC Guidelines Establishing Heightened Standards for Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches” and any heightened standards requirements applicable to the resulting institution pursuant to 12 CFR 30, appendix E, “OCC Guidelines Establishing Standards for Recovery Planning by Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches.” Section III also would state that the OCC may consider the facts, circumstances, and representations of concurrent applications for related transactions, including considering the impact of the related transactions to the proposed transaction under review by the OCC.
                    <SU>20</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         For example, many business combinations under the BMA are part of a larger transaction requiring a filing with the Board under the Bank Holding Company Act.
                    </P>
                </FTNT>
                <P>
                    Section IV, 
                    <E T="03">Financial and Managerial Resources and Future Prospects</E>
                     of proposed appendix A would discuss the BMA's requirement that the OCC consider the managerial resources, financial resources, and future prospects of any proposed transaction. Under the BMA, the OCC must consider each of these factors independently for both the combining and resulting institutions.
                    <SU>21</SU>
                    <FTREF/>
                     However, because these factors are directly related to one another, the OCC also considers these factors holistically. This section of proposed appendix A would describe the overarching considerations of the OCC's review of these factors and provide additional details about what the OCC considers while reviewing these factors. The overarching considerations of this proposed section would note that the OCC will consider the size, complexity, and risk profile of the combining and resulting institutions.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         12 U.S.C. 1828(c)(5).
                    </P>
                </FTNT>
                <P>
                    Further, proposed appendix A expands on the discussion in the 
                    <E T="03">Comptroller's Licensing Manual</E>
                     about the types of transactions the OCC would normally not approve by providing additional details about acquirer characteristics with respect to financial and managerial resources and future prospects that are less likely to result in an approval. Specifically, the OCC is less likely to approve an application when the acquirer (i) has a less than satisfactory supervisory record, including its financial and managerial resources; (ii) has experienced rapid growth; (iii) has engaged in multiple acquisitions with overlapping integration periods; (iv) has failed to comply with conditions imposed in prior OCC licensing decisions; or (v) is functionally the target in the transaction.
                    <SU>22</SU>
                    <FTREF/>
                     The OCC also normally does not approve a combination that would result in a depository institution with less than adequate capital, less than satisfactory management, or poor earnings prospects.
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         For example, in a reverse triangular merger, a holding company may acquire an institution and merge its existing subsidiary into the newly acquired institution, which survives as a subsidiary of the holding company. 
                        <E T="03">See Comptroller's Licensing Manual,</E>
                         “Business Combinations” at 23 (January 2021).
                    </P>
                </FTNT>
                <P>Finally, this subsection would confirm the OCC's practice of considering all comments on proposed transactions, including those on financial and managerial resources and future prospects. To the extent public comments address issues involving confidential supervisory information, however, the OCC generally would not discuss or otherwise disclose confidential supervisory information in public decision letters.</P>
                <P>
                    Section IV of proposed appendix A would next discuss the OCC's consideration of the individual financial resources, managerial resources, and future prospects factors. With respect to financial resources, proposed appendix A would discuss the OCC's review of pro forma capital levels. Additionally, the OCC is generally prohibited by statute from approving business combination applications filed by an institution that is undercapitalized as defined in 12 CFR 6.4.
                    <SU>23</SU>
                    <FTREF/>
                     Proposed Appendix A also would specify that the OCC closely scrutinizes transactions that increase the risk to the bank's financial condition and resilience, including risk to bank capital, liquidity, and earnings that can arise from any of the eight categories of risk included in the OCC's Risk Assessment System.
                    <SU>24</SU>
                    <FTREF/>
                     Further, with respect to the financial resources factor, the OCC considers the ability of management to address increased risks that would result from the transaction. Finally, proposed appendix A would clarify that a transaction involving an acquirer with a strong supervisory record is more likely to satisfy the review factors. By contrast, a transaction involving an acquirer with a recent less than satisfactory supervisory record is less likely to satisfy this factor.
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         12 U.S.C. 1831o(e)(4). The OCC may only approve a combination application by an undercapitalized institution if the agency has accepted the institution's capital restoration plan and determines that the proposed combination is consistent with and will further the achievement of the plan or if the Board of Directors of the Federal Deposit Insurance Corporation determines that the proposed combination will further the purposes of 12 U.S.C.1831o. 12 U.S.C. 1831o(e)(4)(A)-(B).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         These are credit, interest rate, liquidity, price, operational, compliance, strategic, and reputation risks. 
                        <E T="03">See Comptroller's Handbook,</E>
                         “Bank Supervision Process” at 26-28 (Version 1.1, September 2019).
                    </P>
                </FTNT>
                <P>Section IV of proposed appendix A would discuss the OCC's approach to considering the managerial resources standard. The OCC would consider the supervisory record and current condition of both the acquirer and target to determine if the resulting institutions will have sufficient managerial resources. For example, a significant number of matters requiring attention (MRA), or lack thereof, may impact the determination as to whether there are sufficient managerial resources. The OCC also reviews (i) both institutions' management ratings under the UFIRS or ROCA system, and component ratings under the CC Rating System, Uniform Rating System for Information Technology, and Uniform Interagency Trust Rating System, as applicable; and (ii) relevant the Risk Assessment System (RAS) conclusions for the applicant as well as the RAS conclusions for an OCC-supervised target. The OCC would consider the context in which the rating or RAS element was assigned and any additional information resulting from ongoing supervision. Finally, proposed appendix A would note that less than satisfactory ratings at the target do not preclude the approval of a transaction, provided that the acquirer can employ sufficiently robust risk management and financial resources to correct the weaknesses.</P>
                <P>
                    Proposed appendix A would state that the OCC considers whether the acquirer has conducted sufficient due diligence of the target depository institution to understand the business model, systems compatibility, and weaknesses of the target. This includes the acquirer's plans and ability to address its previously identified weaknesses, remediate the target's weaknesses, and exercise appropriate risk management for the size, complexity, and risk profile of the resulting institution. Similarly, the OCC considers the acquirer's plans for and 
                    <PRTPAGE P="10014"/>
                    history of integrating combining institutions' operations, including systems and information security processes, products, services, employees, and cultures.
                </P>
                <P>
                    Proposed appendix A next would discuss the OCC's consideration of the acquirer's plans to identify and manage systems compatibility and integration issues, such as information technology compatibility and implications for business continuity resilience. A critical component of these plans includes the identification of overreliance on manual controls, strategies for automating critical processes, and capacity and modernization of aging and legacy information technology systems. Additional OCC review may be required where there are concerns with systems integration, and, in some cases, the OCC may impose conditions, enforceable pursuant to 12 U.S.C. 1818, to address those concerns. The OCC may deny an application if the integration issues or other issues present significant supervisory concerns, and the issues cannot be resolved through appropriate conditions or otherwise.
                    <SU>25</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         12 CFR 5.13(b).
                    </P>
                </FTNT>
                <P>Finally, with regard to managerial resources, proposed appendix A would describe the OCC's consideration of the proposed governance structure of the resulting institution. This includes consideration of (i) governance in decision-making processes, the board management oversight structure, and the risk management system, including change management; and (ii) the expansion of existing activities, introduction of new or more complex products or lines of business, and implications for managing existing and acquired subsidiaries and equity investments. When applicable, the resulting institution's governance is also considered in the context of the institution's relationship with its holding company and the scope of the holding company's activities.</P>
                <P>Section IV of proposed appendix A also would discuss how the OCC considers the future prospects factor. The OCC would consider this factor in light of its assessment of the institutions' financial and managerial resources. The OCC also would consider the proposed operations of the resulting institutions and the acquirer's record of integrating acquisitions. Specifically, the OCC would consider whether the integrated institution will be able to function effectively as a single entity. The OCC also would consider the resulting institution's business plan or strategy and management's ability to implement it in a safe and sound manner. Finally, the OCC would consider the combination's potential impacts on the resulting institution's continuity planning and operational resilience.</P>
                <P>
                    Section V, 
                    <E T="03">Convenience and Needs</E>
                     of proposed appendix A would expand on the discussion in the 
                    <E T="03">Comptroller's Licensing Handbook</E>
                     of the OCC's consideration of the probable effects of the proposed business combination on the community to be served. Specifically, this section would clarify that the OCC's consideration of the impacts of any proposed combination on the convenience and needs of the community is prospective and considers the likely impact on the community of the resulting institution after the transaction is consummated.
                    <SU>26</SU>
                    <FTREF/>
                     For this factor, the OCC considers, among other things (i) the proposed changes to branch locations, branching services, banking services or products, or credit availability offered by the target and acquirer, including in low- or moderate-income (LMI) communities, (ii) any job losses or lost job opportunities from branching changes, and (iii) any community investment or development initiatives, including particularly those that support affordable housing and small businesses. With respect to (i) above, the OCC is also considering, and welcomes comment on, whether to specify communities in addition to LMI communities as part of these considerations.
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         As the OCC's review of this factor is with respect to the resulting institution, it necessarily includes review of the record, products, and services of both the acquirer and target.
                    </P>
                </FTNT>
                <P>Finally, Section V of proposed appendix A would clarify that the OCC's forward-looking consideration of the convenience and needs factor under the BMA is separate and distinct from its consideration of the CRA record of performance of an applicant in helping to meet the credit needs of the relevant community, including LMI neighborhoods.</P>
                <P>
                    Section VI, 
                    <E T="03">Public Comments and Meetings,</E>
                     of proposed appendix A would provide additional details about the process and procedures relating to the OCC's receipt of public comments and the OCC's considerations related to public meetings and clarifies the information contained within 12 CFR part 5 and the “Public Notice and Comments” booklet of the 
                    <E T="03">Comptroller's Licensing Manual.</E>
                    <SU>27</SU>
                    <FTREF/>
                     Specifically, the public comments subsection would articulate the circumstances under which the OCC may extend the comment period from the usual 30-day comment period 
                    <SU>28</SU>
                    <FTREF/>
                     pursuant to § 5.10(b)(2).
                    <SU>29</SU>
                    <FTREF/>
                     It also would provide additional clarity by noting that the OCC may find that additional time is necessary to develop factual information, and thus warrant extending the comment period, if a filer's response to a comment does not fully address the matters raised in the comment, and the commenter requests an opportunity to respond. This subsection also would provide examples of extenuating circumstances when the OCC may determine that an extension is needed, including, for example, if a public meeting is held, the transaction is novel or complex, or a natural disaster has occurred affecting the public's ability to timely submit comment.
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         While the BMA does not require the OCC to hold meetings or hearings, 12 CFR 5.11 describes the consideration and procedures for public hearings and notes the availability of several other types of meetings. The OCC considers three options for seeking oral input: (1) public hearing, (2) public meeting, and (3) private meeting.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         12 CFR 5.10(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         Specifically, part 5 notes that the OCC may extend the comment period when: (1) a filer fails to file all required publicly available information on a timely basis or makes a request for confidential treatment not granted by the OCC; (2) a person requesting an extension demonstrates to the OCC that additional time is necessary to develop factual information the OCC determines is necessary to consider the filing; and (3) the OCC determines that other extenuating circumstances exist.
                    </P>
                </FTNT>
                <P>The public meetings subsection of Section VI would state that when determining whether to hold a public meeting, the OCC balances the public's interest in the transaction with the value or harm of a public meeting to the decision-making process. Proposed appendix A would also clarify criteria informing the OCC's decision on whether to hold a public meeting. The criteria include (i) the public's interest in the transaction; (ii) the appropriateness of a public meeting to document or clarify issues raised during the public comment process; (iii) the significance of the transaction to the banking industry; (iv) the significance of the transaction to the communities affected; (v) the potential value of any information that could be gathered and documented during a public meeting; and (vi) the acquirer's and target's CRA, consumer compliance, and fair lending, or other pertinent supervisory records, as applicable.</P>
                <HD SOURCE="HD1">III. Request for Comments</HD>
                <P>
                    The OCC encourages comment on any aspect of this proposal and especially on the specific issues discussed in this 
                    <E T="02">Supplementary Information</E>
                     section.
                    <PRTPAGE P="10015"/>
                </P>
                <HD SOURCE="HD1">IV. Regulatory Analysis</HD>
                <HD SOURCE="HD2">A. Paperwork Reduction Act</HD>
                <P>
                    Under the Paperwork Reduction Act of 1995 (PRA),
                    <SU>30</SU>
                    <FTREF/>
                     the OCC may not conduct or sponsor, and a respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The information collection requirements in this proposed rule have been submitted to OMB under OMB control number 1557-0014 (Licensing Manual).
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         44 U.S.C. 3501-3521.
                    </P>
                </FTNT>
                <P>The proposal would amend 12 CFR 5.33, by removing the expedited review procedures in section 5.33(i), which currently allow an application to be deemed approved by the OCC as of the 15th day after the close of the comment period, unless the OCC notifies the filer that the filing is not eligible for expedited review, or the expedited review process is extended. The proposal also removes the streamlined application in section 5.33(j), which would remove the ability of eligible institutions to file for certain types of business combinations using a streamlined application form.</P>
                <P>
                    <E T="03">Title:</E>
                     Licensing Manual.
                </P>
                <P>
                    <E T="03">OMB control number:</E>
                     1557-0014.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     Occasional.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     National banks and Federal savings associations.
                </P>
                <P>
                    The changes to the burden of the Licensing Manual are 
                    <E T="03">de minis</E>
                     and continue to be:
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     3,694.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden:</E>
                     12,481.15.
                </P>
                <P>Comments are invited on:</P>
                <P>(a) Whether the collections of information are necessary for the proper performance of the agency functions, including whether the information has practical utility;</P>
                <P>(b) The accuracy of the agency estimates of the burden of the information collections, including the validity of the methodology and assumptions used;</P>
                <P>(c) Ways to enhance the quality, utility, and clarity of the information to be collected;</P>
                <P>(d) Ways to minimize the burden of the information collections on respondents, including through the use of automated collection techniques or other forms of information technology; and</P>
                <P>(e) Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.</P>
                <HD SOURCE="HD2">B. Regulatory Flexibility Act</HD>
                <P>
                    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 
                    <E T="03">et seq.,</E>
                     requires an agency, in connection with a proposed rule, to prepare an Initial Regulatory Flexibility Analysis describing the impact of the rule on small entities (defined by the Small Business Administration (SBA) for purposes of the RFA to include commercial banks and savings institutions with total assets of $850 million or less and trust companies with total assets of $47 million or less) or to certify that the proposed rule would not have a significant economic impact on a substantial number of small entities. However, under section 605(b) of the RFA, this analysis is not required if an agency certifies that the rule would not have a significant economic impact on a substantial number of small entities and publishes its certification and a short explanatory statement in the 
                    <E T="04">Federal Register</E>
                     along with its rule.
                </P>
                <P>
                    The OCC currently supervises 1,057 institutions (commercial banks, trust companies, federal savings associations, and branches or agencies of foreign banks) of which approximately 661 are small entities.
                    <SU>31</SU>
                    <FTREF/>
                     The OCC estimates that on average, 38 OCC-supervised institutions could be impacted by the rule in a given year. This is based on a five-year average of the number of business combination applications submitted to the OCC from 2019 through 2023.
                    <SU>32</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         The OCC's estimate of the number of small entities is based on the Small Business Administration's size thresholds for commercial banks and savings institutions, and trust companies, which are $850 million and $47 million, respectively. Consistent with the General Principles of Affiliation 13 CFR 121.103(a), the OCC counts the assets of affiliated financial institutions when determining if we should classify an OCC-supervised institution as a small entity. The OCC used December 31, 2022, to determine size because a “financial institution's assets are determined by averaging the assets reported on its four quarterly financial statements for the preceding year.” 
                        <E T="03">See</E>
                         footnote 8 of the U.S. Small Business Administration's 
                        <E T="03">Table of Size Standards.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         The OCC received 51 merger applications in 2019, 36 in 2020, 46 in 2021, 36 in 2022, and 18 in 2023. For further details, 
                        <E T="03">see https://www.occ.gov/publications-and-resources/publications/annual-report/files/2023-annual-report.pdf, https://www.occ.gov/publications-and-resources/publications/annual-report/files/2022-annual-report.pdf, https://www.occ.gov/publications-and-resources/publications/annual-report/files/2021-annual-report.pdf, https://www.occ.gov/publications-and-resources/publications/annual-report/files/2020-annual-report.pdf,</E>
                         and 
                        <E T="03">https://www.occ.gov/publications-and-resources/publications/annual-report/files/2019-annual-report.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    In terms of the potential impact of the proposed changes on affected institutions, the OCC does not expect that the changes would: (1) result in a different decision outcome for the merger application by the OCC or (2) result in a burden on affected institutions. First, proposed appendix A would seek to provide transparency with respect to the OCC's BMA review process including the OCC's consideration of certain statutory factors under the BMA, which should provide regulated institutions with additional clarity and transparency about the OCC's decision-making process. Second, the removal of the expedited review process would potentially affect OCC staff, but not affect banks, as the scope of information to be submitted by banks would not change. And third, the OCC expects that the removal of the streamlined application process would not result in a substantive impact on affected institutions or on the information collected, as the streamlined application and the interagency BMA application requests substantively the same information.
                    <SU>33</SU>
                    <FTREF/>
                     Therefore, the OCC expects the impact to affected OCC-supervised institutions would likely be de minimis. For these reasons, the OCC certifies that the proposed rule would not have a significant economic impact on a substantial number of small entities.
                    <SU>34</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         The same information is collected through both the streamlined and regular merger application review processes. The streamlined application generally asks yes or no questions about the same type of information requested on the interagency application, and if an applicant answers yes, then the applicant needs to provide additional detail.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         In general, the OCC classifies the economic impact on an individual small entity as significant if the total estimated impact in one year is greater than 5 percent of the small entity's total annual salaries and benefits or greater than 2.5 percent of the small entity's total non-interest expense.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Unfunded Mandates Reform Act of 1995</HD>
                <P>Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded Mandates Act) (2 U.S.C. 1532) requires that the OCC prepare a budgetary impact statement before promulgating a rule that includes any Federal mandate that may result in the expenditure by state, local, and Tribal governments, in the aggregate, or by the private sector, of $100 million or more (adjusted annually for inflation, currently $182 million) in any one year. If a budgetary impact statement is required, section 205 of the Unfunded Mandates Act (2 U.S.C. 1535) also requires the OCC to identify and consider a reasonable number of regulatory alternatives before promulgating a rule.</P>
                <P>
                    The OCC estimates that the annual aggregate cost of the proposal once fully phased in would de minimis. Furthermore, the proposed changes are 
                    <PRTPAGE P="10016"/>
                    not new requirements for OCC-supervised institutions, but rather describe considerations and principles that guide the OCC's review of applications under the BMA. Therefore, the OCC concludes that the proposed rule would not result in an expenditure of $182 million or more annually by state, local, and tribal governments, or by the private sector.
                </P>
                <HD SOURCE="HD2">D. Riegle Community Development and Regulatory Improvement Act of 1994</HD>
                <P>
                    Pursuant to section 302(a) of the Riegle Community Development and Regulatory Improvement Act of 1994 (RCDRIA),
                    <SU>35</SU>
                    <FTREF/>
                     in determining the effective date and administrative compliance requirements for new regulations that impose additional reporting, disclosure, or other requirements on insured depository institutions, the OCC must consider, consistent with the principle of safety and soundness and the public interest, any administrative burdens that such regulations would place on depository institutions, including small depository institutions, and customers of depository institutions, as well as the benefits of such regulations. In addition, section 302(b) of RCDRIA, requires new regulations and amendments to regulations that impose additional reporting, disclosures, or other new requirements on insured depository institutions generally to take effect on the first day of a calendar quarter that begins on or after the date on which the regulations are published in final form, with certain exceptions, including for good cause.
                    <SU>36</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         12 U.S.C. 4802(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         12 U.S.C. 4802(b).
                    </P>
                </FTNT>
                <P>The OCC requests comment on any administrative burdens that the proposed rule would place on depository institutions, including small depository institutions, and their customers, and the benefits of the proposed rule that the OCC should consider in determining the effective date and administrative compliance requirements for a final rule.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 12 CFR Part 5</HD>
                    <P>Administrative practice and procedure, National banks, Reporting and recordkeeping requirements, Savings associations, Securities.</P>
                </LSTSUB>
                <P>For the reasons set forth in the preamble, OCC proposes to amend chapter I of title 12 of the Code of Federal Regulations as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 5—RULES, POLICIES, AND PROCEDURES FOR CORPORATE ACTIVITIES</HD>
                </PART>
                <AMDPAR>1. The authority citation for part 5 continues to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P>
                         12 U.S.C. 1 
                        <E T="03">et seq.,</E>
                         24a, 35, 93a, 214a, 215, 215a, 215a-1, 215a-2, 215a-3, 215c, 371d, 481, 1462a, 1463, 1464, 1817(j), 1831i, 1831u, 2901 
                        <E T="03">et seq.,</E>
                         3101 
                        <E T="03">et seq.,</E>
                         3907, and 5412(b)(2)(B).
                    </P>
                </AUTH>
                <SECTION>
                    <SECTNO>§ 5.33</SECTNO>
                    <SUBJECT>[Amended]</SUBJECT>
                </SECTION>
                <AMDPAR>2. Section 5.33 is amended by removing and reserving paragraphs (d)(3), (i), and (j).</AMDPAR>
                <AMDPAR>3. Add appendix A to part 5, subpart C to read as follows:</AMDPAR>
                <APPENDIX>
                    <HD SOURCE="HED">Appendix A: Policy Statement Regarding Statutory Factors Under the Bank Merger Act</HD>
                    <HD SOURCE="HD1">I. Introduction</HD>
                    <P>The purpose of this policy statement is to provide insured depository institutions (institutions) and the public with a better understanding of the Office of the Comptroller of the Currency's (OCC's) consideration of certain statutory factors under the Bank Merger Act (BMA), 12 U.S.C. 1828(c). The matters discussed in this statement are intended to provide greater transparency, facilitate interagency coordination, and enhance public engagement.</P>
                    <HD SOURCE="HD1">II. General Principles of OCC Review</HD>
                    <P>The OCC aims to act promptly on all applications. The agency's range of potential actions on applications include approval, denial, and requesting that an applicant withdraw the application because any shortcomings are unlikely to be resolved in a timely manner. Applications that are consistent with approval generally feature all of the following indicators:</P>
                    <P>1. The acquirer is well capitalized under § 5.3 of this part and the resulting institution will be well capitalized;</P>
                    <P>2. The resulting institution will have total assets less than $50 billion;</P>
                    <P>3. The acquirer has a Community Reinvestment Act (CRA) rating of Outstanding or Satisfactory;</P>
                    <P>4. The acquirer has composite and management ratings of 1 or 2 under the Uniform Financial Institution Ratings System (UFIRS) or ROCA rating system;</P>
                    <P>5. The acquirer has a consumer compliance rating of 1 or 2 under the Uniform Interagency Consumer Compliance Rating System (CC Rating System), if applicable;</P>
                    <P>6. The acquirer has no open formal or informal enforcement actions;</P>
                    <P>7. The acquirer has no open or pending fair lending actions, including referrals or notifications to other agencies;</P>
                    <P>8. The acquirer is effective in combatting money laundering activities;</P>
                    <P>9. The target's combined total assets are less than or equal to 50% of acquirer's total assets;</P>
                    <P>10. The target is an eligible depository institution as defined in § 5.3 of this part;</P>
                    <P>11. The proposed transaction clearly would not have a significant adverse effect on competition;</P>
                    <P>12. The OCC has not identified a significant legal or policy issue; and</P>
                    <P>13. No adverse comment has raised a significant CRA or consumer compliance concern.</P>
                    <P>If certain indicators that raise supervisory or regulatory concerns are present, the OCC is unlikely to find that the statutory factors under the BMA are consistent with approval unless and until the applicant has adequately addressed or remediated the concern. The following are examples of indicators that raise supervisory or regulatory concerns:</P>
                    <P>1. The acquirer has a CRA rating of Needs to Improve or Substantial Noncompliance.</P>
                    <P>2. The acquirer has a consumer compliance rating of 3 or worse.</P>
                    <P>3. The acquirer has UFIRS or ROCA composite or management ratings of 3 or worse or the most recent report of examination otherwise indicates that the acquirer is not financially sound or well managed.</P>
                    <P>4. The acquirer is a global systemically important banking organization, or subsidiary thereof.</P>
                    <P>5. The acquirer has open or pending Bank Secrecy Act/Anti-money Laundering enforcement or fair lending actions, including referrals or notifications to other agencies.</P>
                    <P>6. Failure by the acquirer to adopt, implement, and adhere to all the corrective actions required by a formal enforcement action in a timely manner; or multiple enforcement actions against the acquirer executed or outstanding during a three-year period.</P>
                    <HD SOURCE="HD1">III. Financial Stability</HD>
                    <HD SOURCE="HD2">A. Factors Considered</HD>
                    <P>The BMA requires the OCC to consider “the risk to the stability of the United States banking or financial system” when reviewing transactions subject to the Act. In reviewing a BMA application under this factor, the OCC considers the following factors:</P>
                    <P>1. Whether the proposed transaction would result in a material increase in risks to financial system stability due to an increase in size of the combining institutions.</P>
                    <P>2. Whether the proposed transaction would result in a reduction in the availability of substitute providers for the services offered by the combining institutions.</P>
                    <P>3. Whether the resulting institution would engage in any business activities or participate in markets in a manner that, in the event of financial distress of the resulting institution, would cause significant risks to other institutions.</P>
                    <P>4. Whether the proposed transaction would materially increase the extent to which the combining institutions contribute to the complexity of the financial system.</P>
                    <P>5. Whether the proposed transaction would materially increase the extent of cross-border activities of the combining institutions.</P>
                    <P>
                        6. Whether the proposed transaction would increase the relative degree of difficulty of resolving or winding up the resulting institution's business in the event of failure or insolvency.
                        <PRTPAGE P="10017"/>
                    </P>
                    <P>7. Any other factors that could indicate that the transaction poses a risk to the U.S. banking or financial system.</P>
                    <HD SOURCE="HD2">B. Balancing Test</HD>
                    <P>
                        1. 
                        <E T="03">In general:</E>
                         The OCC applies a balancing test when considering the factors in section III(A) of this appendix in light of all the facts and circumstances available regarding the proposed transaction, including weighing the financial stability risk posed by the proposed transaction against the financial stability risk posed by denial of the proposed transaction, particularly if the proposed transaction involves a troubled target. The OCC considers each factor both individually and in combination with others. Even if only a single factor indicates that the proposed transaction would pose a risk to the stability of the U.S. banking or financial system, the OCC may determine that there would be an adverse effect of the proposal on the stability of the U.S. banking or financial system. Finally, the OCC also considers whether the proposed transaction would provide any stability benefits and whether enhanced prudential standards applicable as a result of the proposed transaction would offset any potential risks.
                    </P>
                    <P>
                        2. 
                        <E T="03">Conditions:</E>
                         The OCC's review of the financial stability factors will include, as appropriate, whether to impose conditions on approval of the transaction. The OCC may impose conditions, enforceable under 12 U.S.C. 1818, to address and mitigate financial stability risk concerns, such as requiring asset divestitures by the resulting institution, imposing higher minimum capital requirements, or imposing other financial stability related conditions.
                    </P>
                    <P>
                        3. 
                        <E T="03">Recovery planning and heightened standards:</E>
                         The OCC's review of the financial stability factors will consider the impact of the proposed transaction in light of:
                    </P>
                    <P>b. Standards applicable to the resulting institution pursuant to 12 CFR 30, appendix D, “OCC Guidelines Establishing Heightened Standards for Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches”; and</P>
                    <P>c. Standards requirements applicable to the resulting institution's recovery planning pursuant to 12 CFR 30, appendix E, “OCC Guidelines Establishing Standards for Recovery Planning by Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches”.</P>
                    <P>
                        4. 
                        <E T="03">Concurrent filings:</E>
                         the OCC's review of the financial stability factors may consider the facts, circumstances, and representations of concurrent filings for related transactions, including the impact of the related transactions to the proposed transaction under review by the OCC.
                    </P>
                    <HD SOURCE="HD1">IV. Financial and Managerial Resources and Future Prospects</HD>
                    <P>The OCC is required by the BMA to consider the managerial resources, financial resources, and future prospects of the combining and the resulting institutions. The OCC considers each of these factors independently for both the combining and resulting institutions. However, because these factors are directly related to one another, the OCC also considers these factors holistically.</P>
                    <HD SOURCE="HD2">A. Overarching Considerations</HD>
                    <P>1. The OCC tailors its consideration of the financial and managerial resources and future prospects of the combining and resulting institutions, to their size, complexity, and risk profile.</P>
                    <P>2. The OCC is more likely to approve combinations where the acquirer has sufficient financial and managerial resources to ensure safe and sound operations of the resulting institution than when:</P>
                    <P>a. The acquirer has a less than satisfactory supervisory record, including its financial and managerial resources;</P>
                    <P>b. The acquirer has experienced rapid growth;</P>
                    <P>c. The acquirer has engaged in multiple acquisitions with overlapping integration periods;</P>
                    <P>d. The acquirer has failed to comply with conditions imposed in prior OCC licensing decisions; or</P>
                    <P>e. The acquirer is functionally the target in the transaction.</P>
                    <P>3. The OCC normally does not approve a combination that would result in a depository institution with less than adequate capital or liquidity, less than satisfactory management, or poor earnings prospects.</P>
                    <P>4. The OCC considers all comments received on proposed business combinations. However, the OCC's consideration of an institution's financial and managerial resources and future prospects are necessarily based on confidential supervisory information. While the OCC will provide an appropriate discussion of comments pertaining to the financial resources, managerial resources, and future prospects factors, it will generally not discuss or otherwise disclose confidential supervisory information in public decision letters.</P>
                    <HD SOURCE="HD2">B. Individual Factors</HD>
                    <P>
                        1. 
                        <E T="03">Financial Resources:</E>
                    </P>
                    <P>a. The OCC reviews the existing and proposed institutions' current and pro forma capital levels.</P>
                    <P>i. The OCC reviews for compliance with the applicable capital ratios required by 12 CFR part 3 and the Prompt Corrective Action capital categories established by 12 CFR 6.4.</P>
                    <P>ii. The OCC may not approve a combination application filed by an insured depository institution that is undercapitalized as defined in 12 CFR 6.4 unless it has approved the institution's capital restoration plan or the Board of Directors of the Federal Deposit Insurance Corporation has determined that the transaction would fulfill the purposes of 12 U.S.C. 1831o.</P>
                    <P>b. The OCC closely scrutinizes transactions that increase the risk to the bank's financial condition and resilience, including bank capital, liquidity, and earnings that can arise from any of the eight categories of risk included in the OCC's Risk Assessment System: credit, interest rate, liquidity, price, operational, compliance, strategic, and reputation.</P>
                    <P>c. In relation to the financial resources factor, the OCC considers management's ability to address increased risks that would result from the transaction.</P>
                    <P>d. A transaction involving an acquirer with a strong supervisory record relative to capital, liquidity, and earnings is more likely to satisfy the review factors. By contrast, a transaction involving an acquirer with a recent less than satisfactory financial or supervisory record is less likely to satisfy this factor.</P>
                    <P>
                        2. 
                        <E T="03">Managerial Resources:</E>
                         The OCC considers several factors when considering the managerial resources of the institutions.
                    </P>
                    <P>a. The OCC considers the supervisory record and current condition of both the acquirer and target to determine if the resulting institutions will have sufficient managerial resources to manage the resulting institution.</P>
                    <P>i. A significant number of MRAs suggests there may be insufficient managerial resources. Additionally, the OCC considers both institutions' management ratings under the UFIRS or ROCA system and component ratings under the CC Rating System, Uniform Rating System for Information Technology, and Uniform Interagency Trust Rating System, as applicable.</P>
                    <P>ii. When applicable, the OCC also considers the relevant Risk Assessment System (RAS) conclusions for the combining institutions.</P>
                    <P>iii. The OCC considers the context in which a rating or RAS element was assigned and any additional information resulting from ongoing supervision.</P>
                    <P>iv. Less than satisfactory ratings at the target do not preclude the approval of a transaction, provided that the acquirer can employ sufficiently robust risk management and financial resources to correct the weaknesses at the target.</P>
                    <P>b. The OCC considers whether the acquirer has conducted sufficient due diligence of the target depository institution to understand the business model, systems compatibility, and weaknesses of the target. To facilitate the OCC's review, the acquirer's management team should demonstrate its plans and ability to address the acquirer's previously identified weaknesses, remediate the target's weaknesses, and exercise appropriate risk management for the size, complexity, and risk profile of the resulting institution.</P>
                    <P>c. The OCC also considers the acquirer's analysis and plans to integrate the combining institutions' operations, including systems and information security processes, products, services, employees, and cultures. The OCC's consideration and degree of scrutiny reflects the applicant's track record with information technology governance, business continuity resilience, and, as applicable, integrating acquisitions.</P>
                    <P>d. The OCC considers the acquirer's plans to identify and manage systems compatibility and integration issues, such as information technology compatibility and the implications for business continuity resilience. Any combination in which the OCC identifies systems integration concerns may lead to additional review.</P>
                    <P>
                        i. A critical component of these plans includes the acquirer's identification and assessment of overreliance on manual controls, strategies for automating critical processes, and the strategies and capacity for modernization of aging and legacy information technology systems.
                        <PRTPAGE P="10018"/>
                    </P>
                    <P>ii. The OCC may impose conditions, enforceable pursuant to 12 U.S.C. 1818, if it determines that information technology systems compatibility and integration represent a supervisory significant concern. These conditions may include requirements and time frames for specific remedial actions and specific measures for assessing and evaluating the depository institution's systems integration progress.</P>
                    <P>iii. The OCC may deny the application if the integration issues or other issues present significant supervisory concerns, and the issues cannot be resolved through appropriate conditions or otherwise.</P>
                    <P>e. The OCC also considers the proposed governance structure of the resulting institution. This includes governance in decision-making processes, the board management oversight structure, and the risk management system, including change management. This also includes expansion of existing activities, introduction of new or more complex products or lines of business, and implications for managing existing and acquired subsidiaries and equity investments. When applicable, the resulting institution's governance is also considered in the context of the institution's relationship with its holding company and the scope of the holding company's activities.</P>
                    <P>
                        3. 
                        <E T="03">Future Prospects:</E>
                    </P>
                    <P>a. The OCC considers the resulting institution's future prospects in light of its assessment of the institutions' financial and managerial resources.</P>
                    <P>b. The OCC also considers the proposed operations of the resulting institution. The OCC's consideration and degree of scrutiny reflects the acquirer's record of integrating acquisitions.</P>
                    <P>i. The OCC considers whether the integration of the combining institutions would allow it to function effectively as a single unit.</P>
                    <P>ii. The OCC considers the resulting institution's business plan or strategy and management's ability to implement it in a safe and sound manner.</P>
                    <P>iii. The OCC also considers the combination's potential impact on the resulting institution's continuity planning and operational resilience.</P>
                    <HD SOURCE="HD1">V. Convenience and Needs</HD>
                    <P>A. The OCC considers the probable effects of the proposed business combination on the community to be served. Review of the convenience and needs factor is prospective and considers the likely impact on the community of the resulting institution after the transaction is consummated, including but not limited to:</P>
                    <P>1. any plans to close, expand, consolidate, or limit branches or branching services, including in low- or moderate-income (LMI) areas;</P>
                    <P>2. any plans to reduce the availability or increase the cost of banking services or products, or plans to provide expanded or less costly banking services or products to the community;</P>
                    <P>3. credit availability throughout the community, including, for example, home mortgage, consumer, small business, and small farm loans;</P>
                    <P>4. job losses or reduced job opportunities from branch staffing changes, including branch closures or consolidations;</P>
                    <P>5. community investment or development initiatives, including, for example, community reinvestment, community development investment, and community outreach and engagement strategies; and</P>
                    <P>6. efforts to support affordable housing initiatives and small businesses.</P>
                    <P>B. The OCC considers comments received during the comment period and information provided during any public hearing or meeting for proposed business combinations. To the extent public comments or discussions address issues involving confidential supervisory information, however, the OCC generally will not discuss or otherwise disclose that confidential supervisory information in public decision letters and forums.</P>
                    <P>C. The OCC considers the CRA record of performance of an applicant in evaluating a business combination application. The OCC's forward-looking evaluation of the convenience and needs factor under the BMA is separate and distinct from its consideration of the CRA record of performance of an applicant in helping to meet the credit needs of the relevant community, including LMI neighborhoods.</P>
                    <HD SOURCE="HD1">VI. Public Comments and Meetings</HD>
                    <HD SOURCE="HD2">A. Public Comments</HD>
                    <P>1. Unless an exception applies, a combination under the BMA is subject to a 30-day comment period following publication of the notice of the proposed combination. The OCC may extend the comment period in certain instances:</P>
                    <P>a. when a filer fails to file all required publicly available information on a timely basis or makes a request for confidential treatment not granted by the OCC;</P>
                    <P>b. when requested and the OCC determines that additional time is necessary to develop factual information necessary to consider the filing; and</P>
                    <P>c. when the OCC determines that other extenuating circumstances exist.</P>
                    <P>2. The OCC may find that additional time is necessary to develop factual information if a filer's response to a comment does not fully address the matters raised in the comment, and the commenter requests an opportunity to respond.</P>
                    <P>3. Examples of extenuating circumstances necessitating an extension include:</P>
                    <P>a. transactions in which public meetings are held to allow for public comment after the meeting;</P>
                    <P>
                        b. unusual transactions (
                        <E T="03">e.g.,</E>
                         novel or complex transactions); and
                    </P>
                    <P>c. natural or other disasters occurring in geographic regions affecting the public's ability to timely submit comments.</P>
                    <HD SOURCE="HD2">B. Public Meetings</HD>
                    <P>1. While the BMA does not require the OCC to hold meetings or hearings, the OCC has three methods for seeking oral input: (1) public hearing, (2) public meeting, and (3) private meeting. Public meetings are the most-employed public option.</P>
                    <P>
                        2. The OCC will balance the public's interest in the transaction with the value or harm of a public meeting to the decision-making process (
                        <E T="03">e.g.,</E>
                         although there may be increased public interest in a transaction, a public meeting will not be held if it would not inform the OCC's decision on an application or would otherwise harm the decision-making process).
                    </P>
                    <P>3. Criteria informing the OCC's decision on whether to hold public meetings include:</P>
                    <P>a. the extent of public interest in the proposed transaction.</P>
                    <P>b. whether a public meeting is appropriate in order to document or clarify issues presented by a particular transaction based on issues the public raises during the public comment process.</P>
                    <P>c. whether a public meeting would provide useful information that the OCC would not otherwise be able to obtain in writing.</P>
                    <P>
                        d. the significance of the transaction to the banking industry. Relevant considerations may include the asset sizes of the institutions involved (
                        <E T="03">e.g.,</E>
                         resulting institution will have $50 billion or more in total assets), and concentration of the resulting institution in one or more markets.
                    </P>
                    <P>e. the significance of the transaction to the communities affected. Relevant considerations may include the effects of the transaction on the convenience and needs of the community to be served, including a consideration of a bank's CRA strategy and the extent to which the acquirer and target are currently serving the convenience and needs of their communities.</P>
                    <P>f. the acquirer's and target's CRA, consumer compliance, fair lending, and other pertinent supervisory records, as applicable.</P>
                    <SIG>
                        <NAME>Michael J. Hsu,</NAME>
                        <TITLE>Acting Comptroller of the Currency.</TITLE>
                    </SIG>
                </APPENDIX>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02663 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4810-33-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Highway Administration</SUBAGY>
                <CFR>23 CFR Part 490</CFR>
                <DEPDOC>[FHWA Docket No. FHWA-2023-0014]</DEPDOC>
                <RIN>RIN 2125-AG06</RIN>
                <SUBJECT>National Performance Management Measures; Extenuating Circumstances, Highway Performance Monitoring System Data Field Names, Safety Performance Measure, Pavement Condition Measure, and Freight Performance Measure</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Highway Administration (FHWA), U.S. Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Proposed rule; extension of comment period.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The FHWA is extending the comment period for a notice of proposed rulemaking (NPRM) and request for comments, which was published on January 25, 2024. The 
                        <PRTPAGE P="10019"/>
                        original comment period is set to close on February 26, 2024. The extension is based on concern expressed by stakeholders that the February 26, 2024, closing date does not provide sufficient time to review and provide comprehensive comments. The FHWA recognizes that others interested in commenting may have similar concerns and agrees that the comment period should be extended. Therefore, the closing date for comments is changed to March 12, 2024, which will provide stakeholders and others interested in commenting additional time to discuss, evaluate, and submit responses to the docket.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before March 12, 2024. Late-filed comments will be considered to the extent practicable.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>To ensure that you do not duplicate your docket submissions, please submit them by only one of the following means:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">www.regulations.gov</E>
                         and follow the online instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor, Room W12-140, Washington, DC 20590;
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery:</E>
                         West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, between 9:00 a.m.-5:00 p.m., e.t., Monday through Friday, except Federal holidays. The telephone number is (202) 366-9329;
                    </P>
                    <P>
                        • 
                        <E T="03">Instructions:</E>
                         You must include the agency name and docket number or the Regulatory Identification Number for the rulemaking at the beginning of your comments. All comments received will be posted without change to 
                        <E T="03">www.regulations.gov,</E>
                         including any personal information provided.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mrs. Alexis Kuklenski, Office of Infrastructure, (202) 689-9229, 
                        <E T="03">Alexis.Kuklenski@dot.gov,</E>
                         or Ms. Dawn Horan, Office of the Chief Counsel, (202) 366-9615, 
                        <E T="03">Dawn.M.Horan@dot.gov,</E>
                         Federal Highway Administration, 1200 New Jersey Avenue SE, Washington, DC 20590.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Electronic Access and Filing</HD>
                <P>
                    This document and all comments received may be viewed online through the Federal eRulemaking portal at 
                    <E T="03">www.regulations.gov.</E>
                     The website is available 24 hours each day, 365 days each year. An electronic copy of this document may also be downloaded by accessing the Office of the Federal Register's home page at: 
                    <E T="03">www.federalregister.gov.</E>
                </P>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On January 25, 2024, at 89 FR 4857, FHWA published in the 
                    <E T="04">Federal Register</E>
                     an NPRM proposing updates to the National Performance Management Measure regulations. The original comment period for the NPRM closes on February 26, 2024. Stakeholders have expressed concern that this closing date does not provide sufficient time to review and provide comprehensive comments on the proposal. The FHWA recognizes that others interested in commenting may have similar concerns and agrees that the comment period should be extended by 15 days for these organizations and others to submit comprehensive comments. The closing date is changed from February 26, 2024, to March 12, 2024.
                </P>
                <AUTH>
                    <HD SOURCE="HED">Authority: </HD>
                    <P>23 U.S.C. 134, 135, 148, and 150; 49 CFR 1.85.</P>
                </AUTH>
                <SIG>
                    <NAME>Shailen P. Bhatt,</NAME>
                    <TITLE>Administrator, Federal Highway Administration.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02835 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-22-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Coast Guard</SUBAGY>
                <CFR>33 CFR Parts 166 and 167</CFR>
                <DEPDOC>[Docket No. USCG-2019-0279]</DEPDOC>
                <SUBJECT>Shipping Safety Fairways Along the Atlantic Coast; Geographic Information System Files</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, DHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of availability.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Coast Guard published a proposed rule detailing the potential establishment of shipping safety fairways along the Atlantic coast. In order to help stakeholders visualize the proposed fairways, the Coast Guard is making geographic information system files available for public access.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments submitted on the proposed rule published January 19, 2024, at 89 FR 3587, must be received by the Coast Guard on or before April 18, 2024.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For information about this document call or email Maureen Kallgren, Coast Guard; telephone 202-372-1561, email 
                        <E T="03">Maureen.R.Kallgren2@uscg.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Coast Guard published a proposed rule on January 19, 2024, proposing a series of shipping safety fairways along the Atlantic Coast (89 FR 3587). If you want to submit comments or related material on the proposed rule they must be received by the Coast Guard on or before April 18, 2024.</P>
                <P>
                    In order to visualize the dimensions of the proposed fairways, many stakeholders reached out and asked for the geographic information system (GIS) files that chart the fairways. A GIS file displays geographically referenced information, in this case the location and dimensions of the proposed fairways. These files are now available for public access at 
                    <E T="03">https://www.navcen.uscg.gov/rulemaking-files.</E>
                </P>
                <P>This document is issued under authority found in 5 U.S.C. 552(a).</P>
                <SIG>
                    <DATED>Dated: February 6, 2024.</DATED>
                    <NAME>Steven E. Ramassini, </NAME>
                    <TITLE>Captain, United States Coast Guard, Chief, Office of Navigation Systems.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02769 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-04-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <CFR>43 CFR Part 11</CFR>
                <DEPDOC>[Docket No. DOI-2022-0016; 24XD1618EN, DS61600000, DMNHQ0000.000000]</DEPDOC>
                <RIN>RIN 1090-AB26</RIN>
                <SUBJECT>Natural Resource Damages for Hazardous Substances</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Restoration and Damage Assessment, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of Tribal consultation meetings and extension of public comment period.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of the Interior is announcing the dates of Tribal consultation meetings to gather information to revise the simplified Type A procedures in the regulations for conducting natural resource damage assessment and restoration for hazardous substance releases. We are also extending the comment period on our Notice of Proposed Rulemaking issued on January 5, 2024.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The public comment period on our request for information notice that published on January 5, 2024, at 89 FR 733 is extended. Interested persons are invited to submit comments by 11:59 p.m. April 5, 2024.</P>
                    <P>The Office of Restoration and Damage Assessment will host virtual Tribal consultation sessions at the dates and times below. Please use the following links to register for one of the sessions:</P>
                </EFFDATE>
                <PRTPAGE P="10020"/>
                <FP SOURCE="FP-1">
                    Tuesday, March 26th at 1 p.m. (eastern): 
                    <E T="03">https://msteams.link/YWY9</E>
                </FP>
                <FP SOURCE="FP-1">
                    Wednesday, March 27th at 10 a.m. (eastern): 
                    <E T="03">https://msteams.link/EWXT</E>
                </FP>
                <FP SOURCE="FP-1">
                    Thursday, March 28th at 1 p.m. (eastern): 
                    <E T="03">https://msteams.link/ZBQM</E>
                </FP>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Comments may be submitted through 
                        <E T="03">https://www.regulations.gov</E>
                         and will be available for public viewing and inspection. In the Search box, enter the docket number presented above in the document headings. For best results, do not copy and paste the number; instead, type the docket number into the Search box using hyphens. Then, click on the Search button. You may submit a comment by clicking on “Comment.” Comments may also be hand delivered or mailed to the Office of Restoration and Damage Assessment, U.S. Department of the Interior, 1849 C Street Northwest, Mail Stop/Room 2627, Washington, DC 20240.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Emily Joseph, Director, Office of Restoration and Damage Assessment, (202) 208-4438, or by email to 
                        <E T="03">emily_joseph@ios.doi.gov.</E>
                         Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The current regulations describe how to conduct a natural resource damage assessment and restoration (NRDAR) for hazardous substance releases under the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. 9601, 9607) (CERCLA) and the Federal Water Pollution Control Act (33 U.S.C. 1251, 1321) (Clean Water Act). CERCLA required the President to promulgate these regulations. 42 U.S.C. 9651(c). The President delegated this rule writing responsibility to the Department of the Interior (DOI). E.O. 12316, as amended by E.O. 12580. The regulations appear at 43 CFR part 11.</P>
                <P>
                    A natural resource damage assessment is an evaluation of the need for, and the means of, securing restoration of public natural resources following the release of hazardous substances or oil into the environment. The Department of the Interior has previously developed two types of natural resource damage assessment regulations: Standard procedures for simplified assessments requiring minimal field observations (Type A Rule); and site-specific procedures for detailed assessments in individual cases (Type B Rule). The Type A Rule was last revised in November 1997. It provides two distinct formulas for modeling damages for natural resource injuries caused by hazardous substance releases to coastal and marine environments and Great Lakes environments, respectively. In accordance with the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (CERCLA) 42 U.S.C. 9601 
                    <E T="03">et seq.,</E>
                     damages calculated in accordance with Type A or Type B procedures are entitled to a “rebuttable presumption” of correctness in any administrative or judicial proceeding. The rebuttable presumption for the Type A procedure under the current version of the rule is limited to damages of $100,000 or less.
                </P>
                <P>The regulations we are proposing to revise only cover natural resource damage assessments for releases of hazardous substances under CERCLA and the Clean Water Act. There are also natural resource damage assessment regulations at 15 CFR part 990 that cover oil spills under the Oil Pollution Act, 33 U.S.C. 2701, (the OPA regulations). The current hazardous substance natural resource damage assessment and restoration regulations, this preamble, and the proposed revisions to the regulation use “restoration” as an umbrella term for all types of actions CERCLA and Clean Water Act authorize to address injured natural resources, including restoration, rehabilitation, replacement, or acquisition of equivalent resources.</P>
                <P>Natural resource damage assessments are conducted by government officials designated to act as “trustees” to bring claims on behalf of the public for the restoration of injured natural resources. Trustees are designated by the President, State governors, or Tribes. If trustees determine, through an assessment, that hazardous substance releases have injured natural resources, they may pursue claims for damages against potentially responsible parties. “Damages” include funds needed to plan and implement restoration, compensation for public losses pending restoration, reasonable assessment costs, and any interest accruing after funds are due.</P>
                <P>The regulations establish an administrative process for conducting assessments that include technical criteria for determining whether releases have caused injury, and if so, what funds are needed to implement restoration. The regulations are for the optional use of trustees. Trustees can use the regulations to structure damage assessment work, frame negotiations, and inform restoration planning. If litigation is necessary to resolve the claim, courts will give additional deference—referred to as a “rebuttable presumption” in CERCLA—to assessments performed by Federal and State trustees in accord with the regulations.</P>
                <P>The Department is proposing to re-formulate the Type A Rule as a procedural structure for negotiated settlements by utilizing tools tailored to incidents of smaller scale and scope. We believe that this aligns better with the original statutory purpose of providing a streamlined and simplified assessment process as a companion to the more complex Type B Rule—to reduce transaction costs and expedite restoration in a broader range of less complex and contentious cases. Our objective is to essentially formalize beneficial practices that have evolved since the 1997 promulgation of the Type A Rule. Specifically, Trustees have utilized well-established methodologies such as habitat equivalency analysis (HEA), resource equivalency analysis (REA), and other relatively simple models to assess natural resource injury in smaller incidents that do not necessarily warrant the more prescriptive Type B procedures.</P>
                <P>Our proposed revisions would largely leave the framework of the existing rule intact. We are not proposing any substantive changes to legal standards for reliability of assessment data and methodologies. We are soliciting comments only on the proposed revisions to the CERCLA Type A regulations.</P>
                <P>Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.</P>
                <SIG>
                    <NAME>Joan M. Mooney,</NAME>
                    <TITLE>Principal Deputy Assistant Secretary, Exercising the Delegated Authority of the Assistant Secretary—Policy, Management and Budget.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02665 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4334-63-P</BILCOD>
        </PRORULE>
    </PRORULES>
    <VOL>89</VOL>
    <NO>30</NO>
    <DATE>Tuesday, February 13, 2024</DATE>
    <UNITNAME>Notices</UNITNAME>
    <NOTICES>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="10021"/>
                <AGENCY TYPE="F">AFRICAN DEVELOPMENT FOUNDATION</AGENCY>
                <SUBJECT>Public Quarterly Meeting of the Board of Directors</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>African Development Foundation.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. African Development Foundation (USADF) will hold its quarterly meeting of the Board of Directors to discuss the agency's programs and administration. This meeting will occur at the USADF office.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The meeting date is Tuesday, February 27, 2024, 9:00 a.m. to 12:00 noon.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The meeting location is USADF, 1400 I St. NW, Suite 1000, Washington, DC 20005.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Kerline Perry, (202) 233-8805.</P>
                    <P>
                        <E T="03">Authority:</E>
                         Public Law 96-533 (22 U.S.C. 290h).
                    </P>
                    <SIG>
                        <DATED>Dated: February 8, 2024.</DATED>
                        <NAME>Wendy Carver,</NAME>
                        <TITLE>Business Manager.</TITLE>
                    </SIG>
                </FURINF>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02914 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6117-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>U.S. Codex Office</SUBAGY>
                <SUBJECT>Codex Alimentarius Commission: Meeting of the Codex Committee on Food Additives</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Codex Office, USDA.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of public meeting and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Codex Office is sponsoring a public meeting on March 19, 2024. The objective of the public meeting is to provide information and receive public comments on agenda items and draft U.S. positions to be discussed at the 54th Session of the Codex Committee on Food Additives (CCFA) of the Codex Alimentarius Commission. CCFA54 will convene in Chengdu, Sichuan Province, People's Republic of China from April 22-26, 2024. The U.S. Manager for Codex Alimentarius and the Under Secretary for Trade and Foreign Agricultural Affairs recognize the importance of providing interested parties the opportunity to obtain background information on the 54th Session of the CCFA and to address items on the agenda.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The public meeting is scheduled for March 19, 2024, from 9 a.m. to 12 p.m. EDT.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The public meeting will take place in a hybrid format. The on-site location is Meeting Room 1A-001 and 1A-002 at the Center for Food Safety and Applied Nutrition, U.S. Food and Drug Administration, Harvey Wiley Federal Building, 5001 Campus Drive, College Park, MD 20740-3835. Documents related to the 54th Session of the CCFA will be accessible via the internet at the following address: 
                        <E T="03">https://www.fao.org/fao-who-codexalimentarius/meetings/detail/it/?meeting=CCFA&amp;session=54.</E>
                    </P>
                    <P>
                        Dr. Daniel Folmer, U.S. Alternate Delegate to the 54th Session of the CCFA, invites interested U.S. parties to submit their comments electronically to the following email address: 
                        <E T="03">Daniel.Folmer@fda.hhs.gov.</E>
                    </P>
                    <P>
                        <E T="03">Registration:</E>
                         In-person attendees may register to attend the public meeting at the following email address: 
                        <E T="03">ccfa@cfsan.fda.gov.</E>
                         Virtual attendees may register to attend the public meeting here: 
                        <E T="03">https://fda.zoomgov.com/meeting/register/vJIscuqvqTwiGKBCWt0kic2WOMeTXzyGcdo.</E>
                         Attendees should register by March 14, 2024. After registering, you will receive a confirmation email containing information about joining the meeting. For further information about the public meeting, contact the U.S. Codex Office by email at: 
                        <E T="03">uscodex@usda.gov</E>
                         or Dr. LaShonda Cureton by phone at (240) 402-1351 or by email at 
                        <E T="03">Lashonda.Cureton@fda.hhs.gov.</E>
                    </P>
                    <P>
                        For further information about the 54th session of CCFA, contact U.S. Alternate Delegate, Dr. Daniel Folmer, by phone at (240) 402-1274 or by email at 
                        <E T="03">Daniel.Folmer@fda.hhs.gov</E>
                        , or Dr. LaShonda Cureton by phone at (240) 402-1351 or by email at 
                        <E T="03">Lashonda.Cureton@fda.hhs.gov.</E>
                    </P>
                </ADD>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>The Codex Alimentarius Commission was established in 1963 by two United Nations organizations, the Food and Agriculture Organization (FAO) and the World Health Organization (WHO). Through adoption of food standards, codes of practice, and other guidelines developed by its committees, and by promoting their adoption and implementation by governments, Codex seeks to protect the health of consumers and ensure fair practices in the food trade.</P>
                <P>The Terms of Reference of the Codex Committee on Food Additives (CCFA) are:</P>
                <P>(a) to establish or endorse permitted maximum levels for individual food additives;</P>
                <P>(b) to prepare priority lists of food additives for risk assessment by the Joint FAO/WHO Expert Committee on Food Additives;</P>
                <P>(c) to assign functional classes to individual food additives;</P>
                <P>(d) to recommend specifications of identity and purity for food additives for adoption by the Commission;</P>
                <P>(e) to consider methods of analysis for the determination of additives in food; and</P>
                <P>(f) to consider and elaborate standards or codes for related subjects such as the labelling of food additives when sold as such.</P>
                <P>The CCFA is hosted by China. The United States attends the CCFA as a member country of Codex.</P>
                <HD SOURCE="HD1">Issues To Be Discussed at the Public Meeting</HD>
                <P>The following items on the agenda for the 54th Session of the CCFA will be discussed during the public meeting:</P>
                <FP SOURCE="FP-1">• Matters Referred by the Codex Alimentarius Commission and other subsidiary bodies</FP>
                <FP SOURCE="FP-1">• Matters of Interest arising from FAO/WHO and from the 96th and 97th Meetings of the Joint FAO/WHO Expert Committee on Food Additives (JECFA)</FP>
                <FP SOURCE="FP-1">• Proposed draft specifications for identity and purity of food additives arising from the 96th and 97th JECFA meetings</FP>
                <FP SOURCE="FP-1">
                    • Endorsement and/or revision of maximum levels for food additives 
                    <PRTPAGE P="10022"/>
                    and processing aids in Codex standards
                </FP>
                <FP SOURCE="FP-1">• Alignment of the food additive provisions of commodity standards: Report of the electronic working group (EWG) on Alignment</FP>
                <FP SOURCE="FP-1">
                    • 
                    <E T="03">General Standard for Food Additives</E>
                     (GFSA): Report of the EWG on the GSFA
                </FP>
                <FP SOURCE="FP-1">
                    • 
                    <E T="03">General Standard for Food Additives</E>
                     (GFSA): Proposals for new and/or revision of food additive provisions (replies to circular letter (CL) 2023/46-FA)
                </FP>
                <FP SOURCE="FP-1">
                    • Proposed draft revision to the 
                    <E T="03">Class Names and the International Numbering System for Food Additives</E>
                     (CXG 36-1989)
                </FP>
                <FP SOURCE="FP-1">• Proposals for additions and changes to the Priority List of Substances proposed for evaluation by JECFA (replies to CL 2023/47-FA)</FP>
                <FP SOURCE="FP-1">
                    • Discussion paper on divergence between the 
                    <E T="03">General Standard for Food Additives</E>
                     (GSFA), Codex commodity standards and other texts- Identification of outstanding issues
                </FP>
                <FP SOURCE="FP-1">• Discussion paper on the development of a standard for yeast</FP>
                <FP SOURCE="FP-1">• Other Business and Future Work</FP>
                <HD SOURCE="HD1">Public Meeting</HD>
                <P>
                    At the public meeting on March 19, 2024, draft U.S. positions on the agenda items will be described and discussed, and attendees will have the opportunity to pose questions and offer comments. Written comments may be offered at the meeting or sent to Dr. Daniel Folmer, U.S. Alternate Delegate to the 54th Session of the CCFA, at 
                    <E T="03">Daniel.Folmer@fda.hhs.gov.</E>
                </P>
                <HD SOURCE="HD1">Additional Public Notification</HD>
                <P>
                    Public awareness of all segments of rulemaking and policy development is important. Consequently, the U.S. Codex Office will announce this 
                    <E T="04">Federal Register</E>
                     publication on-line through the USDA Codex web page located at: 
                    <E T="03">http://www.usda.gov/codex,</E>
                     a link that also offers an email subscription service providing access to information related to Codex. Customers can add or delete their subscriptions themselves and have the option to password protect their accounts.
                </P>
                <HD SOURCE="HD1">USDA Non-Discrimination Statement</HD>
                <P>No agency, officer, or employee of the USDA shall, on the grounds of race, color, national origin, religion, sex, gender identity, sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, or political beliefs, exclude from participation in, deny the benefits of, or subject to discrimination any person in the United States under any program or activity conducted by the USDA.</P>
                <HD SOURCE="HD1">How To File a Complaint of Discrimination</HD>
                <P>
                    To file a complaint of discrimination, complete the USDA Program Discrimination Complaint Form, which may be accessed online at 
                    <E T="03">https://www.usda.gov/oascr/filing-program-discrimination-complaint-usda-customer,</E>
                     or write a letter signed by you or your authorized representative. Send your completed complaint form or letter to USDA by mail, fax, or email. Mail: U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue SW, Washington, DC 20250-9410; Fax: (202) 690-7442; Email: 
                    <E T="03">program.intake@usda.gov.</E>
                     Persons with disabilities who require alternative means for communication (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).
                </P>
                <SIG>
                    <DATED>Done at Washington, DC, on February 5, 2024.</DATED>
                    <NAME>Mary Frances Lowe,</NAME>
                    <TITLE>U.S. Manager for Codex Alimentarius.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02913 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>Food and Nutrition Service</SUBAGY>
                <SUBJECT>Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): 2024/2025 Income Eligibility Guidelines</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Food and Nutrition Service (FNS), USDA.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of Agriculture (“Department”) announces adjusted income eligibility guidelines to be used by State agencies in determining the income eligibility of persons applying to participate in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). These income eligibility guidelines are to be used in conjunction with the WIC Regulations.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable date July 1, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Allison Post, Chief, WIC Administration, Benefits, and Certification Branch, Policy Division, FNS, USDA, 1320 Braddock Place, Alexandria, Virginia 22314, 703-457-7708.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Executive Order 12866</HD>
                <P>This notice is exempt from review by the Office of Management and Budget under Executive Order 12866.</P>
                <HD SOURCE="HD1">Regulatory Flexibility Act</HD>
                <P>This action is not a rule as defined by the Regulatory Flexibility Act (5 U.S.C. 601-612) and thus is exempt from the provisions of this Act.</P>
                <HD SOURCE="HD1">Paperwork Reduction Act of 1995</HD>
                <P>This notice does not contain reporting or recordkeeping requirements subject to approval by the Office of Management and Budget in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507).</P>
                <HD SOURCE="HD1">Executive Order 12372</HD>
                <P>This program is listed in the Catalog of Federal Domestic Assistance Programs under No. 10.557 and is subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials (7 CFR part 3015, subpart V, 48 FR 29100, June 24, 1983, and 49 FR 22675, May 31, 1984).</P>
                <HD SOURCE="HD1">Description</HD>
                <P>Section 17(d)(2)(A) of the Child Nutrition Act of 1966, as amended (42 U.S.C. 1786(d)(2)(A)), requires the Secretary of Agriculture to establish income criteria to be used with nutritional risk criteria in determining a person's eligibility for participation in the WIC Program. The law provides that persons will be income-eligible for the WIC Program if they are members of families that satisfy the income standard prescribed for reduced-price school meals under section 9(b) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)). Under section 9(b), the income limit for reduced-price school meals is 185 percent of the Federal poverty guidelines, as adjusted.</P>
                <P>Section 9(b) also requires that these guidelines be revised annually to reflect changes in the Consumer Price Index. The annual revision for 2024 was published by the Department of Health and Human Services (HHS) at 89 FR 2961 on January 17, 2024. The guidelines published by HHS are referred to as the “poverty guidelines.”</P>
                <P>
                    Program Regulations at 7 CFR 246.7(d)(1) specify that State agencies may prescribe income guidelines either equaling the income guidelines established under Section 9 of the Richard B. Russell National School Lunch Act for reduced-price school meals, or identical to State or local guidelines for free or reduced-price health care. However, in conforming WIC income guidelines to State or local 
                    <PRTPAGE P="10023"/>
                    health care guidelines, the State cannot establish WIC guidelines which exceed the guidelines for reduced-price school meals, or which are less than 100 percent of the Federal poverty guidelines. Consistent with the method used to compute income eligibility guidelines for reduced-price meals under the National School Lunch Program, the poverty guidelines were multiplied by 1.85 and the results rounded upward to the next whole dollar.
                </P>
                <P>
                    Currently, the Department is publishing the maximum and minimum WIC income eligibility guidelines by household size for the period of July 1, 2024, through June 30, 2025. Consistent with section 17(f)(17) of the Child Nutrition Act of 1966, as amended (42 U.S.C. 1786(f)(17)), a State agency may implement the revised WIC income eligibility guidelines concurrently with the implementation of income eligibility guidelines under the Medicaid Program established under Title XIX of the Social Security Act (42 U.S.C. 1396, 
                    <E T="03">et seq.</E>
                    ). State agencies may coordinate implementation with the revised Medicaid guidelines, 
                    <E T="03">i.e.,</E>
                     earlier in the year, but in no case may implementation take place later than July 1, 2024. State agencies that do not coordinate implementation with the revised Medicaid guidelines must implement the WIC income eligibility guidelines on or before July 1, 2024.
                </P>
                <GPOTABLE COLS="11" OPTS="L2,p7,7/8,i1" CDEF="s50,9,9,9,9,9,9,9,9,9,9">
                    <TTITLE>Income Eligibility Guidelines</TTITLE>
                    <TDESC>[Effective from July 1, 2024, to June 30, 2025]</TDESC>
                    <BOXHD>
                        <CHED H="1">Household size</CHED>
                        <CHED H="1">Federal poverty guidelines—100%</CHED>
                        <CHED H="2">Annual</CHED>
                        <CHED H="2">Monthly</CHED>
                        <CHED H="2">Twice-monthly</CHED>
                        <CHED H="2">Bi-weekly</CHED>
                        <CHED H="2">Weekly</CHED>
                        <CHED H="1">Reduced price meals—185%</CHED>
                        <CHED H="2">Annual</CHED>
                        <CHED H="2">Monthly</CHED>
                        <CHED H="2">Twice-monthly</CHED>
                        <CHED H="2">Bi-weekly</CHED>
                        <CHED H="2">Weekly</CHED>
                    </BOXHD>
                    <ROW EXPSTB="10" RUL="s">
                        <ENT I="21">
                            <E T="02">48 Contiguous States, DC, Guam and Territories</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">1</ENT>
                        <ENT>$15,060</ENT>
                        <ENT>$1,255</ENT>
                        <ENT>$628</ENT>
                        <ENT>$580</ENT>
                        <ENT>$290</ENT>
                        <ENT>$27,861</ENT>
                        <ENT>$2,322</ENT>
                        <ENT>$1,161</ENT>
                        <ENT>$1,072</ENT>
                        <ENT>$536</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>20,440</ENT>
                        <ENT>1,704</ENT>
                        <ENT>852</ENT>
                        <ENT>787</ENT>
                        <ENT>394</ENT>
                        <ENT>37,814</ENT>
                        <ENT>3,152</ENT>
                        <ENT>1,576</ENT>
                        <ENT>1,455</ENT>
                        <ENT>728</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>25,820</ENT>
                        <ENT>2,152</ENT>
                        <ENT>1,076</ENT>
                        <ENT>994</ENT>
                        <ENT>497</ENT>
                        <ENT>47,767</ENT>
                        <ENT>3,981</ENT>
                        <ENT>1,991</ENT>
                        <ENT>1,838</ENT>
                        <ENT>919</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4</ENT>
                        <ENT>31,200</ENT>
                        <ENT>2,600</ENT>
                        <ENT>1,300</ENT>
                        <ENT>1,200</ENT>
                        <ENT>600</ENT>
                        <ENT>57,720</ENT>
                        <ENT>4,810</ENT>
                        <ENT>2,405</ENT>
                        <ENT>2,220</ENT>
                        <ENT>1,110</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5</ENT>
                        <ENT>36,580</ENT>
                        <ENT>3,049</ENT>
                        <ENT>1,525</ENT>
                        <ENT>1,407</ENT>
                        <ENT>704</ENT>
                        <ENT>67,673</ENT>
                        <ENT>5,640</ENT>
                        <ENT>2,820</ENT>
                        <ENT>2,603</ENT>
                        <ENT>1,302</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">6</ENT>
                        <ENT>41,960</ENT>
                        <ENT>3,497</ENT>
                        <ENT>1,749</ENT>
                        <ENT>1,614</ENT>
                        <ENT>807</ENT>
                        <ENT>77,626</ENT>
                        <ENT>6,469</ENT>
                        <ENT>3,235</ENT>
                        <ENT>2,986</ENT>
                        <ENT>1,493</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">7</ENT>
                        <ENT>47,340</ENT>
                        <ENT>3,945</ENT>
                        <ENT>1,973</ENT>
                        <ENT>1,821</ENT>
                        <ENT>911</ENT>
                        <ENT>87,579</ENT>
                        <ENT>7,299</ENT>
                        <ENT>3,650</ENT>
                        <ENT>3,369</ENT>
                        <ENT>1,685</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">8</ENT>
                        <ENT>52,720</ENT>
                        <ENT>4,394</ENT>
                        <ENT>2,197</ENT>
                        <ENT>2,028</ENT>
                        <ENT>1014</ENT>
                        <ENT>97,532</ENT>
                        <ENT>8,128</ENT>
                        <ENT>4,064</ENT>
                        <ENT>3,752</ENT>
                        <ENT>1,876</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Each add'l family member add</ENT>
                        <ENT>+ 5,380</ENT>
                        <ENT>+ 449</ENT>
                        <ENT>+ 225</ENT>
                        <ENT>+ 207</ENT>
                        <ENT>+ 104</ENT>
                        <ENT>+ 9,953</ENT>
                        <ENT>+ 830</ENT>
                        <ENT>+ 415</ENT>
                        <ENT>+ 383</ENT>
                        <ENT>+ 192</ENT>
                    </ROW>
                    <ROW EXPSTB="10" RUL="s">
                        <ENT I="21">
                            <E T="02">Alaska</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">1</ENT>
                        <ENT>18,810</ENT>
                        <ENT>1,568</ENT>
                        <ENT>784</ENT>
                        <ENT>724</ENT>
                        <ENT>362</ENT>
                        <ENT>34,799</ENT>
                        <ENT>2,900</ENT>
                        <ENT>1,450</ENT>
                        <ENT>1,339</ENT>
                        <ENT>670</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>25,540</ENT>
                        <ENT>2,129</ENT>
                        <ENT>1,065</ENT>
                        <ENT>983</ENT>
                        <ENT>492</ENT>
                        <ENT>47,249</ENT>
                        <ENT>3,938</ENT>
                        <ENT>1,969</ENT>
                        <ENT>1,818</ENT>
                        <ENT>909</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>32,270</ENT>
                        <ENT>2,690</ENT>
                        <ENT>1,345</ENT>
                        <ENT>1,242</ENT>
                        <ENT>621</ENT>
                        <ENT>59,700</ENT>
                        <ENT>4,975</ENT>
                        <ENT>2,488</ENT>
                        <ENT>2,297</ENT>
                        <ENT>1,149</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4</ENT>
                        <ENT>39,000</ENT>
                        <ENT>3,250</ENT>
                        <ENT>1,625</ENT>
                        <ENT>1,500</ENT>
                        <ENT>750</ENT>
                        <ENT>72,150</ENT>
                        <ENT>6,013</ENT>
                        <ENT>3,007</ENT>
                        <ENT>2,775</ENT>
                        <ENT>1,388</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5</ENT>
                        <ENT>45,730</ENT>
                        <ENT>3,811</ENT>
                        <ENT>1,906</ENT>
                        <ENT>1,759</ENT>
                        <ENT>880</ENT>
                        <ENT>84,601</ENT>
                        <ENT>7,051</ENT>
                        <ENT>3,526</ENT>
                        <ENT>3,254</ENT>
                        <ENT>1,627</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">6</ENT>
                        <ENT>52,460</ENT>
                        <ENT>4,372</ENT>
                        <ENT>2,186</ENT>
                        <ENT>2,018</ENT>
                        <ENT>1,009</ENT>
                        <ENT>97,051</ENT>
                        <ENT>8,088</ENT>
                        <ENT>4,044</ENT>
                        <ENT>3,733</ENT>
                        <ENT>1,867</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">7</ENT>
                        <ENT>59,190</ENT>
                        <ENT>4,933</ENT>
                        <ENT>2,467</ENT>
                        <ENT>2,277</ENT>
                        <ENT>1,139</ENT>
                        <ENT>109,502</ENT>
                        <ENT>9,126</ENT>
                        <ENT>4,563</ENT>
                        <ENT>4,212</ENT>
                        <ENT>2,106</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">8</ENT>
                        <ENT>65,920</ENT>
                        <ENT>5,494</ENT>
                        <ENT>2,747</ENT>
                        <ENT>2,536</ENT>
                        <ENT>1,268</ENT>
                        <ENT>121,952</ENT>
                        <ENT>10,163</ENT>
                        <ENT>5,082</ENT>
                        <ENT>4,691</ENT>
                        <ENT>2,346</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Each add'l family member add</ENT>
                        <ENT>+ 6,730</ENT>
                        <ENT>+ 561</ENT>
                        <ENT>+ 281</ENT>
                        <ENT>+ 259</ENT>
                        <ENT>+ 130</ENT>
                        <ENT>+ 12,451</ENT>
                        <ENT>+ 1,038</ENT>
                        <ENT>+ 519</ENT>
                        <ENT>+ 479</ENT>
                        <ENT>+ 240</ENT>
                    </ROW>
                    <ROW EXPSTB="10" RUL="s">
                        <ENT I="21">
                            <E T="02">Hawaii</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">1</ENT>
                        <ENT>17,310</ENT>
                        <ENT>1,443</ENT>
                        <ENT>722</ENT>
                        <ENT>666</ENT>
                        <ENT>333</ENT>
                        <ENT>32,024</ENT>
                        <ENT>2,669</ENT>
                        <ENT>1,335</ENT>
                        <ENT>1,232</ENT>
                        <ENT>616</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>23,500</ENT>
                        <ENT>1,959</ENT>
                        <ENT>980</ENT>
                        <ENT>904</ENT>
                        <ENT>452</ENT>
                        <ENT>43,475</ENT>
                        <ENT>3,623</ENT>
                        <ENT>1,812</ENT>
                        <ENT>1,673</ENT>
                        <ENT>837</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>29,690</ENT>
                        <ENT>2,475</ENT>
                        <ENT>1,238</ENT>
                        <ENT>1,142</ENT>
                        <ENT>571</ENT>
                        <ENT>54,927</ENT>
                        <ENT>4,578</ENT>
                        <ENT>2,289</ENT>
                        <ENT>2,113</ENT>
                        <ENT>1,057</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4</ENT>
                        <ENT>35,880</ENT>
                        <ENT>2,990</ENT>
                        <ENT>1,495</ENT>
                        <ENT>1,380</ENT>
                        <ENT>690</ENT>
                        <ENT>66,378</ENT>
                        <ENT>5,532</ENT>
                        <ENT>2,766</ENT>
                        <ENT>2,553</ENT>
                        <ENT>1,277</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5</ENT>
                        <ENT>42,070</ENT>
                        <ENT>3,506</ENT>
                        <ENT>1,753</ENT>
                        <ENT>1,619</ENT>
                        <ENT>810</ENT>
                        <ENT>77,830</ENT>
                        <ENT>6,486</ENT>
                        <ENT>3,243</ENT>
                        <ENT>2,994</ENT>
                        <ENT>1,497</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">6</ENT>
                        <ENT>48,260</ENT>
                        <ENT>4,022</ENT>
                        <ENT>2,011</ENT>
                        <ENT>1,857</ENT>
                        <ENT>929</ENT>
                        <ENT>89,281</ENT>
                        <ENT>7,441</ENT>
                        <ENT>3,721</ENT>
                        <ENT>3,434</ENT>
                        <ENT>1,717</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">7</ENT>
                        <ENT>54,450</ENT>
                        <ENT>4,538</ENT>
                        <ENT>2,269</ENT>
                        <ENT>2,095</ENT>
                        <ENT>1,048</ENT>
                        <ENT>100,733</ENT>
                        <ENT>8,395</ENT>
                        <ENT>4,198</ENT>
                        <ENT>3,875</ENT>
                        <ENT>1,938</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">8</ENT>
                        <ENT>60,640</ENT>
                        <ENT>5,054</ENT>
                        <ENT>2,527</ENT>
                        <ENT>2,333</ENT>
                        <ENT>1,167</ENT>
                        <ENT>112,184</ENT>
                        <ENT>9,349</ENT>
                        <ENT>4,675</ENT>
                        <ENT>4,315</ENT>
                        <ENT>2,158</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Each add'l family member add</ENT>
                        <ENT>+ 6,190</ENT>
                        <ENT>+ 516</ENT>
                        <ENT>+ 258</ENT>
                        <ENT>+ 239</ENT>
                        <ENT>+ 120</ENT>
                        <ENT>+ 11,452</ENT>
                        <ENT>+ 955</ENT>
                        <ENT>+ 478</ENT>
                        <ENT>+ 441</ENT>
                        <ENT>+ 221</ENT>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="11" OPTS="L2,p7,7/8,i1" CDEF="s50,9,9,9,9,9,9,9,9,9,9">
                    <TTITLE>Income Eligibility Guidelines</TTITLE>
                    <TDESC>[Effective from July 1, 2024, to June 30, 2025]</TDESC>
                    <TDESC>Household Size Larger Than 8</TDESC>
                    <BOXHD>
                        <CHED H="1">Household size</CHED>
                        <CHED H="1">Federal poverty guidelines—100%</CHED>
                        <CHED H="2">Annual</CHED>
                        <CHED H="2">Monthly</CHED>
                        <CHED H="2">Twice-monthly</CHED>
                        <CHED H="2">Bi-weekly</CHED>
                        <CHED H="2">Weekly</CHED>
                        <CHED H="1">Reduced price meals—185%</CHED>
                        <CHED H="2">Annual</CHED>
                        <CHED H="2">Monthly</CHED>
                        <CHED H="2">Twice-monthly</CHED>
                        <CHED H="2">Bi-weekly</CHED>
                        <CHED H="2">Weekly</CHED>
                    </BOXHD>
                    <ROW EXPSTB="10" RUL="s">
                        <ENT I="21">
                            <E T="02">48 Contiguous States, DC, Guam and Territories</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">9</ENT>
                        <ENT>$58,100</ENT>
                        <ENT>$4,842</ENT>
                        <ENT>$2,421</ENT>
                        <ENT>$2,235</ENT>
                        <ENT>$1,118</ENT>
                        <ENT>$107,485</ENT>
                        <ENT>$8,958</ENT>
                        <ENT>$4,479</ENT>
                        <ENT>$4,135</ENT>
                        <ENT>$2,068</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10</ENT>
                        <ENT>63,480</ENT>
                        <ENT>5,290</ENT>
                        <ENT>2,645</ENT>
                        <ENT>2,442</ENT>
                        <ENT>1,221</ENT>
                        <ENT>117,438</ENT>
                        <ENT>9,787</ENT>
                        <ENT>4,894</ENT>
                        <ENT>4,517</ENT>
                        <ENT>2,259</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">11</ENT>
                        <ENT>68,860</ENT>
                        <ENT>5,739</ENT>
                        <ENT>2,870</ENT>
                        <ENT>2,649</ENT>
                        <ENT>1,325</ENT>
                        <ENT>127,391</ENT>
                        <ENT>10,616</ENT>
                        <ENT>5,308</ENT>
                        <ENT>4,900</ENT>
                        <ENT>2,450</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12</ENT>
                        <ENT>74,240</ENT>
                        <ENT>6,187</ENT>
                        <ENT>3,094</ENT>
                        <ENT>2,856</ENT>
                        <ENT>1,428</ENT>
                        <ENT>137,344</ENT>
                        <ENT>11,446</ENT>
                        <ENT>5,723</ENT>
                        <ENT>5,283</ENT>
                        <ENT>2,642</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">13</ENT>
                        <ENT>79,620</ENT>
                        <ENT>6,635</ENT>
                        <ENT>3,318</ENT>
                        <ENT>3,063</ENT>
                        <ENT>1,532</ENT>
                        <ENT>147,297</ENT>
                        <ENT>12,275</ENT>
                        <ENT>6,138</ENT>
                        <ENT>5,666</ENT>
                        <ENT>2,833</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">14</ENT>
                        <ENT>85,000</ENT>
                        <ENT>7,084</ENT>
                        <ENT>3,542</ENT>
                        <ENT>3,270</ENT>
                        <ENT>1,635</ENT>
                        <ENT>157,250</ENT>
                        <ENT>13,105</ENT>
                        <ENT>6,553</ENT>
                        <ENT>6,049</ENT>
                        <ENT>3,025</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">15</ENT>
                        <ENT>90,380</ENT>
                        <ENT>7,532</ENT>
                        <ENT>3,766</ENT>
                        <ENT>3,477</ENT>
                        <ENT>1,739</ENT>
                        <ENT>167,203</ENT>
                        <ENT>13,934</ENT>
                        <ENT>6,967</ENT>
                        <ENT>6,431</ENT>
                        <ENT>3,216</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">16</ENT>
                        <ENT>95,760</ENT>
                        <ENT>7,980</ENT>
                        <ENT>3,990</ENT>
                        <ENT>3,684</ENT>
                        <ENT>1,842</ENT>
                        <ENT>177,156</ENT>
                        <ENT>14,763</ENT>
                        <ENT>7,382</ENT>
                        <ENT>6,814</ENT>
                        <ENT>3,407</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <PRTPAGE P="10024"/>
                        <ENT I="01">Each add'l family member add</ENT>
                        <ENT>+ 5,380</ENT>
                        <ENT>+ 449</ENT>
                        <ENT>+ 225</ENT>
                        <ENT>+ 207</ENT>
                        <ENT>+ 104</ENT>
                        <ENT>+ 9,953</ENT>
                        <ENT>+ 830</ENT>
                        <ENT>+ 415</ENT>
                        <ENT>+ 383</ENT>
                        <ENT>+ 192</ENT>
                    </ROW>
                    <ROW EXPSTB="10" RUL="s">
                        <ENT I="21">
                            <E T="02">Alaska</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">9</ENT>
                        <ENT>72,650</ENT>
                        <ENT>6,055</ENT>
                        <ENT>3,028</ENT>
                        <ENT>2,795</ENT>
                        <ENT>1,398</ENT>
                        <ENT>134,403</ENT>
                        <ENT>11,201</ENT>
                        <ENT>5,601</ENT>
                        <ENT>5,170</ENT>
                        <ENT>2,585</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10</ENT>
                        <ENT>79,380</ENT>
                        <ENT>6,615</ENT>
                        <ENT>3,308</ENT>
                        <ENT>3,054</ENT>
                        <ENT>1,527</ENT>
                        <ENT>146,853</ENT>
                        <ENT>12,238</ENT>
                        <ENT>6,119</ENT>
                        <ENT>5,649</ENT>
                        <ENT>2,825</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">11</ENT>
                        <ENT>86,110</ENT>
                        <ENT>7,176</ENT>
                        <ENT>3,588</ENT>
                        <ENT>3,312</ENT>
                        <ENT>1,656</ENT>
                        <ENT>159,304</ENT>
                        <ENT>13,276</ENT>
                        <ENT>6,638</ENT>
                        <ENT>6,128</ENT>
                        <ENT>3,064</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12</ENT>
                        <ENT>92,840</ENT>
                        <ENT>7,737</ENT>
                        <ENT>3,869</ENT>
                        <ENT>3,571</ENT>
                        <ENT>1,786</ENT>
                        <ENT>171,754</ENT>
                        <ENT>14,313</ENT>
                        <ENT>7,157</ENT>
                        <ENT>6,606</ENT>
                        <ENT>3,303</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">13</ENT>
                        <ENT>99,570</ENT>
                        <ENT>8,298</ENT>
                        <ENT>4,149</ENT>
                        <ENT>3,830</ENT>
                        <ENT>1,915</ENT>
                        <ENT>184,205</ENT>
                        <ENT>15,351</ENT>
                        <ENT>7,676</ENT>
                        <ENT>7,085</ENT>
                        <ENT>3,543</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">14</ENT>
                        <ENT>106,300</ENT>
                        <ENT>8,859</ENT>
                        <ENT>4,430</ENT>
                        <ENT>4,089</ENT>
                        <ENT>2,045</ENT>
                        <ENT>196,655</ENT>
                        <ENT>16,388</ENT>
                        <ENT>8,194</ENT>
                        <ENT>7,564</ENT>
                        <ENT>3,782</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">15</ENT>
                        <ENT>113,030</ENT>
                        <ENT>9,420</ENT>
                        <ENT>4,710</ENT>
                        <ENT>4,348</ENT>
                        <ENT>2,174</ENT>
                        <ENT>209,106</ENT>
                        <ENT>17,426</ENT>
                        <ENT>8,713</ENT>
                        <ENT>8,043</ENT>
                        <ENT>4,022</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">16</ENT>
                        <ENT>119,760</ENT>
                        <ENT>9,980</ENT>
                        <ENT>4,990</ENT>
                        <ENT>4,607</ENT>
                        <ENT>2,304</ENT>
                        <ENT>221,556</ENT>
                        <ENT>18,463</ENT>
                        <ENT>9,232</ENT>
                        <ENT>8,522</ENT>
                        <ENT>4,261</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Each add'l family member add</ENT>
                        <ENT>+ 6,730</ENT>
                        <ENT>+ 561</ENT>
                        <ENT>+ 281</ENT>
                        <ENT>+ 259</ENT>
                        <ENT>+ 130</ENT>
                        <ENT>+ 12,451</ENT>
                        <ENT>+ 1,038</ENT>
                        <ENT>+ 519</ENT>
                        <ENT>+ 479</ENT>
                        <ENT>+ 240</ENT>
                    </ROW>
                    <ROW EXPSTB="10" RUL="s">
                        <ENT I="21">
                            <E T="02">Hawaii</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">9</ENT>
                        <ENT>66,830</ENT>
                        <ENT>5,570</ENT>
                        <ENT>2,785</ENT>
                        <ENT>2,571</ENT>
                        <ENT>1,286</ENT>
                        <ENT>123,636</ENT>
                        <ENT>10,303</ENT>
                        <ENT>5,152</ENT>
                        <ENT>4,756</ENT>
                        <ENT>2,378</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">10</ENT>
                        <ENT>73,020</ENT>
                        <ENT>6,085</ENT>
                        <ENT>3,043</ENT>
                        <ENT>2,809</ENT>
                        <ENT>1,405</ENT>
                        <ENT>135,087</ENT>
                        <ENT>11,258</ENT>
                        <ENT>5,629</ENT>
                        <ENT>5,196</ENT>
                        <ENT>2,598</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">11</ENT>
                        <ENT>79,210</ENT>
                        <ENT>6,601</ENT>
                        <ENT>3,301</ENT>
                        <ENT>3,047</ENT>
                        <ENT>1,524</ENT>
                        <ENT>146,539</ENT>
                        <ENT>12,212</ENT>
                        <ENT>6,106</ENT>
                        <ENT>5,637</ENT>
                        <ENT>2,819</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">12</ENT>
                        <ENT>85,400</ENT>
                        <ENT>7,117</ENT>
                        <ENT>3,559</ENT>
                        <ENT>3,285</ENT>
                        <ENT>1,643</ENT>
                        <ENT>157,990</ENT>
                        <ENT>13,166</ENT>
                        <ENT>6,583</ENT>
                        <ENT>6,077</ENT>
                        <ENT>3,039</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">13</ENT>
                        <ENT>91,590</ENT>
                        <ENT>7,633</ENT>
                        <ENT>3,817</ENT>
                        <ENT>3,523</ENT>
                        <ENT>1,762</ENT>
                        <ENT>169,442</ENT>
                        <ENT>14,121</ENT>
                        <ENT>7,061</ENT>
                        <ENT>6,517</ENT>
                        <ENT>3,259</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">14</ENT>
                        <ENT>97,780</ENT>
                        <ENT>8,149</ENT>
                        <ENT>4,075</ENT>
                        <ENT>3,761</ENT>
                        <ENT>1,881</ENT>
                        <ENT>180,893</ENT>
                        <ENT>15,075</ENT>
                        <ENT>7,538</ENT>
                        <ENT>6,958</ENT>
                        <ENT>3,479</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">15</ENT>
                        <ENT>103,970</ENT>
                        <ENT>8,665</ENT>
                        <ENT>4,333</ENT>
                        <ENT>3,999</ENT>
                        <ENT>2,000</ENT>
                        <ENT>192,345</ENT>
                        <ENT>16,029</ENT>
                        <ENT>8,015</ENT>
                        <ENT>7,398</ENT>
                        <ENT>3,699</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">16</ENT>
                        <ENT>110,160</ENT>
                        <ENT>9,180</ENT>
                        <ENT>4,590</ENT>
                        <ENT>4,237</ENT>
                        <ENT>2,119</ENT>
                        <ENT>203,796</ENT>
                        <ENT>16,983</ENT>
                        <ENT>8,492</ENT>
                        <ENT>7,839</ENT>
                        <ENT>3,920</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Each add'l family member add</ENT>
                        <ENT>+ 6,190</ENT>
                        <ENT>+ 516</ENT>
                        <ENT>+ 258</ENT>
                        <ENT>+ 239</ENT>
                        <ENT>+ 120</ENT>
                        <ENT>+ 11,452</ENT>
                        <ENT>+ 955</ENT>
                        <ENT>+ 478</ENT>
                        <ENT>+ 441</ENT>
                        <ENT>+ 221</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The table of this Notice contains the income limits by household size for the 48 contiguous States, the District of Columbia, and all United States Territories, including Guam. Separate tables for Alaska and Hawaii have been included for the convenience of the State agencies because the poverty guidelines for Alaska and Hawaii are higher than for the 48 contiguous States.</P>
                <P>
                    <E T="03">Authority:</E>
                     42 U.S.C. 1786.
                </P>
                <SIG>
                    <NAME>Cynthia Long,</NAME>
                    <TITLE>Administrator, Food and Nutrition Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02922 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3410-30-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>Forest Service</SUBAGY>
                <SUBJECT>Trinity County Resource Advisory Committee</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Forest Service, Agriculture (USDA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Trinity County Resource Advisory Committee (RAC) will hold a public meeting according to the details shown below. The Committee is authorized under the Secure Rural Schools and Community Self-Determination Act (the Act) and operates in compliance with the Federal Advisory Committee Act (FACA). The purpose of the Committee is to improve collaborative relationships and to provide advice and recommendations to the Forest Service concerning projects and funding consistent with Title II of the Act as well as to make recommendations on recreation fee proposals for sites on the Shasta-Trinity National Forest within Trinity County, consistent with the Federal Lands Recreation Enhancement Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>An in-person and virtual meeting will be held on March 11, 2024, 05:00 p.m.-08:00 p.m. Pacific Daylight Time (PDT), March 18, 2024, 05:00 p.m.-08:00 p.m. PDT, and March 25, 2024, 05:00 p.m.-08:00 p.m. PDT.</P>
                    <P>
                        <E T="03">Written and Oral Comments:</E>
                         Anyone wishing to provide in-person and or virtual oral comments must pre-register by 11:59 p.m. PDT on March 10, 17, and 24, 2024. Written public comments will be accepted up to 11:59 p.m. PDT on March 10, 17, and 24, 2024. Comments submitted after these dates will be provided to the Forest Service, but the Committee may not have adequate time to consider those comments prior to the meetings.
                    </P>
                    <P>
                        All RAC meetings are subject to cancellation. For status of the meeting prior to attendance, please contact the person listed under 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                        .
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        This meeting will be held in-person and virtually at the Trinity County Library located at 351 Main St, Weaverville, California 96093. The public may also join virtually via webcast, teleconference, videoconference, and/or Homeland Security Information Network (HSIN) virtual meeting at: 
                        <E T="03">https://teams.microsoft.com/l/meetup-join/19%3ameeting_ZmRkNDdkNjAtNzBkMy00MzZjLWE0ODMtNzc0NzgwNGNlMTg2%40thread.v2/0?context=%7b%22Tid%22%3a%22ed5b36e7-01ee-4ebc-867e-e03cfa0d4697%22%2c%22Oid%22%3a%2265419d28-6967-4491-b216-f10cf939c9be%22%7d.</E>
                         RAC information and meeting details can be found at the following website: 
                        <E T="03">https://www.fs.usda.gov/main/stnf/workingtogether/advisorycommittees</E>
                         or by contacting the person listed under 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                        .
                    </P>
                    <P>
                        <E T="03">Written Comments:</E>
                         Written comments must be sent by email to 
                        <E T="03">monique.rea@usda.gov</E>
                         or via mail (
                        <E T="03">i.e.,</E>
                         postmarked) to Monique Rea, 360 Main Street, Weaverville, California 96093. The Forest Service strongly prefers comments be submitted electronically.
                    </P>
                    <P>
                        <E T="03">Oral Comments:</E>
                         Persons or organizations wishing to make oral comments must pre-register by 11:59 p.m. PDT February 09, 2024, and speakers can only register for one 
                        <PRTPAGE P="10025"/>
                        speaking slot. Oral comments must be sent by email to 
                        <E T="03">monique.rea@usda.gov</E>
                         or via mail (
                        <E T="03">i.e.,</E>
                         postmarked) to Monique Rea, 360 Main Street, Weaverville, California 96093.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Monique Rea, RAC Coordinator, via email at 
                        <E T="03">monique.rea@usda.gov</E>
                         or via phone at 530-623-2121 or Tara Jones, Designated Federal Officer, via email at 
                        <E T="03">tara.jones@usda.gov</E>
                         or via phone at 530-623-2121.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The purpose of the meetings are to:</P>
                <P>1. Hear from Title II project proponents and discuss Title II project proposals;</P>
                <P>2. Make funding recommendations on Title II projects;</P>
                <P>3. Approve meeting minutes; and</P>
                <P>4. Schedule the next meeting.</P>
                <P>
                    The agenda will include time for individuals to make oral statements of three minutes or less. Individuals wishing to make an oral statement should make a request in writing at least three days prior to the meeting date to be scheduled on the agenda for that particular meeting. Written comments may be submitted to the Forest Service up to 10 days after the meeting date listed under 
                    <E T="02">DATES</E>
                    .
                </P>
                <P>
                    Please contact the person listed under 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    , by or before the deadline, for all questions related to the meeting. All comments, including names and addresses when provided, are placed in the record and are available for public inspection and copying. The public may inspect comments received upon request.
                </P>
                <P>
                    <E T="03">Meeting Accommodations:</E>
                     The meeting location is compliant with the Americans with Disabilities Act, and the USDA provides reasonable accommodation to individuals with disabilities where appropriate. If you are a person requiring reasonable accommodation, please make requests in advance for sign language interpretation, assistive listening devices, or other reasonable accommodation to the person listed under the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section or contact USDA's TARGET Center at (202) 720-2600 (voice and TTY) or USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English.
                </P>
                <P>USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.</P>
                <P>Equal opportunity practices in accordance with USDA's policies will be followed in all appointments to the Committee. To ensure that the recommendations of the Committee have taken in account the needs of the diverse groups served by USDA, membership shall include to the extent possible, individuals with demonstrated ability to represent minorities, women, and persons with disabilities. USDA is an equal opportunity provider, employer, and lender.</P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Egypt Simon,</NAME>
                    <TITLE>Acting USDA Committee Management Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02894 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3411-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>Forest Service</SUBAGY>
                <SUBJECT>Directive Publication Notice</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Forest Service, Agriculture (USDA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Forest Service (Forest Service or Agency), U.S. Department of Agriculture, provides direction to employees through issuances in its Directive System, comprised of the Forest Service Manual and Forest Service Handbooks. The Agency must provide public notice of and opportunity to comment on any directives that formulate standards, criteria, or guidelines applicable to Forest Service programs. Once per quarter, the Agency provides advance notice of proposed and interim directives that will be made available for public comment during the next three months; proposed and interim directives that were previously published for public comment but not yet finalized and issued; and notice of final directives issued in the last three months.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This notice identifies proposed and interim directives that will be published for public comment between January 1, 2024, and March 31, 2024; proposed and interim directives that were previously published for public comment but not yet finalized and issued; and final directives that have been issued since October 1, 2023.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Questions or comments may be submitted by email to the contact listed below.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        JoLynn Anderson, 971-313-1718 or 
                        <E T="03">jolynn.anderson@usda.gov.</E>
                         Individuals who use telecommunications devices for the hearing impaired may call 711 to reach the Telecommunications Relay Service, 24 hours a day, every day of the year, including holidays. You may register to receive email alerts regarding Forest Service directives at 
                        <E T="03">https://www.fs.usda.gov/about-agency/regulations-policies.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Proposed and Interim Directives</HD>
                <P>Consistent with 16 U.S.C. 1612(a) and 36 CFR part 216, the Forest Service publishes for public comment Agency directives that formulate standards, criteria, and guidelines applicable to Forest Service programs. Agency procedures for providing public notice and opportunity to comment are specified in Forest Service Handbook (FSH) 1109.12, Chapter 30, Providing Public Notice and Opportunity to Comment on Directives.</P>
                <P>The following proposed directives are planned for publication for public comment from January 1, 2024, to March 31, 2024:</P>
                <EXTRACT>
                    <P>1. Forest Service Manual (FSM) 2100, Environmental Management, Chapter 80, Mitigation of Adverse Impacts on Resources (planned for publication for public comment on November 8, 2023 (88 FR 77074)).</P>
                    <P>2. FSH 2709.11, Special Uses Handbook, Chapter 70, Renewable Energy (currently entitled Wind Energy Uses, planned for publication for public comment on November 8, 2023 (88 FR 77074)).</P>
                    <P>3. FSH 2109.15, Mitigation of Adverse Impacts on Resources, Chapter 10, Mitigation Principles and Compensatory Mitigation.</P>
                </EXTRACT>
                <P>The following proposed directives have been published for public comment but have not yet been finalized:</P>
                <EXTRACT>
                    <P>1. FSM 2200, Rangeland Management, Chapters Zero Code; 2210, Rangeland Management Planning; 2220, Management of Rangelands (Reserved); 2230, Grazing Permit System; 2240, Rangeland Improvements; 2250, Rangeland Management Cooperation; and 2270, Information Management and Reports; FSH 2209.13, Grazing Permit Administration Handbook, Chapters 10, Term Grazing Permits; 20, Grazing Agreements; 40, Livestock Use Permits; 50, Tribal Treaty Authorizations and Special Use Permits; and 90, Rangeland Management Decision-Making; and FSH 2209.16, Allotment Management Handbook, Chapter 10, Allotment Management and Administration.</P>
                    <P>
                        2. FSM 3800, Landscape Scale Restoration Program.
                        <PRTPAGE P="10026"/>
                    </P>
                    <P>3. FSH 2409.12, Timber Cruising Handbook, Chapters 30, Cruising Systems; 40, Cruise Planning, Data Recording, and Cruise Reporting; 60, Quality Control; and 70, Designating Timber for Cutting; FSH 2409.15, Timber Sale Administration Handbook, Chapters 20, Measuring and Accounting for Included Timber; 40, Rates and Payments; and 60, Operations and Other Provisions.</P>
                    <P>4. FSH 5509.11, Title Claims, Sales, and Grants Handbook, Chapter 10, Title Claims and Encroachments.</P>
                    <P>5. FSM 2000, National Forest Resource Management, Chapter 40, National Forest System Monitoring.</P>
                    <P>6. FSM 2300, Recreation, Wilderness, and Related Resource Management, Chapter 50, section 55, Climbing Management.</P>
                </EXTRACT>
                <HD SOURCE="HD1">Final Directives That Have Been Issued Since October 1, 2023</HD>
                <P>No final directives have been issued since October 1, 2023.</P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>JoLynn Anderson,</NAME>
                    <TITLE>Branch Lead, Directives, Information Collections and Government Clearance, Policy Office, National Forest System.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02853 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3411-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>Rural Business-Cooperative Service</SUBAGY>
                <SUBAGY>Rural Housing Service</SUBAGY>
                <SUBAGY>Rural Utilities Service</SUBAGY>
                <DEPDOC>[Docket No. RBS-23-BUSINESS-0025]</DEPDOC>
                <SUBJECT>Notice of Solicitation of Applications for the Strategic Economic and Community Development Program for FY 2024</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Rural Business-Cooperative Service, Rural Housing Service, and Rural Utilities Service, USDA.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Under Secretary for Rural Development (RD or Agency) is seeking applications for the Strategic Economic and Community Development (SECD) priority, as reauthorized by section 6401 of the Agriculture Improvement Act of 2018 (2018 Farm Bill) for projects that support multi-jurisdictional and multi-sectoral strategic community investment plans. In fiscal year (FY) 2024, the covered RD programs will implement SECD by reserving loan and/or grant funds from the appropriations of the programs covered by this funding priority. This notice describes the requirements by which the RD programs will consider projects eligible for the covered programs' reserved appropriated funds and the information needed to submit an application. This NOSA is being issued prior to passage of a final appropriations act for FY 2024 to allow potential applicants time to submit applications for financial assistance under the covered programs and to give the RD programs time to process applications. Information on estimated FY 24 funding amounts can be found under 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                        , section B. Federal Award Information of this notice.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Each of the participating covered programs has a different established deadline for receipt of applications. Please refer to the RD website or the appropriate covered program's 
                        <E T="04">Federal Register</E>
                         Notice for application deadline information.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        SECD applications, except for the covered Water and Waste Loans and Grant Programs, must be submitted electronically to the USDA RD Office servicing the area where the project is located. Applications for Water and Waste Loans and Grants Programs must be submitted electronically at 
                        <E T="03">https://rdapply.sc.egov.usda.gov/.</E>
                         For lenders assigned a CRM, SECD applications must be submitted to their assigned CRM.
                    </P>
                    <P>All applicants are responsible for any expenses incurred in preparing and submitting applications.</P>
                    <P>To apply for SECD funding in FY 2024, applicants must follow the instructions as published in this notice:</P>
                    <P>
                        • All applicants must submit the Form RD 1980-88, “Strategic Economic and Community Development (Section 6401, Agriculture Improvement Act of 2018 (Pub. L. 115-334)),” located at 
                        <E T="03">https://www.rd.usda.gov/programs-services/business-programs/strategic-economic-and-community-development,</E>
                         with their program application to the appropriate covered program.
                    </P>
                    <P>
                        • SECD applications, except for the Water and Waste Loans and Grant Program SECD applications, must be submitted electronically to the USDA RD Office servicing the area where the project is located. A list of the USDA RD State Offices can be found at: 
                        <E T="03">https://www.rd.usda.gov/about-rd/state-offices.</E>
                    </P>
                    <P>
                        • Water and Waste Loans and Grant Program must submit SECD applications electronically at 
                        <E T="03">https://rdapply.sc.egov.usda.gov/.</E>
                    </P>
                    <P>• For lenders assigned a OneRD Loan Guarantee Initiative Customer Relationship Manager (CRM), SECD applications must be submitted to their assigned CRM.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For more information, please contact your respective RD State Office listed here: 
                        <E T="03">https://www.rd.usda.gov/about-rd/state-offices.</E>
                    </P>
                    <P>
                        For all other inquiries, you may contact Dr. Gregory Batson, Rural Development Innovation Center, U.S. Department of Agriculture, 1400 Independence Avenue SW, Room 6138, Stop 0793, Washington, DC 20250, Telephone: (573) 239-2945, Email: 
                        <E T="03">gregory.batson@usda.gov</E>
                        .
                    </P>
                    <P>
                        A checklist of all required application information for regional planning priority can be found at: 
                        <E T="03">https://www.rd.usda.gov/programs-services/strategic-economic-and-community-development.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Overview</HD>
                <P>
                    <E T="03">Federal Awarding Agency Name:</E>
                     Rural Business-Cooperative Service, Rural Housing Service, Rural Utilities Service.
                </P>
                <P>
                    <E T="03">Funding Opportunity Title:</E>
                     Strategic Economic and Community Development.
                </P>
                <P>
                    <E T="03">Announcement Type:</E>
                     Notice of Solicitation of Applications.
                </P>
                <P>
                    <E T="03">Funding Opportunity Number: The following covered programs with their Assistance Listing (AL) numbers are listed as flows:</E>
                </P>
                <P>• Community Facilities Loans; see 7 CFR part 1942, subpart A.</P>
                <P>• Community Facilities Grants; see 7 CFR part 3570, subpart B.</P>
                <P>• Community Facilities Guaranteed Loans; see 7 CFR part 5001.</P>
                <P>• Water and Waste Disposal Programs Guaranteed Loans; see 7 CFR part 5001.</P>
                <P>• Water and Waste Loans and Grants; see 7 CFR part 1780.</P>
                <P>• Rural Business Development Grants; see 7 CFR part 4280, subpart E.</P>
                <P>
                    <E T="03">Dates:</E>
                     See information provided in the 
                    <E T="02">DATES</E>
                     section of this notice.
                </P>
                <P>
                    <E T="03">Rural Development Key Priorities:</E>
                     The Agency encourages applicants to consider projects that will advance the following key priorities:
                </P>
                <P>• Addressing Climate Change and Environmental Justice. Reducing climate pollution and increasing resilience to the impacts of climate change through economic support to rural communities.</P>
                <P>• Advancing Racial Justice, Place-Based Equity, and Opportunity. Ensuring all rural residents have equitable access to RD programs and benefits from RD funded projects.</P>
                <P>• Creating More and Better Market Opportunities. Assisting rural communities recover economically through more and better market opportunities and through improved infrastructure.</P>
                <P>
                    For further information on FY 24 Rural Development Priorities, please visit the following website: Rural 
                    <PRTPAGE P="10027"/>
                    Development Priorities: FY 2024 | Rural Development (
                    <E T="03">usda.gov</E>
                    ).
                </P>
                <HD SOURCE="HD1">A. Program Description</HD>
                <HD SOURCE="HD2">1. Purpose of the Program</HD>
                <P>SECD supports projects that promote and partially or completely implement strategic community investment plans. These plans use the unique strengths of rural communities to advance prosperity. USDA RD helps finance and/or fund these projects to build community prosperity by using community assets, identifying resources, convening partners, and leveraging Federal, state, local or private funding.</P>
                <P>In FY 2024, the Agency plans to implement SECD through reserving funds from the covered programs' appropriations as provided in 7 CFR part 1980, subpart K. This notice provides requirements to applicants submitting applications for the covered programs' reserved funds and establishes the above-mentioned priority effective upon the publication of this notice.</P>
                <HD SOURCE="HD2">2. Statutory and Regulatory Authority</HD>
                <P>These funds are made available under Section 379H of the Consolidated Farm and Rural Development Act, as amended (7 U.S.C. 2008v).</P>
                <HD SOURCE="HD2">3. The Covered Programs</HD>
                <P>Section 379H of the Consolidated Farm and Rural Development Act, as amended (7 U.S.C. 2008v.), authorizes any program under the Consolidated Farm and Rural Development Act (Pub. L. 87-128), as determined by the Secretary, to give priority to applications that support the implementation of multi-jurisdictional and multi-sectoral strategic community investment plans.</P>
                <P>Accordingly, the Agency is giving priority to projects implementing strategic community investment plans in FY 24 through the following RD programs:</P>
                <P>• Community Facilities Loans; see 7 CFR part 1942, subpart A.</P>
                <P>• Community Facilities Grants; see 7 CFR part 3570, subpart B.</P>
                <P>• Community Facilities Guaranteed Loans; see 7 CFR part 5001.</P>
                <P>• Water and Waste Disposal Programs Guaranteed Loans; see 7 CFR part 5001.</P>
                <P>• Water and Waste Loans and Grants; see 7 CFR part 1780.</P>
                <P>• Rural Business Development Grants; see 7 CFR part 4280, subpart E.</P>
                <HD SOURCE="HD2">4. Application of Awards</HD>
                <P>The Agency will review, evaluate, and score each application based on the criteria specified in 7 CFR 1980.1020, to award points for each program's competition for the SECD reserved funds.</P>
                <HD SOURCE="HD1">B. Federal Award Information</HD>
                <P>
                    <E T="03">Type of Awards:</E>
                     Guaranteed loans, direct loans and grants.
                </P>
                <P>
                    <E T="03">Fiscal Year Funds:</E>
                     FY 2024 appropriated funds.
                </P>
                <P>
                    <E T="03">Available Funds:</E>
                     The amount of reserved funds available for SECD projects is dependent on the amount of available appropriated funding provided to each of the covered programs during the fiscal year. The NOSA is being issued prior to passage of a final appropriations act for FY 2024. Funding for the SECD covered programs in FY 2023 was $409,892,029, however, funding for FY 2024 will not be known until Congress passes an appropriations act for FY 2024. Successful applications will be selected by the Agency for funding and subsequently awarded to the extent that funding may ultimately be made available through appropriations. The Agency advises that all interested parties bear the financial burden of preparing and submitting an application in response to this Notice whether or not funding is appropriated for this program in FY 2024.
                </P>
                <P>For FY 2024 applications, the following table specifies the percentage of funds being reserved for the covered SECD programs:</P>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s50,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Program</CHED>
                        <CHED H="1">
                            Percentage
                            <LI>of funds</LI>
                            <LI>reserved for</LI>
                            <LI>SECD</LI>
                            <LI>(percent)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Community Facilities Loans</ENT>
                        <ENT>10</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Community Facilities Grant Program</ENT>
                        <ENT>5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Community Facilities Guaranteed Loans</ENT>
                        <ENT>5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Water and Waste Disposal Programs Guaranteed Loans</ENT>
                        <ENT>10</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Water and Waste Disposal Direct Loans</ENT>
                        <ENT>5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Water and Waste Disposal Grants</ENT>
                        <ENT>3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Rural Business Development Grants</ENT>
                        <ENT>5</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">Award Amounts:</E>
                     Guaranteed loans, direct loans and grants will be awarded in amounts consistent with each applicable covered program.
                </P>
                <P>
                    <E T="03">Anticipated Award Dates:</E>
                     Awards for SECD applications submitted to the covered programs in FY 24 will be obligated on or before June 30, 2024. The Agency will return any reserved funds that are not obligated by the obligation deadline to each covered program's regular funding account for obligation of eligible projects in that program.
                </P>
                <P>
                    <E T="03">Performance Period:</E>
                     Performance period will vary by covered program.
                </P>
                <P>
                    <E T="03">Renewal or Supplemental Awards:</E>
                     N/A.
                </P>
                <P>
                    <E T="03">Type of Assistance Instrument:</E>
                     Grants, direct loans, and loan guarantees.
                </P>
                <HD SOURCE="HD1">C. Eligibility Information</HD>
                <HD SOURCE="HD2">1. Eligible Applicants</HD>
                <P>To be considered for SECD reserved funds, both the applicant and project must meet the eligibility requirements of the covered program. These requirements vary among the covered programs and applicants should refer to the regulations for those programs, which are referenced in Section A.2. of this notice.</P>
                <P>The agency supports community and regional planning through the SECD regulation without making any changes to the applicant eligibility requirements of the covered programs. The SECD regulation includes three criteria that a project must meet to be considered for the SECD reserve funding (see 7 CFR 1980.1010):</P>
                <P>The first criterion, as noted above, is that the project meets the applicable eligibility requirements of the covered program for which the applicant is applying.</P>
                <P>The second criterion is that the project is “carried out in a rural area” as defined in 7 CFR 1980.1005. As defined, this means either the entire project is physically located in a rural area, or all the beneficiaries of the service(s) provided through the project must either reside in or be located in a rural area. Note that the definition of “rural” varies among the covered programs and the SECD regulation (7 CFR part 1980, subpart K) does not change those definitions. Therefore, the applicable program regulations as outlined in Section A.2 of this notice should be reviewed as necessary.</P>
                <P>The third criterion is that the project supports partial or complete implementation of a strategic community investment plan on a multi-jurisdictional and multi-sectoral basis as defined in 7 CFR 1980.1005.</P>
                <P>
                    To be considered for the reserved funds from covered programs in FY 2024, applicants must: (1) meet all requirements of the covered program; (2) meet all requirements in accordance with 7 CFR part 1980, subpart K (see 7 CFR 1980.1010); and (3) submit Form RD 1980-88 and the supporting documentation required in 7 CFR 1080.1015 with their program application which includes:
                    <PRTPAGE P="10028"/>
                </P>
                <P>• Sufficient information to show that the project will be carried out in a rural area, as defined by the appropriate covered program; and</P>
                <P>• Identification of any current or previous applications the applicant has submitted for funds from the covered programs.</P>
                <HD SOURCE="HD2">2. Cost Sharing or Matching</HD>
                <P>All cost sharing, matching, and cost participation requirements of the applicable covered program apply to projects seeking SECD reserved funds.</P>
                <HD SOURCE="HD2">3. Other</HD>
                <P>All other eligibility requirements (beyond those identified in Section C.1 of this notice) found in the covered programs' regulations applying to applicants, their projects, and the beneficiaries of those projects are unchanged by either this notice or the regulations for the SECD program (7 CFR part 1980, subpart K).</P>
                <HD SOURCE="HD1">D. Application and Submission Information</HD>
                <HD SOURCE="HD2">1. Address To Request Application Package</HD>
                <P>
                    Information on how to submit applications is provided in the 
                    <E T="02">ADDRESSES</E>
                     section of this notice.
                </P>
                <HD SOURCE="HD2">2. Content and Form of Application Submission</HD>
                <P>
                    Applicants must submit the Form RD 1980-88, “Strategic Economic and Community Development (Section 6401) Priority,” located at 
                    <E T="03">https://www.rd.usda.gov/programs-services/business-programs/strategic-economic-and-community-development#to-apply,</E>
                     with their program application to the appropriate covered program.
                </P>
                <HD SOURCE="HD2">3. System for Award Management (SAM) and Unique Entity Identifier (UEI)</HD>
                <P>
                    (a) At the time of application, each applicant must have an active registration in the System for Award Management (SAM) before submitting its application in accordance with 2 CFR part 25 
                    <E T="03">https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25.</E>
                     To register in SAM, entities will be required to obtain a Unique Entity Identifier (UEI). Instructions for obtaining the UEI are available at 
                    <E T="03">https://sam.gov/content/entity-registration.</E>
                </P>
                <P>(b) Applicant must maintain an active SAM registration, with current, accurate and complete information, at all times during which it has an active Federal award or an application under consideration by a federal awarding agency.</P>
                <P>(c) Applicant must ensure they complete the Financial Assistance General Certifications and Representations in SAM.</P>
                <P>
                    (d) Applicant must provide a valid UEI in its application, unless determined exempt under 2 CFR 25.110 (
                    <E T="03">https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-25/subpart-A/section-25.110</E>
                    ).
                </P>
                <P>(e) The Agency will not make an award until the applicant has complied with all SAM requirements including providing the UEI. If an applicant has not fully complied with the requirements by the time the Agency is ready to make an award, the Agency may determine that the applicant is not qualified to receive a federal award and use that determination as a basis for making a federal award to another applicant.</P>
                <HD SOURCE="HD2">4. Application Submission Deadlines</HD>
                <P>
                    Each of the participating covered programs has different established deadlines for receipt of applications. Please refer to the Agency website or the appropriate covered program's 
                    <E T="04">Federal Register</E>
                     Notice for application deadline information. The Agency will not solicit or consider new scoring or eligibility information that is submitted after the application deadline. The covered RD programs also reserve the right to ask applicants for clarifying information and additional verification of assertions in the application.
                </P>
                <HD SOURCE="HD2">5. Intergovernmental Review</HD>
                <P>This Notice is not subject to Executive Order 12372, “Intergovernmental Review of Federal Programs.”</P>
                <HD SOURCE="HD2">6. Funding Restrictions</HD>
                <P>All applicants are responsible for any expenses incurred in preparing and submitting applications.</P>
                <HD SOURCE="HD2">7. Other Submission Requirements</HD>
                <P>
                    (a) SECD applications must be submitted electronically to the USDA RD Office servicing the area where the project is located. RD State Offices can be found here: 
                    <E T="03">https://www.rd.usda.gov/about-rd/state-offices.</E>
                </P>
                <P>
                    (b) Water and Waste Loans and Grant Program must submit SECD applications electronically at 
                    <E T="03">https://rdapply.sc.egov.usda.gov/.</E>
                </P>
                <P>(c) For lenders assigned an OneRD Loan Guarantee Initiative Customer Relationship Manager (CRM), SECD applications must be submitted to their assigned CRM.</P>
                <HD SOURCE="HD1">E. Application Review Information</HD>
                <HD SOURCE="HD2">1. Criteria</HD>
                <P>All FY 2024 applications for covered programs will be reviewed, evaluated, and scored based on the covered program's scoring criteria. This notice does not affect that process. This notice only affects the scoring of SECD applications competing for a covered program's SECD reserve funds.</P>
                <P>For applicants wishing to be considered for reserved SECD funds in FY 24, the Agency will review, evaluate, and score each application based on the criteria specified in 7 CFR 1980.1020, to award points for each covered program's SECD reserved funds.</P>
                <HD SOURCE="HD2">2. Review and Selection Process</HD>
                <P>The Agency will prioritize applications competing for a covered program's reserved funds based on the covered program's awarded points plus the SECD earned points to determine which projects receive reserved funds. SECD points awarded are added to the covered program's application score to elevate and prioritize projects for accessing reserved funds. The RD covered programs reserve the right to offer the applicant less than the funding requested.</P>
                <HD SOURCE="HD1">F. Federal Award Administration Information</HD>
                <HD SOURCE="HD2">1. Federal Award Notices</HD>
                <P>The Agency will notify SECD applicants who receive funding in a manner consistent with award notifications for the covered program.</P>
                <HD SOURCE="HD2">2. Administrative and National Policy Requirements</HD>
                <P>Any and all additional requirements of the applicable covered programs apply to projects receiving funding in response to this notice. Please see the regulations for the applicable covered program.</P>
                <HD SOURCE="HD2">3. Reporting Requirements</HD>
                <P>Any and all post-award covered program reporting requirements apply to all projects receiving reserved funds in response to this notice.</P>
                <HD SOURCE="HD1">G. Federal Awarding Agency Contact(s)</HD>
                <P>
                    For general questions about this notice, please contact your respective Rural Development State Office listed at: 
                    <E T="03">https://www.rd.usda.gov/about-rd/state-offices</E>
                     and other points of contact provided in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section of this notice.
                    <PRTPAGE P="10029"/>
                </P>
                <HD SOURCE="HD1">H. Build America, Buy America</HD>
                <P>
                    Funding to Non-Federal Entities. Awardees that are Non-Federal Entities, defined pursuant to 2 CFR 200.1 as any State, local government, Indian tribe, Institution of Higher Education, or nonprofit organization, shall be governed by the requirements of Section 70914 of the Build America, Buy America Act (BABAA) within the IIJA. Any requests for waiver of these requirements must be submitted pursuant to USDA's guidance available online at 
                    <E T="03">https://www.usda.gov/ocfo/federal-financial-assistance-policy/USDABuyAmericaWaiver.</E>
                </P>
                <HD SOURCE="HD1">I. Other Information</HD>
                <HD SOURCE="HD2">Paperwork Reduction Act</HD>
                <P>In accordance with the Paperwork Reduction Act of 1995, the information collection requirements contained in 7 CFR part 1980, subpart K, have been approved by Office of Management and Budget (OMB) under OMB Control Number 070-0068.</P>
                <HD SOURCE="HD2">National Environmental Policy Act</HD>
                <P>
                    All projects to be financed under this notice are subject to the requirements of the National Environmental Policy Act of 1969, as amended (42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    ), and RD's environmental regulation at 7 CFR part 1970 (Environmental Policies and Procedures).
                </P>
                <HD SOURCE="HD2">Federal Funding Accountability and Transparency Act</HD>
                <P>
                    All applicants, in accordance with 2 CFR part 25, must have an UEI number and must be registered in the System for Award Management (SAM) prior to submitting an application. Applicants may register for the SAM and locate or register for a UEI number at 
                    <E T="03">http://www.sam.gov/SAM.</E>
                     All recipients of Federal financial grant assistance are required to report information about first-tier sub-awards and executive total compensation in accordance with 2 CFR part 170. Applicants must ensure they complete the Financial Assistance General Certifications and Representations in SAM.
                </P>
                <HD SOURCE="HD2">Civil Rights</HD>
                <P>Programs referenced in this Notice are subject to applicable Civil Rights Laws.</P>
                <P>These laws include the Equal Credit Opportunity Act, title VI of the Civil Rights Act of 1964, title VIII of the Civil Rights Act of 1968, and section 504 of the Rehabilitation Act of 1973.</P>
                <HD SOURCE="HD2">Nondiscrimination Statement</HD>
                <P>In accordance with Federal civil rights laws and USDA civil rights regulations and policies, the USDA, its Mission Areas, agencies, staff offices, employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.</P>
                <P>
                    Program information may be made available in languages other than English. Persons with disabilities who require alternative means of communication to obtain program information (
                    <E T="03">e.g.,</E>
                     Braille, large print, audiotape, American Sign Language) should contact the responsible Mission Area, agency, staff office, or the 711 Relay Service.
                </P>
                <P>
                    To file a program discrimination complaint, a complainant should complete a Form AD-3027, USDA Program Discrimination Complaint Form, which can be obtained online at 
                    <E T="03">https://www.usda.gov/sites/default/files/documents/ad-3027.pdf,</E>
                     from any USDA office, by calling (866) 632-9992, or by writing a letter addressed to USDA. The letter must contain the complainant's name, address, telephone number, and a written description of the alleged discriminatory action in sufficient detail to inform the Assistant Secretary for Civil Rights about the nature and date of an alleged civil rights violation.
                </P>
                <P>The completed AD-3027 form or letter must be submitted to USDA by:</P>
                <P>
                    (1) 
                    <E T="03">Mail:</E>
                     U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 20250-9410; or
                </P>
                <P>
                    (2) 
                    <E T="03">Fax:</E>
                     (833) 256-1665 or (202) 690-7442; or
                </P>
                <P>
                    (3) 
                    <E T="03">Email: program.intake@usda.gov.</E>
                </P>
                <P>USDA is an equal opportunity provider, employer, and lender.</P>
                <SIG>
                    <NAME>Roger Glendenning,</NAME>
                    <TITLE>Acting Under Secretary, Rural Development.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02782 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3410-XY-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">COMMISSION ON CIVIL RIGHTS</AGENCY>
                <SUBJECT>Notice of Public Meeting of the Nebraska Advisory Committee to the U.S. Commission on Civil Rights</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Commission on Civil Rights.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Announcement of meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Notice is hereby given, pursuant to the provisions of the rules and regulations of the U.S. Commission on Civil Rights (Commission) and the Federal Advisory Committee Act that the Nebraska Advisory Committee (Committee) to the U.S. Commission on Civil Rights will hold a business meeting via web conference. The purpose of the meeting will be to discuss their project on to the Effects of the Covid-19 Pandemic on K-12 Education in the state.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Tuesday, March 19, 2024 at 12:00 p.m. Central Time.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The meeting will be held via Zoom.</P>
                    <P>
                        <E T="03">March 19th Business Meeting:</E>
                    </P>
                    <P>
                        <E T="03">Registration Link (Audio/Visual): https://www.zoomgov.com/s/1608362566?pwd=bmIwQVBYOTNLMStldDkvRms4MjRRUT09I</E>
                        .
                    </P>
                    <P>
                        <E T="03">Join by Phone (Audio Only):</E>
                         1-833-435-1820 USA Toll Free; Meeting ID: 160 836 2566.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Victoria Moreno, DFO, at 
                        <E T="03">vmoreno@usccr.gov</E>
                         or by phone at 434-515-0204.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Members of the public may listen to the discussions through the above call-in numbers (audio only) or online registration links (audio/visual). An open comment period at each meeting will be provided to allow members of the public to make a statement as time allows. Callers can expect to incur regular charges for calls they initiate over wireless lines, according to their wireless plan. The Commission will not refund any incurred charges. Callers will incur no charge for calls they initiate over land-line connections to the toll-free telephone number. Individuals who are deaf, deafblind, and/or hard of hearing may also follow the proceedings by first calling the Federal Relay Service at 1-800-877-8339 and providing the Service with the conference call number and meeting ID number.</P>
                <P>
                    Members of the public are entitled to submit written comments; the comments must be received in the regional office within 30 days following the meetings. Written comments may be emailed to Victoria at 
                    <E T="03">vmoreno@usccr.gov</E>
                    .
                    <PRTPAGE P="10030"/>
                </P>
                <P>
                    Records generated from this meeting may be inspected and reproduced at the Regional Programs Unit Office, as they become available, both before and after the meetings. Records of the meetings will be available via 
                    <E T="03">www.facadatabase.gov</E>
                     under the Commission on Civil Rights, Nebraska Advisory Committee link. Persons interested in the work of this Committee are directed to the Commission's website, 
                    <E T="03">http://www.usccr.gov,</E>
                     or may contact the Regional Programs Unit at the above email or street address.
                </P>
                <HD SOURCE="HD1">Agenda</HD>
                <FP SOURCE="FP-2">I. Welcome and Roll Call</FP>
                <FP SOURCE="FP-2">II. Chair's Comments</FP>
                <FP SOURCE="FP-2">III. Committee Business</FP>
                <FP SOURCE="FP-2">IV. Public Comment</FP>
                <FP SOURCE="FP-2">V. Adjournment</FP>
                <SIG>
                    <DATED>Dated: February 8, 2024.</DATED>
                    <NAME>David Mussatt,</NAME>
                    <TITLE>Supervisory Chief, Regional Programs Unit.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02937 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">COMMISSION ON CIVIL RIGHTS</AGENCY>
                <SUBJECT>Notice of Public Meetings of the Arkansas Advisory Committee</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Commission on Civil Rights.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Announcement of meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Notice is hereby given, pursuant to the provisions of the rules and regulations of the U.S. Commission on Civil Rights (Commission) and the Federal Advisory Committee Act that the Arkansas Advisory Committee (Committee) will hold a meeting Wednesday, February 14, 2024 at 1 p.m. central time. The purpose of the meeting is to plan a series of upcoming briefings to gather testimony regarding right to counsel for the Committee's current civil rights study.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The meeting will be held on Wednesday February 14, 2024 at 1 p.m. central time.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P/>
                    <FP SOURCE="FP-1">
                        <E T="03">Web Access (audio/visual):</E>
                         Register at: 
                        <E T="03">https://www.zoomgov.com/j/1612861186?pwd=QXRROVM2WUg3SGcrZldZMUJaWmxMZz09</E>
                    </FP>
                    <FP SOURCE="FP-1">
                        <E T="03">Phone Access (audio only):</E>
                         833-435-1820, Meeting ID: 161 286 1186
                    </FP>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Melissa Wojnaroski, Designated Federal Officer, at 
                        <E T="03">mwojnaroski@usccr.gov</E>
                         or (202) 618-4158.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Members of the public may join online or listen to this discussion through the above registration link or call-in number. An open comment period will be provided to allow members of the public to make a statement as time allows. Callers can expect to incur regular charges for calls they initiate over wireless lines, according to their wireless plan. The Commission will not refund any incurred charges. Closed captions will be provided. Individuals who are deaf, deafblind, or hard of hearing may also follow the proceedings by first calling the Federal Relay Service at 1-800-877-8339 and providing the Service with the conference call number and conference ID number.</P>
                <P>
                    Members of the public are entitled to submit written comments; the comments must be received in the regional office within 30 days following the meeting. Written comments may be emailed to Melissa Wojnaroski at 
                    <E T="03">mwojnaroski@usccr.gov.</E>
                </P>
                <P>
                    Records generated from this meeting may be inspected and reproduced at the Regional Programs Unit Office, as they become available, both before and after the meeting. Records of the meeting will be available via 
                    <E T="03">www.facadatabase.gov</E>
                     under the Commission on Civil Rights, Arkansas Advisory Committee link. Persons interested in the work of this Committee are directed to the Commission's website, 
                    <E T="03">http://www.usccr.gov,</E>
                     or may contact the Regional Programs Unit at the above email or street address.
                </P>
                <HD SOURCE="HD1">Agenda</HD>
                <FP SOURCE="FP-2">I. Welcome and Roll Call</FP>
                <FP SOURCE="FP-2">II. Discussion: Right to Counsel</FP>
                <FP SOURCE="FP-2">III. Vote</FP>
                <FP SOURCE="FP-2">IV. Next Steps</FP>
                <FP SOURCE="FP-2">V. Public Comment</FP>
                <FP SOURCE="FP-2">VI. Adjournment</FP>
                <P>
                    <E T="03">Exceptional Circumstance:</E>
                     Pursuant to 41 CFR 102-3.150, the notice for this meeting is given less than 15 calendar days prior to the meeting because of the exceptional circumstance of the upcoming expiration of the current Committee appointment term and the resulting timeline under which the Committee must complete its next and final project.
                </P>
                <SIG>
                    <DATED>Dated: February 8, 2024.</DATED>
                    <NAME>David Mussatt,</NAME>
                    <TITLE>Supervisory Chief, Regional Programs Unit.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02938 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Foreign-Trade Zones Board</SUBAGY>
                <DEPDOC>[S-24-2024]</DEPDOC>
                <SUBJECT>Foreign-Trade Zone 44; Application for Expansion of Subzone 44P; Givaudan Fragrances Corporation; Mount Olive, New Jersey</SUBJECT>
                <P>An application has been submitted to the Foreign-Trade Zones (FTZ) Board by the State of New Jersey, Department of State, grantee of FTZ 44, requesting an expansion of Subzone 44P on behalf of Givaudan Fragrances Corporation (Givaudan), in Mount Olive, New Jersey. The application was submitted pursuant to the provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the regulations of the FTZ Board (15 CFR part 400). It was formally docketed on February 7, 2024.</P>
                <P>
                    The application requests authority to expand Subzone 44P to include the following new site: 
                    <E T="03">Site 4</E>
                     (5.93 acres) 313 Waterloo Valley Road, Mount Olive, New Jersey. No authorization for additional production activity has been requested at this time. The proposed expanded subzone would be subject to the existing activation limit of FTZ 44.
                </P>
                <P>In accordance with the FTZ Board's regulations, Christopher Kemp of the FTZ Staff is designated examiner to review the application and make recommendations to the Executive Secretary.</P>
                <P>
                    Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary and sent to: 
                    <E T="03">ftz@trade.gov.</E>
                     The closing period for their receipt is March 25, 2024. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to April 8, 2024.
                </P>
                <P>
                    A copy of the application will be available for public inspection in the “Online FTZ Information Section” section of the FTZ Board's website, which is accessible via 
                    <E T="03">www.trade.gov/ftz.</E>
                </P>
                <P>
                    For further information, contact Christopher Kemp at 
                    <E T="03">Christopher.Kemp@trade.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Elizabeth Whiteman,</NAME>
                    <TITLE>Executive Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02896 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="10031"/>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Foreign-Trade Zones Board</SUBAGY>
                <DEPDOC>[B-6-2024]</DEPDOC>
                <SUBJECT>Proposed Foreign-Trade Zone—Iberia Parish, Louisiana Under Alternative Site Framework</SUBJECT>
                <P>An application has been submitted to the Foreign-Trade Zones (FTZ) Board by the Port of Iberia District to establish a foreign-trade zone in Iberia Parish, Louisiana, under the alternative site framework (ASF) adopted by the FTZ Board (15 CFR 400.2(c)). The ASF is an option for grantees for the establishment or reorganization of zones and can permit significantly greater flexibility in the designation of new “subzones” or “usage-driven” FTZ sites for operators/users located within a grantee's “service area” in the context of the FTZ Board's standard 2,000-acre activation limit for a zone project. The application was submitted pursuant to the provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the regulations of the Board (15 CFR part 400). It was formally docketed on February 7, 2024. The applicant is authorized to make the proposal under Louisiana Revised Statutes, Title 51, sections 61-65.</P>
                <P>The proposed zone would be the third zone for the Morgan City CBP port of entry. The existing zones are as follows: FTZ 261, Alexandria, Louisiana (Grantee: England Economic and Industrial Development District, Board Order 1325, April 21, 2004); and, FTZ 279, Houma, Louisiana (Grantee: Houma-Terrebonne Airport Commission, Board Order 1771, July 7, 2011).</P>
                <P>The applicant's proposed service area under the ASF would be the portions of Iberia Parish which lie within the boundaries of the Port of Iberia District, as described in the application. If approved, the applicant would be able to serve sites throughout the service area based on companies' needs for FTZ designation. The application indicates that the proposed service area is within and adjacent to the Morgan City Customs and Border Protection port of entry.</P>
                <P>The proposed zone would include a subzone for Global Riser US, LLC, located at 3500 Segura Road in New Iberia (117.36 acres).</P>
                <P>The application indicates a need for zone services in the Iberia Parish area. Several firms have indicated an interest in using zone procedures for warehousing/distribution activities for a variety of products. Specific production approvals are not being sought at this time. Such requests would be made to the FTZ Board on a case-by-case basis.</P>
                <P>In accordance with the FTZ Board's regulations, Camille Evans of the FTZ Staff is designated examiner to evaluate and analyze the facts and information presented in the application and case record and to report findings and recommendations to the FTZ Board.</P>
                <P>
                    Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary and sent to: 
                    <E T="03">ftz@trade.gov.</E>
                     The closing period for their receipt is April 15, 2024. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to April 29, 2024.
                </P>
                <P>
                    A copy of the application will be available for public inspection in the “Online FTZ Information Section” section of the FTZ Board's website, which is accessible via 
                    <E T="03">www.trade.gov/ftz.</E>
                </P>
                <P>
                    For further information, contact Camille Evans at 
                    <E T="03">Camille.Evans@trade.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Elizabeth Whiteman,</NAME>
                    <TITLE>Executive Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02898 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Foreign-Trade Zones Board</SUBAGY>
                <DEPDOC>[B-7-2024]</DEPDOC>
                <SUBJECT>Foreign-Trade Zone 61; Application for Expansion of Subzone 61Z; Oldach Associates, LLC; Cataño, Puerto Rico</SUBJECT>
                <P>An application has been submitted to the Foreign-Trade Zones (FTZ) Board by the Department of Economic Development and Commerce, grantee of FTZ 61, requesting an expansion of Subzone 61Z on behalf of Oldach Associates, LLC. The application was submitted pursuant to the provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-81u), and the regulations of the FTZ Board (15 CFR part 400). It was formally docketed on February 7, 2024.</P>
                <P>The applicant is requesting authority to expand the subzone to include a new site located at Urbanización Industrial Luchetti, Street C, Lot 10, in Bayamón (Site 2—1.85 acres). The applicant is further requesting that the expanded subzone (existing and proposed) not be subject to FTZ 61's 1,821.07-acre activation limit. No authorization for production activity has been requested at this time.</P>
                <P>In accordance with the FTZ Board's regulations, Camille Evans of the FTZ Staff is designated examiner to review the application and make recommendations to the FTZ Board.</P>
                <P>
                    Public comment is invited from interested parties. Submissions shall be addressed to the FTZ Board's Executive Secretary and sent to: 
                    <E T="03">ftz@trade.gov.</E>
                     The closing period for their receipt is March 25, 2024. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to April 8, 2024.
                </P>
                <P>
                    A copy of the application will be available for public inspection in the “Online FTZ Information Section” section of the FTZ Board's website, which is accessible via 
                    <E T="03">www.trade.gov/ftz.</E>
                </P>
                <P>
                    For further information, contact Camille Evans at 
                    <E T="03">Camille.Evans@trade.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Elizabeth Whiteman,</NAME>
                    <TITLE>Executive Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02897 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[A-533-871]</DEPDOC>
                <SUBJECT>Finished Carbon Steel Flanges From India: Final Results of Antidumping Duty Administrative Review; 2021-2022; Correction</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The U.S. Department of Commerce (Commerce) published notice in the 
                        <E T="04">Federal Register</E>
                         of December 22, 2023 in which Commerce announced the final results of the 2021-2022 administrative review of the antidumping duty (AD) order on finished carbon steel flanges from India. This notice contained an appendix that included an incorrect list of companies not selected for individual examination.
                    </P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Fred Baker, AD/CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2924.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Correction</HD>
                <P>
                    In the 
                    <E T="04">Federal Register</E>
                     of December 22, 2023, in FR DOC 28265, on page 
                    <PRTPAGE P="10032"/>
                    88584, remove the following names from the Appendix: Bansidhar Chiranjilal; Norma (India) Limited; R. N. Gupta &amp; Company Limited; Uma Shanker Khandelwal &amp; Co.; and USK Exports Private Limited.
                </P>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On December 22, 2023, Commerce published in the 
                    <E T="04">Federal Register</E>
                     the final results of the administrative review of the AD order on finished carbon steel flanges from India.
                    <SU>1</SU>
                    <FTREF/>
                     The Appendix in the 
                    <E T="03">Final Results</E>
                     was intended to be a list of companies not selected for individual examination. However, it mistakenly included companies that were selected for individual examination, specifically Bansidhar Chiranjilal, Norma (India) Limited, R. N. Gupta &amp; Company Limited, Uma Shanker Khandelwal &amp; Co., and USK Exports Private Limited. Commerce will ensure that the cash deposit and liquidation instructions it issues to U.S. Customs and Border Protection following publication of this correction notice reflect the application of the dumping margin determined in the 
                    <E T="03">Final Results</E>
                     for the non-selected companies listed in the Appendix to this notice. A corrected list of companies not selected for individual examination is in the Appendix of this notice.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Finished Carbon Steel Flanges from India: Final Results of Antidumping Duty Administrative Review; 2021-2022,</E>
                         88 FR 88582 (December 22, 2023) (
                        <E T="03">Final Results</E>
                        ).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This notice is issued and published in accordance with sections 751(a) and 777(i) of the Tariff Act of 1930, as amended, and 19 CFR 351.205(c).</P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Ryan Majerus,</NAME>
                    <TITLE>Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
                <HD SOURCE="HD1">Appendix</HD>
                <EXTRACT>
                    <HD SOURCE="HD1">Non-Selected Respondent Companies</HD>
                    <FP SOURCE="FP-2">1. Adinath International.</FP>
                    <FP SOURCE="FP-2">2. Allena Group.</FP>
                    <FP SOURCE="FP-2">3. Alloyed Steel.</FP>
                    <FP SOURCE="FP-2">4. Balkrishna Steel Forge Pvt. Ltd.</FP>
                    <FP SOURCE="FP-2">5. Bebitz Flanges Works Private Limited.</FP>
                    <FP SOURCE="FP-2">6. BFN Forgings Private Limited.</FP>
                    <FP SOURCE="FP-2">7. C.D. Industries.</FP>
                    <FP SOURCE="FP-2">8. Cetus Engineering Private Limited.</FP>
                    <FP SOURCE="FP-2">9. CHW Forge.</FP>
                    <FP SOURCE="FP-2">10. CHW Forge Pvt. Ltd.</FP>
                    <FP SOURCE="FP-2">11. Citizen Metal Depot.</FP>
                    <FP SOURCE="FP-2">12. Corum Flange.</FP>
                    <FP SOURCE="FP-2">13. DN Forge Industries.</FP>
                    <FP SOURCE="FP-2">14. Echjay Forgings Limited.</FP>
                    <FP SOURCE="FP-2">15. Falcon Valves and Flanges Private Limited.</FP>
                    <FP SOURCE="FP-2">16. Heubach International.</FP>
                    <FP SOURCE="FP-2">17. Hindon Forge Pvt. Ltd.</FP>
                    <FP SOURCE="FP-2">18. Jai Auto Private Limited.</FP>
                    <FP SOURCE="FP-2">19. Kinnari Steel Corporation.</FP>
                    <FP SOURCE="FP-2">20. M F Rings and Bearing Races Ltd.</FP>
                    <FP SOURCE="FP-2">21. Mascot Metal Manufactures.</FP>
                    <FP SOURCE="FP-2">22. Munish Forge Private Limited.</FP>
                    <FP SOURCE="FP-2">23. OM Exports.</FP>
                    <FP SOURCE="FP-2">24. Punjab Steel Works (PSW).</FP>
                    <FP SOURCE="FP-2">25. R. D. Forge.</FP>
                    <FP SOURCE="FP-2">
                        26. Raaj Sagar Steel.
                        <SU>2</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             Commerce initiated on this company as Raaj Sagar Steel. 
                            <E T="03">See Initiation of Antidumping and Countervailing Duty Administrative Reviews,</E>
                             87 FR 61278, 61280 (October 11, 2022). We are treating this company as identical to Raaj Sagar Steels on whom Commerce initiated a review in all prior administrative reviews of this order. 
                            <E T="03">See Initiation of Antidumping and Countervailing Duty Administrative Reviews,</E>
                             86 FR 55811, 55813 (October 7, 2021); 
                            <E T="03">see also Initiation of Antidumping and Countervailing Duty Administrative Reviews,</E>
                             85 FR 63081, 63083 (October 6, 2020); 
                            <E T="03">Initiation of Antidumping and Countervailing Duty Administrative Reviews,</E>
                             84 FR 53411, 53413 (October 7, 2019); and 
                            <E T="03">Initiation of Antidumping and Countervailing Duty Administrative Reviews,</E>
                             83 FR 50077, 50079 (October 4, 2018).
                        </P>
                    </FTNT>
                    <FP SOURCE="FP-2">27. Ravi Ratan Metal Industries.</FP>
                    <FP SOURCE="FP-2">28. Rolex Fittings India Pvt. Ltd.</FP>
                    <FP SOURCE="FP-2">29. Rollwell Forge Engineering Components and Flanges.</FP>
                    <FP SOURCE="FP-2">30. Rollwell Forge Pvt. Ltd.</FP>
                    <FP SOURCE="FP-2">31. SHM (ShinHeung Machinery).</FP>
                    <FP SOURCE="FP-2">32. Siddhagiri Metal &amp; Tubes.</FP>
                    <FP SOURCE="FP-2">33. Sizer India.</FP>
                    <FP SOURCE="FP-2">34. Steel Shape India.</FP>
                    <FP SOURCE="FP-2">35. Sudhir Forgings Pvt. Ltd.</FP>
                    <FP SOURCE="FP-2">36. Tirupati Forge.</FP>
                    <FP SOURCE="FP-2">37. Umashanker Khandelwal Forging Limited.</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02969 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[C-533-916]</DEPDOC>
                <SUBJECT>Brass Rod From India: Countervailing Duty Order</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Based on affirmative final determinations by the U.S. Department of Commerce (Commerce) and the U.S. International Trade Commission (ITC), Commerce is issuing a countervailing duty order on brass rod from India.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable February 13, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Dusten Hom or Mary Kolberg, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-5075 or (202) 482-1785, respectively.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    In accordance with section 705(d) of the Tariff Act of 1930, as amended (the Act), on December 18, 2023, Commerce published in the 
                    <E T="04">Federal Register</E>
                     its affirmative final determination in the countervailing duty investigation of brass rod from India.
                    <SU>1</SU>
                    <FTREF/>
                     On February 1, 2024, the ITC notified Commerce of its final affirmative determination that an industry in the United States is materially injured by reason of subsidized imports of brass rod from India, within the meaning of sections 705(b)(1)(A)(i) and 702(d) of the Act.
                    <SU>2</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Brass Rod from India: Final Affirmative Countervailing Duty Determination,</E>
                         88 FR 87407 (December 18, 2023).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         ITC's Letter, “Notification of ITC Final Determination,” dated February 1, 2024 (ITC Notification).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Order</HD>
                <P>The product covered by this order is brass rod from India. For a complete description of the scope of this order, see the appendix to this notice.</P>
                <HD SOURCE="HD1">Countervailing Duty Order</HD>
                <P>
                    On February 1, 2024, in accordance with sections 705(b)(1)(A)(i) and 705(d) of the Act, the ITC notified Commerce of its final determination that an industry in the United States is materially injured by reason of imports of brass rod from India.
                    <SU>3</SU>
                    <FTREF/>
                     Therefore, in accordance with 705(c)(2) and 706 of the Act, Commerce is issuing this countervailing duty order. Because the ITC determined that imports of brass rod from India are materially injuring a U.S. industry, unliquidated entries of such merchandise from India entered, or withdrawn from warehouse, for consumption are subject to the assessment of countervailing duties.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Therefore, in accordance with section 706(a)(1) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to assess, upon further instruction by Commerce, countervailing duties on all relevant entries of brass rod from India. Countervailing duties will be assessed on unliquidated entries of brass rod from India which are entered, or withdrawn from warehouse, for consumption on or after September 29, 2023, the date of publication of the 
                    <E T="03">Preliminary Determination</E>
                    ,
                    <SU>4</SU>
                    <FTREF/>
                     but will not be assessed on entries occurring after the expiration of the provisional 
                    <PRTPAGE P="10033"/>
                    measures period and before publication of the ITC's final affirmative injury determination, as further described in the “Provisional Measures” section below.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See Brass Rod from India: Preliminary Affirmative Countervailing Duty Determination,</E>
                         88 FR 67240 (September 29, 2023) (
                        <E T="03">Preliminary Determination</E>
                        ), and accompanying Preliminary Decision Memorandum.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Suspension of Liquidation and Cash Deposits</HD>
                <P>
                    In accordance with section 706 of the Act, Commerce will instruct CBP to continue to suspend liquidation of all relevant entries of brass rod from India, effective on the date of publication of the ITC's final determination in the 
                    <E T="04">Federal Register.</E>
                     These instructions suspending liquidation will remain in effect until further notice.
                </P>
                <P>
                    Commerce also intends, pursuant to section 706(a)(1) of the Act, to instruct CBP to require cash deposits equal to the amounts as indicated below. Accordingly, effective on the date of publication of the ITC's final affirmative injury determination in the 
                    <E T="04">Federal Register</E>
                    , CBP will require, at the same time as importers would deposit estimated normal customs duties on the subject merchandise, a cash deposit for each entry of subject merchandise equal to the subsidy rates listed below.
                    <SU>5</SU>
                    <FTREF/>
                     The all-others rate applies to all producers or exporters not specifically listed below, as appropriate.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         section 706(a)(3) of the Act.
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25,11">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Company</CHED>
                        <CHED H="1">
                            Subsidy rate
                            <LI>(percent</LI>
                            <LI>
                                <E T="03">ad valorem</E>
                                ) 
                            </LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">
                            Rajhans Metals Private Limited 
                            <SU>6</SU>
                        </ENT>
                        <ENT>2.24</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">All Others</ENT>
                        <ENT>2.24</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">
                    Provisional Measures
                    <FTREF/>
                </HD>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         As discussed in the Preliminary Decision Memorandum, Commerce found the following company to the cross-owned with RMPL: Rajhans Allowys Private Limited (RAPL). However, effective March 11, 2016, RAPL was amalgamated with RMPL, and since then, ceased to be a separate  entity.
                    </P>
                </FTNT>
                <P>
                    Section 703(d) of the Act states that suspension of liquidation instructions issued pursuant to an affirmative preliminary determination may not remain in effect for more than four months. Commerce published its Preliminary Determination on September 29, 2023.
                    <SU>7</SU>
                    <FTREF/>
                     Therefore, the provisional measures period, beginning on the date of publication of the Preliminary Determination, ended on January 27, 2024. Pursuant to section 707(b) of the Act, the collection of cash deposits at the rates listed above will begin on the date of publication of the ITC's final affirmative injury determination.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See Preliminary Determination.</E>
                    </P>
                </FTNT>
                <P>
                    Therefore, in accordance with section 703(d) of the Act, we instructed CBP to terminate the suspension of liquidation and to liquidate without regard to countervailing duties, unliquidated entries of brass rod from India entered, or withdrawn from warehouse, for consumption on or after January 27, 2024, the date on which the provisional measures expired, through the day preceding the date of publication of the ITC's final injury determination in the 
                    <E T="04">Federal Register.</E>
                     Suspension of liquidation will resume on the date of publication of the ITC's final affirmative injury determination in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <HD SOURCE="HD1">Establishment of the Annual Inquiry Service List</HD>
                <P>
                    On September 20, 2021, Commerce published the Final Rule in the 
                    <E T="04">Federal Register</E>
                    .
                    <SU>8</SU>
                    <FTREF/>
                     On September 27, 2021, Commerce also published the Procedural Guidance in the 
                    <E T="04">Federal Register</E>
                    .
                    <SU>9</SU>
                    <FTREF/>
                     The 
                    <E T="03">Final Rule</E>
                     and Procedural Guidance provide that Commerce will maintain an annual inquiry service list for each order or suspended investigation, and any interested party submitting a scope ruling application or request for circumvention inquiry shall serve a copy of the application or request on the persons on the annual inquiry service list for that order, as well as any companion order covering the same merchandise from the same country of origin.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         See Regulations to Improve Administration and Enforcement of Antidumping and Countervailing Duty Laws, 86 FR 52300 (September 20, 2021) (Final Rule).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         See Scope Ruling Application; Annual Inquiry Service List; and Informational Sessions, 86 FR 53205 (September 27, 2021) (Procedural Guidance).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Id.
                    </P>
                </FTNT>
                <P>
                    In accordance with the Procedural Guidance, for orders published in the 
                    <E T="04">Federal Register</E>
                     after November 4, 2021, Commerce will create an annual inquiry service list segment in Commerce's online e-filing and document management system, Antidumping and Countervailing Duty Electronic Service System (ACCESS), available at 
                    <E T="03">https://access.trade.gov/</E>
                    , within five business days of publication of the notice of the order. Each annual inquiry service list will be saved in ACCESS, under each case number, and under a specific segment type called “AISL-Annual Inquiry Service List.” 
                    <SU>11</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         This segment will be combined with the ACCESS Segment Specific Information (SSI) field, which will display the month in which the notice of the order or suspended investigation was published in the 
                        <E T="04">Federal Register,</E>
                         also known as the anniversary month. For example, for an order under case number A-000-000 that was published in the 
                        <E T="04">Federal Register</E>
                         in January, the relevant segment and SSI combination will appear in ACCESS as “AISL-January Anniversary.” Note that there will be only one annual inquiry service list segment per case number, and the anniversary month will be pre-populated in ACCESS.
                    </P>
                </FTNT>
                <P>
                    Interested parties who wish to be added to the annual inquiry service list for an order must submit an entry of appearance to the annual inquiry service list segment for the order in ACCESS within 30 days after the date of publication of the order. For ease of administration, Commerce requests that law firms with more than one attorney representing interested parties in an order designate a lead attorney to be included on the annual inquiry service list. Commerce will finalize the annual inquiry service list within five business days thereafter. As mentioned in the 
                    <E T="03">Procedural Guidance,</E>
                     the new annual inquiry service list will be in place until the following year, when the 
                    <E T="03">Opportunity Notice</E>
                     for the anniversary month of the order is published. 
                </P>
                <P>
                    Commerce may update an annual inquiry service list at any time as needed based on interested parties' amendments to their entries of appearance to remove or otherwise modify their list of members and representatives, or to update contact information. Any changes or announcements pertaining to these procedures will be posted to the ACCESS website at 
                    <E T="03">https://access.trade.gov.</E>
                </P>
                <HD SOURCE="HD1">
                    Special Instructions for Petitioners 
                    <E T="51">12</E>
                    <FTREF/>
                     and Foreign Governments
                </HD>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         The petitioners are the American Brass Rod Fair Trade Coalition and its members, Mueller Brass Co., and Wieland Chase LLC.
                    </P>
                </FTNT>
                <P>
                    In the Final Rule,
                    <E T="03"/>
                     Commerce stated that, “after an initial request and placement on the annual inquiry service list, both petitioners and foreign governments will automatically be placed on the annual inquiry service list in the years that follow.” 
                    <SU>13</SU>
                    <FTREF/>
                     Accordingly, as stated above, the petitioner and the Government of India should submit its initial entry of appearance after publication of this notice in order to appear in the first annual inquiry service list for this order. Pursuant to 19 CFR 351.225(n)(3), the petitioner and the Government of India will not need to resubmit their entries of appearance each year to continue to be included on the annual inquiry service list. However, the petitioner and the Government of India are responsible for making amendments to their entries of appearance during the annual update to the annual inquiry service list in 
                    <PRTPAGE P="10034"/>
                    accordance with the procedures described above.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See Final Rule,</E>
                         86 FR at 52335.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>
                    This notice constitutes the countervailing duty order with respect to brass rod from India pursuant to section 706(a) of the Act. Interested parties can find a list of duty orders currently in effect at 
                    <E T="03">https://enforcement.trade.gov/stats/iastats1.html.</E>
                </P>
                <P>This CVD order is published in accordance with section 706(a) of the Act and 19 CFR 351.211(b).</P>
                <SIG>
                    <DATED>Dated: February 5, 2024.</DATED>
                    <NAME>Ryan Majerus</NAME>
                    <TITLE>Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
                <APPENDIX>
                    <HD SOURCE="HED">Appendix</HD>
                    <HD SOURCE="HD1">Scope of the Order</HD>
                    <P>The merchandise covered by this order are brass rod and bar (brass rod), which is defined as leaded, low-lead, and no-lead solid brass made from alloys such as, but not limited to the following alloys classified under the Unified Numbering System (UNS) as C27450, C27451, C27460, C34500, C35000, C35300, C35330, C36000, C36300, C37000, C37700, C48500, C67300, C67600, and C69300, and their international equivalents.</P>
                    <P>
                        The brass rod subject to this order has an actual cross-section or outside diameter greater than 0.25 inches but less than or equal to 12 inches. Brass rod cross-sections may be round, hexagonal, square, or octagonal shapes as well as special profiles (
                        <E T="03">e.g.,</E>
                         angles, shapes), including hollow profiles.
                    </P>
                    <P>
                        Standard leaded brass rod covered by the scope contains, by weight, 57.0-65.0 percent copper; 0.5-3.0 percent lead; no more than 1.3 percent iron; and at least 15 percent zinc. No-lead or low-lead brass rod covered by the scope contains by weight 59.0-76.0 percent copper; 0-1.5 percent lead; no more than 0.35 percent iron; and at least 15 percent zinc. Brass rod may also include other chemical elements (
                        <E T="03">e.g.,</E>
                         nickel, phosphorous, silicon, tin, etc.).
                    </P>
                    <P>Brass rod may be in straight lengths or coils. Brass rod covered by this order may be finished or unfinished, and may or may not be heated, extruded, pickled, or cold-drawn. Brass rod may be produced in accordance with ASTM B16, ASTM B124, ASTM B981, ASTM B371, ASTM B453, ASTM B21, ASTM B138, and ASTM B927, but such conformity to an ASTM standard is not required for the merchandise to be included within the scope.</P>
                    <P>Excluded from the scope of this order is brass ingot, which is a casting of unwrought metal unsuitable for conversion into brass rod without remelting, that contains, by weight, at least 57.0 percent copper and 15.0 percent zinc.</P>
                    <P>The merchandise covered by this order is currently classifiable under subheadings 7407.21.9000, 7407.21.7000, and 7407.21.1500 of the Harmonized Tariff Schedule of the United States (HTSUS). Products subject to the scope may also enter under HTSUS subheadings 7403.21.0000, 7407.21.3000, and 7407.21.5000. The HTSUS subheadings and UNS alloy designations are provided for convenience and customs purposes. The written description of the scope of the order is dispositive.</P>
                </APPENDIX>
            </SUPLINF>
            <FRDOC> [FR Doc. 2024-03073 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD> BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[C-570-041]</DEPDOC>
                <SUBJECT>Truck and Bus Tires From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review and Rescission of Review in Part, 2022</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies were provided to producers and exporters of truck and bus tires from the People's Republic of China (China), during the period of review (POR) from January 1, 2022, through December 31, 2022. In addition, Commerce is rescinding the review, in part, with respect to 15 companies. Interested parties are invited to comment on these preliminary results.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable February 13, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Ted Pearson, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2631.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On February 15, 2019, Commerce published in the 
                    <E T="04">Federal Register</E>
                     the countervailing duty order on truck and bus tires from China.
                    <SU>1</SU>
                    <FTREF/>
                     On February 2, 2023, Commerce published in the 
                    <E T="04">Federal Register</E>
                     the notice of initiation of an administrative review of the 
                    <E T="03">Order.</E>
                    <SU>2</SU>
                    <FTREF/>
                     On May 19, 2022, Commerce selected Qingdao Ge Rui Da Rubber Co., Ltd. and Bridgestone (Shenyang) Tire Co., Ltd. (Bridgestone Shenyang) for individual examination as the mandatory respondents in this administrative review.
                    <SU>3</SU>
                    <FTREF/>
                     On June 12, 2023, Bridgestone Corporation, Bridgestone Tire Co. Ltd. (Bridgestone Tire), and Bridgestone Shenyang (collectively, Bridgestone Companies) withdrew their request for administrative review.
                    <SU>4</SU>
                    <FTREF/>
                     On June 20, 2023, we selected Jiangsu Hankook Tire Co., Ltd. (Jiangsu Hankook) for individual examination.
                    <SU>5</SU>
                    <FTREF/>
                     On July 3, 2023, Jiangsu Hankook withdrew its request for review.
                    <SU>6</SU>
                    <FTREF/>
                     On September 8, 2023, we selected Jiangsu General Science Technology Co., Ltd. (General Science) for individual examination and requested that the GOC forward the initial questionnaire.
                    <SU>7</SU>
                    <FTREF/>
                     On September 29, 2023, Commerce extended the deadline for the preliminary results of review by 100 days, until February 8, 2024.
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Truck and Bus Tires from the People's Republic of China: Amended Final Determination and Countervailing Duty Order,</E>
                         84 FR 4434 (February 15, 2019) (
                        <E T="03">Order</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See Initiation of Antidumping and Countervailing Duty Administrative Reviews,</E>
                         88 FR 21609 (April 11, 2023).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Respondent Selection,” dated June 2, 2023.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Bridgestone Companies' Letter, “Withdrawal of Request for Administrative Review,” dated June 12, 2023.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Second Respondent Selection,” dated June 20, 2023.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Jiangsu Hankook's Letter, “Withdrawal of Request for Administrative Review,” dated July 3, 2023.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Commerce's Letter, “Second Selection of Additional Mandatory Respondent,” dated September 8, 2023.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Extension of Deadline for Preliminary Results of Countervailing Duty Administrative Review; 2021,” dated September 29, 2023.
                    </P>
                </FTNT>
                <P>
                    For a complete description of the events that followed the initiation of this review, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                    <SU>9</SU>
                    <FTREF/>
                     A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix I to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at 
                    <E T="03">http://access.trade.gov.</E>
                     In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at 
                    <E T="03">https://access.trade.gov/public/FRNoticesListLayout.aspx.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Decision Memorandum for the Preliminary Results of Countervailing Duty Administrative Review and Recission of Review in Part; 2022: Truck and Bus Tires from the People's Republic of China,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Order</HD>
                <P>
                    The products covered by the 
                    <E T="03">Order</E>
                     are truck and bus tires. For a complete description of the scope of the 
                    <E T="03">Order, see</E>
                     the Preliminary Decision Memorandum.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Preliminary Decision Memorandum.
                    </P>
                </FTNT>
                <PRTPAGE P="10035"/>
                <HD SOURCE="HD1">Methodology</HD>
                <P>
                    Commerce is conducting this administrative review in accordance with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For each subsidy program found countervailable, we preliminarily find that there is a subsidy, (
                    <E T="03">i.e.,</E>
                     a government-provided financial contribution that gives rise to a benefit to the recipient, and that the subsidy is specific).
                    <SU>11</SU>
                    <FTREF/>
                     For a full description of the methodology underlying our conclusions, including our reliance, in part, on adverse facts available pursuant to sections 776(a) and (b) of the Act, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Rescission of Administrative Review, in Part</HD>
                <P>
                    Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an administrative review, in whole or in part, if the parties that requested a review withdraw the request within 90 days of the date of publication of the notice of initiation. Commerce received timely-filed withdrawal requests with respect to 15 companies, pursuant to 19 CFR 351.213(d)(1).
                    <SU>12</SU>
                    <FTREF/>
                     Because the withdrawal requests were timely filed, and no other parties requested a review of these companies, in accordance with 19 CFR 351.213(d)(1), Commerce is rescinding this review of the 
                    <E T="03">Order</E>
                     with respect to these 15 companies. For a complete list of companies, 
                    <E T="03">see</E>
                     Appendix II to this notice.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         Preliminary Decision Memorandum at “Partial Rescission of Administrative Review.”
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Preliminary Results of Review</HD>
                <P>
                    Commerce preliminarily determines that the following net countervailable subsidy rates exist for the period January 1, 2022, through December 31, 2022:
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         As discussed in the Preliminary Decision Memorandum, Commerce has found the following companies to be cross-owned with Qingdao Ge Rui Da Tire Company: Cooper Tire (China) Investment Co. Ltd.; Cooper Tire Asia-Pacific (Shanghai) Trading Co., Ltd.; Qingdao Yiyuan Investment Co., Ltd.; Goodyear Dalian Tire Company Limited; and Goodyear Tire Management Company (Shanghai) Ltd.
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s50,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Manufacturer/exporter</CHED>
                        <CHED H="1">
                            Subsidy rate
                            <LI>(percent</LI>
                            <LI>
                                <E T="03">ad valorem</E>
                                )
                            </LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Jiangsu General Science Technology Co., Ltd</ENT>
                        <ENT>124.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            Qingdao Ge Rui Da Rubber Co., Ltd.
                            <SU>13</SU>
                        </ENT>
                        <ENT>10.27</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">Cash Deposit Requirements</HD>
                <P>
                    In accordance with section 751(a)(2)(C) of the Act, Commerce also intends upon publication of the final results, to instruct U.S. Customs and Border Protection (CBP) to collect cash deposits of the estimated countervailing duties in the amounts calculated in the final results of this review for the respective companies listed above with regard to shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of the final results of this review. If the rate calculated in the final results is zero or 
                    <E T="03">de minimis,</E>
                     no cash deposit will be required on shipments of the subject merchandise entered or withdrawn from warehouse, for consumption on or after the date of publication of the final results of this review.
                </P>
                <P>For all non-reviewed firms, CBP will continue to collect cash deposits of estimated countervailing duties at the all-others rate or the most recent company-specific rate applicable to the company, as appropriate. These cash deposit requirements, when imposed, shall remain in effect until further notice.</P>
                <HD SOURCE="HD1">Assessment Rates</HD>
                <P>In accordance with section 751(a)(2)(C) of the Act and 19 CFR 351.221(b)(4)(i), we preliminarily determined subsidy rates in the amounts shown above for the producers/exporters shown above. Upon completion of the administrative review, consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), Commerce shall determine, and CBP shall assess, countervailing duties on all appropriate entries covered by this review.</P>
                <P>
                    For the companies for which this review is rescinded with these preliminary results, we will instruct CBP to assess countervailing duties on all appropriate entries at a rate equal to the cash deposit of estimated countervailing duties required at the time of entry, or withdrawal from warehouse, for consumption, during the period January 1, 2021, through December 31, 2021, in accordance with 19 CFR 351.212(c)(l)(i). For the companies remaining in the review, we intend to issue assessment instructions to CBP no earlier than 35 days after the date of publication of the final results of this review in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <P>
                    If a timely summons is filed at the U.S. Court of International Trade, the assessment instructions will direct CBP not to liquidate relevant entries until the time for parties to file a request for a statutory injunction has expired (
                    <E T="03">i.e.,</E>
                     within 90 days of publication).
                </P>
                <HD SOURCE="HD1">Verification</HD>
                <P>
                    While we did not receive a request for verification, as provided in section 782(i)(3) of the Act, Commerce intends to verify the part of the information relied upon for its final results of review. Specifically, Commerce intends to verify usage of the export buyer's credit program as discussed in the Preliminary Decision Memorandum.
                    <SU>14</SU>
                    <FTREF/>
                     Commerce intends to notify parties of its verification procedures.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         Preliminary Decision Memorandum at section “Application of FA and AFA: Export Buyer's Credits.”
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Disclosure and Public Comment</HD>
                <P>
                    We will disclose to parties in this review, the calculations performed for these preliminary results within five days after the date of publication of this notice.
                    <SU>15</SU>
                    <FTREF/>
                     Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance. Commerce will notify interested parties of the deadline for the submission of case briefs. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than five days after the deadline date for case briefs unless otherwise modified by Commerce.
                    <SU>16</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.224(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.309(d)(1).
                    </P>
                </FTNT>
                <P>
                    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior proceedings we have encouraged interested parties to provide an executive summary of their brief that should be limited to five pages total, including footnotes. In this review, we instead request that interested parties provide at the beginning of their briefs a public, executive summary for each issue raised in their briefs.
                    <SU>17</SU>
                    <FTREF/>
                     Further, we request that interested parties limit their executive summary of each issue to no more than 450 words, not including citations. We intend to use the executive summaries as the basis of the comment summaries included in the issues and decision memorandum that will accompany the final results in this administrative review. We request that interested parties include footnotes for relevant citations in the executive summary of each issue. Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f).
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         We use the term “issue” here to describe an argument that Commerce would normally address in a comment of the Issues and Decision Memorandum.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.309(d); 
                        <E T="03">
                            see also Administrative Protective Order, Service, and Other Procedures in 
                            <PRTPAGE/>
                            Antidumping and Countervailing Duty Proceedings,
                        </E>
                         88 FR 67069, 67077 (September 29, 2023).
                    </P>
                </FTNT>
                <PRTPAGE P="10036"/>
                <P>Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, filed electronically using ACCESS. An electronically-filed request must be received successfully, and in its entirety, by ACCESS by 5:00 p.m. Eastern Time, within 30 days after the date of publication of this notice. Hearing requests should contain (1) the party's name, address, and telephone number, (2) the number of participants and whether any participant is a foreign national, and (3) a list of the issues to be discussed. If a request for a hearing is made, parties will be notified of the date and time for the hearing to be determined.</P>
                <P>
                    Unless extended, we intend to issue the final results of this administrative review, which will include the results of our analysis of the issues raised in the case briefs, within 120 days of publication of these preliminary results in the 
                    <E T="04">Federal Register</E>
                    , pursuant to section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).
                </P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>These preliminary results and notice are issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.213 and 351.221(b)(4).</P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Ryan Majerus,</NAME>
                    <TITLE>Deputy Assistant Secretary for Policy and Negotiations, performing the Non-exclusive Functions and Duties of the Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
                <HD SOURCE="HD1">Appendix I—List of Topics Discussed in the Preliminary Decision Memorandum</HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">I. Summary</FP>
                    <FP SOURCE="FP-2">II. Background</FP>
                    <FP SOURCE="FP-2">
                        III. Scope of the 
                        <E T="03">Order</E>
                    </FP>
                    <FP SOURCE="FP-2">IV. Partial Rescission of Administrative Review</FP>
                    <FP SOURCE="FP-2">V. Diversification of China's Economy</FP>
                    <FP SOURCE="FP-2">VI. Use of Faces Otherwise Available and Application of Adverse Inferences</FP>
                    <FP SOURCE="FP-2">VII. Subsidies Valuation</FP>
                    <FP SOURCE="FP-2">VIII. Interest Rate, Discount Rate, Input, Electricity, and Land Benchmarks</FP>
                    <FP SOURCE="FP-2">IX. Analysis of Programs</FP>
                    <FP SOURCE="FP-2">X. Recommendation</FP>
                </EXTRACT>
                <HD SOURCE="HD1">Appendix II—Companies Rescinded from Review</HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">1. Bridgestone (Shenyang) Tire Co., Ltd.</FP>
                    <FP SOURCE="FP-2">2. Bridgestone Tire Co. Ltd.</FP>
                    <FP SOURCE="FP-2">3. Chongqing Hankook Tire Co., Ltd.</FP>
                    <FP SOURCE="FP-2">4. Jiangsu Hankook Tire Co., Ltd</FP>
                    <FP SOURCE="FP-2">5. Prinx Chengshan (Shandong) Tire Company Ltd. and its cross-owned companies: Chengshan Group Co., Ltd.; Shanghai Chengzhan Information and Technology Center; Prinx Chengshan (Qingdao) Industrial Research &amp; Design Co., Ltd.; Shandong Prinx Chengshan Tire Technology Research Co., Ltd.</FP>
                    <FP SOURCE="FP-2">6. Qingdao Fullrun Tyre Corp. Ltd.</FP>
                    <FP SOURCE="FP-2">7. Sailun Group (Hong Kong) Co., Limited</FP>
                    <FP SOURCE="FP-2">8. Sailun Group Co., Ltd.</FP>
                    <FP SOURCE="FP-2">9. Shandong Haohua Tire Co., Ltd.</FP>
                    <FP SOURCE="FP-2">10. Shandong Kaixuan Rubber Co., Ltd.</FP>
                    <FP SOURCE="FP-2">11. Shandong Linglong Tyre Co., Ltd.</FP>
                    <FP SOURCE="FP-2">12. Shandong Transtone Tyre Co., Ltd.</FP>
                    <FP SOURCE="FP-2">13. Sinotyre International Group Co., Ltd</FP>
                    <FP SOURCE="FP-2">14. Triangle Tyre Co., Ltd.</FP>
                    <FP SOURCE="FP-2">15. Weifang Shunfuchang Rubber and Plastic Products Co., Ltd.</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02929 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[A-831-804]</DEPDOC>
                <SUBJECT>Aluminum Foil From the Republic of Armenia: Initiation of Antidumping Duty Changed Circumstances Review</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of Commerce (Commerce) is initiating a changed circumstances review (CCR) of the antidumping duty (AD) order on aluminum foil from the Republic of Armenia (Armenia) to examine whether Armenia remains a non-market economy (NME) country for purposes of the application of the AD law.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable February 13, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Leah Wils-Owens or Chien-Min Yang, Office of Policy, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-4203 or (202) 482-5484, respectively.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On December 21, 2023, the Government of Armenia (GOA) submitted a letter to Commerce requesting that Commerce conduct a review of Armenia's status as an NME country 
                    <SU>1</SU>
                    <FTREF/>
                     within the context of a changed circumstances review (CCR) of the AD order on aluminum foil from Armenia.
                    <SU>2</SU>
                    <FTREF/>
                     In its CCR Request, the GOA describes changes that have occurred in Armenia in recent years as they relate to each of the statutory criteria Commerce uses to evaluate a country's market economy (ME) status. Specifically, the CCR Request provides information about the convertibility of the Armenian Dram, how wage rates in Armenia are determined by free bargaining between labor and management, and the extent to which joint ventures and other investments by firms from other countries are permitted in Armenia. The CCR Request also provides information on government ownership and control over the means of production and the allocation of resources in Armenia, as well as the government's influence over enterprises' price and output decisions. Finally, the GOA provided its views on other factors that could affect its ME status, including its persistent fight against government corruption and various reforms enacted in conjunction with its accession to the World Trade Organization.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See</E>
                         GOA's Letter, “Request for the U.S. Department of Commerce to Initiate a Changed Circumstances Review of the Antidumping Duty Order on Aluminum Foil from the Republic of Armenia,” dated December 21, 2023 (CCR Request).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See Certain Aluminum Foil from the Republic of Armenia: Final Affirmative Determination of Sales at Less Than Fair Value,</E>
                         86 FR 52882 (September 23, 2021) (
                        <E T="03">Foil from Armenia Final Determination</E>
                        ).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Initiation of Changed Circumstances Review</HD>
                <P>
                    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended (the Act), when Commerce receives information concerning, or a request from an interested party for a review of, a final affirmative determination that resulted in an AD or countervailing duty order, which shows changed circumstances sufficient to warrant a review of such determination, Commerce shall conduct a review of the determination after publishing notice of the review in the 
                    <E T="04">Federal Register</E>
                    . Commerce finds that the GOA has provided sufficient evidence to initiate a review of Armenia's NME status. Therefore, in response to this request, Commerce is initiating this CCR to examine whether Armenia is still an NME country for purposes of the application of the AD law, pursuant to sections 751(b) and 771(18)(C)(ii) of the Act. Commerce has treated Armenia as an NME country in all past AD investigations and administrative reviews.
                    <SU>3</SU>
                    <FTREF/>
                     An NME designation remains in effect until it is revoked by Commerce.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See, e.g., Foil from Armenia Final Determination.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         section 771(18)(C)(i) of the Act.
                    </P>
                </FTNT>
                <PRTPAGE P="10037"/>
                <HD SOURCE="HD1">Opportunity for Public Comment and Submission of Factual Information</HD>
                <P>As part of this inquiry to review Armenia's NME country status, Commerce invites public comments on Armenia's economy on the following factors enumerated by section 771(18)(B) of the Act, which Commerce must consider in making ME/NME determinations:</P>
                <P>(i) the extent to which the currency of the foreign country is convertible into the currency of other countries;</P>
                <P>(ii) the extent to which wage rates in the foreign country are determined by free bargaining between labor and management;</P>
                <P>(iii) the extent to which joint ventures or other investments by firms of other foreign countries are permitted in the foreign country;</P>
                <P>(iv) the extent of government ownership or control over the means of production;</P>
                <P>(v) the extent of government control over allocation of resources and over price and output decisions of enterprises; and</P>
                <P>(vi) such factors as the administering authority considers appropriate.</P>
                <P>
                    The deadline for the submission of comments is not later than 30 days after the date of publication of this notice. Rebuttal comments, limited to issues raised in parties' affirmative comments, may be filed not later than 14 days after the date for filing affirmative comments. Interested parties must submit comments and factual information at the Federal eRulemaking Portal: 
                    <E T="03">https://www.Regulations.gov.</E>
                     The identification number is ITA-2024-0001. An electronically filed document must be received successfully in its entirety by 5:00 p.m. Eastern Time on the due date set forth in this notice.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings,</E>
                         88 FR 67069, 67077 (September 29, 2023).
                    </P>
                </FTNT>
                <P>Parties may request a hearing in their comments. If Commerce determines that a hearing is warranted, parties will be notified of the date and time for the hearing, in accordance with 19 CFR 351.310(d).</P>
                <P>Unless extended, consistent with 19 CFR 351.216(e), we will issue the final results of this CCR no later than 270 days after the date on which this review was initiated.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This notice is issued and published in accordance with sections 771(b)(1) and 777(i) of the Act, and 19 CFR 351.221(b) and (c)(3).</P>
                <SIG>
                    <DATED>Dated: February 5, 2024.</DATED>
                    <NAME>Ryan Majerus,</NAME>
                    <TITLE>Deputy Assistant Secretary for Policy and Negotiations, Performing the Non-exclusive Functions and Duties of the Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02928 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[A-201-848]</DEPDOC>
                <SUBJECT>Emulsion Styrene-Butadiene Rubber from Mexico: Final Results of Antidumping Duty Administrative Review, Final Determination of No Shipments, and Partial Rescission; 2021-2022</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of Commerce (Commerce) determines that Industrias Negromex S.A. de C.V. (Negromex) did not make sales of emulsion styrene-butadiene rubber (ESB rubber) from Mexico at less than normal value during the period of review (POR), September 1, 2021, through August 31, 2022. Commerce also determines that Dynasol Elastomeros, S.A. de C.V. (Dynasol Elastomeros) had no shipments during the POR. Additionally, we are rescinding this review with respect to Dynasol LLC (Dynasol).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable February 13, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Christopher Maciuba, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0413.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On October 10, 2023, Commerce published the 
                    <E T="03">Preliminary Results</E>
                     and invited interested parties to comment.
                    <SU>1</SU>
                    <FTREF/>
                     No interested party submitted comments on the 
                    <E T="03">Preliminary Results</E>
                    . Accordingly, the final results remain unchanged from the 
                    <E T="03">Preliminary Results</E>
                    . Commerce conducted this review in accordance with section 751 of the Tariff Act of 1930, as amended (the Act).
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Emulsion Styrene-Butadiene Rubber from Mexico: Preliminary Results of Antidumping Duty Administrative Review, Preliminary Determination of No Shipments, and Notice of Intent to Rescind, in Part; 2021-2022,</E>
                         88 FR 69907 (October 10, 2023) (
                        <E T="03">Preliminary Results</E>
                        ), and accompanying Preliminary Decision Memorandum.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">
                    Scope of the Order 
                    <E T="51">2</E>
                    <FTREF/>
                </HD>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See Emulsion Styrene-Butadiene Rubber from Brazil, the Republic of Korea, Mexico, and Poland: Antidumping Duty Orders,</E>
                         82 FR 42790 (September 12, 2017) (
                        <E T="03">Order</E>
                        ).
                    </P>
                </FTNT>
                <P>
                    The merchandise covered by the 
                    <E T="03">Order</E>
                     is ESB rubber from Mexico. For a complete description of the scope of the 
                    <E T="03">Order, see</E>
                     the Preliminary Decision Memorandum.
                </P>
                <HD SOURCE="HD1">Rate for Companies Not Selected for Individual Examination</HD>
                <P>
                    The Act and Commerce's regulations do not address the establishment of a rate to be applied to companies not selected for individual examination when Commerce limits its examination in an administrative review pursuant to section 777A(c)(2) of the Act. Generally, Commerce looks to section 735(c)(5) of the Act, which provides instructions for calculating the all-others rate in an investigation, for guidance when calculating the rate for companies which were not selected for individual examination in an administrative review. Under section 735(c)(5)(A) of the Act, the all-others rate is normally “an amount equal to the weighted average of the estimated weighted average dumping margins established for exporters and producers individually investigated, excluding any zero or 
                    <E T="03">de minimis</E>
                     margins, and any margins determined entirely {on the basis of facts available}.”
                </P>
                <P>
                    However, pursuant to section 735(c)(5)(B) of the Act, if the estimated weighted-average dumping margins established for all exporters and producers individually examined are zero, 
                    <E T="03">de minimis,</E>
                     or determined based entirely on facts otherwise available, Commerce may use any reasonable method to establish the estimated weighted-average dumping margin for all other producers or exporters.
                </P>
                <P>For these final results, we continue to determine that the weighted-average dumping margin for Negromex is zero percent. Therefore, we are applying a rate of zero percent to the companies not selected for individual examination in accordance with section 735(c)(5)(B) of the Act.</P>
                <HD SOURCE="HD1">Final Determination of No Shipments</HD>
                <P>
                    In the 
                    <E T="03">Preliminary Results,</E>
                     Commerce determined that Dynasol Elastomeros did not have suspended entries of subject merchandise during the POR.
                    <SU>3</SU>
                    <FTREF/>
                     No parties commented on Commerce's preliminary no-shipment determination. Therefore, for these final results, we 
                    <PRTPAGE P="10038"/>
                    continue to determine that Dynasol Elastomeros had no shipments of subject merchandise during the POR.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See Preliminary Results,</E>
                         88 FR at 69907-08.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Partial Rescission</HD>
                <P>
                    In the 
                    <E T="03">Preliminary Results,</E>
                     we notified parties of our intent to rescind this administrative review for Dynasol, as it is a U.S. importer and is, therefore, not eligible for review.
                    <SU>4</SU>
                    <FTREF/>
                     Because we continue to find that Dynasol is not eligible for review, we are rescinding this review with respect to Dynasol.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">Id.,</E>
                         88 FR at 69908.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Final Results of the Review</HD>
                <P>We determine that the following weighted-average dumping margins exist for the POR, September 1, 2021, through August 31, 2022:</P>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s50,9">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Exporter/producer</CHED>
                        <CHED H="1">
                            Weighted-
                            <LI>average </LI>
                            <LI>dumping margin </LI>
                            <LI>(percent)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Industrias Negromex S.A. de C.V</ENT>
                        <ENT>0.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Continental Tire de Mexico S.A. de C.V</ENT>
                        <ENT>0.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hyundai Glovis Mexico, S. de R.L. de C.V</ENT>
                        <ENT>0.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Pirelli Neumaticos, S.A. de C.V</ENT>
                        <ENT>0.00</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>
                    Because Commerce received no comments on the 
                    <E T="03">Preliminary Results,</E>
                     we have not modified our analysis and no decision memorandum accompanies this 
                    <E T="04">Federal Register</E>
                     notice. We are adopting the 
                    <E T="03">Preliminary Results</E>
                     as the final results of this review. Consequently, there are no new calculations to disclose in accordance with 19 CFR 351.224(b) for these final results.
                </P>
                <HD SOURCE="HD1">Assessment Rates</HD>
                <P>
                    Pursuant to section 751(a)(2)(A) of the Act and 19 CFR 351.212(b)(1), Commerce will determine, and U.S. Customs and Border Protection (CBP) shall assess, antidumping duties on all appropriate entries of subject merchandise in accordance with the final results of this review. For Negromex, because its weighted-average dumping margin is zero, we will instruct CBP to liquidate entries reported in this review without regard to antidumping duties. Consistent with Commerce's assessment practice, for entries of subject merchandise during the POR produced by Negromex for which it did not know its merchandise was destined for the United States, we will instruct CBP to liquidate unreviewed entries at the all-others rate if there is no rate for the intermediate company(ies) involved in the transaction.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         For a full discussion of this practice, 
                        <E T="03">see Antidumping and Countervailing Duty Proceedings: Assessment of Antidumping Duties,</E>
                         68 FR 23954 (May 6, 2003).
                    </P>
                </FTNT>
                <P>For the companies which were not selected for individual examination, we will instruct CBP to liquidate the appropriate entries without regard to antidumping duties. Further, because we continue to find that Dynasol Elastomeros had no shipments of subject merchandise during the POR, we will instruct CBP to liquidate any suspended entries of subject merchandise associated with Dynasol Elastomeros at the all-others rate. For Dynasol, for which this administrative review is rescinded, antidumping duties shall be assessed at a rate equal to the cash deposit of antidumping duties required at the time of entry, or withdrawal from warehouse, for consumption, in accordance with 19 CFR 351.212(c)(1)(i).</P>
                <P>
                    Commerce intends to issue assessment instructions to CBP no earlier than 41 days after the date of publication of the final results of this review in the 
                    <E T="04">Federal Register</E>
                    , in accordance with 19 CFR 356.8(a).
                </P>
                <HD SOURCE="HD1">Cash Deposit Requirements</HD>
                <P>
                    The following cash deposit requirements for estimated antidumping duties will be effective for all shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the publication date of the final results of this administrative review in the 
                    <E T="04">Federal Register</E>
                    , as provided by section 751(a)(2)(C) of the Act: (1) the cash deposit rate for the companies under review will be zero; (2) for merchandise exported by a producer or exporter not covered in this review but covered in a prior completed segment of the proceeding, the cash deposit rate will continue to be the company-specific rate published for the most recently-completed segment of this proceeding; (3) if the exporter is not a firm covered in this review, a prior review, or the original less-than-fair-value (LTFV) investigation, but the producer has been covered in a completed segment of this proceeding, the cash deposit rate will be the company-specific rate established for the most recent period for the producer of the merchandise; (4) the cash deposit rate for all other producers or exporters will continue to be 19.52 percent,
                    <SU>6</SU>
                    <FTREF/>
                     the all-others rate established in the LTFV investigation. These cash deposit requirements, when imposed, shall remain in effect until further notice.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See Order,</E>
                         82 FR at 42791.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Notification to Importers</HD>
                <P>This notice also serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this POR. Failure to comply with this requirement could result in Commerce's presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties.</P>
                <HD SOURCE="HD1">Administrative Protective Order</HD>
                <P>This notice also serves as a final reminder to parties subject to an administrative protective order (APO) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and terms of an APO is a sanctionable violation.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>We are issuing and publishing this notice in accordance with sections 751(a)(1) and 777(i) of the Act, and 19 CFR 351.221(b)(5) and 19 CFR 351.213(h)(1).</P>
                <SIG>
                    <DATED>Dated: February 6, 2024.</DATED>
                    <NAME>Ryan Majerus,</NAME>
                    <TITLE>Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02915 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[A-570-154]</DEPDOC>
                <SUBJECT>Certain Pea Protein From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Affirmative Determination of Critical Circumstances, Postponement of Final Determination, and Extension of Provisional Measures</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The U.S. Department of Commerce (Commerce) preliminarily determines that certain pea protein (pea 
                        <PRTPAGE P="10039"/>
                        protein) from the People's Republic of China (China) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is January 1, 2023, through June 30, 2023. Interested parties are invited to comment on this preliminary determination.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable February 13, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Katherine Smith or Sofia Pedrelli, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0557 or (202) 482-4310, respectively.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    This preliminary determination is made in accordance with section 733(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on August 7, 2023.
                    <SU>1</SU>
                    <FTREF/>
                     On November 27, 2023, Commerce postponed the preliminary determination of this investigation until February 7, 2023.
                    <SU>2</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Certain Pea Protein from the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation,</E>
                         88 FR 52124 (August 7, 2023) (
                        <E T="03">Initiation Notice</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See Certain Pea Protein from the People's Republic of China: Postponement of Preliminary Determination in the Less-Than-Fair-Value Investigation,</E>
                         88 FR 82831 (November 27, 2023).
                    </P>
                </FTNT>
                <P>
                    For a complete description of the events that followed the initiation of this investigation, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                    <SU>3</SU>
                    <FTREF/>
                     A list of topics included in the Preliminary Decision Memorandum is included as appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at 
                    <E T="03">https://access.trade.gov.</E>
                     In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at 
                    <E T="03">https://access.trade.gov/public/FRNoticesListLayout.aspx.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Decision Memorandum for the Preliminary Affirmative Determination in the Less-Than-Fair-Value Investigation of Certain Pea Protein from the People's Republic of China,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Scope of the Investigation</HD>
                <P>
                    The product covered by this investigation is pea protein from China. For a complete description of the scope of this investigation, 
                    <E T="03">see</E>
                     appendix I.
                </P>
                <HD SOURCE="HD1">Scope Comments</HD>
                <P>
                    In accordance with the preamble to Commerce's regulations,
                    <SU>4</SU>
                    <FTREF/>
                     the 
                    <E T="03">Initiation Notice</E>
                     set aside a period of time for parties to raise issues regarding product coverage (scope).
                    <SU>5</SU>
                    <FTREF/>
                     Certain interested parties commented on the scope of the investigation as it appeared in the 
                    <E T="03">Initiation Notice.</E>
                     For a summary of the product coverage comments and rebuttal responses submitted to the record for this investigation, and accompanying discussion and analysis of all comments timely received, 
                    <E T="03">see</E>
                     the Preliminary Scope Decision Memorandum.
                    <SU>6</SU>
                    <FTREF/>
                     Commerce is not preliminarily modifying the scope language as it appeared in the 
                    <E T="03">Initiation Notice. See</E>
                     the scope in Appendix I to this notice.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See Antidumping Duties; Countervailing Duties, Final Rule,</E>
                         62 FR 27296, 27323 (May 19, 1997).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See Initiation Notic</E>
                        e.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Memorandum, “Preliminary Scope Decision Memorandum,” dated concurrently with this notice (Preliminary Scope Decision Memorandum).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Methodology</HD>
                <P>
                    Commerce is conducting this investigation in accordance with section 731 of the Act. Pursuant to sections 776(a) and (b) of the Act, Commerce preliminarily has relied upon facts otherwise available, with adverse inferences, for the China-wide entity. For a full description of the methodology underlying Commerce's preliminary determination, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                </P>
                <HD SOURCE="HD1">Preliminary Affirmative Determination of Critical Circumstances</HD>
                <P>
                    In accordance with section 733(e) of the Act and 19 CFR 351.206(c), Commerce preliminarily determines that critical circumstances exist with respect to imports of pea protein from China for the separate-rate companies and the China-wide entity. For a full description of the methodology and results of Commerce's critical circumstances analysis, 
                    <E T="03">see</E>
                     the Preliminary Decision Memorandum.
                </P>
                <HD SOURCE="HD1">Combination Rates</HD>
                <P>
                    In the 
                    <E T="03">Initiation Notice,</E>
                    <SU>7</SU>
                    <FTREF/>
                     Commerce stated that it would calculate producer/exporter combination rates for the respondents that are eligible for a separate rate in this investigation. Policy Bulletin 05.1 describes this practice.
                    <SU>8</SU>
                    <FTREF/>
                     In this investigation, we calculated producer/exporter combination rates for respondents eligible for separate rates.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See Initiation Notice,</E>
                         88 FR at 52127.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Enforcement and Compliance's Policy Bulletin No. 05.1, regarding, “Separate-Rates Practice and Application of Combination Rates in Antidumping Investigations involving Non-Market Economy Countries,” (April 5, 2005) (Policy Bulletin 05.1), available on Commerce's website at 
                        <E T="03">https://enforcement.trade.gov/policy/bull05-1.pdf.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Separate Rates</HD>
                <P>
                    We have preliminarily granted a separate rate to certain separate rate respondents that we did not select for individual examination.
                    <SU>9</SU>
                    <FTREF/>
                     In calculating the rate for non-individually examined separate rate respondents in a non-market economy LTFV investigation, Commerce normally looks to section 735(c)(5)(A) of the Act, which pertains to the calculation of the all-others rate in a market economy LTFV investigation, for guidance. Pursuant to section 735(c)(5)(A) of the Act, normally this rate shall be an amount equal to the weighted average of the estimated weighted-average dumping margins established for those companies individually examined, excluding zero and 
                    <E T="03">de minimis</E>
                     dumping margins, and any dumping margins based entirely under section 776 of the Act. The estimated weighted-average dumping margins in this preliminary determination are based entirely under section 776 of the Act. In investigations where no estimated weighted-average dumping margins other than zero, 
                    <E T="03">de minimis,</E>
                     or those determined entirely under section 776 of the Act have been established for individually examined entities, in accordance with section 735(c)(5)(B) of the Act, Commerce typically calculates a simple average of the margins alleged in the petition and applies the results to all other entities not individually examined.
                    <SU>10</SU>
                    <FTREF/>
                     The simple average of the petition rates is 122.19 percent.
                    <SU>11</SU>
                    <FTREF/>
                      
                    <E T="03">See</E>
                     the table below in the “Preliminary Determination” section of this notice.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         the Preliminary Decision Memorandum for additional details.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See, e.g., Certain Preserved Mushrooms from Spain: Final Affirmative Determination of Sales Less Than Fair Value,</E>
                         88 FR 18120 (March 27, 2023).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         Puris Proteins, LLC's Letter, “Response of Petitioner to Volume II Supplemental Questionnaire,” dated July 21, 2023, at Exhibit II-S14; 
                        <E T="03">see also</E>
                         Preliminary Decision Memorandum, for additional details.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Preliminary Determination</HD>
                <P>
                    Commerce preliminarily determines that the following estimated weighted-average dumping margins exist: 
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         We preliminarily find that the following companies should be treated as a single entity: Yantai Zhongzhen Trading Co., Ltd; Yantai Oriental Protein Tech., Ltd; and Jiujiang Tiantai Food Co., Ltd. (collectively, the Zhongzhen Companies). Furthermore, we preliminarily find that neither the Zhongzhen Companies nor Zhaoyuan Junbang Trading Co., Ltd. (Junbang), the respondents selected for individual examination in this investigation, are eligible for a separate rate; thus, the China-wide entity preliminarily includes the 
                        <PRTPAGE/>
                        Zhongzhen Companies and Junbang. 
                        <E T="03">See</E>
                         the Preliminary Decision Memorandum for additional details.
                    </P>
                </FTNT>
                <PRTPAGE P="10040"/>
                <GPOTABLE COLS="4" OPTS="L2,nj,tp0,i1" CDEF="s100,r100,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Exporter</CHED>
                        <CHED H="1">Producer</CHED>
                        <CHED H="1">
                            Estimated
                            <LI>weighted-</LI>
                            <LI>average</LI>
                            <LI>dumping</LI>
                            <LI>margin</LI>
                            <LI>(percent)</LI>
                        </CHED>
                        <CHED H="1">
                            Cash deposit
                            <LI>rate</LI>
                            <LI>(adjusted</LI>
                            <LI>for subsidy</LI>
                            <LI>offset)</LI>
                            <LI>(percent)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Fenchem Biotek Ltd</ENT>
                        <ENT>Yantai Shuangta Food Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Jianyuan International Co., Ltd</ENT>
                        <ENT>Shandong Jianyuan Bioengineering Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Jianyuan International Co., Ltd</ENT>
                        <ENT>Hengyuan Biotechnology Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">KTL Pharmaceutical Co., Limited</ENT>
                        <ENT>Jiujiang Tiantai Food Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Linyi Yuwang Vegetable Protein Co., Ltd</ENT>
                        <ENT>Linyi Yuwang Vegetable Protein Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Nutracean Co., Ltd</ENT>
                        <ENT>Yantai Shuangta Food Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Nutracean Co., Ltd</ENT>
                        <ENT>Zhaoyuan Junbang Trading Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Shandong Yuwang Ecological Food Industry Co., Ltd</ENT>
                        <ENT>Linyi Yuwang Vegetable Protein Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Yantai T.Full Biotech Co., Ltd</ENT>
                        <ENT>Yantai T.Full Biotech Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Yosin Biotechnology (Yantai) Co., Ltd</ENT>
                        <ENT>Yosin Biotechnology (Yantai) Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Yosin Import and Export (Yantai) Co., Ltd</ENT>
                        <ENT>Yosin Biotechnology (Yantai) Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hainan Zhongxin Chemical Co., Ltd</ENT>
                        <ENT>Shandong Hua-Thai Food Products Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hainan Zhongxin Chemical Co., Ltd</ENT>
                        <ENT>Shandong Jundu Talin Foods Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hainan Zhongxin Chemical Co., Ltd</ENT>
                        <ENT>Yosin Biotechnology (Yantai) Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Hainan Zhongxin Chemical Co., Ltd</ENT>
                        <ENT>Yosin Import and Export (Yantai) Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW RUL="n,n,s">
                        <ENT I="01">Hainan Zhongxin Chemical Co., Ltd</ENT>
                        <ENT>Yantai Shuangta Food Co., Ltd</ENT>
                        <ENT>122.19</ENT>
                        <ENT>111.65</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="01">China-wide Entity</ENT>
                        <ENT>280.31</ENT>
                        <ENT>269.77</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">Suspension of Liquidation</HD>
                <P>
                    In accordance with section 733(d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                    , as discussed below. Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the weighted average amount by which normal value exceeds U.S. price, as indicated in the chart above as follows: (1) for the producer/exporter combinations listed in the table above, the cash deposit rate is equal to the estimated weighted-average dumping margin listed for that combination in the table; (2) for all combinations of Chinese producers/exporters of merchandise under consideration that have not established eligibility for their own separate rates, the cash deposit rate will be equal to the estimated weighted-average dumping margin established for the China-wide entity; and (3) for all third-country exporters of merchandise under consideration not listed in the table above, the cash deposit rate is the cash deposit rate applicable to the Chinese producer/exporter combination (or the China-wide entity) that supplied that third-country exporter.
                </P>
                <P>
                    Section 733(e)(2) of the Act provides that, given an affirmative determination of critical circumstances, any suspension of liquidation shall apply to unliquidated entries of merchandise entered, or withdrawn from warehouse, for consumption on or after the later of: (a) the date that is 90 days before the date on which the suspension of liquidation was first ordered; or (b) the date on which notice of initiation of the investigation was published. Commerce preliminarily finds that critical circumstances exist for imports of subject merchandise from the non-selected companies eligible for a separate rate and the China-wide entity.
                    <SU>13</SU>
                    <FTREF/>
                     In accordance with section 733(e)(2)(A) of the Act, the suspension of liquidation shall apply to all unliquidated entries of merchandise from the non-selected companies eligible for a separate rate and the China-wide entity that were entered, or withdrawn from warehouse, for consumption on or after the date that is 90 days before the publication of this notice in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Preliminary Decision Memorandum.
                    </P>
                </FTNT>
                <P>To determine the cash deposit rate, Commerce normally adjusts the estimated weighted-average dumping margin by the amount of domestic subsidy pass-through and export subsidies determined in a companion countervailing duty (CVD) proceeding when CVD provisional measures are in effect. Accordingly, where Commerce has made a preliminary affirmative determination for domestic subsidy pass-through or export subsidies, Commerce has offset the calculated estimated weighted-average dumping margin by the appropriate rate. Any such adjusted rates may be found in the “Preliminary Determination” section's chart of estimated weighted-average dumping margins above.</P>
                <P>Should provisional measures in the companion CVD investigation expire prior to the expiration of provisional measures in this LTFV investigation, Commerce will direct CBP to begin collecting cash deposits at a rate equal to the estimated weighted-average dumping margins calculated in this preliminary determination unadjusted for the passed-through domestic subsidies or for export subsidies at the time the CVD provisional measures expire. These suspension of liquidation instructions will remain in effect until further notice.</P>
                <HD SOURCE="HD1">Disclosure</HD>
                <P>Normally, Commerce discloses to interested parties the calculations performed in connection with a preliminary determination within five days of its public announcement or, if there is no public announcement, within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b). However, because Commerce preliminarily applied total adverse facts available (AFA) to the China-wide entity, including the mandatory respondents, in this investigation in accordance with section 776 of the Act, and the applied AFA rate is based solely on the petition, there are no calculations to disclose.</P>
                <HD SOURCE="HD1">Verification</HD>
                <P>
                    Because the China-wide entity in this investigation did not provide 
                    <PRTPAGE P="10041"/>
                    information requested by Commerce, and Commerce preliminarily determines that the China-wide entity was uncooperative, verification will not be conducted.
                </P>
                <HD SOURCE="HD1">Public Comment</HD>
                <P>
                    Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance no later than 30 days after the date of publication of the preliminary determination unless the Secretary alters the time limit.
                    <SU>14</SU>
                    <FTREF/>
                     Rebuttal briefs, limited to issues raised in the case briefs, may be filed no later than five days after the date for filing case briefs.
                    <SU>15</SU>
                    <FTREF/>
                     Interested parties who submit case briefs or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities.
                    <SU>16</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.309(c)(1)(i); 
                        <E T="03">see also</E>
                         19 CFR 351.303 (for general filing requirements).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.309(d); 
                        <E T="03">see also Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings,</E>
                         88 FR 67069, 67077 (September 29, 2023) (
                        <E T="03">APO and Final Service Rule</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         19 CFR 351.309(c)(2) and (d)(2).
                    </P>
                </FTNT>
                <P>
                    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior proceedings we have encouraged interested parties to provide an executive summary of their brief that should be limited to five pages total, including footnotes. In this investigation, we instead request that interested parties provide at the beginning of their briefs a public, executive summary for each issue raised in their briefs.
                    <SU>17</SU>
                    <FTREF/>
                     Further, we request that interested parties limit their executive summary of each issue to no more than 450 words, not including citations. We intend to use the executive summaries as the basis of the comment summaries included in the issues and decision memorandum that will accompany the final determination in this investigation. We request that interested parties include footnotes for relevant citations in the executive summary of each issue. Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f).
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         We use the term “issue” here to describe an argument that Commerce would normally address in a comment of the Issues and Decision Memorandum.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See APO and Final Service Rule.</E>
                    </P>
                </FTNT>
                <P>Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, within 30 days after the date of publication of this notice. Requests should contain the party's name, address, and telephone number, the number of participants, whether any participant is a foreign national, and a list of the issues to be discussed. If a request for a hearing is made, Commerce intends to hold the hearing at a time and date to be determined.</P>
                <HD SOURCE="HD1">Postponement of Final Determination and Extension of Provisional Measures</HD>
                <P>Section 735(a)(2) of the Act provides that a final determination may be postponed until no later than 135 days after the date of the publication of the preliminary determination if, in the event of an affirmative preliminary determination, a request for such postponement is made by exporters who account for a significant proportion of exports of the subject merchandise, or in the event of a negative preliminary determination, a request for such postponement is made by the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires that requests by respondents for postponement of a final antidumping duty determination be accompanied by a request for extension of provisional measures from a four-month period to a period not more than six months in duration.</P>
                <P>
                    In January 2024, pursuant to 19 CFR 351.210(e), the Zhongzhen Companies and Junbang requested that Commerce postpone the final determination and that provisional measures be extended to a period not to exceed six months.
                    <SU>19</SU>
                    <FTREF/>
                     In accordance with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because: (1) the preliminary determination is affirmative; (2) the requesting exporters account for a significant proportion of exports of the subject merchandise; and (3) no compelling reasons for denial exist, Commerce is postponing the final determination and extending the provisional measures from a four-month period to a period not greater than six months. Accordingly, Commerce's final determination will be published no later than 135 days after the date of publication of this preliminary determination.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         the Zhongzhen Companies' Letter, “Zhongzhen Request for Postponement of Final Determination,” dated January 24, 2024; 
                        <E T="03">see also</E>
                         Junbang's Letter, “Request to Postpone Final Results,” dated January 26, 2024.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">U.S. International Trade Commission Notification</HD>
                <P>In accordance with section 733(f) of the Act, Commerce will notify the U.S. International Trade Commission (ITC) of its preliminary determination of sales at LTFV. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether imports of the subject merchandise are materially injuring, or threaten material injury to, the U.S. industry.</P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This determination is issued and published in accordance with sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).</P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Ryan Majerus,</NAME>
                    <TITLE>Deputy Assistant Secretary for Policy and Negotiations, Performing the Non-Exclusive Functions and Duties of the Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
                <HD SOURCE="HD1">Appendix I</HD>
                <EXTRACT>
                    <HD SOURCE="HD1">Scope of the Investigation</HD>
                    <P>The product within the scope of this investigation is high protein content (HPC) pea protein, which is a protein derived from peas (including, but not limited to, yellow field peas and green field peas) and which contains at least 65 percent protein on a dry weight basis. HPC pea protein may also be identified as, for example, pea protein concentrate, pea protein isolate, hydrolyzed pea protein, pea peptides, and fermented pea protein. Pea protein, including HPC pea protein, has the Chemical Abstracts Service (CAS) registry number 222400-29-5.</P>
                    <P>
                        The scope covers HPC pea protein in all physical forms, including all liquid (
                        <E T="03">e.g.,</E>
                         solution) and solid (
                        <E T="03">e.g.,</E>
                         powder) forms, regardless of packaging or the inclusion of additives (
                        <E T="03">e.g.,</E>
                         flavoring, suspension agents, preservatives).
                    </P>
                    <P>
                        The scope also includes HPC pea protein described above that is blended, combined, or mixed with non-subject pea protein or with other ingredients (
                        <E T="03">e.g.,</E>
                         proteins derived from other sources, fibers, carbohydrates, sweeteners, and fats) to make products such as protein powders, dry beverage blends, and protein fortified beverages. For any such blended, combined, or mixed products, only the HPC pea protein component is covered by the scope of this investigation. HPC pea protein that has been blended, combined, or mixed with other products is included within the scope, regardless of whether the blending, combining, or mixing occurs in third countries.
                    </P>
                    <P>
                        HPC pea protein that is otherwise within the scope is covered when commingled (
                        <E T="03">i.e.,</E>
                         blended, combined, or mixed) with HPC pea protein from sources not subject to this investigation. Only the subject component of the commingled product is covered by the scope.
                    </P>
                    <P>
                        A blend, combination, or mixture is excluded from the scope if the total HPC pea protein content of the blend, combination, or mixture (regardless of the source or sources) comprises less than five percent of the blend, combination, or mixture on a dry weight basis.
                        <PRTPAGE P="10042"/>
                    </P>
                    <P>All products that meet the written physical description are within the scope of the investigation unless specifically excluded. The following products, by way of example, are outside and/or specifically excluded from the scope of the investigation:</P>
                    <P>• burgers, snack bars, bakery products, sugar and gum confectionary products, milk, cheese, baby food, sauces and seasonings, and pet food, even when such products are made with HPC pea protein;</P>
                    <P>• HPC pea protein that has gone through an extrusion process to alter the HPC pea protein at the structural and functional level, resulting in a product with a fibrous structure which resembles muscle meat upon hydration. These products are commonly described as textured pea protein or texturized pea protein;</P>
                    <P>• HPC pea protein that has been further processed to create a small crunchy nugget commonly described as a pea protein crisp;</P>
                    <P>• protein derived from chickpeas.</P>
                    <P>The merchandise covered by the scope is currently classified under Harmonized Tariff Schedule of the United States (HTSUS) categories 3504.00.1000, 3504.00.5000, and 2106.10.0000. Such merchandise may also enter the U.S. market under HTSUS category 2308.00.9890. Although HTSUS categories and the CAS registry number are provided for convenience and customs purposes, the written description of the scope of the investigation is dispositive.</P>
                </EXTRACT>
                <HD SOURCE="HD1">Appendix II</HD>
                <EXTRACT>
                    <HD SOURCE="HD1">List of Topics Discussed in the Preliminary Decision Memorandum</HD>
                    <FP SOURCE="FP-2">I. Summary</FP>
                    <FP SOURCE="FP-2">II. Background</FP>
                    <FP SOURCE="FP-2">III. Period of Investigation</FP>
                    <FP SOURCE="FP-2">IV. Affiliation and Single Entity Treatment</FP>
                    <FP SOURCE="FP-2">V. Discussion of the Methodology</FP>
                    <FP SOURCE="FP-2">VI. Critical Circumstances</FP>
                    <FP SOURCE="FP-2">VII. Adjustment Under Section 777(A)(F) of the Tariff Act of 1930, as Amended</FP>
                    <FP SOURCE="FP-2">VIII. Adjustment to Cash Deposit Rate for Export Subsidies</FP>
                    <FP SOURCE="FP-2">IX. Recommendation</FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02965 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XD659]</DEPDOC>
                <SUBJECT>Pacific Fishery Management Council; Public Meetings and Hearings</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of public meetings, hearings, and public comment opportunities.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Pacific Fishery Management Council (Pacific Council) has begun its annual preseason management process for the 2024 ocean salmon fisheries. This document announces the anticipated dates and locations of upcoming Pacific Council meetings and public hearings hosted by the Pacific Council. See 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         for more information.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Council meetings are tentatively scheduled for March 5-11 (Fresno, CA) and April 6-11 (Seattle, WA) in 2024. Information will be available on the Pacific Council's website (
                        <E T="03">http://www.pcouncil.org</E>
                        ) as the Council meeting dates approach.
                    </P>
                    <P>
                        March 25-26, 2024: Three public hearings will be held to receive comments on the proposed 2024 ocean salmon fishery management alternatives adopted by the Pacific Council. Public hearings focusing on Washington and California salmon fisheries will occur simultaneously on March 25, 2024 and the public hearing for Oregon salmon fisheries will occur on March 26, 2024. Each public hearing will be state-specific and begin at 7 p.m. The Washington and California public hearings are tentatively scheduled to be held in-person and occur in Westport, WA and Santa Rosa, CA. The Oregon public hearing is scheduled to be held on-line. Consult the Pacific Council's website at 
                        <E T="03">http://www.pcouncil.org</E>
                         as the meeting date approaches to get the most current information, as the date, venue, and meeting format is subject to change. A summary of verbal comments heard at the hearings will be provided to the Pacific Council at its April meeting.
                    </P>
                    <P>
                        Written comments on the salmon management alternatives must be submitted through the Pacific Council's e-portal (
                        <E T="03">https://pfmc.psmfc.org</E>
                        ) and received by the public comment deadline which is tentatively scheduled for 5 p.m., April 2, 2024, and prior to the start of the April 2024 Council meeting. Verbal comments on the salmon management alternatives are accepted during the Council meeting consistent with the Council's April 2024 agenda dates for salmon topics. Information will be available on the Pacific Council's website (
                        <E T="03">http://www.pcouncil.org</E>
                        ) as the date for the April Council meeting approaches.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        <E T="03">Council address:</E>
                         Pacific Fishery Management Council, 7700 NE Ambassador Place, Suite 101, Portland, OR 97220-1384.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Robin Ehlke, Pacific Council; telephone: (503) 820-2410.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    These events, combined with the previous notice of public meetings and availability of reports published in November 2023 (88 FR 80275) comprise the Pacific Council's complete schedule for determining the annual proposed and final modifications to ocean salmon fishery management measures. The meeting notices and agendas for the March and April 2024 Pacific Council meetings will be published in subsequent 
                    <E T="04">Federal Register</E>
                     documents prior to the actual meetings.
                </P>
                <P>
                    For public meetings held online, specific meeting information, including instructions on how to join the meeting and system requirements will be provided in meeting announcements on the Pacific Council's website (see 
                    <E T="03">www.pcouncil.org</E>
                    ). You may send an email to Mr. Kris Kleinschmidt (
                    <E T="03">kris.kleinschmidt@noaa.gov</E>
                    ) or contact him at (503) 820-2412 for technical assistance.
                </P>
                <P>Although non-emergency issues not contained in the meeting agenda may be discussed, those issues may not be the subject of formal action during these meetings. Action will be restricted to those issues specifically listed in this document and any issues arising after publication of this document that require emergency action under section 305(c) of the Magnuson-Stevens Fishery Conservation and Management Act, provided the public has been notified of the intent to take final action to address the emergency.</P>
                <HD SOURCE="HD1">Special Accommodations</HD>
                <P>
                    Requests for sign language interpretation or other auxiliary aids should be directed to Mr. Kris Kleinschmidt (
                    <E T="03">kris.kleinschmidt@noaa.gov;</E>
                     (503) 820-2412) at least 10 days prior to the meeting date.
                </P>
                <P>
                    <E T="03">Authority:</E>
                     16 U.S.C. 1801 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Rey Israel Marquez,</NAME>
                    <TITLE>Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02867 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Southeast Region Individual Fishing Quota Programs</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic &amp; Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <PRTPAGE P="10043"/>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection, request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of Commerce, in accordance with the Paperwork Reduction Act of 1995 (PRA), invites the general public and other Federal agencies to comment on proposed, and continuing information collections, which helps us assess the impact of our information collection requirements and minimize the public's reporting burden. The purpose of this notice is to allow for 60 days of public comment preceding submission of the collection to OMB.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>To ensure consideration, comments regarding this proposed information collection must be received by April 15, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Interested persons are invited to submit written comments to Adrienne Thomas, NOAA PRA Officer, at 
                        <E T="03">noaa.pra@noaa.gov.</E>
                         Please reference OMB Control Number 0648-0551 in the subject line of your comments. Do not submit confidential business information or otherwise sensitive or protected information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Requests for additional information or specific questions related to collection activities should be directed to Britni LaVine, NMFS, Southeast Regional Office, Sustainable Fisheries Division, 263 13th Ave. South, St. Petersburg, FL 33701, 727-824-5305, 
                        <E T="03">britni.lavine@noaa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Abstract</HD>
                <P>
                    This is a request for an extension of an approved information collection. The NMFS Southeast Regional Office manages three commercial individual fishing quota (IFQ) and individual transferable quota (ITQ) programs in the NMFS Southeast Region under the authority of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act), 16 U.S.C. 1801 
                    <E T="03">et seq.</E>
                     The IFQ programs for red snapper, and groupers and tilefishes occur in Federal waters of the Gulf of Mexico (Gulf), and the ITQ program for wreckfish occurs in Federal waters of the South Atlantic.
                </P>
                <P>The NMFS Southeast Regional Office proposes to extend the information collection currently approved under OMB Control Number 0648-0551. This collection of information tracks the transfer and use of IFQ and ITQ shares, and IFQ allocation and landings by commercial fishermen necessary for NMFS to operate, administer, and review management of the IFQ and ITQ programs. Regulations for the IFQ and ITQ programs are located at 50 CFR part 622. NMFS proposes no revisions to the existing information collections for the IFQ and ITQ programs approved under OMB Control Number 0648-0551.</P>
                <HD SOURCE="HD1">II. Method of Collection</HD>
                <P>Information for the Gulf red snapper, and grouper and tilefish IFQ programs is collected electronically via a web-based system, through satellite-linked vessel monitoring systems, through a 24-hour call line, and with paper form submission for landing corrections, closing an account, and account applications, as well as landing transactions under catastrophic circumstances.</P>
                <P>The share transfer process in the wreckfish ITQ program requires the signatures of witnesses on paper forms. The wreckfish ITQ program remains paper-based until the South Atlantic Fishery Management Council and NMFS consider whether to implement an electronic system.</P>
                <HD SOURCE="HD1">III. Data</HD>
                <P>
                    <E T="03">OMB Control Number:</E>
                     0648-0551.
                </P>
                <P>
                    <E T="03">Form Number(s):</E>
                     None.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Regular submission—extension of a current information collection.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Businesses or other for-profit organizations.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     1,064.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                </P>
                <FP SOURCE="FP-1">• Transfer Shares, 3 minutes</FP>
                <FP SOURCE="FP-1">• Share Receipt, 2 minutes</FP>
                <FP SOURCE="FP-1">• Account Update, 2 minutes</FP>
                <FP SOURCE="FP-1">• Trip Ticket Update, 2 minutes</FP>
                <FP SOURCE="FP-1">• Transfer Allocation, 3 minutes</FP>
                <FP SOURCE="FP-1">• Landing Transaction Correction Request, 5 minutes</FP>
                <FP SOURCE="FP-1">
                    • Dealer Cost Recovery Fee Submission through 
                    <E T="03">pay.gov,</E>
                     3 minutes
                </FP>
                <FP SOURCE="FP-1">• Commercial Reef Fish Landing Location Request, 5 minutes</FP>
                <FP SOURCE="FP-1">• Dealer Landing Transaction Report, 6 minutes (electronic form)</FP>
                <FP SOURCE="FP-1">• Dealer Landing Transaction Report, 5 minutes (paper form used in catastrophic conditions only)</FP>
                <FP SOURCE="FP-1">• IFQ Notification of Landing, 5 minutes</FP>
                <FP SOURCE="FP-1">• Gulf Reef Fish Notification of Landing, 3 minutes</FP>
                <FP SOURCE="FP-1">• IFQ Close Account, 3 minutes</FP>
                <FP SOURCE="FP-1">• IFQ Online Account Application, 13 minutes</FP>
                <FP SOURCE="FP-1">• Wreckfish Quota Share Transfer, 20 minutes</FP>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     2,397.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Cost to Public:</E>
                     $651 in recordkeeping and reporting costs.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Mandatory, required to obtain or retain benefits.
                </P>
                <P>
                    <E T="03">Legal Authority:</E>
                     Magnuson-Stevens Act, 16 U.S.C. 1801 
                    <E T="03">et seq.</E>
                </P>
                <HD SOURCE="HD1">IV. Request for Comments</HD>
                <P>We are soliciting public comments to permit the Department/Bureau to: (a) Evaluate whether the proposed information collection is necessary for the proper functions of the Department, including whether the information will have practical utility; (b) Evaluate the accuracy of our estimate of the time and cost burden for this proposed collection, including the validity of the methodology and assumptions used; (c) Evaluate ways to enhance the quality, utility, and clarity of the information to be collected; and (d) Minimize the reporting burden on those who are to respond, including the use of automated collection techniques or other forms of information technology.</P>
                <P>Comments that you submit in response to this notice are a matter of public record. We will include or summarize each comment in our request to OMB to approve this ICR. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you may ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.</P>
                <SIG>
                    <NAME>Sheleen Dumas,</NAME>
                    <TITLE>Department PRA Clearance Officer, Office of the Under Secretary for Economic Affairs, Commerce Department.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02968 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Patent and Trademark Office</SUBAGY>
                <DEPDOC>[Docket No. PTO-P-2023-0043]</DEPDOC>
                <SUBJECT>Inventorship Guidance for AI-Assisted Inventions</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>United States Patent and Trademark Office, Department of Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Examination guidance; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Pursuant to the “Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence” (October 30, 2023), the United States Patent and Trademark Office (USPTO or Office) is 
                        <PRTPAGE P="10044"/>
                        issuing inventorship guidance for inventions assisted by artificial intelligence (AI). The guidance provides clarity for USPTO stakeholders and personnel, including the Central Reexamination Unit and the Patent Trial and Appeal Board (PTAB or Board), on how the USPTO will analyze inventorship issues as AI systems, including generative AI, play a greater role in the innovation process. This guidance explains that while AI-assisted inventions are not categorically unpatentable, the inventorship analysis should focus on human contributions, as patents function to incentivize and reward human ingenuity. Patent protection may be sought for inventions for which a natural person provided a significant contribution to the invention, and the guidance provides procedures for determining the same. Finally, the guidance discusses the impact these procedures have on other aspects of patent practice. The USPTO is seeking public comments on this inventorship guidance for AI-assisted inventions.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P/>
                    <P>
                        <E T="03">Applicability Date:</E>
                         The inventorship guidance for AI-assisted inventions is effective on February 13, 2024. This guidance applies to all applications, and to all patents resulting from applications, filed before, on, or after February 13, 2024.
                    </P>
                    <P>
                        <E T="03">Comment Deadline Date:</E>
                         Written comments must be received on or before May 13, 2024.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Comments must be submitted through the Federal eRulemaking Portal at 
                        <E T="03">www.regulations.gov.</E>
                         To submit comments via the portal, enter docket number PTO-P-2023-0043 on the homepage and select “Search.” The site will provide a search results page listing all documents associated with this docket. Find a reference to this document and select on the “Comment” icon, complete the required fields, and enter or attach your comments. Attachments to electronic comments will be accepted in Adobe® portable document format (PDF) or Microsoft Word® format. Because comments will be made available for public inspection, information that the submitter does not desire to make public, such as an address or phone number, should not be included in the comments.
                    </P>
                    <P>Visit the Federal eRulemaking Portal for additional instructions on providing comments via the portal. If electronic submission of comments is not feasible due to a lack of access to a computer and/or the internet, please contact the USPTO using the contact information below for special instructions.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Matthew Sked, Senior Legal Advisor, at 571-272-7627; or Nalini Mummalaneni, Senior Legal Advisor, at 571-270-1647, both with the Office of Patent Legal Administration, Office of the Deputy Commissioner for Patents.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Background</HD>
                <P>
                    In August 2019, the USPTO issued a request for public comments on patenting AI-assisted inventions.
                    <SU>1</SU>
                    <FTREF/>
                     Among the various policy questions raised in the notice, the USPTO requested comments on several issues involving inventorship, such as the different ways a natural person can contribute to the conception of an AI-assisted invention. In October 2020, the USPTO published a report titled “Public Views on Artificial Intelligence and Intellectual Property Policy,” which took a comprehensive look at the stakeholder feedback received in response to the questions posed in the August 2019 notice.
                    <SU>2</SU>
                    <FTREF/>
                     In June 2022, the USPTO held its inaugural Artificial Intelligence/Emerging Technologies Partnership meeting, which included a panel discussion on “Inventorship and the Advent of Machine Generated Inventions.” 
                    <SU>3</SU>
                    <FTREF/>
                     The USPTO later issued a “Request for Comments Regarding Artificial Intelligence and Inventorship” (RFC) on February 14, 2023.
                    <SU>4</SU>
                    <FTREF/>
                     This RFC asked 11 questions, mostly regarding the issues involving AI and patent inventorship. On April 25 and May 8, 2023, the USPTO held public listening sessions at the USPTO headquarters and Stanford University, respectively. During these listening sessions, the USPTO heard from 32 public speakers, and the events were attended by over 800 attendees, both in person and virtually. The USPTO has received 69 written comments from a diverse group of stakeholders. Comments received in response to the RFC can be viewed on the 
                    <E T="03">Regulations.gov</E>
                     docket page.
                    <SU>5</SU>
                    <FTREF/>
                     As illustrated above, the USPTO has actively engaged with our stakeholders and has received extensive input from the public on inventorship for AI-assisted inventions. Notably, numerous commenters expressly agreed that the USPTO should provide guidance regarding inventorship and the patentability of AI-assisted inventions.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         Request for Comments on Patenting Artificial Intelligence Inventions, 84 FR 44889 (August 27, 2019). AI-assisted inventions are inventions created by natural persons using one or more AI systems. The AI system's contribution is not inventorship, even if the AI system's contributions were instrumental in the creation of the invention. 
                        <E T="03">Thaler</E>
                         v. 
                        <E T="03">Vidal,</E>
                         43 F.4th 1207 (Fed. Cir. 2022).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         The full report is available at 
                        <E T="03">www.uspto.gov/sites/default/files/documents/USPTO_AI-Report_2020-10-07.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The recording is available at 
                        <E T="03">www.uspto.gov/about-us/events/aiet-partnership-series-1-kickoff-uspto-aiet-activities-and-patent-policy.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         88 FR 9492 (February 14, 2023).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Comments are viewable at 
                        <E T="03">www.regulations.gov/docket/PTO-P-2022-0045/comments.</E>
                    </P>
                </FTNT>
                <P>Recognizing that “[r]esponsible AI use has the potential to help solve urgent challenges while making our world more prosperous, productive, innovative, and secure,” while “[a]t the same time, irresponsible use could exacerbate societal harms such as fraud, discrimination, bias, and disinformation; displace and disempower workers; stifle competition; and pose risks to national security,” President Biden issued the “Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence” on October 30, 2023 (Executive Order). The Executive Order sets forth policy and principles, including that:</P>
                <EXTRACT>
                    <P>Promoting responsible innovation, competition, and collaboration will allow the United States to lead in AI and unlock the technology's potential to solve some of society's most difficult challenges. This effort requires investments in AI-related education, training, development, research, and capacity, while simultaneously tackling novel intellectual property (IP) questions and other problems to protect inventors and creators. . . . The Federal Government will promote a fair, open, and competitive ecosystem and marketplace for AI and related technologies so that small developers and entrepreneurs can continue to drive innovation. Doing so requires stopping unlawful collusion and addressing risks from dominant firms' use of key assets such as semiconductors, computing power, cloud storage, and data to disadvantage competitors, and it requires supporting a marketplace that harnesses the benefits of AI to provide new opportunities for small businesses, workers, and entrepreneurs.</P>
                </EXTRACT>
                <P>Under section 5.2(c)(i) of the Executive Order (Promoting Innovation and Competition), the Executive Order provides that:</P>
                <EXTRACT>
                    <P>(c) To promote innovation and clarify issues related to AI and inventorship of patentable subject matter, the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office (USPTO Director) shall:</P>
                    <P>(i) within 120 days of the date of this order, publish guidance to USPTO patent examiners and applicants addressing inventorship and the use of AI, including generative AI, in the inventive process, including illustrative examples in which AI systems play different roles in inventive processes and how, in each example, inventorship issues ought to be analyzed.</P>
                </EXTRACT>
                <PRTPAGE P="10045"/>
                <P>
                    In accordance with the Executive Order, and to continue its mission to drive U.S. innovation, inclusive capitalism, and global competitiveness, the USPTO is providing guidance on the determination of inventorship for AI-assisted inventions to provide clarification and consistency when it comes to the evaluation of such issues. Section II of this notice provides an overview of the recent Federal Circuit decision in 
                    <E T="03">Thaler</E>
                     v. 
                    <E T="03">Vidal</E>
                     and its applicability to joint inventorship. Section III provides an assessment of the inventorship of AI-assisted inventions and its impact on patentability, and concludes such inventions are not categorically unpatentable due to improper inventorship if one or more natural persons significantly contributed to the invention. Section IV provides guidance and principles for determining the inventorship of an AI-assisted invention. Section V explains the impact the inventorship determination for AI-assisted inventions has on other aspects of patent practice.
                </P>
                <P>
                    In conjunction with issuing this guidance, the USPTO is issuing examples to provide assistance to the public and examiners on the application of this guidance in specific situations. The examples are posted to public at 
                    <E T="03">www.uspto.gov/initiatives/artificial-intelligence/artificial-intelligence-resources.</E>
                     The USPTO is seeking public comments on the guidance as well as the examples. Based on the feedback received from its stakeholders and any relevant additional judicial decisions, the USPTO may issue further guidance, modify the current guidance, or issue additional examples. The USPTO views the inventorship guidance on AI-assisted inventions as an iterative process and may continue with periodic supplements as AI technology continues to advance and/or as judicial precedent evolves. The USPTO invites the public to submit suggestions on topics related to AI-assisted inventorship so it can address them in future guidance supplements.
                </P>
                <P>The USPTO recognizes that AI gives rise to other questions for the patent system besides inventorship, such as subject matter eligibility, obviousness, and enablement. In addition to addressing inventorship, section 5.2(c)(ii) of the Executive Order also provides that the USPTO Director shall,</P>
                <EXTRACT>
                    <P>(ii) subsequently, within 270 days of the date of this order, issue additional guidance to USPTO patent examiners and applicants to address other considerations at the intersection of AI and IP, which could include, as the USPTO Director deems necessary, updated guidance on patent eligibility to address innovation in AI and critical and emerging technologies.</P>
                </EXTRACT>
                <P>The USPTO has been exploring issues at the intersection of AI and IP and is planning to continue to engage with our stakeholders as we move forward, issuing guidance as appropriate.</P>
                <HD SOURCE="HD2">A. Impact on Examination Procedure and Prior Examination Guidance</HD>
                <P>While this guidance is focused on AI-assisted inventions, portions of the guidance can apply to other types of inventions. To the extent that earlier guidance from the USPTO, including certain sections of the Manual of Patent Examining Procedure (9th Edition, rev. 07.2022, February 2023) (MPEP), is inconsistent with the guidance set forth in this notice, USPTO personnel are to follow these guidelines. The MPEP will be updated in due course.</P>
                <P>
                    <E T="03">Disclaimer:</E>
                     This guidance does not constitute substantive rulemaking and does not have the force and effect of law. The guidance sets out agency policy with respect to the USPTO's interpretation of the inventorship requirements of the Patent Act in view of decisions by the Supreme Court of the United States (Supreme Court) and the United States Court of Appeals for the Federal Circuit (Federal Circuit). The guidance does not create any right or benefit, substantive or procedural, enforceable by any party against the USPTO. Rejections will continue to be based on the substantive law, and it is those rejections that are appealable to the PTAB and the courts.
                </P>
                <HD SOURCE="HD1">II. Inventors and Joint Inventors Named on U.S. Patents and Patent Applications Must Be Natural Persons</HD>
                <P>
                    On April 22, 2020, the USPTO issued a pair of decisions denying petitions to name the Device for the Autonomous Bootstrapping of Unified Sentience (DABUS), an AI system, as an inventor on two patent applications. The USPTO's decisions explained that under current U.S. patent laws, inventorship is limited to a natural person(s).
                    <SU>6</SU>
                    <FTREF/>
                     The USPTO's decisions were upheld on September 2, 2021, in a decision from the United States District Court for the Eastern District of Virginia.
                    <SU>7</SU>
                    <FTREF/>
                     On appeal, the Federal Circuit affirmed in 
                    <E T="03">Thaler</E>
                     v. 
                    <E T="03">Vidal</E>
                     (
                    <E T="03">Thaler</E>
                    ) the holding “that only a natural person can be an inventor, so AI cannot be.” 
                    <SU>8</SU>
                    <FTREF/>
                     Specifically, the Federal Circuit stated that 35 U.S.C. 100(f) defines an inventor as “the 
                    <E T="03">individual</E>
                     or, if a joint invention, the 
                    <E T="03">individuals</E>
                     collectively who invented or discovered the subject matter of the invention.” (emphasis in original) The court found that based on Supreme Court precedent, the word “individual,” when used in statutes, ordinarily means a human being unless Congress provided some indication that a different meaning was intended.
                    <SU>9</SU>
                    <FTREF/>
                     The court further found that there is nothing in the Patent Act to indicate Congress intended a different meaning, and the Patent Act includes other language to support the conclusion that an “individual” in the Patent Act refers to a natural person.
                    <SU>10</SU>
                    <FTREF/>
                     The court therefore concluded that an inventor must be a natural person.
                    <SU>11</SU>
                    <FTREF/>
                     The court explained, however, that it was not confronted with “the question of whether inventions made by human beings with the 
                    <E T="03">assistance</E>
                     of AI are eligible for patent protection.” 
                    <SU>12</SU>
                    <FTREF/>
                     (emphasis in original)
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The decision is available at 
                        <E T="03">www.uspto.gov/sites/default/files/documents/16524350_22apr2020.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">Thaler</E>
                         v. 
                        <E T="03">Hirshfeld,</E>
                         558 F.Supp.3d 238 (E.D. Va. 2021).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">Thaler</E>
                         v. 
                        <E T="03">Vidal,</E>
                         43 F.4th 1207, 1213 (Fed. Cir. 2022), 
                        <E T="03">cert denied,</E>
                         143 S. Ct. 1783 (2023).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">Id.</E>
                         at 1211 (citing 
                        <E T="03">Mohamad</E>
                         v. 
                        <E T="03">Palestinian Auth.,</E>
                         566 U.S. 449, 454 (2012)).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">Id.</E>
                         at 1213.
                    </P>
                </FTNT>
                <P>
                    35 U.S.C. 100(g) defines the terms “joint inventor” and “coinventor” as “any 1 of the individuals who invented or discovered the subject matter of a joint invention.” Based on the holding in 
                    <E T="03">Thaler</E>
                     that an “individual” must mean a natural person, it is clear that a “joint inventor” or “coinventor” must also be a natural person. In February of 2023, the USPTO published the R-07.2022 revision of the MPEP, which included revisions to section 2109. This section reiterates the USPTO's position, and the position expressed by the Federal Court in 
                    <E T="03">Thaler,</E>
                     that an inventor must be a natural person, and by extension, any joint inventor must be a natural person. As such, patent applications that name a machine on an application data sheet (37 CFR 1.76), an inventor's oath or declaration (37 CFR 1.63), or a substitute statement (37 CFR 1.64) as either an inventor or joint inventor will be considered by the USPTO to have improper inventorship.
                </P>
                <P>
                    Further, the USPTO recognizes that while an AI system may not be named an inventor or joint inventor in a patent or patent application, an AI system—like other tools—may perform acts that, if performed by a human, could constitute inventorship under our laws. The 
                    <E T="03">Thaler</E>
                     decisions around “inventorship” are not a recognition of any limits on the current or future state of AI, but rather are an acknowledgment that the statutory language clearly limits 
                    <PRTPAGE P="10046"/>
                    inventorship on U.S. patents and patent applications to natural persons.
                </P>
                <HD SOURCE="HD1">III. AI-Assisted Inventions Are Not Categorically Unpatentable for Improper Inventorship</HD>
                <P>
                    While AI systems and other non-natural persons 
                    <SU>13</SU>
                    <FTREF/>
                     cannot be listed as inventors on patent applications or patents, the use of an AI system by a natural person(s) does not preclude a natural person(s) from qualifying as an inventor (or joint inventors) if the natural person(s) significantly contributed to the claimed invention, as explained in section IV of this notice. Patent applications and patents for AI-assisted inventions must name the natural person(s) who significantly contributed to the invention as the inventor or joint inventors (
                    <E T="03">i.e.,</E>
                     meeting the 
                    <E T="03">Pannu</E>
                     
                    <SU>14</SU>
                    <FTREF/>
                     factors as explained in section IV). Additionally, applications and patents must not list any entity that is not a natural person as an inventor or joint inventor, even if an AI system may have been instrumental in the creation of the claimed invention. This position is supported by the statutes, court decisions, and numerous policy considerations.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         “Non-natural person” used in this notice refers to those entities that would not qualify as a natural person under the law (
                        <E T="03">e.g.,</E>
                         sovereigns, corporations, or machines).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">Pannu</E>
                         v. 
                        <E T="03">Iolab Corp.,</E>
                         155 F.3d 1344, 1351 (Fed. Cir. 1998).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">A. Statutory Framework</HD>
                <P>
                    The requirements that a patent application name an “inventor” and that each individual who is named an “inventor” of a claimed invention execute an oath or declaration are available in 35 U.S.C. 115(a).
                    <SU>15</SU>
                    <FTREF/>
                     These inventorship requirements are extended to joint inventorship in 35 U.S.C. 116(a).
                    <SU>16</SU>
                    <FTREF/>
                     Under 35 U.S.C. 115(b), the oath or declaration must state, among other things, that “such individual believes himself or herself to be the original inventor or an original joint inventor of a claimed invention in the application.” Failure by the applicant to name the proper “inventors” is a ground for rejection under 35 U.S.C. 101 and 35 U.S.C. 115.
                    <SU>17</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         “An application for patent that is filed under section 111(a) or commences the national stage under section 371 shall include, or be amended to include, the name of the inventor for any invention claimed in the application. Except as otherwise provided in this section, each individual who is the inventor or a joint inventor of a claimed invention in an application for patent shall execute an oath or declaration in connection with the application.”
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         “When an invention is made by two or more persons jointly, they shall apply for patent jointly and each make the required oath, except as otherwise provided in this title.”
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         MPEP 2157 (“Note that a rejection under pre-AIA [America Invents Act] 35 U.S.C. 102(f) should not be made if the application is subject to examination under the first inventor to file (FITF) provisions of the AIA.”).
                    </P>
                </FTNT>
                <P>
                    The term “inventor” is defined in 35 U.S.C. 100(f) as “the 
                    <E T="03">individual</E>
                     or, if a joint invention, the 
                    <E T="03">individuals</E>
                     collectively who invented or discovered the subject matter of the invention” (emphases added). Additionally, the term “joint inventor” is found in 35 U.S.C. 100(g) and is defined as “any 1 of the 
                    <E T="03">individuals</E>
                     who invented or discovered the subject matter of a joint invention” (emphasis added). As stated in 
                    <E T="03">Thaler,</E>
                     the term “individual” ordinarily means a human being, and Congress did not provide any indication it intended a different meaning.
                    <SU>18</SU>
                    <FTREF/>
                     The terms “inventor” and “joint inventor” have a specific meaning in the Patent Act: those natural persons who invent or discover the claimed invention. Therefore, the statutory requirement in 35 U.S.C. 115 and 116 to name the inventor or joint inventors and require each to sign an oath or declaration is limited only to the natural persons who invented or discovered the claimed invention. These statutes do not provide for recognizing contributions by tools such as AI systems (or other advanced systems) for inventorship purposes, even if those AI systems were instrumental in the creation of the invention.
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">Thaler</E>
                         v. 
                        <E T="03">Vidal,</E>
                         43 F.4th at 1211.
                    </P>
                </FTNT>
                <P>Additionally, there are no other sections of the Patent Act that support a position that inventions that are created by natural person(s) using specific tools, including AI systems, result in improper inventorship or are otherwise unpatentable. The statutes only require the naming of the natural persons who invented or discovered the claimed invention, irrespective of the contributions provided by an AI system or any other advanced system. Accordingly, the inability to list an AI system, used to create an invention, as a joint inventor does not render the invention unpatentable due to improper inventorship.</P>
                <HD SOURCE="HD2">B. Judicial Interpretation and Policy Considerations</HD>
                <P>
                    The Supreme Court has indicated that the meaning of “invention” in the Patent Act refers to the inventor's conception.
                    <SU>19</SU>
                    <FTREF/>
                     Similarly, the Federal Circuit has made clear that conception is the touchstone of inventorship.
                    <SU>20</SU>
                    <FTREF/>
                     Conception is often referred to as a mental act or the mental part of invention.
                    <SU>21</SU>
                    <FTREF/>
                     Specifically, “[i]t is `the formation in the mind of the inventor, of a definite and permanent idea of the complete and operative invention, as it is hereafter to be applied in practice.' ” 
                    <SU>22</SU>
                    <FTREF/>
                     Because conception is an act performed in the mind, it has to date been understood as only performed by natural persons. The courts have been unwilling to extend conception to non-natural persons.
                    <SU>23</SU>
                    <FTREF/>
                     Hence, when a natural person invents using an AI system, the conception analysis should focus on the natural person(s).
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">Pfaff</E>
                         v. 
                        <E T="03">Wells Elecs., Inc.,</E>
                         525 U.S. 55, 60 (1998) (“The primary meaning of the word `invention' in the Patent Act unquestionably refers to the inventor's conception rather than to a physical embodiment of that idea.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">Sewall</E>
                         v. 
                        <E T="03">Walters,</E>
                         21 F.3d 411, 415 (Fed. Cir. 1994) (“Determining `inventorship' is nothing more than determining who conceived the subject matter at issue, whether that subject matter is recited in a claim in an application or in a count in an interference.”); see also 
                        <E T="03">Ethicon, Inc.</E>
                         v. 
                        <E T="03">U.S. Surgical Corp.,</E>
                         135 F.3d 1456, 1460 (Fed. Cir. 1998) (“Because `[c]onception is the touchstone of inventorship,' each joint inventor must generally contribute to the conception of the invention.”) (quoting 
                        <E T="03">Burroughs Wellcome Co.</E>
                         v. 
                        <E T="03">Barr Labs., Inc.,</E>
                         40 F.3d 1223, 1227-28 (Fed. Cir. 1994)).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">Univ. of Utah</E>
                         v. 
                        <E T="03">Max-Planck-Gesellschaft Zur Forderung Der Wissenschaften E.V.,</E>
                         734 F.3d 1315, 1323 (Fed. Cir. 2013); 
                        <E T="03">Fina Oil &amp; Chem. Co.</E>
                         v. 
                        <E T="03">Ewen,</E>
                         123 F.3d 1466, 1474 (Fed. Cir. 1997).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">Burroughs Wellcome,</E>
                         40 F.3d at 1228 (
                        <E T="03">citing Hybritech Inc.</E>
                         v. 
                        <E T="03">Monoclonal Antibodies, Inc.,</E>
                         802 F.2d 1367, 1376 (Fed. Cir. 1986) (quoting 1 
                        <E T="03">Robinson on Patents</E>
                         532 (1890)).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         See 
                        <E T="03">Univ. of Utah,</E>
                         734 F.3d at 1323 (“To perform this mental act, inventors must be natural persons and cannot be corporations or sovereigns.”); 
                        <E T="03">Beech Aircraft Corp.</E>
                         v. 
                        <E T="03">EDO Corp.,</E>
                         990 F.2d 1237, 1248 (Fed. Cir. 1993) (“EDO could never have been declared an `inventor,' as EDO was merely a corporate assignee and only natural persons can be `inventors.').
                    </P>
                </FTNT>
                <P>
                    The patent system is designed to encourage 
                    <E T="03">human</E>
                     ingenuity.
                    <SU>24</SU>
                    <FTREF/>
                     From its very inception, patents were intended to incentivize human individuals to invent and thereby promote the progress of science and the useful arts.
                    <SU>25</SU>
                    <FTREF/>
                     Focusing 
                    <PRTPAGE P="10047"/>
                    the patentability of AI-assisted inventions on the human contributions supports this policy objective by incentivizing human-centered activities and contributions, and by providing patent protections to inventions with significant human contributions while prohibiting patents on those that are not invented by natural persons. This approach supports the USPTO's goal of helping to ensure our patent system strikes the right balance between protecting and incentivizing AI-assisted inventions and not hindering future human innovation by locking up innovation created without human ingenuity.
                </P>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         See, 
                        <E T="03">e.g.,</E>
                         U.S. Const. art. 1, s. 8, cl. 8 (“The Congress shall have Power . . . To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.”); Committee Reports on the 1952 Patent Act, S. Rep. No. 1979, 82d Cong., 2d Sess., 5 (1952); H. R. Rep. No. 1923, 82d Cong., 2d Sess., 6 (1952) (Inventions eligible for patenting “include anything under the sun 
                        <E T="03">made by man.</E>
                        ”) (emphasis added)); 
                        <E T="03">Graham</E>
                         v. 
                        <E T="03">John Deere Co.,</E>
                         383 U.S. 1, 9 (1966) (“The patent monopoly was not designed to secure to the inventor [their] natural right in [their] discoveries. Rather, it was a reward, an inducement, to bring forth new knowledge. The grant of an exclusive right to an invention was the creation of society—at odds with the inherent free nature of disclosed ideas—and was not to be freely given. Only inventions and discoveries which furthered human knowledge, and were new and useful, justified the special inducement of a limited private monopoly.”); 
                        <E T="03">Diamond</E>
                         v. 
                        <E T="03">Chakrabarty,</E>
                         447 U.S. 303, 309-310 (1980) (Under the Patent Act, a claim is considered patentable subject matter if it is to “a nonnaturally occurring manufacture or composition of matter—
                        <E T="03">a product of human ingenuity</E>
                         having a distinctive name, character and use.”) (emphasis added).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         See, 
                        <E T="03">e.g., Thaler</E>
                         v. 
                        <E T="03">Perlmutter,</E>
                         2023 WL 5333236 at *4 (D.D.C. 2023) (“At the founding, both copyright and patent were conceived of as forms of 
                        <PRTPAGE/>
                        property that the government was established to protect, and it was understood that recognizing exclusive rights in that property would further the public good by incentivizing individuals to create and invent. The act of human creation—and how to best encourage human individuals to engage in that creation, and thereby promote science and the useful arts—was thus central to American copyright from its very inception. Non-human actors need no incentivization with the promise of exclusive rights under United States law, and copyright was therefore not designed to reach them.”).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Naming Inventors for AI-Assisted Inventions</HD>
                <P>
                    The patent statutes require the naming of all inventors who contributed to at least one claim of a patent.
                    <SU>26</SU>
                    <FTREF/>
                     The threshold question in determining the named inventor(s) is who contributed to the conception of the invention.
                    <SU>27</SU>
                    <FTREF/>
                     In situations where a single person did not conceive the entire invention (
                    <E T="03">e.g.,</E>
                     joint inventorship), courts have found that a person who shares in the conception of the invention is an inventor.
                    <SU>28</SU>
                    <FTREF/>
                     In these situations, each named inventor in a patent application or patent, including an application or a patent for an AI-assisted invention, must have made a “significant contribution” 
                    <SU>29</SU>
                    <FTREF/>
                     to the claimed invention.
                    <SU>30</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">Vapor Point LLC</E>
                         v. 
                        <E T="03">Moorhead,</E>
                         832 F.3d 1343, 1348-49 (Fed. Cir. 2016).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         MPEP 2109 (subsection II).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         MPEP 2109.01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">Fina Oil,</E>
                         123 F.3d at 1473 (“[A] joint inventor must contribute in some significant manner to the conception of the invention.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         The USPTO recognizes there are divergent views on the level of contribution AI systems can make in the invention creation process. See, 
                        <E T="03">e.g.,</E>
                         Response to the RFC from American Intellectual Property Law Association at 3 (“[E]ven if AI were considered or categorized as equivalent to a human, its contributions would not rise to the level of joint inventorship, as the core inventive concepts and decisions remain within the purview of the human inventors.”); Response to the RFC from International Federation of Intellectual Property Attorneys (FICPI) at 3 (“FICPI takes the position that AI is becoming powerful and creative enough to generate patentable contributions to inventions to which a human has arguably not made an inventive contribution but instead has directed the AI to endeavor towards the solution to a problem.”). Comments are viewable at 
                        <E T="03">www.regulations.gov/docket/PTO-P-2022-0045/comments.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">A. Significant Contribution</HD>
                <P>
                    When evaluating the contributions made by natural persons in the invention creation process, it is important to keep in mind they may apply for a patent jointly, “even though (1) they did not physically work together or at the same time, (2) each did not make the same type or amount of contribution, or (3) each did not make a contribution to the subject matter of every claim of the patent.” 
                    <SU>31</SU>
                    <FTREF/>
                     Instead, each inventor must contribute in some significant manner to the invention. In making this determination, the courts have looked to several factors, such that each inventor must: “(1) contribute in some significant manner to the conception or reduction to practice of the invention,
                    <SU>32</SU>
                    <FTREF/>
                     (2) make a contribution to the claimed invention that is not insignificant in quality, when that contribution is measured against the dimension of the full invention, and (3) do more than merely explain to the real inventors well-known concepts and/or the current state of the art” (
                    <E T="03">Pannu</E>
                     factors).
                    <SU>33</SU>
                    <FTREF/>
                     Courts have found that a failure to meet any one of these factors precludes that person from being named an inventor.
                    <SU>34</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         35 U.S.C. 116(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         While these factors do refer to reduction to practice, applicants are reminded that the main inquiry is who conceived of the invention. Reduction to practice, per se, is generally irrelevant to this inquiry. MPEP 2109(II) (citing 
                        <E T="03">Fiers</E>
                         v. 
                        <E T="03">Revel,</E>
                         984 F.2d 1164, 1168 (Fed. Cir. 1993)). The mention of reduction to practice in the 
                        <E T="03">Pannu</E>
                         factors is an acknowledgement of the simultaneous conception and reduction to practice doctrine used in unpredictable technologies. See, 
                        <E T="03">e.g., Amgen, Inc.</E>
                         v. 
                        <E T="03">Chugai Pharm. Co.,</E>
                         927 F.2d 1200, 1206 (Fed. Cir. 1991). The 
                        <E T="03">Pannu</E>
                         factors are not a basis to conclude that reduction to practice, alone, is sufficient to demonstrate inventorship.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">Pannu,</E>
                         155 F.3d at 1351.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">HIP, Inc.</E>
                         v. 
                        <E T="03">Hormel Foods Corp.,</E>
                         66 F.4th 1346, 1353 (Fed. Cir. 2023) (citing 
                        <E T="03">Pannu,</E>
                         155 F.3d at 1351 (“a joint inventor must contribute in a significant manner to the conception or reduction to practice of the invention, make a contribution to the invention that is not insignificant, 
                        <E T="03">and</E>
                         do more than explain well-known concepts or the current state of the art”)) (emphasis in original).
                    </P>
                </FTNT>
                <P>
                    As for the first 
                    <E T="03">Pannu</E>
                     factor, “[a] person who shares in conception of a claimed invention is a joint inventor of the invention.” 
                    <SU>35</SU>
                    <FTREF/>
                     In other words, each named inventor must have significantly contributed to the “definite and permanent idea of the complete and operative invention as it is thereafter applied in practice.” 
                    <SU>36</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         MPEP 2138.04(I) (citing 
                        <E T="03">In re VerHoef,</E>
                         888 F.3d 1362, 1366-67, 126 F.2d 1561, 1564-65 (Fed. Cir. 2018).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">Townsend</E>
                         v. 
                        <E T="03">Smith,</E>
                         36 F.2d 292, 295 (CCPA 1929).
                    </P>
                </FTNT>
                <P>
                    In addition to inventorship disputes, the courts have extensively addressed the issue of conception in connection with interference proceedings under pre-America Invents Act 35 U.S.C. 102(g), and the USPTO views that body of caselaw as instructive. In particular, interference proceedings involve determining the date of conception for competing inventions. That inquiry, in turn, requires determining what activities are sufficient for conception and by whom.
                    <SU>37</SU>
                    <FTREF/>
                     In these decisions, the courts have recognized there must be a contemporaneous recognition and appreciation of the invention for there to be conception.
                    <SU>38</SU>
                    <FTREF/>
                     Put simply, conception does not occur when there is only an “unrecognized accidental creation.” 
                    <SU>39</SU>
                    <FTREF/>
                     While recognition and appreciation are generally required for complete conception, there is no requirement that each inventor recognize and appreciate the invention. Therefore, each inventor must make a significant contribution to the conception of the invention, and at least one inventor must have recognition and appreciation.
                    <SU>40</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         35 U.S.C. 102(g)(1) (“In determining priority of invention under this subsection, there shall be considered not only the respective dates of conception and reduction to practice of the invention, but also the reasonable diligence of one who was first to conceive and last to reduce to practice, from a time prior to conception by the other.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">Silvestri</E>
                         v. 
                        <E T="03">Grant,</E>
                         496 F.2d 593, 597 (CCPA 1974); 
                        <E T="03">Heard</E>
                         v. 
                        <E T="03">Burton,</E>
                         333 F.2d 239, 244 (CCPA 1964) (“In the present case it is the recognition and appreciation of the invention which was lacking to Dr. Heard prior to April 23, 1952 [appellees' filing date].”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">Invitrogen Corp.</E>
                         v. 
                        <E T="03">Clontech Labs., Inc.,</E>
                         429 F.3d 1052, 1063 (Fed. Cir. 2005).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">Amgen, Inc.</E>
                         v. 
                        <E T="03">Chugai Pharm. Co.,</E>
                         927 F.2d 1200, 1206 (Fed. Cir. 1991) (“Conception requires both the idea of the invention's structure and possession of an operative method of making it.”) (citing 
                        <E T="03">Oka</E>
                         v. 
                        <E T="03">Youssefyeh,</E>
                         849 F.2d 581, 583 (Fed. Cir. 1988)).
                    </P>
                </FTNT>
                <P>
                    The fact that a human performs a significant contribution to reduction to practice of an invention conceived by another is not enough to constitute inventorship. It is settled law that such contributions are insufficient to demonstrate inventorship.
                    <SU>41</SU>
                    <FTREF/>
                     Although the first 
                    <E T="03">Pannu</E>
                     factor refers to “the conception or reduction to practice of the invention,” the court did so by citing an earlier Federal Circuit decision concerning “the doctrine of simultaneous conception and reduction to practice.” 
                    <SU>42</SU>
                    <FTREF/>
                     Pursuant to that doctrine, “in some instances, an inventor may only be able to establish a conception by pointing to a reduction to practice through a successful experiment.” 
                    <SU>43</SU>
                    <FTREF/>
                     This concept of 
                    <PRTPAGE P="10048"/>
                    simultaneous conception and reduction to practice is sometimes pertinent in unpredictable arts, where, for example, the inventor does not have a reasonable expectation that they would produce the claimed invention.
                    <SU>44</SU>
                    <FTREF/>
                     Under those circumstances, the conception of a specific chemical compound does not occur until the reduction to practice occurs.
                    <SU>45</SU>
                    <FTREF/>
                     Therefore, the reference to reduction to practice in the first 
                    <E T="03">Pannu</E>
                     factor is simply an acknowledgement of this doctrine, and it does not imply that reduction to practice is sufficient for invention or is a substitute for conception.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         MPEP 2109(II) (citing 
                        <E T="03">Fiers</E>
                         v. 
                        <E T="03">Revel,</E>
                         984 F.2d 1164, 1168 (Fed. Cir. 1993)).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         See 
                        <E T="03">Pannu,</E>
                         155 F.3d at 1351 (citing 
                        <E T="03">Fina Oil</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">Fina Oil,</E>
                         123 F.3d at 1473; see also, 
                        <E T="03">e.g., Amgen,</E>
                         927 F.2d at 1206.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">Hitzeman</E>
                         v. 
                        <E T="03">Rutter,</E>
                         243 F.3d 1345, 1357-58 (Fed Cir. 2001) (Inventor's “hope” that a genetically altered yeast would produce antigen particles having the particle size and sedimentation rates recited in the claims did not establish conception, since the inventor did not show a “definite and permanent understanding” as to whether or how, or a reasonable expectation that, the yeast would produce the recited antigen particles.).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    In the context of AI-assisted inventions, natural person(s) who create an invention using an AI system, or any other advanced system, must contribute significantly to the invention, as specified by the 
                    <E T="03">Pannu</E>
                     factors.
                    <SU>46</SU>
                    <FTREF/>
                     Although the 
                    <E T="03">Pannu</E>
                     factors are generally applied to two or more people who create an invention (
                    <E T="03">i.e.,</E>
                     joint inventors), it follows that a single person who uses an AI system to create an invention is also required to make a significant contribution to the invention, according to the 
                    <E T="03">Pannu</E>
                     factors, to be considered a proper inventor.
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">Pannu,</E>
                         155 F.3d at 1351.
                    </P>
                </FTNT>
                <P>
                    There is no requirement for a named inventor to contribute to every claim in an application or patent; a contribution to a single claim is sufficient.
                    <SU>47</SU>
                    <FTREF/>
                     However, each claim must have been invented by at least one named inventor.
                    <SU>48</SU>
                    <FTREF/>
                     In other words, a natural person must have significantly contributed to each claim in a patent application or patent. In the event of a single person using an AI system to create an invention, that single person must make a significant contribution to every claim in the patent or patent application. Inventorship is improper in any patent or patent application that includes a claim in which at least one natural person did not significantly contribute to the claimed invention, even if the application or patent includes other claims invented by at least one natural person. Therefore, a rejection under 35 U.S.C. 101 and 115 should be made for each claim for which an examiner or other USPTO employee determines from the file record or extrinsic evidence that at least one natural person, 
                    <E T="03">i.e.,</E>
                     one or more named inventors, did not significantly contribute.
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         MPEP 2109.01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         35 U.S.C. 115(a) (“An application for patent that is filed under section 111(a) or commences the national stage under section 371 shall include, or be amended to include, 
                        <E T="03">the name of the inventor for any invention claimed</E>
                         in the application.”) (emphasis added).
                    </P>
                </FTNT>
                <P>
                    When applying the 
                    <E T="03">Pannu</E>
                     factors to determine whether natural persons significantly contributed to an AI-assisted invention, one must remember this determination is made on a claim-by-claim and case-by-case basis, and each instance turns on its own facts.
                    <SU>49</SU>
                    <FTREF/>
                     Generally, the USPTO presumes those inventors named on the application data sheet or oath/declaration are the actual inventor or joint inventors of the application.
                    <SU>50</SU>
                    <FTREF/>
                     However, examiners and other USPTO personnel should carefully evaluate the facts from the file record or other extrinsic evidence when making determinations on inventorship. When the facts or evidence indicates that the named inventor or joint inventors did not contribute significantly to the claimed invention, 
                    <E T="03">i.e.,</E>
                     their contributions do not satisfy the 
                    <E T="03">Pannu</E>
                     factors for a particular claim, a rejection under 35 U.S.C. 101 and 115 is appropriate.
                    <SU>51</SU>
                    <FTREF/>
                     While inventorship may be correctable in certain situations under 37 CFR 1.48 or 1.324,
                    <SU>52</SU>
                    <FTREF/>
                     a new inventor cannot be named if no natural person made a significant contribution to an AI-assisted invention. Additionally, a rejection under 35 U.S.C. 101 and 115, or other appropriate action, should be made for all claims in any application that lists an AI system or other non-natural person as an inventor or joint inventor.
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">Fina Oil,</E>
                         123 F.3d at 1473 (“The determination of whether a person is a joint inventor is fact specific, and no bright-line standard will suffice in every case.”); see also 
                        <E T="03">In re Jolley,</E>
                         308 F.3d 1317, 1323 (Fed. Cir. 2002) (“[T]he conception inquiry is fact-intensive . . . ”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         See MPEP 2157; see also MPEP 602.01 (“The inventorship of a nonprovisional application under 35 U.S.C. 111(a) is the inventor or joint inventors set forth in the application data sheet in accordance with [37 CFR] § 1.76 filed before or concurrently with the inventor's oath or declaration.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         MPEP 2157.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         See section V(C) below.
                    </P>
                </FTNT>
                <P>
                    Given the increasing use of AI systems in the invention creation process, applicants should take extra care in ensuring each named inventor in a patent application or patent provided a significant contribution to a claimed invention as described by the 
                    <E T="03">Pannu</E>
                     factors.
                </P>
                <HD SOURCE="HD2">B. Guiding Principles</HD>
                <P>
                    Determining whether a natural person's contribution in AI-assisted inventions is significant may be difficult to ascertain, and there is no bright-line test. To assist applicants and USPTO personnel in determining proper inventorship, the USPTO provides the following non-exhaustive list of principles that can help inform the application of the 
                    <E T="03">Pannu</E>
                     factors in AI-assisted inventions:
                </P>
                <P>
                    1. A natural person's use of an AI system in creating an AI-assisted invention does not negate the person's contributions as an inventor.
                    <SU>53</SU>
                    <FTREF/>
                     The natural person can be listed as the inventor or joint inventor if the natural person contributes significantly to the AI-assisted invention.
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         Cf. 
                        <E T="03">Shatterproof Glass Corp.</E>
                         v. 
                        <E T="03">Libbey-Owens Ford Co.,</E>
                         758 F.2d 613, 624 (Fed. Cir. 1985) (“An inventor `may use the services, ideas, and aid of others in the process of perfecting [their] invention without losing [their] right to a patent.'”) (quoting 
                        <E T="03">Hobbs</E>
                         v. 
                        <E T="03">U.S. Atomic Energy Comm.,</E>
                         451 F.2d 849, 864 (5th Cir. 1971)).
                    </P>
                </FTNT>
                <P>
                    2. Merely recognizing a problem or having a general goal or research plan to pursue does not rise to the level of conception.
                    <SU>54</SU>
                    <FTREF/>
                     A natural person who only presents a problem to an AI system may not be a proper inventor or joint inventor of an invention identified from the output of the AI system. However, a significant contribution could be shown by the way the person constructs the prompt in view of a specific problem to elicit a particular solution from the AI system.
                </P>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         
                        <E T="03">Burroughs Wellcome,</E>
                         40 F.3d at 1228 (“An idea is definite and permanent when the inventor has a specific, settled idea, a particular solution to the problem at hand, not just a general goal or research plan [the inventor] hopes to pursue.”); see also 
                        <E T="03">Hitzeman,</E>
                         243 F.3d 1345, 1357-58; 
                        <E T="03">In re Verhoef,</E>
                         888 F.3d 1362, 1366 (Fed. Cir. 2018) (Verhoef's recognition of the problem of connecting the cord of the harness to the dog's toes did not make Verhoef the sole inventor; Lamb's proposed solution to that problem was a significant contribution).
                    </P>
                </FTNT>
                <P>
                    3. Reducing an invention to practice alone is not a significant contribution that rises to the level of inventorship.
                    <SU>55</SU>
                    <FTREF/>
                     Therefore, a natural person who merely recognizes and appreciates the output of an AI system as an invention, particularly when the properties and utility of the output are apparent to those of ordinary skill, is not necessarily an inventor.
                    <SU>56</SU>
                    <FTREF/>
                     However, a person who takes the output of an AI system and makes a significant contribution to the output to create an invention may be a proper inventor. Alternatively, in certain situations, a person who conducts a successful experiment using the AI system's output could 
                    <PRTPAGE P="10049"/>
                    demonstrate that the person provided a significant contribution to the invention even if that person is unable to establish conception until the invention has been reduced to practice.
                    <SU>57</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         MPEP 2109 (subsection III).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         See 
                        <E T="03">e.g., Solvay S.A.</E>
                         v. 
                        <E T="03">Honeywell Intern. Inc.,</E>
                         622 F.3d 1367, 1378-79 (Fed. Cir. 2010) (finding that deriving the invention of another and appreciating what was made did not rise to the level of conception).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         See MPEP 2138.04 (subsection II); see also 
                        <E T="03">Dana-Farber Cancer Inst., Inc.</E>
                         v. 
                        <E T="03">Ono Pharm. Co.,</E>
                         964 F.3d 1365, 1373-74 (Fed. Cir. 2020) (Dr. Freeman's identification of the 292 sequences in the BLAST database (an automated search tool for finding similarity between biological sequences) and subsequent immunohistochemistry experiments to identify several types of tumors that express PD-L1 were found sufficient to make him a joint inventor.).
                    </P>
                </FTNT>
                <P>
                    4. A natural person who develops an essential building block from which the claimed invention is derived may be considered to have provided a significant contribution to the conception of the claimed invention even though the person was not present for or a participant in each activity that led to the conception of the claimed invention.
                    <SU>58</SU>
                    <FTREF/>
                     In some situations, the natural person(s) who designs, builds, or trains an AI system in view of a specific problem to elicit a particular solution could be an inventor, where the designing, building, or training of the AI system is a significant contribution to the invention created with the AI system.
                </P>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         
                        <E T="03">Dana-Farber,</E>
                         964 F.3d at 1372-74 (Drs. Freeman and Wood were found to be joint inventors even though they did not conceive of the claimed invention of using anti-PD-1 antibodies to treat tumors but instead discovered the expression of PD-L1 in human tumors and that PD-1/PD-LI interaction inhibits the immune response.).
                    </P>
                </FTNT>
                <P>
                    5. Maintaining “intellectual domination” over an AI system does not, on its own, make a person an inventor of any inventions created through the use of the AI system.
                    <SU>59</SU>
                    <FTREF/>
                     Therefore, a person simply owning or overseeing an AI system that is used in the creation of an invention, without providing a significant contribution to the conception of the invention, does not make that person an inventor.
                </P>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         
                        <E T="03">Verhoef,</E>
                         888 F.3d at 1367 (court refused to endorse the “intellectual domination” language and emphasized that the person who conceives of the invention is the inventor).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">V. Patent Practice</HD>
                <HD SOURCE="HD2">A. Applicability of This Guidance to Design and Plant Patent Applications and Patents</HD>
                <P>
                    35 U.S.C. 171 provides that a patent for a design may be obtained by “[w]hoever invents any new, original, and ornamental design for an article of manufacture” and that the provisions related to utility patents are applicable to design patents, except as otherwise provided (
                    <E T="03">e.g.,</E>
                     in 35 U.S.C. 172-173).
                    <SU>60</SU>
                    <FTREF/>
                     The Federal Circuit has interpreted 35 U.S.C. 171 such that the inventorship inquiry is the same for a design patent and a utility patent.
                    <SU>61</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         See 35 U.S.C. 171.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         
                        <E T="03">Hoop</E>
                         v. 
                        <E T="03">Hoop,</E>
                         279 F.3d 1004, 1007 (Fed. Cir. 2002) (“We apply the same standard of inventorship to design patents that we require for utility patents.”) (citing 
                        <E T="03">In re Rousso,</E>
                         222 F.2d 729, 731 (CCPA 1955)).
                    </P>
                </FTNT>
                <P>
                    35 U.S.C. 161 provides that a plant patent may be obtained by “[w]hoever invents or discovers and asexually reproduces” a distinct and new variety of plant.
                    <SU>62</SU>
                    <FTREF/>
                     35 U.S.C. 161 limits patent protection to plants “that were created as a result of plant breeding or other agricultural and horticultural efforts 
                    <E T="03">and</E>
                     that were created by the inventor” (emphasis in original).
                    <SU>63</SU>
                    <FTREF/>
                     That is, to be entitled to patent protection, the inventor of a plant must have contributed to the creation of the plant in addition to having appreciated its uniqueness and asexually reproduced it.
                    <SU>64</SU>
                    <FTREF/>
                     This is true for new and distinct plant varieties invented with the assistance of AI. The use of an AI system by a natural person(s) does not preclude the natural person(s) from qualifying as an inventor (or joint inventors) of the claimed plant as long as the plant was created with significant contribution(s) from the natural person(s).
                </P>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         See 35 U.S.C. 161.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         
                        <E T="03">In re Beineke,</E>
                         690 F.3d 1344, 1352 (Fed. Cir. 2012).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         
                        <E T="03">Id.</E>
                         at 1348.
                    </P>
                </FTNT>
                <P>Therefore, this guidance regarding AI-assisted inventions applies not only to utility patents and patent applications but also to design and plant patents and patent applications.</P>
                <HD SOURCE="HD2">B. Duties Owed to the USPTO</HD>
                <HD SOURCE="HD3">(i) Duty of Disclosure</HD>
                <P>
                    “Each individual associated with the filing and prosecution of a patent application” and “[e]ach individual associated with the patent owner in a reexamination proceeding” has a duty of candor and good faith in dealing with the USPTO.
                    <SU>65</SU>
                    <FTREF/>
                     Included within the duty of candor and good faith is the duty to disclose all known information that is material to patentability.
                    <SU>66</SU>
                    <FTREF/>
                     This duty extends to parties and individuals associated with proceedings before the PTAB and the Office of the Commissioner for Patents.
                    <SU>67</SU>
                    <FTREF/>
                     37 CFR 1.56(b) states that “[I]nformation is material to patentability when it is not cumulative to information already of record or being made of record in the application, and (1) [i]t establishes, by itself or in combination with other information, a prima facie case of unpatentability of a claim; or (2) [i]t refutes, or is inconsistent with, a position the applicant takes in: (i) [o]pposing an argument of unpatentability relied on by the Office, or (ii) [a]sserting an argument of patentability.”
                </P>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         See 37 CFR 1.56, 1.555. For patent applications, including reissue applications, these individuals include each inventor named in the application, each attorney or agent who prepares or prosecutes the application, and “[e]very other person who is substantively involved in the preparation or prosecution of the application and who is associated with the inventor, the applicant, an assignee, or anyone to whom there is an obligation to assign the application.” 37 CFR 1.56(c); see 37 CFR 1.171. For reexamination proceedings, these individuals include “the patent owner, each attorney or agent who represents the patent owner, and every other individual who is substantively involved on behalf of the patent owner in a reexamination proceeding.” 37 CFR 1.555(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>66</SU>
                         37 CFR 1.56(a), 1.555(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>67</SU>
                         See 37 CFR 42.11; see also 
                        <E T="03">Lectrosonics, Inc.</E>
                         v. 
                        <E T="03">Zaxcom, Inc.,</E>
                         IPR2018-01129, 01130, Paper 15 at 9-10 (PTAB Feb. 25, 2019) (precedential) (“Under 37 CFR 42.11, all parties have a duty of candor, which includes a patent owner's duty to disclose to the Board information of which the patent owner is aware that is material to the patentability of substitute claims, if such information is not already of record in the case.”).
                    </P>
                </FTNT>
                <P>
                    The USPTO is not changing or modifying its duty of disclosure. However, applicants and patent owners are reminded of their existing duty of disclosure and its applicability to the inventorship determination. Because improper inventorship is a ground of rejection under 35 U.S.C. 101 and 115,
                    <SU>68</SU>
                    <FTREF/>
                     parties identified in 37 CFR 1.56(c), 1.555(a), and 42.11(a) have a duty to disclose to the USPTO information that raises a prima facie case of unpatentability due to improper inventorship or that refutes, or is inconsistent with, a position an applicant takes in opposing an inventorship rejection or asserting inventorship. For example, in applications for AI-assisted inventions, this information could include evidence that demonstrates a named inventor did not significantly contribute to the invention because the person's purported contribution(s) was made by an AI system.
                </P>
                <FTNT>
                    <P>
                        <SU>68</SU>
                         MPEP 2157.
                    </P>
                </FTNT>
                <P>
                    At this time, to meet their duty of disclosure, applicants rarely need to submit information regarding inventorship. The USPTO does not believe this inventorship guidance will have a major impact on applicants' disclosure requirements. However, special care should be taken by those individuals subject to this duty to ensure all material information is submitted to the USPTO to avoid any potential negative consequences.
                    <SU>69</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>69</SU>
                         See MPEP 2016.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">(ii) Duty of Reasonable Inquiry</HD>
                <P>
                    37 CFR 1.4(d)(4)(i) states that “[t]he presentation to the Office (whether by 
                    <PRTPAGE P="10050"/>
                    signing, filing, submitting, or later advocating) of any paper by a party, whether a practitioner or nonpractitioner, constitutes a certification under § 11.18(b).” Section 11.18(b) includes § 11.18(b)(2), which calls for an “inquiry reasonable under the circumstances” to ensure that the paper is not being presented for any improper purpose, the legal contentions are warranted by law, the allegations and other factual contentions have evidentiary support, and the denials of factual contentions are warranted on the evidence.
                    <SU>70</SU>
                    <FTREF/>
                     The duty of reasonable inquiry pursuant to 37 CFR 11.18(b)(2) is identical to that in Fed. R. Civ. P. 11(b).
                    <SU>71</SU>
                    <FTREF/>
                     Accordingly, each party presenting a paper to the USPTO, whether a practitioner or non-practitioner, has a duty to perform an inquiry that is reasonable under the circumstances. A duty of reasonable inquiry may exist based on circumstances known to the party presenting the paper to the USPTO. Failing to inquire when the circumstances warrant such an inquiry may jeopardize the validity of the application or document, or the validity or enforceability of any patent or certificate resulting therefrom, and could result in sanctions or other actions under 37 CFR 11.18(c).
                    <SU>72</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>70</SU>
                         See 37 CFR 11.18(b)(2): “To the best of the party's knowledge, information and belief, formed after an inquiry reasonable under the circumstances, (i) The paper is not being presented for any improper purpose, such as to harass someone or to cause unnecessary delay or needless increase in the cost of any proceeding before the Office; (ii) The other legal contentions therein are warranted by existing law or by a nonfrivolous argument for the extension, modification, or reversal of existing law or the establishment of new law; (iii) The allegations and other factual contentions have evidentiary support or, if specifically so identified, are likely to have evidentiary support after a reasonable opportunity for further investigation or discovery; and (iv) The denials of factual contentions are warranted on the evidence, or if specifically so identified, are reasonably based on a lack of information or belief.”
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>71</SU>
                         Compare 37 CFR 11.18(b)(2) with Fed. R. Civ. P. 11(b) (2007). See also MPEP 410.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>72</SU>
                         MPEP 410.
                    </P>
                </FTNT>
                <P>
                    The USPTO is not changing or modifying its duty of reasonable inquiry. The USPTO has previously provided examples of possible procedures that could help avoid problems with the duty of disclosure.
                    <SU>73</SU>
                    <FTREF/>
                     These examples should be carefully considered because they may be helpful in ascertaining what a reasonable inquiry may require. For example, patent practitioners who are preparing and prosecuting an application should inquire about the proper inventorship.
                    <SU>74</SU>
                    <FTREF/>
                     Given the ubiquitous nature of AI, this inventorship inquiry could include questions about whether and how AI is being used in the invention creation process. In making inventorship determinations, it is appropriate to assess whether the contributions made by natural persons rise to the level of inventorship as discussed in section IV above.
                </P>
                <FTNT>
                    <P>
                        <SU>73</SU>
                         See MPEP 2004.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>74</SU>
                         
                        <E T="03">Id.</E>
                         (“2. It is desirable to ask questions about inventorship. Who is the proper inventor? Are there disputes or possible disputes about inventorship? If there are questions, call them to the attention of the U.S. Patent and Trademark Office.”).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Naming the Inventors</HD>
                <P>
                    35 U.S.C. 115 requires that an application filed under 35 U.S.C. 111(a) shall include the name of the inventor or each joint inventor.
                    <SU>75</SU>
                    <FTREF/>
                     As provided in 37 CFR 1.41(b), an applicant may name the inventorship for a non-provisional application under 35 U.S.C. 111(a) in the application data sheet in accordance with 37 CFR 1.76, or in the inventor's oath or declaration in accordance with 37 CFR 1.63.
                    <SU>76</SU>
                    <FTREF/>
                     Once the inventorship has been established in an application, a correction of inventorship must be made pursuant to 37 CFR 1.48(a). After the patent has issued, a correction of inventorship must be made according to 37 CFR 1.324 or by reissue.
                    <SU>77</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>75</SU>
                         See MPEP 2109.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>76</SU>
                         See MPEP 602.01 for more information on naming the inventor or joint inventor in an application.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>77</SU>
                         See MPEP 1481.02 and 1402 (subsection II).
                    </P>
                </FTNT>
                <P>
                    In situations in which it is determined that contributions by a named inventor to the claimed subject matter do not rise to the level of inventorship, inventorship should be corrected in accordance with 37 CFR 1.48 or 1.324. Although 37 CFR 1.48 does not contain a diligence requirement for filing the request, once an inventorship error is discovered, timeliness requirements under 37 CFR 1.116 and 1.312 apply.
                    <SU>78</SU>
                    <FTREF/>
                     Correction of inventorship may also be obtained without the need for filing a request under 37 CFR 1.48 by the filing of a continuing application under 37 CFR 1.53 and subsequently abandoning the parent application.
                    <SU>79</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>78</SU>
                         See MPEP 602.01(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>79</SU>
                         See 
                        <E T="03">id.</E>
                         for more information on correction of inventorship.
                    </P>
                </FTNT>
                <P>
                    In situations in which inventorship with respect to a particular claim cannot be corrected (
                    <E T="03">i.e.,</E>
                     no natural person significantly contributed to the claimed invention), the claim must be canceled or amended. Parties under §§ 1.56(c) and 1.555(a) who become aware of material information on inventorship should submit the information as early as possible in prosecution and not wait until after allowance.
                    <SU>80</SU>
                    <FTREF/>
                     Applicants should continue to ensure that the proper inventors are listed as prosecution progresses (
                    <E T="03">e.g.,</E>
                     due to amendments to claims).
                    <SU>81</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>80</SU>
                         See MPEP 2003.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>81</SU>
                         See, 
                        <E T="03">e.g.,</E>
                         MPEP 602.09.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">D. Requirements for Information</HD>
                <P>
                    Patent examiners and other USPTO employees have the ability to require the submission of information that may be reasonably necessary to properly examine or treat a matter in a pending or abandoned application, in a patent, or in a reexamination proceeding.
                    <SU>82</SU>
                    <FTREF/>
                     The information that must be submitted to comply with a requirement for information under 37 CFR 1.105 may not necessarily be material to patentability in itself under 37 CFR 1.56, but is reasonably necessary to obtain a complete record from which a determination of patentability can be made.
                    <SU>83</SU>
                    <FTREF/>
                     In other words, the threshold for requiring information under 37 CFR 1.105 is substantially lower than the threshold for disclosing information under 37 CFR 1.56. Therefore, when an examiner or other USPTO employee has a reasonable basis to conclude that an individual identified under 37 CFR 1.56(c) or 37 CFR 1.555(a) or any assignee has information reasonably necessary to the examination of the application or treatment of some matter, the examiner or other USPTO employee may require the submission of information that is not necessarily material to patentability.
                    <SU>84</SU>
                    <FTREF/>
                     This would apply in the context of applications or patents for AI-assisted inventions such that if an examiner or other USPTO employee has a reasonable basis to conclude that one or more named inventors may not have contributed significantly to the claimed subject matter, the examiner or other USPTO employee may request information from the applicant regarding inventorship even if the information is not material to patentability.
                    <SU>85</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>82</SU>
                         37 CFR 1.105(a)(l).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>83</SU>
                         See MPEP 704.12(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>84</SU>
                         MPEP 704.10.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>85</SU>
                         See 
                        <E T="03">id.</E>
                         (Examiners can request information under 37 CFR 1.105 in accordance with the policies and practices set forth by their respective Technology Centers).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">E. Inventor's Oath or Declaration</HD>
                <P>
                    There is no change in oath or declaration practice for the named inventors in a patent application. Those named inventors must execute an oath or declaration unless a substitute statement is submitted on their behalf.
                    <SU>86</SU>
                    <FTREF/>
                     As explained in section III above, only a natural person(s) can be listed as the inventor or joint inventors. Therefore, no oath, declaration, or substitute 
                    <PRTPAGE P="10051"/>
                    statement should be filed on behalf of an AI system, even if the AI system made contributions to one or more claims in a patent application.
                </P>
                <FTNT>
                    <P>
                        <SU>86</SU>
                         See 35 U.S.C. 115(d).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">F. Applicant and Ownership</HD>
                <P>
                    The word “applicant,” when used in 37 CFR, refers to the inventor or all joint inventors, or to the person applying for a patent as provided in 37 CFR 1.43, 1.45, or 1.46.
                    <SU>87</SU>
                    <FTREF/>
                     The original applicant is presumed to be the owner of the patent application unless there is an assignment.
                    <SU>88</SU>
                    <FTREF/>
                     As the ownership of a patent or application for a patent initially vests in the named inventors 
                    <SU>89</SU>
                    <FTREF/>
                     and is thereafter transferrable through assignments, there is no change in practice for AI-assisted inventions with regard to the applicant or assignment of ownership rights.
                    <SU>90</SU>
                    <FTREF/>
                     The named inventor or joint inventors may seek patent rights as the applicant under § 1.45. Alternatively, the named inventor or joint inventors may assign their ownership rights to an assignee (
                    <E T="03">e.g.,</E>
                     employer, owner or developer of the AI system, or other appropriate party), who may then file a patent application under § 1.46 or take action in a patent matter under § 3.73.
                </P>
                <FTNT>
                    <P>
                        <SU>87</SU>
                         37 CFR 1.42(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>88</SU>
                         See 37 CFR 3.73(a); see also MPEP 301(I).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>89</SU>
                         See 
                        <E T="03">Beech Aircraft,</E>
                         990 F.2d at 1248 (“At the heart of any ownership analysis lies the question of who first invented the subject matter at issue, because the patent right initially vests in the inventor who may then, barring any restrictions to the contrary, transfer that right to another, and so forth.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>90</SU>
                         See MPEP 301.
                    </P>
                </FTNT>
                <P>
                    “Assignment,” in general, is the act of transferring to another the ownership of one's property, 
                    <E T="03">i.e.,</E>
                     the interest and rights to the property.
                    <SU>91</SU>
                    <FTREF/>
                     Because an AI system cannot be a named inventor, it has no rights to assign; therefore, assignments from AI systems should not be recorded with the USPTO. This guidance only applies to recording the assignments and other documents related to interests in patent applications and patents in the USPTO and does not apply to contractual or licensing agreements between parties owning and using AI systems in the invention creation process. Applicants should keep in mind that the recording of assignments and other related documents by the USPTO is a ministerial act, and assignments and other related documents are contracts that are governed by the relevant jurisdictional law.
                    <SU>92</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>91</SU>
                         See MPEP 301 (subsection II).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>92</SU>
                         See MPEP 301 (subsections II and V).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">G. Benefit/Priority Claims to Prior-Filed Applications</HD>
                <P>
                    Applications and patents claiming the benefit of, or priority to, a prior application filed in the United States or a foreign country under 35 U.S.C. 119, 120, 121, 365, or 386 must name the same inventor or have at least one joint inventor in common with the prior-filed application.
                    <SU>93</SU>
                    <FTREF/>
                     For all applications and patents, including those that cover AI-assisted inventions, the prior-filed application and the United States application or patent claiming the benefit of, or priority to, the prior-filed application must name the same natural person as the inventor, or have at least one joint inventor who is a natural person in common. Therefore, a priority claim to a foreign application that names an AI system as the sole inventor will not be accepted. This policy also applies to U.S. patent applications and patents claiming priority to foreign applications that allow the naming of non-natural persons as joint inventors. For a U.S. application claiming priority to a foreign application that names both a natural person(s) and a non-natural person as a joint inventor, the application data sheet accompanying the application filed in the United States must list as inventor(s) only the natural person(s) who significantly contributed to the invention, including one in common with the foreign application. Similarly, for an application entering the national stage under 35 U.S.C. 371 where the international application indicates a joint inventor that is not a natural person, applicants can comply with the U.S. inventorship requirement by naming the natural person(s) who significantly contributed to the invention in an application data sheet accompanying the initial submission under 35 U.S.C. 371.
                    <SU>94</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>93</SU>
                         See MPEP 213.02 (subsection II), 211.01, 1895, 2920.05(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>94</SU>
                         See 37 CFR 1.76; MPEP 1893.01(e).
                    </P>
                </FTNT>
                <SIG>
                    <NAME>Katherine Kelly Vidal,</NAME>
                    <TITLE>Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02623 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-16-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">COMMODITY FUTURES TRADING COMMISSION</AGENCY>
                <SUBJECT>Sunshine Act Meetings</SUBJECT>
                <PREAMHD>
                    <HD SOURCE="HED">TIME AND DATE:</HD>
                    <P>12:30 p.m. EST, Thursday, February 15, 2024.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">PLACE:</HD>
                    <P>CFTC Headquarters Conference Center, Three Lafayette Centre, 1155 21st Street NW, Washington, DC.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">STATUS:</HD>
                    <P>Open.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">MATTERS TO BE CONSIDERED:</HD>
                    <P>The Commodity Futures Trading Commission (“Commission” or “CFTC”) will hold this meeting to consider the following matters:</P>
                    <P>
                        • 
                        <E T="03">Proposed Rule:</E>
                         Requirements for Designated Contract Markets and Swap Execution Facilities Regarding Governance and the Mitigation of Conflicts of Interest Impacting Market Regulation Functions;
                    </P>
                    <P>
                        • 
                        <E T="03">Proposed Rule:</E>
                         Foreign Boards of Trade;
                    </P>
                    <P>
                        • 
                        <E T="03">Proposed Rule:</E>
                         Regulations to Address Margin Adequacy and to Account for the Treatment of Separate Accounts by Futures Commission Merchants;
                    </P>
                    <P>• Application of Taiwan Futures Exchange Corporation for an Exemption from Registration as a DCO; and</P>
                    <P>• ICE NGX Petition for Amended DCO Registration Order.</P>
                    <P>
                        The agenda for this meeting will be available to the public and posted on the Commission's website at 
                        <E T="03">https://www.cftc.gov.</E>
                         Members of the public are free to attend the meeting in person, or have the option to listen by phone or view a live stream. Instructions for listening to the meeting by phone and connecting to the live video stream will be posted on the Commission's website.
                    </P>
                    <P>In the event that the time, date, or place of this meeting changes, an announcement of the change, along with the new time, date, or place of the meeting, will be posted on the Commission's website.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">CONTACT PERSON FOR MORE INFORMATION: </HD>
                    <P>Christopher Kirkpatrick, Secretary of the Commission, 202-418-5964.</P>
                </PREAMHD>
                <EXTRACT>
                    <FP>(Authority: 5 U.S.C. 552b)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: February 8, 2024.</DATED>
                    <NAME>Christopher Kirkpatrick,</NAME>
                    <TITLE>Secretary of the Commission.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02997 Filed 2-9-24; 11:15 am]</FRDOC>
            <BILCOD>BILLING CODE 6351-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">CONSUMER PRODUCT SAFETY COMMISSION</AGENCY>
                <DEPDOC>[Docket No. CPSC-2010-0046]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Extension and Revision of Collection; Consumer Focus Groups and Other Qualitative Studies</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Consumer Product Safety Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection; request for comment.</P>
                </ACT>
                <SUM>
                    <PRTPAGE P="10052"/>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        As required by the Paperwork Reduction Act of 1995, the Consumer Product Safety Commission (CPSC or Commission) announces that the Commission has submitted to the Office of Management and Budget (OMB) a request for extension of approval of a collection of information from persons who may voluntarily participate in consumer focus groups. CPSC has also requested a revision of that collection. The Office of Management and Budget (OMB) previously approved the collection of information under Control Number 3041-0136. OMB's most recent extension of approval will expire on March 31, 2024. On November 28, 2023, CPSC published a notice in the 
                        <E T="04">Federal Register</E>
                         to announce the agency's intention to seek extension of approval of the collection of information. The Commission received no comments. Therefore, by publication of this notice, the Commission announces that CPSC has submitted to the OMB a request for extension of approval of that collection of information.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit comments on the collection of information by March 14, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit comments about this request by email: 
                        <E T="03">OIRA_submission@omb.eop.gov</E>
                         or fax: 202-395-6881. Comments by mail should be sent to the Office of Information and Regulatory Affairs, Attn: OMB Desk Officer for the CPSC, Office of Management and Budget, Room 10235, 725 17th Street NW, Washington, DC 20503. In addition, written comments that are sent to OMB also should be submitted electronically at 
                        <E T="03">http://www.regulations.gov,</E>
                         under Docket No. CPSC-2010-0046.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Cynthia Gillham, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, MD 20814; (301) 504-7791, or by email to: 
                        <E T="03">pra@cpsc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>CPSC seeks to extend the following currently approved collection of information, and to revise it to include additional forms of qualitative studies:</P>
                <P>
                    <E T="03">Title:</E>
                     Focus Groups and Other Qualitative Studies.
                </P>
                <P>
                    <E T="03">OMB Number:</E>
                     3041-0136.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension and revision of collection.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Consumers.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     CPSC estimates that this collection will involve 2,620 participants, including prospective focus group participants who are screened but ultimately not selected for participation.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     We estimate that the average response time for each participant will be 1.1 hours.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Burden:</E>
                     Based on CPSC's estimates that 2,620 participants will each spend an average of 1.1 hours responding to the collection, CPSC estimates that the total annual burden of this collection is 2,882 hours. The annualized cost to respondents for the information collection is $124,675.32 (2,882 hours × $43.26/hour), as estimated from total compensation data available from the U.S. Bureau of Labor Statistics.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         Total hourly compensation for all civilian workers is estimated by the U.S. Bureau of Labor Statistics to be $43.26: Employer Costs for Employee Compensation, June 2023, Table 1, (
                        <E T="03">https://www.bls.gov/news.release/archives/ecec_09122023.pdf</E>
                        ).
                    </P>
                </FTNT>
                <P>
                    <E T="03">General Description of Collection:</E>
                     Section 5(a) of the Consumer Product Safety Act (CPSA), 15 U.S.C. 2054(a), authorizes the Commission to conduct studies and investigations relating to the causes and prevention of deaths, accidents, injuries, illnesses, other health impairments, and economic losses associated with consumer products. Section 5(b) of the CPSA, 15 U.S.C. 2054(b), further provides that the Commission may conduct research, studies, and investigations on the safety of consumer products. The Commission may also test consumer products and develop product safety test methods and testing devices.
                </P>
                <P>To help identify and evaluate product-related incidents, Commission staff invites and obtains direct feedback from consumers on issues related to product safety, such as recall effectiveness, product use, and perceptions regarding safety issues. The information that CPSC collects from future focus groups—including usability studies and ethnographic studies for consumer products, which are being added to this revised collection—will help inform the Commission's identification and evaluation of consumer products and product uses by providing insight and information into consumer perceptions and usage patterns. In some cases, one-on-one interviews may be conducted as a more in-depth extension of a focus group, or in place of a traditional focus group or study. This information may also assist the Commission in its efforts to support voluntary standards activities and help CPSC identify emerging consumer safety issues requiring additional research. In addition, based on the information obtained, CPSC may be able to improve the readability and comprehension of safety information provided to the public.</P>
                <SIG>
                    <NAME>Alberta E. Mills,</NAME>
                    <TITLE>Secretary, Consumer Product Safety Commission.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02901 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6355-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Department of the Army</SUBAGY>
                <DEPDOC>[Docket ID: USA-2024-HQ-0002]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of the Army, Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In compliance with the 
                        <E T="03">Paperwork Reduction Act of 1995,</E>
                         the Army Research Institute (ARI) for the Behavioral and Social Sciences announces a proposed public information collection and seeks public comment on the provisions thereof. Comments are invited on: whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; the accuracy of the agency's estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by April 15, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number and title, by any of the following methods:</P>
                    <P>
                        <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Department of Defense, Office of the Assistant to the Secretary of Defense for Privacy, Civil Liberties, and Transparency, Regulatory Directorate, 4800 Mark Center Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name, docket number and title for this 
                        <E T="04">Federal Register</E>
                         document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                        <E T="03">http://www.regulations.gov</E>
                         as they are 
                        <PRTPAGE P="10053"/>
                        received without change, including any personal identifiers or contact information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to the U.S. Army Research Institute for the Behavioral &amp; Social Sciences; 6000 6th Street, Fort Belvoir, VA 22060, ATTN: Dr. Krystal N. Roach, or call 703-545-2339.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Experiences of Junior Soldiers in Alaska; OMB Control Number: 0702-ALSK.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     At the direction of the Vice Chief of Staff of the Army and the Assistant Secretary for Manpower &amp; Reserve Affairs (ASA M&amp;RA), the ARI for the Behavioral and Social Sciences is completing a longitudinal examination of performance, attitudes, and behaviors of Soldiers who select to come to Alaska as their first duty station at time of enlistment, also known as Option 20 Soldiers. The U.S. Army has initiated a variety of actions aimed at improving quality of life for Soldiers in Alaska in order to reduce rates of harmful behaviors and increase the ability for Soldiers to thrive. This survey collection will collect data from a sample of Army junior enlisted Soldiers in Alaska to investigate the impacts of living and working in Alaska on effectiveness, quality of life, cohesion, leadership, recruiting and retention. ARI is also investigating potential differences between Option 20 Soldiers and Non-Option 20 Soldiers.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     200.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     400.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     400.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     30 minutes.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Once.
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02957 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2024-OS-0013]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Under Secretary of Defense for Personnel and Readiness (OUSD(P&amp;R)), Department of Defense, (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In compliance with the 
                        <E T="03">Paperwork Reduction Act of 1995,</E>
                         the OUSD(P&amp;R) announces a proposed public information collection and seeks public comment on the provisions thereof. Comments are invited on: whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; the accuracy of the agency's estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by April 15, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number and title, by any of the following methods:</P>
                    <P>
                        <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Department of Defense, Office of the Assistant to the Secretary of Defense for Privacy, Civil Liberties, and Transparency, Regulatory Directorate, 4800 Mark Center Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name, docket number and title for this 
                        <E T="04">Federal Register</E>
                         document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                        <E T="03">http://www.regulations.gov</E>
                         as they are received without change, including any personal identifiers or contact information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to Department of Defense, Office of People Analytics, 4800 Mark Center Drive, Alexandria, VA 22350-1400; Ms. Carol Newell, 571-372-1109.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Status of the Forces Survey of Reserve Members; OMB Control Number: 0704-0616.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The Status of Forces Reserve Survey (SOFS-R) is an annual DoD-wide large-scale survey of Reserve Component members that is used in evaluating existing policies and programs, establishing baseline measures before implementing new policies and programs, and monitoring the progress of existing policies/programs. The survey assesses topics such as financial well-being, retention intention, stress, tempo, readiness, satisfaction, and suicide awareness. Data is aggregated by appropriate demographics, including Service, paygrade, gender, race/ethnicity, and other indicators. In order to be able to meet reporting requirements for DoD leadership, the Military Services, and Congress, the survey needs to be completed in on annual basis. The legal requirements for the SOFS-R can be found in the Fiscal Year 2016 National Defense Authorization Act, title VI, subtitle F, subpart 661. This legal requirement mandates that the SOFS-R solicit information on financial literacy and preparedness. Results will be used by the Service Secretaries to evaluate and update financial literacy training and will be submitted in a report to the Committees on Armed Services of the Senate and the House of Representatives.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     6,425.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     19,275.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     19,275.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     20 minutes.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Annually.
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02953 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2024-OS-0011]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Office of the Under Secretary of Defense for Personnel and Readiness 
                        <PRTPAGE P="10054"/>
                        (OUSD(P&amp;R)), Department of Defense (DoD).
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In compliance with the 
                        <E T="03">Paperwork Reduction Act of 1995,</E>
                         the OUSD(P&amp;R) announces a proposed public information collection and seeks public comment on the provisions thereof. Comments are invited on: whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; the accuracy of the agency's estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by April 15, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number and title, by any of the following methods:</P>
                    <P>
                        <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Department of Defense, Office of the Assistant to the Secretary of Defense for Privacy, Civil Liberties, and Transparency, Regulatory Directorate, 4800 Mark Center Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name, docket number and title for this 
                        <E T="04">Federal Register</E>
                         document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                        <E T="03">http://www.regulations.gov</E>
                         as they are received without change, including any personal identifiers or contact information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to Mr. James Hatcher, Defense Manpower Data Center, 4800 Mark Center Drive, Suite 04E25, Alexandria, VA 22350-3100 or call (831) 241-2353.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Defense Biometric Identification System (DBIDS) Registration Application; OMB Control Number: 0704-0455.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The information collection requirement is necessary to obtain and record the biographic and biometric data connected with positively identifying identity, eligibility for access, and fitness within DBIDS and shared with Identity Matching Engine for Security and Analysts (IMESA)/Interoperability Layer Service (IoLS). The form data is used in the determination of access at DBIDS sites and affiliated systems through use of IMESA/IoLS.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     312,500.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     2,500,000.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     2,500,000.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     7.5 minutes.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On Occasion.
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02956 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <SUBJECT>Notice of Federal Advisory Committee Meeting—Defense Advisory Committee on Investigation, Prosecution, and Defense of Sexual Assault in the Armed Forces </SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>General Counsel of the Department of Defense, Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of Federal advisory committee meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD is publishing this notice to announce that the following Federal Advisory Committee meeting of the Defense Advisory Committee on Investigation, Prosecution, and Defense of Sexual Assault in the Armed Forces (DAC-IPAD) will take place.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Tuesday, March 12, 2024—Open to the public from 9:25 a.m. to 4:45 p.m. Mountain Standard Time (MST) and Wednesday, March 13, 2024—Open to the public from 9:15 a.m. to 12:30 p.m. MST.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        United States Air Force Academy, Blue &amp; Silver Club, Falcon Stadium, 4900 Stadium Blvd., Air Force Academy, CO 80840. The meeting can be accessed virtually via the following dial-in number and links: Dial-in: (669) 254-5252/(646) 828-7666, Meeting ID: 161 7811 7058 Passcode: DACIPAD. Link: 
                        <E T="03">https://www.zoomgov.com/j/16178117058?pwd=RTRLYi9NOEF2STZYeXd0TkJING00Zz09.</E>
                         Meeting ID: 161 7811 7058 Passcode: DACIPAD.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Dwight Sullivan, 703-695-1055 (Voice), 
                        <E T="03">dwight.h.sullivan.civ@mail.mil</E>
                         (Email). Mailing address is DACIPAD, One Liberty Center, 875 N Randolph Street, Suite 150, Arlington, Virginia 22203. Website: 
                        <E T="03">http://dacipad.whs.mil/.</E>
                         The most up-to-date changes to the meeting agenda can be found on the website.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This meeting is being held under the provisions of chapter 10 of title 5 United States Code (U.S.C.) (formerly the Federal Advisory Committee Act (FACA) of 1972 (5 U.S.C., App.)), the Government in the Sunshine Act of 1976 (5 U.S.C. 552b, as amended), and 41 CFR 102-3.140 and 102-3.50.</P>
                <P>
                    <E T="03">Purpose of the Meeting:</E>
                     In section 546 of the National Defense Authorization Act (NDAA) for Fiscal Year 2015 (FY 2015) (Pub. L. 113-291), as modified by section 537 of the NDAA FY 2016 (Pub. L. 114-92), Congress tasked the DAC-IPAD to advise the Secretary of Defense on the investigation, prosecution, and defense of allegations of rape, sexual assault, and other sexual misconduct involving members of the Armed Forces. This will be the thirty-fourth public meeting held by the DAC-IPAD. On Day 1, the Committee will receive testimony from military justice practitioners local to installations near Colorado Springs, Colorado, on Military Rule of Evidence 513 litigation; Article 6b victims' rights litigation; judicial rulings on evidence in military sexual offense cases; and investigator access to digital evidence. On Day 2, the Committee will deliberate on the Day 1 panel sessions; will receive testimony from civilian practitioners on Service Member misconduct and comparative perspectives on evidentiary issues in civilian sexual assault trials; and will receive updates from the Policy Subcommittee, the Case Review Subcommittee, and the Special Projects Subcommittee. Prior to adjournment, the Committee will hear comments from the public.
                </P>
                <PRTPAGE P="10055"/>
                <P>
                    <E T="03">Agenda:</E>
                     Day 1: 9:25 a.m.-9:30 a.m. Welcome and Introduction to Public Meeting; 9:30 a.m.-11:30 a.m. Special Victims' Counsel; 11:30 a.m.-1:00 p.m. Working Lunch; 1:00 p.m.-2:45 p.m. Senior Defense Counsel; 2:45 p.m.-3:00 p.m. Break; 3:00 p.m.-4:45 p.m. Special Trial Counsel; 4:45 p.m. Public Meeting Day 1 Adjourned. Day 2: 9:15 a.m.-9:20 a.m. Welcome and Overview of Day 2; 9:20 a.m.-10:00 a.m. DAC-IPAD Deliberations on Day 1 panel sessions; 10:00 a.m.-11:00 a.m. El Paso County, Colorado, practitioners and victim's services; 11:00 a.m.-11:10 a.m. Policy subcommittee Update; 11:10 a.m.-11:20 a.m. Case Review Subcommittee Update; 11:20 a.m.-11:30 a.m. Special Projects Subcommittee Update; 11:30 a.m.-12:00 p.m. Public Comment; 12:00 p.m.-12:30 p.m. Meeting Wrap-Up; 12:30 p.m. Public Meeting Day 2 Adjourned.
                </P>
                <P>
                    <E T="03">Meeting Accessibility:</E>
                     Pursuant to 41 CFR 102-3.140 and 5 U.S.C. 1009(a)(1), the public or interested organizations may submit written comments to the DAC-IPAD about its mission and topics pertaining to this public meeting. Written comments must be received by the DAC-IPAD at least five (5) business days prior to the meeting date so that they may be made available to the DAC-IPAD members for their consideration prior to the meeting. Written comments should be submitted via email to the DAC-IPAD at 
                    <E T="03">whs.pentagon.em.mbx.dacipad@mail.mil</E>
                     in the following formats: Adobe Acrobat or Microsoft Word. Please note that since the DAC-IPAD operates under the provisions of the FACA, all written comments will be treated as public documents and will be made available for public inspection.
                </P>
                <P>
                    <E T="03">Written Statements:</E>
                     Pursuant to 41 CFR 102-3.140 and section 10(a)(3) of the Federal Advisory Committee Act of 1972, the public or interested organizations may submit written comments to the Committee about its mission and topics pertaining to this public session. Written comments must be received by the DAC-IPAD at least five (5) business days prior to the meeting date so that they may be made available to the Committee members for their consideration prior to the meeting. Written comments should be submitted via email to the DAC-IPAD at 
                    <E T="03">whs.pentagon.em.mbx.dacipad@mail.mil</E>
                     in the following formats: Adobe Acrobat or Microsoft Word. Please note that since the DAC-IPAD operates under the provisions of the Federal Advisory Committee Act, as amended, all written comments will be treated as public documents and will be made available for public inspection. Oral statements from the public will be permitted, though the number and length of such oral statements may be limited based on the time available and the number of such requests. Oral presentations by members of the public will be permitted from 12:00 p.m.-12:30 p.m. MST on March 13, 2024.
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Aaron T. Siegel, </NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02890 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2023-HA-0113]</DEPDOC>
                <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Assistant Secretary of Defense for Health Affairs (OASD(HA)), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD has submitted to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by March 14, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Lane Purvis, 571-372-0460, 
                        <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     TRICARE Select Survey of Beneficiaries (TSS-B); OMB Control Number: 0720-TSSB.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     New.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     5,000.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     5,000.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     15 minutes.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     1,250.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The TSS-B is a population-based survey, not a healthcare encounter-based survey; this makes it unique as the only survey of the entire TSS-B beneficiary population regardless of whether they have had a recent health care encounter. TSS-B is the sole source for Consumer Assessment of Healthcare Providers and Systems Health Plan Survey of patient experience results for the TSS-B population. This information collection is used to evaluate and identify issues related to patient experience and access to care for TRICARE Select beneficiaries.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">OMB Desk Officer:</E>
                     Mr. Matt Eliseo.
                </P>
                <P>You may also submit comments and recommendations, identified by Docket ID number and title, by the following method:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                     Follow the instructions for submitting comments.
                </P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the agency name, Docket ID number, and title for this 
                    <E T="04">Federal Register</E>
                     document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                    <E T="03">http://www.regulations.gov</E>
                     as they are received without change, including any personal identifiers or contact information.
                </P>
                <P>
                    <E T="03">DOD Clearance Officer:</E>
                     Lane Purvis.
                </P>
                <P>
                    Requests for copies of the information collection proposal should be sent to Mr. Purvis at 
                    <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02942 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2023-HA-0116]</DEPDOC>
                <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Assistant Secretary of Defense for Health Affairs (OASD(HA)), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The DoD has submitted to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information 
                        <PRTPAGE P="10056"/>
                        under the provisions of the Paperwork Reduction Act.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by March 14, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Lane Purvis, 571-372-0460, 
                        <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     TRICARE Inpatient Satisfaction Survey (TRISS); OMB Control Number: 0720-TRSS.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     New.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     63,600 (60,600 TRISS Adult; 3,000 TRISS Child).
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     63,600.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     7 minutes for TRISS Adult; 15 minutes for TRISS Child.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     7,820.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The Defense Health Affairs administers the TRISS surveys (TRISS Adult and TRISS Child) to understand perceptions of inpatient care among Military Health System users. The survey instruments adhere to the methodological and analytical protocols and questionnaire items mandated by the industry standard Hospital Consumer Assessment of Healthcare Providers and Systems protocol. Developed by the Centers for Medicare and Medicaid Services and the Agency for Healthcare Research and Quality, the program provides valid and reliable self-reported experience ratings of inpatient experiences. As a result, the TRISS program allows objective and meaningful comparisons between hospitals, in areas that are important to consumers. The main goals of the TRISS are to:
                </P>
                <P>• Provide comparable data on the patient's perspective on care that allows objective and meaningful comparisons between hospitals on domains that are important to beneficiaries.</P>
                <P>• Establish a uniform measure of user satisfaction with received healthcare services.</P>
                <P>• Public reporting of the survey results is designed to create incentives for Military Treatment Facility (MTFs) to improve their quality of care.</P>
                <P>The study population consists of military personnel, their family members, and eligible retirees and their family members with a recent overnight hospitalization. The survey is administered to patients after a recent discharge from either a MTF or a civilian hospital to gather information about their experience of the care they received. Data are reported quarterly to track trends over time.</P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">OMB Desk Officer:</E>
                     Mr. Matt Eliseo.
                </P>
                <P>You may also submit comments and recommendations, identified by Docket ID number and title, by the following method:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                     Follow the instructions for submitting comments.
                </P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the agency name, Docket ID number, and title for this 
                    <E T="04">Federal Register</E>
                     document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                    <E T="03">http://www.regulations.gov</E>
                     as they are received without change, including any personal identifiers or contact information.
                </P>
                <P>
                    <E T="03">DOD Clearance Officer:</E>
                     Lane Purvis.
                </P>
                <P>
                    Requests for copies of the information collection proposal should be sent to Mr. Purvis at 
                    <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02941 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2023-HA-0093]</DEPDOC>
                <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Assistant Secretary of Defense for Health Affairs (OASD(HA)), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD has submitted to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by March 14, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Lane Purvis, (571) 372-0460, 
                        <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Prescription Drop Off/Activation Form; DHA Form 298; OMB Control Number: 0720-PDOA.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     New.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     100,000.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     100,000.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     3 minutes.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     5,000.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     Defense Health Affairs (DHA) Form 298, Prescription Drop-Off/Activation, is a standardized form for prescription activation/drop-off across all military medical treatment facilities (MTFs). DHA Form 298 allows pharmacy patients the option to request the MTF pharmacy activate/process their prescriptions without having to wait in a line to speak with pharmacy staff. This may also include the ability to drop off the form outside of normal pharmacy hours. Copies of the form may be provided physically in the MTF, or it is possible that MTFs may provide it electronically for patient use to complete/print at their convenience. The MTF pharmacy uses the information provided in the form to process the requested prescriptions for the patients to pick up later.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">OMB Desk Officer:</E>
                     Mr. Matt Eliseo.
                </P>
                <P>You may also submit comments and recommendations, identified by Docket ID number and title, by the following method:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                     Follow the instructions for submitting comments.
                </P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the agency name, Docket ID number, and title for this 
                    <E T="04">Federal Register</E>
                     document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                    <E T="03">http://www.regulations.gov</E>
                     as they are 
                    <PRTPAGE P="10057"/>
                    received without change, including any personal identifiers or contact information.
                </P>
                <P>
                    <E T="03">DOD Clearance Officer:</E>
                     Mr. Lane Purvis.
                </P>
                <P>
                    Requests for copies of the information collection proposal should be sent to Mr. Purvis at 
                    <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02946 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2024-OS-0014]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Under Secretary of Defense for Personnel and Readiness, (OUSD(P&amp;R)), Department of Defense, (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In compliance with the 
                        <E T="03">Paperwork Reduction Act of 1995,</E>
                         the OUSD(P&amp;R) announces a proposed public information collection and seeks public comment on the provisions thereof. Comments are invited on: whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; the accuracy of the agency's estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by April 15, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number and title, by any of the following methods:</P>
                    <P>
                        <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Department of Defense, Office of the Director of Administration and Management, Directorate for Oversight and Compliance, Regulatory Directorate, 4800 Mark Center Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name, docket number and title for this 
                        <E T="04">Federal Register</E>
                         document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                        <E T="03">http://www.regulations.gov</E>
                         as they are received without change, including any personal identifiers or contact information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to Department of Defense, Office of People Analytics, 4800 Mark Center Drive, Alexandria, VA 22350-1400; Ms. Carol Newell; 571-372-1109.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Status of the Forces Survey of Active Duty Members; OMB Control Number: 0704-0624.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The Status of Forces Active Duty Survey (SOFS-A) is an annual DoD-wide large-scale survey of Active Duty members that is used in evaluating existing policies and programs, establishing baseline measures before implementing new policies and programs, and monitoring the progress of existing policies/programs. The survey assesses topics such as financial well-being, retention intention, stress, tempo, readiness, and suicide awareness. Data is aggregated by appropriate demographics, including Service, paygrade, gender, race/ethnicity, and other indicators. In order to be able to meet reporting requirements for DoD leadership, the Military Services, and Congress, the survey needs to be completed in 2024. The legal requirements for the SOFS-A can be found in the Fiscal Year 2016 National Defense Authorization Act, title VI, subtitle F, subpart 661. This legal requirement mandates that the SOFS-A solicit information on financial literacy and preparedness. Results will be used by the Service Secretaries to evaluate and update financial literacy training and will be submitted in a report to the Committees on Armed Services of the Senate and the House of Representatives.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     5,775.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     17,325.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     17,325.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     20 minutes.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Annually.
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02954 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2023-HA-0111]</DEPDOC>
                <SUBJECT>Submission for OMB Review; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Assistant Secretary of Defense for Health Affairs (OASD(HA)), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The DoD has submitted to the Office of Management and Budget (OMB) for clearance the following proposal for collection of information under the provisions of the Paperwork Reduction Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by March 14, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Lane Purvis, (571) 372-0460, 
                        <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     The Health Care Survey of DoD Beneficiaries; OMB Control Number: 0720-HCSD.
                </P>
                <P>
                    <E T="03">Type of Request:</E>
                     New.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     24,200.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     24,200.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     15 minutes.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     6,050.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     Legal authority for this information collection is found in the 1993 National Defense Authorization Act (Pub. L. 102-484). The Health Care Survey of DoD Beneficiaries (HCSDB) is the only population-based Consumer Assessment of Healthcare Providers and Systems Health Plan Survey (v5.0) administered to a statistically representative, world-wide sample of all eligible DoD 
                    <PRTPAGE P="10058"/>
                    beneficiaries by the Defense Health Agency (DHA). The instrument includes an additional module that is the only population-based measurement of Healthy People 2030 goals and health metrics reflecting the priorities of senior health leaders. The HCSDB is a population-based survey, not a healthcare encounter-based survey. As such, the HCSDB is the only survey able to measure access to care and other metrics for beneficiaries who may not be using the TRICARE health system due to barriers to care they encounter. This information collection, which began in 2008, continues to be of critical importance to DHA and Congress in assessing Military Health System and Managed Care Support Contractor performance by allowing for trending by various beneficiary categories over time.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Voluntary.
                </P>
                <P>
                    <E T="03">OMB Desk Officer:</E>
                     Mr. Matt Eliseo.
                </P>
                <P>You may also submit comments and recommendations, identified by Docket ID number and title, by the following method:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                     Follow the instructions for submitting comments.
                </P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the agency name, Docket ID number, and title for this 
                    <E T="04">Federal Register</E>
                     document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                    <E T="03">http://www.regulations.gov</E>
                     as they are received without change, including any personal identifiers or contact information.
                </P>
                <P>
                    <E T="03">DOD Clearance Officer:</E>
                     Mr. Lane Purvis.
                </P>
                <P>
                    Requests for copies of the information collection proposal should be sent to Mr. Purvis at 
                    <E T="03">whs.mc-alex.esd.mbx.dd-dod-information-collections@mail.mil.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02945 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2024-OS-0012]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Under the Secretary of Defense for Personnel and Readiness, (OUSD(P&amp;R)), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In compliance with the 
                        <E T="03">Paperwork Reduction Act of 1995,</E>
                         the OUSD(P&amp;R) announces a proposed public information collection and seeks public comment on the provisions thereof. Comments are invited on: whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; the accuracy of the agency's estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by April 15, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number and title, by any of the following methods:</P>
                    <P>
                        <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Department of Defense, Office of the Assistant to the Secretary of Defense for Privacy, Civil Liberties, and Transparency, Regulatory Directorate, 4800 Mark Center Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name, docket number and title for this 
                        <E T="04">Federal Register</E>
                         document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                        <E T="03">http://www.regulations.gov</E>
                         as they are received without change, including any personal identifiers or contact information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to Lisa Davis, Deputy Director Health and Resilience, 4800 Mark Center Drive, Suite 06E22, Alexandria VA 22350-4000, 
                        <E T="03">elizabeth.h.davis18.civ@mail.mil,</E>
                         703-338-8926.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Workplace and Gender Relations Survey of Military Members; OMB Control Number: 0704-0615.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The legal requirements for the Workplace and Gender Relations (WGR) surveys of military families can be found in the following:
                </P>
                <FP SOURCE="FP-1">• 10 U.S.C. 481</FP>
                <FP SOURCE="FP-1">• Ronald W. Reagan National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2005</FP>
                <FP SOURCE="FP-1">• Public Law 111-383, section 1631</FP>
                <FP SOURCE="FP-1">• NDAA for FY 2013, section 570</FP>
                <FP SOURCE="FP-1">• 10 U.S.C. 2358</FP>
                <P>Sexual assault, sexual harassment, and gender discrimination remain a major concern across the DoD and for members of Congress. In February 2004, the USD(P&amp;R) testified before the Senate Armed Services Committee on the prevalence of sexual assault in the DoD and the programs and policies planned to address the issues. In accordance with legislative requirements, the USD(P&amp;R) issued memoranda to the Services that provides DoD policy guidance on sexual assault that included a new standard definition, response capability, training requirements, response actions, and reporting guidance throughout the Department. The Sexual Assault Prevention and Response Office supported implementation of the new policy and requires data to assess the prevalence of sexual assault in the Department and the effectiveness of the programs they have implemented.</P>
                <P>The WGR surveys assess the attitudes and opinions of military members on issues relating to sexual harassment, gender discrimination, sexual assault, as well as the culture and climate of the units/organizations in which individuals serve. The surveys provide the policy offices of the USD(P&amp;R) with current data on (1) the positive and negative trends for professional and personal relationships between Service members; (2) the specific types of assault that have occurred and the number of times in the preceding year; (3) the effectiveness of DoD policies designed to improve professional relationships between male and female Service members; (4) the effectiveness of current processes for complaints, reports, and investigations; and, (5) specific issues related to sexual harassment, sexual assault, and gender discrimination that may inform the Department's prevention and response efforts.</P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals and households.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     102,150.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     204,300.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     204,300.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     30 minutes.
                    <PRTPAGE P="10059"/>
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Biennially.
                </P>
                <P>The target population for the WGR includes active duty members serving in the Active component from the Army, Navy, Marine Corps, Air Force, and Coast Guard as well as Reserve component members in the Selected Reserve (in Reserve Units, Active Guard/Reserve (AGR/FTS/AR Title 10 and Title 32), and Individual Mobilization Augmentee (IMA) programs) from the Army National Guard, U.S. Army Reserve, U.S. Navy Reserve, U.S. Marine Corps Reserve, Air National Guard, U.S. Air Force Reserve, and Coast Guard Reserve. The Office of People Analytics (OPA) will administer the WGR survey via the web. The survey is administered via proprietary software developed by OPA's operations contractor. To reduce respondent burden, web-based surveys use “smart skip” technology to ensure respondents only answer questions that are applicable to them.</P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02949 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket ID: DoD-2024-OS-0015]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Under Secretary of Defense for Personnel and Readiness (OUSD(P&amp;R)), Department of Defense (DoD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day information collection notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In compliance with the 
                        <E T="03">Paperwork Reduction Act of 1995,</E>
                         the OUSD(P&amp;R) announces a proposed public information collection and seeks public comment on the provisions thereof. Comments are invited on: whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; the accuracy of the agency's estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all comments received by April 15, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments, identified by docket number and title, by any of the following methods:</P>
                    <P>
                        <E T="03">Federal eRulemaking Portal: http://www.regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        <E T="03">Mail:</E>
                         Department of Defense, Office of the Assistant to the Secretary of Defense for Privacy, Civil Liberties, and Transparency, Regulatory Directorate, 4800 Mark Center Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the agency name, docket number and title for this 
                        <E T="04">Federal Register</E>
                         document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at 
                        <E T="03">http://www.regulations.gov</E>
                         as they are received without change, including any personal identifiers or contact information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to Military Community Advocacy, 4800 Mark Center Drive, Suite 3G15, Alexandria, VA 22350, Lisa Eaffaldano, (703) 474-8774.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title; Associated Form; and OMB Number:</E>
                     Grow Safe and Secure Feasibility Evaluation; OMB Control Number: 0704-GSFE.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     Grow Safe and Secure (GSS) is a DoD co-developed, evidence-informed parent-education program designed to be delivered to parents/caregivers by trained clinicians in an individual format over a minimum of six sessions. This project is needed to understand the implementation feasibility of using the GSS program with parents/caregivers of elementary school-aged children (5 to 10 years old) who are experiencing or may be at risk of child maltreatment. The Department of Defense, Service branches, and the Family Advocacy Program need to gain an understanding of: (a) the program's processes and (b) clinicians', parents', and caregivers' perceptions of the program.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>
                    <E T="03">Annual Burden Hours:</E>
                     85.3 hours.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     341.
                </P>
                <P>
                    <E T="03">Responses per Respondent:</E>
                     1.
                </P>
                <P>
                    <E T="03">Annual Responses:</E>
                     341.
                </P>
                <P>
                    <E T="03">Average Burden per Response:</E>
                     15 minutes.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Once.
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Aaron T. Siegel,</NAME>
                    <TITLE>Alternate OSD Federal Register Liaison Officer, Department of Defense.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02955 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6001-FR-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Department of the Army, Corps of Engineers</SUBAGY>
                <SUBJECT>National Wetland Plant List</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Army Corps of Engineers, DoD.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Army Corps of Engineers (USACE), as part of an interagency effort with the U.S. Environmental Protection Agency (EPA), the U.S. Fish and Wildlife Service (FWS) and the U.S. Department of Agriculture Natural Resources Conservation Service (NRCS), is announcing the availability of the final 2022 National Wetland Plant List (NWPL). The NWPL provides plant species wetland indicator status ratings, which are used in determining whether the hydrophytic vegetation factor is met when conducting wetland delineations under the Clean Water Act and wetland determinations under the Wetland Conservation Provisions of the Food Security Act. Other applications of the NWPL include wetland restoration, establishment, and enhancement projects.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The 2022 NWPL will become effective on February 13, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>U.S. Army Corps of Engineers, Attn: CECW-CO-R, 441 G Street NW, Washington, DC 20314-1000.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Brianne McGuffie, Headquarters, U.S. Army Corps of Engineers, Operations and Regulatory Community of Practice, Washington, DC 20314-1000, by phone at 202-761-4750 or by email at 
                        <E T="03">brianne.e.mcguffie@usace.army.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    The U.S. Army Corps of Engineers (USACE) administers the National Wetland Plant List (NWPL) for the United States (U.S.) and its territories. Responsibility for the NWPL was transferred to the USACE from the U.S. Fish and Wildlife Service (FWS) in 2006. The NWPL has undergone several revisions since its inception in 1988. Additions or deletions to the NWPL represent new records, range extensions, 
                    <PRTPAGE P="10060"/>
                    nomenclatural and taxonomic changes, and newly proposed species. The latest review process began in 2022 and included review by Regional Panels (RPs), the National Panel (NP), and the public, who provided input on proposed wetland rating changes for two species submitted by the public. Both of the species were submitted for a rating change request in the Arid West region. The proposed indicator changes were announced in a 
                    <E T="04">Federal Register</E>
                     Notice, 88 FR 3729, January 20, 2023, with the comment period ending on March 21, 2023. One comment was received during that time.
                </P>
                <HD SOURCE="HD1">Wetland Indicator Status Ratings</HD>
                <P>
                    On the NWPL, five categories of wetland indicator status ratings are used to indicate a plant's likelihood for occurrence in wetlands versus non-wetlands: Obligate Wetland (OBL), Facultative Wetland (FACW), Facultative (FAC), Facultative Upland (FACU), and Upland (UPL). These rating categories are defined by the NP as follows: OBL—almost always occur in wetlands; FACW—usually occur in wetlands, but may occur in non-wetlands; FAC—occur in wetlands and non-wetlands; FACU—usually occur in non-wetlands, but may occur in wetlands; and UPL—almost always occur in non-wetlands. These category definitions are qualitative descriptions that better reflect the qualitative supporting information, rather than numeric frequency ranges. The percentage frequency categories used in the older definitions are only used for testing problematic or contested species being recommended for indicator status changes. Plus and minus designations and wetland indicator designations such as No Indicator (NI), No Occurrence (NO), and No Agreement (NA) were removed in 2012 and are no longer used on the NWPL. More information on the specifics of how to use these ratings is available on the NWPL website at 
                    <E T="03">https://wetland-plants.sec.usace.army.mil/.</E>
                </P>
                <P>
                    The NWPL is utilized in conducting wetland delineations under the authority of Section 404 of the Clean Water Act (33 U.S.C. 1344) and Section 10 of the Rivers and Harbors Act of 1899 (33 U.S.C. 401 
                    <E T="03">et seq.</E>
                    ) and wetland determinations under the authority of the Food Security Act of 1985 (16 U.S.C. 3801 
                    <E T="03">et seq.</E>
                    ). For the purposes of determining how often a species occurs in wetlands, wetlands are defined as either (1) those areas that are inundated or saturated by surface or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions (33 CFR 328.3) or (2) “except when such term is part of the term `converted wetland,' means land that has a predominance of hydric soils; is inundated or saturated by surface or groundwater at a frequency and duration sufficient to support a prevalence of hydrophytic vegetation typically adapted for life in saturated soil conditions; and under normal circumstances does support a prevalence of such vegetation.” (16 U.S.C. 3801(a)(27) and 7 CFR 12.2). Wetlands are identified using the three-factor approach. Because each species being evaluated occurs as part of a vegetation assemblage, examining the other species present in relation to their assigned wetland fidelity may be useful in assessing hydrophytic vegetation.
                </P>
                <HD SOURCE="HD1">Discussion of Public Comments</HD>
                <P>
                    For the 2022 NWPL update, the NWPL NP and Arid West RP reviewed proposed wetland rating changes for two species submitted by the public. Both species were submitted for a rating change request in the Arid West region. As noted in the 
                    <E T="04">Federal Register</E>
                     Notice, 88 FR 3729, January 20, 2023, the 2022 NWPL update will include a nomenclature change for 
                    <E T="03">Populus fremontii</E>
                     in accordance with the Memorandum of Agreement signed in 2017 (2017 MOA).
                    <SU>1</SU>
                    <FTREF/>
                     Because the nomenclature change is required by the 2017 MOA, the USACE requested public input on the proposed rating change for 
                    <E T="03">Populus fremontii</E>
                     only and not the nomenclature change itself. Submitted information was reviewed by the NP and the Arid West RP, and proposed 2022 ratings for these species were determined. Along with soliciting information on the species being evaluated, we also solicited comments on the overall NWPL process, in particular whether the NWPL update cycle should remain the present two years or be changed to a three-year update cycle. This information was detailed in the 
                    <E T="04">Federal Register</E>
                     Notice, 88 FR 3729, January 20, 2023, and the information on the proposed wetland rating changes is summarized in the table below.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         U.S. Army Corps of Engineers, the U.S. Environmental Protection Agency, the U.S. Fish &amp; Wildlife Service and the Natural Resources Conservation Service. (2017). 
                        <E T="03">Memorandum of Agreement Among the U.S. Army Corps of Engineers, the U.S. Environmental Protection Agency, the U.S. Fish &amp; Wildlife Service and the Natural Resources Conservation Service for the Purpose of Updating and Maintaining the National Wetland Plant List.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,r25,r50,r50,r50">
                    <TTITLE>Species Reviewed for NWPL 2022 Update</TTITLE>
                    <BOXHD>
                        <CHED H="1">Species</CHED>
                        <CHED H="1">Region</CHED>
                        <CHED H="1">Current 2020 NWPL rating</CHED>
                        <CHED H="1">Proposed 2022 NWPL rating</CHED>
                        <CHED H="1">Final 2022 NWPL rating</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">
                            <E T="03">Isocoma menziesii</E>
                        </ENT>
                        <ENT>AW</ENT>
                        <ENT>FAC</ENT>
                        <ENT>FACU</ENT>
                        <ENT>FACU.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            <E T="03">Populus fremontii</E>
                        </ENT>
                        <ENT>AW</ENT>
                        <ENT>FAC</ENT>
                        <ENT>FACW</ENT>
                        <ENT>FACW.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    In response to the initial 
                    <E T="04">Federal Register</E>
                     notice, the USACE received only one comment which addressed the two- versus three-year NWPL update cycle. This comment was in favor of retaining the two-year update cycle. Based on this comment, this broader review, and other factors including the 2017 MOA, the existing two-year update cycle for the NWPL will be retained.
                </P>
                <P>
                    The public may provide input to be considered as part of future NWPL updates by utilizing the following procedures. A change in indicator status or addition of a currently unlisted species may be requested at any time at 
                    <E T="03">https://wetland-plants.sec.usace.army.mil/</E>
                     by clicking on the “Submit a NWPL Change Request” link and submitting the appropriate data. Appropriate data includes ecological data, literature reviews, frequency and abundance data, testing descriptions, and geographic data for the taxon in wetlands and non-wetlands in the USACE wetland region or subregion for which the change is proposed.
                </P>
                <P>
                    In accordance with the Memorandum of Agreement signed in 2006 (2006 MOA),
                    <SU>2</SU>
                    <FTREF/>
                     the USACE, endorsed by the 
                    <PRTPAGE P="10061"/>
                    EPA, FWS and NRCS, is publishing final wetland indicator statuses for the 2022 NWPL. The final NWPL is available at 
                    <E T="03">https://wetland-plants.sec.usace.army.mil/.</E>
                     State, regional, and national lists can also be downloaded from this site. The list will be used in any wetland delineations performed after the effective date. Delineations completed prior to the effective date may still use the 2020 NWPL. Completed wetland delineation/determination forms should reference the version of the NWPL used to complete the form. This completes the review of the NWPL. All comments received have been evaluated and final indicator statuses have been set.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         U.S. Army Corps of Engineers, the U.S. Environmental Protection Agency, the U.S. Fish &amp; Wildlife Service and the Natural Resources Conservation Service. (December 12, 2006). 
                        <E T="03">Memorandum of Agreement Among the U.S. Army Corps of Engineers, the U.S. Environmental Protection Agency, the U.S. Fish &amp; Wildlife Service and the Natural Resources Conservation Service for the Purpose of Transferring Responsibility for Updating and Maintaining the National List of Vascular Plant Species that Occur in Wetlands.</E>
                    </P>
                </FTNT>
                <P>Detailed information on the update process, protocol, and technical issues can be found in the following documents (available on the NWPL Publications web page):</P>
                <P>• Lichvar, Robert W. and Paul Minkin. Concepts and Procedures for Updating the National Wetland Plant List. Sept 2008. ERDC/CRREL TN-08-3. Hanover, NH: U.S. Army Engineer Research and Development Center, Cold Regions Research and Engineering Laboratory.</P>
                <P>• Lichvar, Robert W. and Jennifer J. Gillrich. Final Protocol for Assigning Wetland Indicator Status Ratings during National Wetland Plant List Update. Sept 2011. ERDC/CRREL TN-11-1. Hanover, NH: U.S. Army Engineer Research and Development Center, Cold Regions Research and Engineering Laboratory.</P>
                <P>Additional cited literature:</P>
                <P>Lichvar R.W., N.C. Melvin, M.L. Butterwick, and W.N. Kirchner. 2012. National Wetland Plant List Indicator Rating Definitions. ERDC/CRREL TN-12-1. Hanover, NH: U.S. Army Engineer Research and Development Center Cold Regions Research and Engineering Laboratory.</P>
                <HD SOURCE="HD1">Environmental Documentation</HD>
                <P>A decision document has been prepared for this action after all comments received were evaluated. The decision document is available through Headquarters, U.S. Army Corps of Engineers, Operations and Regulatory Community of Practice, 441 G Street, NW, Washington, DC 20314-1000.</P>
                <HD SOURCE="HD1">Authority</HD>
                <P>
                    The NWPL is utilized in conducting wetland delineations under the authority of Section 404 of the Clean Water Act (33 U.S.C. 1344) and section 10 of the Rivers and Harbors Act of 1899 (33 U.S.C. 401 
                    <E T="03">et seq.</E>
                    ) and wetland determinations under the authority of the Food Security Act of 1985 (16 U.S.C. 3801 
                    <E T="03">et seq.</E>
                    ). The Corps has responsibility for issuing this update pursuant to the 2006 MOA.
                </P>
                <FP>Approved by,</FP>
                <SIG>
                    <NAME>Thomas P. Smith,</NAME>
                    <TITLE>Chief, Operations and Regulatory Division.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02903 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3720-58-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <SUBJECT>Combined Notice of Filings #1</SUBJECT>
                <P>Take notice that the Commission received the following electric corporate filings:</P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     EC24-48-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Sonoran West Solar Holdings, LLC, Sonoran West Solar Holdings 2, LLC, GRP IV UK Holdco Limited.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Joint Application for Authorization Under Section 203 of the Federal Power Act of Sonoran West Solar Holdings, LLC, et al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/6/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240206-5152.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/27/24.
                </P>
                <P>Take notice that the Commission received the following exempt wholesale generator filings:</P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     EG24-103-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     AP Sunray, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     AP Sunray, LLC submits Notice of Self-Certification of Exempt Wholesale Generator Status.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/7/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240207-5015.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/28/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     EG24-104-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Delilah Solar Energy II LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Delilah Solar Energy II LLC submits Notice of Self-Certification of Exempt Wholesale Generator Status.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/7/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240207-5070.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/28/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     EG24-105-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Samson Solar Energy II LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Samson Solar Energy II LLC submits Notice of Self-Certification of Exempt Wholesale Generator Status.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/7/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240207-5071.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/28/24.
                </P>
                <P>Take notice that the Commission received the following electric rate filings:</P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER22-910-004.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Rockland Electric Company, PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Refund Report: Rockland Electric Company submits tariff filing per 35.19a(b): RECO submits Refund Report in Docket No. ER22-910 to be effective N/A.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/7/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240207-5019.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/28/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER23-2751-002; ER15-2539-001; ER18-1984-004; ER23-2750-002; ER23-2752-002; ER24-1159-000; ER24-1160-000; ER24-1161-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Lakeswind Power Partners, LLC, TransAlta Energy Marketing (U.S.) Inc., TransAlta Energy Marketing Corp., WHITE ROCK WIND WEST, LLC, HORIZON HILL WIND, LLC, Big Level Wind LLC, TransAlta Wyoming Wind LLC, WHITE ROCK WIND EAST, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Notice of Change in Status of White Rock Wind East, LLC, et al.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     1/31/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240131-5651.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/21/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-619-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     MS Solar 5, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Supplement to December 11, 2023 MS Solar 5, LLC tariff filing.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/5/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240205-5195.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/26/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-759-001.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: Amendment of Amended WMPA, SA No. 5545; Queue No. AE2-125 re: FirstEnergy Reorg to be effective 1/1/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/6/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240206-5143.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/27/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-1192-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     LS Power Development, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     LS Power Development, LLC submits a One-Time Limited Waiver Request of Procedural Deadlines within PJMs OATT.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/5/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240205-5187.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/12/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-1200-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Southwest Power Pool, Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     205(d) Rate Filing: Revisions to Modify Addendum 1 to Attachment AE to be effective 4/8/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/7/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240207-5017.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/28/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-1201-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Southwest Power Pool, Inc.
                    <PRTPAGE P="10062"/>
                </P>
                <P>
                    <E T="03">Description:</E>
                     205(d) Rate Filing: Revisions to Update Violation Relaxation Limit Value in the WEIS Market to be effective 12/31/9998.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/7/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240207-5020.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/28/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-1202-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Midcontinent Independent System Operator, Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     205(d) Rate Filing: 2024-02-07_SA 2350 ITC-WM Renewable Energy 2nd Rev GIA (J025 J242) to be effective 1/29/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/7/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240207-5027.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/28/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-1204-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Midcontinent Independent System Operator, Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     205(d) Rate Filing: 2024-02-07_Update Manual Redispatch Notice Provisions to be effective 4/8/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/7/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240207-5055.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/28/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-1205-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Arizona Public Service Company.
                </P>
                <P>
                    <E T="03">Description:</E>
                     205(d) Rate Filing: Service Agreement No. 418—E&amp;P w/NTUA to be effective 1/8/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/7/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240207-5058.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/28/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-1206-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Northern States Power Company, a Minnesota corporation.
                </P>
                <P>
                    <E T="03">Description:</E>
                     205(d) Rate Filing: 2024-02-07 GRE FSA—Slayton 755-NSP to be effective 2/8/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/7/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240207-5087.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/28/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER24-1207-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Cancellation of WMPA, SA No. 2388; V2-009 re:breach to be effective N/A.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/7/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240207-5088.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/28/24.
                </P>
                <P>Take notice that the Commission received the following electric securities filings:</P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ES24-24-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Jersey Central Power &amp; Light Company.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Application Under Section 204 of the Federal Power Act for Authorization to Issue Securities of Jersey Central Power &amp; Light Company.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/6/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240206-5154.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/27/24.
                </P>
                <P>
                    The filings are accessible in the Commission's eLibrary system (
                    <E T="03">https://elibrary.ferc.gov/idmws/search/fercgensearch.asp</E>
                    ) by querying the docket number.
                </P>
                <P>Any person desiring to intervene, to protest, or to answer a complaint in any of the above proceedings must file in accordance with Rules 211, 214, or 206 of the Commission's Regulations (18 CFR 385.211, 385.214, or 385.206) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding.</P>
                <P>
                    eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: 
                    <E T="03">http://www.ferc.gov/docs-filing/efiling/filing-req.pdf.</E>
                     For other information, call (866) 208-3676 (toll free). For TTY, call (202) 502-8659.
                </P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, environmental justice communities, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Acting Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02919 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <SUBJECT>Combined Notice of Filings</SUBJECT>
                <P>Take notice that the Commission has received the following Natural Gas Pipeline Rate and Refund Report filings:</P>
                <HD SOURCE="HD1">Filings Instituting Proceedings</HD>
                <P>
                    <E T="03">Docket Numbers:</E>
                     PR24-34-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Kinder Morgan Texas Pipeline LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Report Filing: 2024.02.06 KMTP MBR Update Filing NextEra Acquisition to be effective N/A.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/6/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240206-5167.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/27/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     PR24-36-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Kinder Morgan Keystone Gas Storage LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Report Filing: 2024.02.06 Keystone MBR Update Filing NextEra Acquisition to be effective N/A.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/6/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240206-5172.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/27/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     PR24-37-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Banquete Hub LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Report Filing: 2024.02.06 Banquete MBR Update Filing NextEra Acquisition to be effective N/A.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/6/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240206-5166.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/27/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     RP24-393-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Transcontinental Gas Pipe Line Company, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     4(d) Rate Filing: Rate Schedules LSS and SS-2 Tracker Filing eff February 1, 2024 to be effective 2/1/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/6/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240206-5158.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/20/24.
                </P>
                <P>Any person desiring to intervene, to protest, or to answer a complaint in any of the above proceedings must file in accordance with Rules 211, 214, or 206 of the Commission's Regulations (18 CFR 385.211, 385.214, or 385.206) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding.</P>
                <HD SOURCE="HD1">Filings in Existing Proceedings</HD>
                <P>
                    <E T="03">Docket Numbers:</E>
                     PR24-22-001.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Gulf Coast Express Pipeline LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Amendment Filing: Supplement to Hub Services Term Extension to be effective 12/30/2023.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/6/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240206-5113.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/27/24.
                </P>
                <P>
                    <E T="03">284.123(g) Protest:</E>
                     5 p.m. ET 2/27/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     PR24-24-001.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Permian Highway Pipeline LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Amendment Filing: Supplement to Revised Fuel Allocation Provisions to be effective 11/21/2023.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/6/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240206-5114.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/27/24.
                </P>
                <P>
                    <E T="03">284.123(g) Protest:</E>
                     5 p.m. ET 2/27/24.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     RP24-306-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Tennessee Gas Pipeline Company, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Report Filing: 2024.02.06 TGP MBR Update Filing NextEra Acquisition to be effective N/A.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     2/6/24.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20240206-5171.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 2/20/24.
                </P>
                <PRTPAGE P="10063"/>
                <P>Any person desiring to protest in any the above proceedings must file in accordance with Rule 211 of the Commission's Regulations (18 CFR 385.211) on or before 5:00 p.m. Eastern time on the specified comment date.</P>
                <P>
                    The filings are accessible in the Commission's eLibrary system (
                    <E T="03">https://elibrary.ferc.gov/idmws/search/fercgensearch.asp</E>
                    ) by querying the docket number.
                </P>
                <P>
                    eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: 
                    <E T="03">http://www.ferc.gov/docs-filing/efiling/filing-req.pdf.</E>
                     For other information, call (866) 208-3676 (toll free). For TTY, call (202) 502-8659.
                </P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, environmental justice communities, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Acting Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02916 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Project No. 2736-046]</DEPDOC>
                <SUBJECT>Idaho Power Company; Notice of Application Ready for Environmental Analysis and Soliciting Comments, Recommendations, Terms and Conditions, and Prescriptions</SUBJECT>
                <P>Take notice that the following hydroelectric application has been filed with the Commission and is available for public inspection.</P>
                <P>
                    a. 
                    <E T="03">Type of Application:</E>
                     New Major License.
                </P>
                <P>
                    b. 
                    <E T="03">Project No.:</E>
                     2736-046.
                </P>
                <P>
                    c. 
                    <E T="03">Date filed:</E>
                     February 14, 2023.
                </P>
                <P>
                    d. 
                    <E T="03">Applicant:</E>
                     Idaho Power Company.
                </P>
                <P>
                    e. 
                    <E T="03">Name of Project:</E>
                     American Falls Hydroelectric Project.
                </P>
                <P>
                    f. 
                    <E T="03">Location:</E>
                     The American Falls project is located on the Snake River in Power County, Idaho, near the city of American Falls, about 25 miles southwest of Pocatello. The project is located at the American Falls Dam, owned and operated by the United States Bureau of Reclamation. The project occupies 7.37 acres of United States land administered by the U.S. Bureau of Reclamation in Power County, Idaho.
                </P>
                <P>
                    g. 
                    <E T="03">Filed Pursuant to:</E>
                     Federal Power Act 16 U.S.C. 791(a)-825(r).
                </P>
                <P>
                    h. 
                    <E T="03">Applicant Contact:</E>
                     Andrea L. Courtney, Hydro Licensing Leader, Idaho Power Company, P.O. Box 70, 1221 W Idaho St., Boise, ID 83702; (208) 388-2655; or email at 
                    <E T="03">ACourtney@idahopower.com.</E>
                </P>
                <P>
                    i. 
                    <E T="03">FERC Contact:</E>
                     Golbahar Mirhosseini at 
                    <E T="03">Golbahar.Mirhosseini@ferc.gov.</E>
                </P>
                <P>
                    j. 
                    <E T="03">Deadline for filing comments, recommendations, terms and conditions, and prescriptions:</E>
                     60 days from the issuance date of this notice; reply comments are due 105 days from the issuance date of this notice.
                </P>
                <P>
                    The Commission strongly encourages electronic filing. Please file comments, recommendations, terms and conditions, and prescriptions using the Commission's eFiling system at 
                    <E T="03">https://ferconline.ferc.gov/FERCOnline.aspx.</E>
                     Commenters can submit brief comments up to 6,000 characters, without prior registration, using the eComment system at 
                    <E T="03">https://ferconline.ferc.gov/QuickComment.aspx.</E>
                     You must include your name and contact information at the end of your comments. For assistance, please contact FERC Online Support at 
                    <E T="03">FERCOnlineSupport@ferc.gov,</E>
                     (866) 208-3676 (toll free), or (202) 502-8659 (TTY). In lieu of electronic filing, you may submit a paper copy. Submissions sent via the U.S. Postal Service must be addressed to: Debbie-Anne A. Reese, Deputy Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC 20426. Submissions sent via any other carrier must be addressed to: Debbie-Anne A. Reese, Deputy Secretary, Federal Energy Regulatory Commission, 12225 Wilkins Avenue, Rockville, Maryland 20852. All filings must clearly identify the project name and docket number on the first page: American Falls Project (P-2736-046).
                </P>
                <P>The Commission's Rules of Practice require all intervenors filing documents with the Commission to serve a copy of that document on each person on the official service list for the project. Further, if an intervenor files comments or documents with the Commission relating to the merits of an issue that may affect the responsibilities of a particular resource agency, they must also serve a copy of the document on that resource agency.</P>
                <P>k. This application has been accepted and is now ready for environmental analysis.</P>
                <P>
                    l. The American Falls dam and spillway are owned and operated by the Bureau of Reclamation; these features are not project facilities or contained within the project boundary. The concrete gravity dam has a structural height of 103.5 feet and a crest length of 5,277 feet, width of 42.5 feet and elevation of 4,366.5 feet.
                    <SU>1</SU>
                    <FTREF/>
                     The spillway has a crest elevation of 4,333 feet. Reclamation operates and manages the reservoir for irrigation delivery, power generation, flood control, fish and wildlife, and recreation benefits. The reservoir has a maximum storage capacity of 2,672,590 acre-feet and 1.7 million acre-feet of usable storage capacity. Its water surface elevation fluctuates between 4,295.7 feet and 4,354.5 feet and reservoir's maximum surface area is 58,000 acres.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         All elevations are National Geodetic Vertical Datum of 1929 (NGVD 29).
                    </P>
                </FTNT>
                <P>Three 18-foot-diameter steel-lined penstocks begin at the dam intake and extend 300 feet downstream to the American Falls project's turbines. Reclamation's ownership and maintenance of the penstocks begins at the intake and extends downstream approximately 60 feet to the coupling pit. Idaho Power's ownership and maintenance of the penstocks begins at the coupling pit and extends downstream to the Project's turbines.</P>
                <P>
                    From the coupling pit, each of the project's 18-foot-diameter penstocks extend approximately 240 feet downstream to each of the project's three 22.5-megawatt (MW) Kaplan turbine-generator units contained in a reinforced concrete powerhouse. The total installed project capacity is 67.5 MW.
                    <SU>2</SU>
                    <FTREF/>
                     Water is discharged from the powerhouse directly to the Snake River.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Order Amending License, Revising Project Description, Revising Annual Charges, and Approving Revised Exhibit M issued September 27, 2002. 
                        <E T="03">Idaho Power Company,</E>
                         180 FERC ¶ 62,170 (2022). Following turbine maintenance that commenced in October 2022 and will extend through 2025, each of the turbines will have a rated hydraulic capacity of 4,705 cfs at 88 feet net head.
                    </P>
                </FTNT>
                <P>
                    Electricity generated at the powerhouse is transmitted to the electric grid via a switchyard upstream of the powerhouse containing a 13.8/138-kilovolt (kV) step-up transformer. From there power is transmitted over a 2,300-foot-long, 138-kV overhead transmission line to the American Falls Switchyard. The American Falls project generates an average of 395,000 megawatt-hours (MWh) annually.
                    <PRTPAGE P="10064"/>
                </P>
                <P>Project recreation facilities include: Trenner Memorial Park, American Falls Park, an improved fishing and access area, and the Oregon Trail Boat Ramp (Power County Boat Ramp).</P>
                <P>The American Falls project operates in a run-of-release mode, which means it only uses flows released to the project by Reclamation. More specifically, power generation is seasonally dictated as reservoir levels and irrigation flow deliveries are set by Reclamation.</P>
                <P>
                    m. A copy of the application can be viewed on the Commission's website at 
                    <E T="03">http://www.ferc.gov</E>
                     using the “eLibrary” link. Enter the docket number excluding the last three digits in the docket number field to access the document. For assistance, contact FERC Online Support.
                </P>
                <P>All filings must (1) bear in all capital letters the title “COMMENTS,” “REPLY COMMENTS,” “RECOMMENDATIONS,” “TERMS AND CONDITIONS,” or “PRESCRIPTIONS;” (2) set forth in the heading the name of the applicant and the project number of the application to which the filing responds; (3) furnish the name, address, and telephone number of the person submitting the filing; and (4) otherwise comply with the requirements of 18 CFR 385.2001 through 385.2005. All comments, recommendations, terms and conditions or prescriptions must set forth their evidentiary basis and otherwise comply with the requirements of 18 CFR 4.34(b). Agencies may obtain copies of the application directly from the applicant. Each filing must be accompanied by proof of service on all persons listed on the service list prepared by the Commission in this proceeding, in accordance with 18 CFR 4.34(b) and 385.2010.</P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, environmental justice communities, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <P>
                    You may also register online at 
                    <E T="03">https://ferconline.ferc.gov/FERCOnline.aspx</E>
                     to be notified via email of new filings and issuances related to this or other pending projects. For assistance, contact FERC Online Support.
                </P>
                <P>
                    n. 
                    <E T="03">The applicant must file no later than 60 days following the date of issuance of this notice:</E>
                     (1) a copy of the water quality certification; (2) a copy of the request for certification, including proof of the date on which the certifying agency received the request; or (3) evidence of waiver of water quality certification. Please note that the certification request must comply with 40 CFR 121.5(b), including documentation that a pre-filing meeting request was submitted to the certifying authority at least 30 days prior to submitting the certification request. Please also note that the certification request must be sent to the certifying authority and to the Commission concurrently.
                </P>
                <P>
                    o. 
                    <E T="03">Procedural Schedule:</E>
                     The application will be processed according to the following schedule. Revisions to the schedule will be made as appropriate.
                </P>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25,xs42">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Milestone</CHED>
                        <CHED H="1">Target date</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Deadline for Filing Comments, Recommendations, and Agency Terms and Conditions/Prescriptions</ENT>
                        <ENT>April 2024.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Licensee's Reply to REA Comments</ENT>
                        <ENT>May 2024.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>p. Final amendments to the application must be filed with the Commission no later than 30 days from the issuance date of this notice.</P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Acting Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02921 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Docket No. CP24-37-000]</DEPDOC>
                <SUBJECT>Columbia Gulf Transmission, LLC; Notice of Scoping Period Requesting Comments on Environmental Issues for the Proposed Amoco South Pecan Lake Abandonment Project</SUBJECT>
                <P>The staff of the Federal Energy Regulatory Commission (FERC or Commission) will prepare an environmental document, that will discuss the environmental impacts of the Amoco South Pecan Lake Abandonment Project (Project), involving abandonment of obsolete pipeline and abandonment of pipeline and appurtenant facilities by removal by Columbia Gulf Transmission, LLC (Columbia Gulf) in Cameron Parish, Louisiana. The Commission will use this environmental document in its decision-making process to determine whether the Project is in the public convenience and necessity.</P>
                <P>
                    This notice announces the opening of the scoping process the Commission will use to gather input from the public and interested agencies regarding the Project. As part of the National Environmental Policy Act (NEPA) review process, the Commission takes into account concerns the public may have about proposals and the environmental impacts that could result from its action whenever it considers the issuance of a Certificate of Public Convenience and Necessity. This gathering of public input is referred to as “scoping.” The main goal of the scoping process is to focus the analysis in the environmental document on the important environmental issues. Additional information about the Commission's NEPA process is described below in the 
                    <E T="03">NEPA Process and Environmental Document</E>
                     section of this notice.
                </P>
                <P>
                    By this notice, the Commission requests public comments on the scope of issues to address in the environmental document. To ensure that your comments are timely and properly recorded, please submit your comments so that the Commission receives them in Washington, DC on or before 5 p.m. eastern time on March 8, 2024. Comments may be submitted in written form. Further details on how to submit comments are provided in the 
                    <E T="03">Public Participation</E>
                     section of this notice.
                </P>
                <P>Your comments should focus on the potential environmental effects, reasonable alternatives, and measures to avoid or lessen environmental impacts. Your input will help the Commission staff determine what issues they need to evaluate in the environmental document. Commission staff will consider all written comments during the preparation of the environmental document.</P>
                <P>If you submitted comments on this Project to the Commission before the opening of this docket on January 25, 2024, you will need to file those comments in Docket No. CP24-37-000 to ensure they are considered as part of this proceeding.</P>
                <P>This notice is being sent to the Commission's current environmental mailing list for this Project. State and local government representatives should notify their constituents of this proposed Project and encourage them to comment on their areas of concern.</P>
                <P>
                    If you are a landowner receiving this notice, a pipeline company 
                    <PRTPAGE P="10065"/>
                    representative may contact you about the acquisition of an easement to construct, operate, and maintain the proposed facilities. The company would seek to negotiate a mutually acceptable easement agreement. You are not required to enter into an agreement. However, if the Commission approves the Project, the Natural Gas Act conveys the right of eminent domain to the company. Therefore, if you and the company do not reach an easement agreement, the pipeline company could initiate condemnation proceedings in court. In such instances, compensation would be determined by a judge in accordance with state law. The Commission does not subsequently grant, exercise, or oversee the exercise of that eminent domain authority. The courts have exclusive authority to handle eminent domain cases; the Commission has no jurisdiction over these matters.
                </P>
                <P>
                    Columbia Gulf provided landowners with a fact sheet prepared by the FERC entitled “An Interstate Natural Gas Facility On My Land? What Do I Need To Know?” which addresses typically asked questions, including the use of eminent domain and how to participate in the Commission's proceedings. This fact sheet along with other landowner topics of interest are available for viewing on the FERC website (
                    <E T="03">www.ferc.gov</E>
                    ) under the Natural Gas, Landowner Topics link.
                </P>
                <HD SOURCE="HD1">Public Participation</HD>
                <P>
                    There are three methods you can use to submit your comments to the Commission. Please carefully follow these instructions so that your comments are properly recorded. The Commission encourages electronic filing of comments and has staff available to assist you at (866) 208-3676 or 
                    <E T="03">FercOnlineSupport@ferc.gov</E>
                    .
                </P>
                <P>
                    (1) You can file your comments electronically using the eComment feature, which is located on the Commission's website (
                    <E T="03">www.ferc.gov</E>
                    ) under the link to FERC Online. Using eComment is an easy method for submitting brief, text-only comments on a project;
                </P>
                <P>
                    (2) You can file your comments electronically by using the eFiling feature, which is located on the Commission's website (
                    <E T="03">www.ferc.gov</E>
                    ) under the link to FERC Online. With eFiling, you can provide comments in a variety of formats by attaching them as a file with your submission. New eFiling users must first create an account by clicking on “eRegister.” You will be asked to select the type of filing you are making; a comment on a particular project is considered a “Comment on a Filing”; or
                </P>
                <P>(3) You can file a paper copy of your comments by mailing them to the Commission. Be sure to reference the Project docket number (CP24-37-000) on your letter. Submissions sent via the U.S. Postal Service must be addressed to: Debbie-Anne A. Reese, Acting Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC 20426. Submissions sent via any other carrier must be addressed to: Debbie-Anne A. Reese, Acting Secretary, Federal Energy Regulatory Commission, 12225 Wilkins Avenue, Rockville, Maryland 20852.</P>
                <P>
                    Additionally, the Commission offers a free service called eSubscription which makes it easy to stay informed of all issuances and submittals regarding the dockets/projects to which you subscribe. These instant email notifications are the fastest way to receive notification and provide a link to the document files which can reduce the amount of time you spend researching proceedings. Go to 
                    <E T="03">https://www.ferc.gov/ferc-online/overview</E>
                     to register for eSubscription.
                </P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, environmental justice communities, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202)502-6595 or 
                    <E T="03">OPP@ferc.gov</E>
                    .
                </P>
                <HD SOURCE="HD1">Summary of the Proposed Project</HD>
                <P>Columbia Gulf proposes to abandon and abandon by removal approximately 21 miles of pipeline and related appurtenances, located in Cameron Parish, Louisiana. According to Columbia Gulf, abandonment will eliminate the need for future operating and maintenance expenditures on outdated facilities that are no longer needed to satisfy current firm service obligations. Abandonment of these facilities will not change the certificated capacity of Columbia Gulf's system and will not result in the termination or reduction of service to existing customers of Columbia Gulf.</P>
                <P>The Project would consist of the following activities:</P>
                <P>• abandon in place and by removal approximately 16 miles of its 16-inch-diameter South Pecan Lake Pipeline;</P>
                <P>• abandon by removal approximately 1 mile of its 12-inch-diameter Amoco/South Pecan Lake Pipeline;</P>
                <P>• abandon by removal approximately 4 miles of its 6-inch-diameter Go Around Bayou Pipeline;</P>
                <P>• abandon by removal all of the facilities at the South Pecan Lake metering and regulating station (“M&amp;R”) No. 505 and Goodrich M&amp;R No. 4144; and</P>
                <P>• abandon by removal other related appurtenances.</P>
                <P>
                    The general location of the Project facilities is shown in appendix 1.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         The appendices referenced in this notice will not appear in the 
                        <E T="04">Federal Register</E>
                        . Copies of the appendices were sent to all those receiving this notice in the mail and are available at 
                        <E T="03">www.ferc.gov</E>
                         using the link called “eLibrary”. For instructions on connecting to eLibrary, refer to the last page of this notice. At this time, the Commission has suspended access to the Commission's Public Reference Room. For assistance, contact FERC at 
                        <E T="03">FERCOnlineSupport@ferc.gov</E>
                         or call toll free, (886) 208-3676 or TTY (202) 502-8659.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Land Requirements for Construction</HD>
                <P>Columbia Gulf would require the temporary use of 177 acres of workspace during project activities, including approximately 4.5 acres of temporary workspace and 10 acres of contractor yards for pipe and equipment storage. Pipeline abandonment activities would utilize the majority of the land needed for the Project. Since the project consists of the abandonment of existing facilities, there would be no permanent impacts as a result of the project, as no operational impacts would occur.</P>
                <HD SOURCE="HD1">NEPA Process and the Environmental Document</HD>
                <P>Any environmental document issued by the Commission will discuss impacts that could occur as a result of the construction and operation of the proposed Project under the relevant general resource areas:</P>
                <P>• geology and soils;</P>
                <P>• water resources and wetlands;</P>
                <P>• vegetation and wildlife;</P>
                <P>• threatened and endangered species;</P>
                <P>• cultural resources;</P>
                <P>• land use and visual resources;</P>
                <P>• socioeconomics;</P>
                <P>• environmental justice;</P>
                <P>• air quality and noise; and</P>
                <P>• reliability and safety.</P>
                <P>
                    Commission staff will also evaluate reasonable alternatives to the proposed Project or portions of the Project and make recommendations on how to lessen or avoid impacts on the various resource areas. Your comments will help Commission staff identify and focus on the issues that might have an effect on the human environment and potentially eliminate others from further 
                    <PRTPAGE P="10066"/>
                    study and discussion in the environmental document.
                </P>
                <P>
                    Following this scoping period, Commission staff will determine whether to prepare an Environmental Assessment (EA) or an Environmental Impact Statement (EIS). The EA or the EIS will present Commission staff's independent analysis of the issues. If Commission staff prepares an EA, a 
                    <E T="03">Notice of Schedule for the Preparation of an Environmental Assessment</E>
                     will be issued. The EA may be issued for an allotted public comment period. The Commission would consider timely comments on the EA before making its decision regarding the proposed Project. If Commission staff prepares an EIS, a 
                    <E T="03">Notice of Intent to Prepare an EIS/Notice of Schedule</E>
                     will be issued, which will open an additional comment period. Staff will then prepare a draft EIS which will be issued for public comment. Commission staff will consider all timely comments received during the comment period on the draft EIS and revise the document, as necessary, before issuing a final EIS. Any EA or draft and final EIS will be available in electronic format in the public record through eLibrary 
                    <SU>2</SU>
                    <FTREF/>
                     and the Commission's natural gas environmental documents web page (
                    <E T="03">https://www.ferc.gov/industries-data/natural-gas/environment/environmental-documents</E>
                    ). If eSubscribed, you will receive instant email notification when the environmental document is issued.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         For instructions on connecting to eLibrary, refer to the last page of this notice.
                    </P>
                </FTNT>
                <P>
                    With this notice, the Commission is asking agencies with jurisdiction by law and/or special expertise with respect to the environmental issues of this Project to formally cooperate in the preparation of the environmental document.
                    <SU>3</SU>
                    <FTREF/>
                     Agencies that would like to request cooperating agency status should follow the instructions for filing comments provided under the 
                    <E T="03">Public Participation</E>
                     section of this notice.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Council on Environmental Quality regulations addressing cooperating agency responsibilities are at title 40, Code of Federal Regulations, section 1501.8.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Consultation Under Section 106 of the National Historic Preservation Act</HD>
                <P>
                    In accordance with the Advisory Council on Historic Preservation's implementing regulations for section 106 of the National Historic Preservation Act, the Commission is using this notice to initiate consultation with the applicable State Historic Preservation Office(s), and to solicit their views and those of other government agencies, interested Indian tribes, and the public on the Project's potential effects on historic properties.
                    <SU>4</SU>
                    <FTREF/>
                     The environmental document for this Project will document findings on the impacts on historic properties and summarize the status of consultations under section 106.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         The Advisory Council on Historic Preservation's regulations are at title 36, Code of Federal Regulations, part 800. Those regulations define historic properties as any prehistoric or historic district, site, building, structure, or object included in or eligible for inclusion in the National Register of Historic Places.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Environmental Mailing List</HD>
                <P>The environmental mailing list includes Federal, State, and local government representatives and agencies; elected officials; environmental and public interest groups; Native American Tribes; other interested parties; and local libraries and newspapers. This list also includes all affected landowners (as defined in the Commission's regulations) who are potential right-of-way grantors, whose property may be used temporarily for Project purposes, or who own homes within certain distances of aboveground facilities, and anyone who submits comments on the Project and includes a mailing address with their comments. Commission staff will update the environmental mailing list as the analysis proceeds to ensure that Commission notices related to this environmental review are sent to all individuals, organizations, and government entities interested in and/or potentially affected by the proposed Project.</P>
                <P>If you need to make changes to your name/address, or if you would like to remove your name from the mailing list, please complete one of the following steps:</P>
                <P>
                    (1) Send an email to 
                    <E T="03">GasProjectAddressChange@ferc.gov</E>
                     stating your request. You must include the docket number CP24-37-000 in your request. If you are requesting a change to your address, please be sure to include your name and the correct address. If you are requesting to delete your address from the mailing list, please include your name and address as it appeared on this notice. This email address is unable to accept comments.
                </P>
                <P>OR</P>
                <P>(2) Return the attached “Mailing List Update Form” (appendix 2).</P>
                <HD SOURCE="HD1">Additional Information</HD>
                <P>
                    Additional information about the Project is available from the Commission's Office of External Affairs, at (866) 208-FERC, or on the FERC website at 
                    <E T="03">www.ferc.gov</E>
                     using the eLibrary link. Click on the eLibrary link, click on “General Search” and enter the docket number in the “Docket Number” field. Be sure you have selected an appropriate date range. For assistance, please contact FERC Online Support at 
                    <E T="03">FercOnlineSupport@ferc.gov</E>
                     or (866) 208-3676, or for TTY, contact (202) 502-8659. The eLibrary link also provides access to the texts of all formal documents issued by the Commission, such as orders, notices, and rulemakings.
                </P>
                <P>
                    Public sessions or site visits will be posted on the Commission's calendar located at 
                    <E T="03">https://www.ferc.gov/news-events/events</E>
                     along with other related information.
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Acting Secretary.</TITLE>
                </SIG>
                <BILCOD>BILLING CODE 6717-01-P</BILCOD>
                <PRTPAGE P="10067"/>
                <HD SOURCE="HD1">Appendix</HD>
                <GPH SPAN="3" DEEP="640">
                    <GID>EN13FE24.314</GID>
                </GPH>
                <PRTPAGE P="10068"/>
                <HD SOURCE="HD1">Appendix 2</HD>
                <GPH SPAN="3" DEEP="291">
                    <GID>EN13FE24.315</GID>
                </GPH>
                <GPH SPAN="3" DEEP="294">
                    <GID>EN13FE24.316</GID>
                </GPH>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02918 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-C</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="10069"/>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <SUBJECT>Sunshine Act Meetings</SUBJECT>
                <P>The following notice of meeting is published pursuant to section 3(a) of the government in the Sunshine Act (Pub. L. 94-409), 5 U.S.C. 552b:</P>
                <PREAMHD>
                    <HD SOURCE="HED">Agency Holding Meeting:</HD>
                    <P> Federal Energy Regulatory Commission.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">TIME AND DATE: </HD>
                    <P>February 15, 2024, 1 p.m.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">PLACE: </HD>
                    <P>Howard University School of Law, Damon J. Keith Moot Court Room, Houston Hall, 2900 Van Ness Street, NW,Washington, DC 20008.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">STATUS: </HD>
                    <P>
                        Open to the public for viewing via webcast at 
                        <E T="03">https://www.ferc.gov/news-events/events/february-15-2024-open-meeting-02152024.</E>
                        <SU>1</SU>
                        <FTREF/>
                    </P>
                </PREAMHD>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         In addition to viewing the meeting on the internet, a limited number of seats are available for in-person viewing. Registration is required, and only confirmed registrants will be admitted to the meeting. There is no fee for attendance. Registrants who receive a confirmed space will be contacted via email. The Commission encourage members of the public who wish to attend this meeting in person to register at their earliest convenience. To register, please visit the February Commission Meeting event page at 
                        <E T="03">https://www.ferc.gov/news-events/events/february-15-2024-open-meeting-02152024.</E>
                    </P>
                </FTNT>
                <PREAMHD>
                    <HD SOURCE="HED">MATTERS TO BE CONSIDERED: </HD>
                    <P>Agenda.</P>
                    <P>
                        * 
                        <E T="03">Note</E>
                        —Items listed on the agenda may be deleted without further notice.
                    </P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">CONTACT PERSON FOR MORE INFORMATION:</HD>
                    <P> Debbie-Anne A. Reese,  Acting Secretary, Telephone (202) 502-8400.</P>
                    <P>For a recorded message listing items stricken from or added to the meeting, call (202) 502-8627.</P>
                    <P>
                        This is a list of matters to be considered by the Commission. It does not include a listing of all documents relevant to the items on the agenda. All public documents, however, may be viewed online at the Commission's website at 
                        <E T="03">https://elibrary.ferc.gov/eLibrary/search</E>
                         using the eLibrary link.
                    </P>
                </PREAMHD>
                <GPOTABLE COLS="3" OPTS="L2,nj,i1" CDEF="xs30,r100,r150">
                    <TTITLE>1110th—Meeting</TTITLE>
                    <TDESC>[Open meeting—February 15, 2024, 1:00 p.m.]</TDESC>
                    <BOXHD>
                        <CHED H="1">Item No.</CHED>
                        <CHED H="1">Docket No.</CHED>
                        <CHED H="1">Company</CHED>
                    </BOXHD>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">Administrative</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">A-1</ENT>
                        <ENT>AD24-1-000</ENT>
                        <ENT>Agency Administrative Matters.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">A-2</ENT>
                        <ENT>AD24-2-000</ENT>
                        <ENT>Customer Matters, Reliability, Security and Market Operations.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">A-3</ENT>
                        <ENT>AD22-11-000, AD21-9-000</ENT>
                        <ENT>OPP Fundamentals for Participating in FERC Matters, Office of Public Participation.</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">Electric</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">E-1</ENT>
                        <ENT>RD24-1-000</ENT>
                        <ENT>North American Electric Reliability Corporation.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">E-2</ENT>
                        <ENT>ER18-1639-026</ENT>
                        <ENT>Constellation Mystic Power, LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">E-3</ENT>
                        <ENT>ER24-646-000</ENT>
                        <ENT>Wisconsin Electric Power Company.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">E-4</ENT>
                        <ENT>ER24-494-000</ENT>
                        <ENT>California Independent System Operator Corporation.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">E-5</ENT>
                        <ENT>TX23-5-000</ENT>
                        <ENT>THSI bn, LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">E-6</ENT>
                        <ENT>ER18-1182-000</ENT>
                        <ENT>System Energy Resources, Inc.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>EL17-41-000</ENT>
                        <ENT>
                            <E T="03">Arkansas Public Service Commission and Mississippi Public Service Commission</E>
                             v. 
                            <E T="03">System Energy Resources, Inc.</E>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>EL18-142-000, EL18-204-000 (consolidated)</ENT>
                        <ENT>
                            <E T="03">Louisiana Public Service Commission</E>
                             v. 
                            <E T="03">System Energy Resources, Inc. and Entergy Services, Inc.</E>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>EL18-152-000</ENT>
                        <ENT>
                            <E T="03">Louisiana Public Service Commission</E>
                             v. 
                            <E T="03">System Energy Resources, Inc. and Entergy Services, Inc.</E>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>EL20-72-000</ENT>
                        <ENT>
                            <E T="03">Louisiana Public Service Commission, Arkansas Public Service Commission, Council of the City of New Orleans, Louisiana, and Mississippi Public Service Commission</E>
                             v. 
                            <E T="03">System Energy Resources, Inc. and Entergy Services, LLC, System Energy Resources, Inc.</E>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>ER21-117-000, ER21-129-000, EL21-24-000, ER21-748-000, EL21-46-000 (consolidated)</ENT>
                        <ENT>
                            <E T="03">Louisiana Public Service Commission, Arkansas Public Service Commission, and Council of the City of New Orleans, Louisiana</E>
                             v. 
                            <E T="03">System Energy Resources, Inc.</E>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>EL21-56-000</ENT>
                        <ENT>Entergy Services, LLC, and Entergy Operations, Inc., System Energy Resources, Inc.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>ER22-958-000, ER23-435-000, ER23-816-000, ER23-1022-000, ER23-1164-000, EL24-5-000 </ENT>
                        <ENT>
                            <E T="03">Louisiana Public Service Commission, Arkansas Public Service Commission, and Council of the City of New Orleans, Louisiana</E>
                             v. 
                            <E T="03">System Energy Resources, Inc., Entergy Services, LLC, and Entergy Operations, Inc.</E>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">E-7</ENT>
                        <ENT>ER24-355-000</ENT>
                        <ENT>California Independent System Operator Corporation.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">E-8</ENT>
                        <ENT>EL23-101-000</ENT>
                        <ENT>Mid-Atlantic Offshore Development, LLC.</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">Miscellanous</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00" RUL="s">
                        <ENT I="01">M-1</ENT>
                        <ENT>PL24-2-000</ENT>
                        <ENT>Enforcement of Statutes, Orders, Rules, and Regulations.</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">Hydro</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">H-1</ENT>
                        <ENT>P-15310-000</ENT>
                        <ENT>Neptune Pumped Storage 1, LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">H-2</ENT>
                        <ENT>P-15311-000</ENT>
                        <ENT>Neptune Pumped Storage 2, LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">H-3</ENT>
                        <ENT>P-15233-000, P-15234-000, P-15235-000</ENT>
                        <ENT>Nature and People First Arizona PHS, LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">H-4</ENT>
                        <ENT>P-15293-001</ENT>
                        <ENT>Nature and People First New Mexico PHS, LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">H-5</ENT>
                        <ENT>P-15309-000</ENT>
                        <ENT>Nature and People First Arizona PHS, LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">H-6</ENT>
                        <ENT>P-15314-000</ENT>
                        <ENT>Western Navajo Pumped Storage 1, LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>P-15315-000</ENT>
                        <ENT>Western Navajo Pumped Storage 2, LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">H-7</ENT>
                        <ENT>P-2310-259, P-14531-003</ENT>
                        <ENT>Pacific Gas and Electric Company.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <PRTPAGE P="10070"/>
                        <ENT I="22"> </ENT>
                        <ENT>P-14530-004, P-2266-128</ENT>
                        <ENT>Nevada Irrigation District.</ENT>
                    </ROW>
                    <ROW EXPSTB="02" RUL="s">
                        <ENT I="21">
                            <E T="02">Certificates</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">C-1</ENT>
                        <ENT>CP19-7-002</ENT>
                        <ENT>Tennessee Gas Pipeline Company, L.L.C.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">C-2</ENT>
                        <ENT>CP17-117-001, CP17-118-001</ENT>
                        <ENT>Driftwood LNG LLC and Driftwood Pipeline LLC.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">C-3</ENT>
                        <ENT>CP23-29-000</ENT>
                        <ENT>Saguaro Connector Pipeline, LLC.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    The Federal Energy Regulatory Commission provides technical support for the free webcast of this meeting. Please call (202) 502-8680 or email 
                    <E T="03">customer@ferc.gov</E>
                     if you have any questions.
                </P>
                <SIG>
                    <DATED>Issued: February 8, 2024.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Acting Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-03058 Filed 2-9-24; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <DEPDOC>[EPA-HQ-OA-2024-0043; FRL 11745-01-OA]</DEPDOC>
                <SUBJECT>National Environmental Youth Advisory Council; Notification of Public Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Pursuant to the Federal Advisory Committee Act (FACA), the U.S. Environmental Protection Agency (EPA) hereby provides notice that the National Environmental Youth Advisory Council (NEYAC) will meet on the date and time described below. The meeting is open to the public. For additional information about registering to attend the meeting or to provide a public comment, see the “Public Participation” heading of the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section of this document.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        The NEYAC will convene a virtual and in-person public meeting on Wednesday, February 28, and Thursday, February 29, 2024. A public comment period relevant to the NEYAC will be considered by the NEYAC at the meeting on Wednesday, February 28, 2024 (see 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                        ). Members of the public who wish to participate during the public comment period must register by 11:59 p.m., Eastern Time, Wednesday, February 21, 2024.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may send comments, identified by Docket ID No. EPA-HQ-OA-2024-0043, by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal: https://www.regulations.gov/</E>
                         (our preferred method). Follow the online instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Email: neyac@epa.gov.</E>
                         Include Docket ID No. EPA-HQ-OA-2024-0043 in the subject line of the message.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the Docket ID No. for this public meeting. Comments received may be posted without change to 
                        <E T="03">https://www.regulations.gov/,</E>
                         including any personal information provided. Comments must be submitted by 11:59 p.m. Eastern Time on Thursday, March 14, 2024. For detailed instructions on sending comments and additional information on the rulemaking process, see the “Public Participation” heading of the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section of this document.
                    </P>
                    <P>
                        The virtual and in-person public meeting will be held at EPA Headquarters located at 1200 Pennsylvania Avenue NW, Washington, DC 20460. The meeting will convene on Wednesday, February 28, from 9:00 a.m. to 4:00 p.m. EST, and Thursday, February 29, from 9:00 a.m. to 12:30 p.m. EST. Refer to the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section below for additional information.
                    </P>
                    <P>
                        Because this public meeting is being held at a U.S. government facility, individuals planning to attend the public meeting should be prepared to show valid picture identification to the security staff to gain access to the meeting room. Please note that the REAL ID Act, passed by Congress in 2005, established new requirements for entering federal facilities. For purposes of the REAL ID Act, EPA will accept government-issued IDs, including drivers' licenses, from the District of Columbia and all states and territories except from American Samoa. If your identification is issued by American Samoa, you must present an additional form of identification to enter the federal building where the public hearing will be held. Acceptable alternative forms of identification include Federal employee badges, passports, enhanced driver's licenses, and military identification cards. For additional information for the status of your state regarding REAL ID, go to: 
                        <E T="03">https://www.dhs.gov/real-id-enforcement-brieffrequently-asked-questions.</E>
                         Any objects brought into the building need to fit through the security screening system, such as a purse, laptop bag, or small backpack. Demonstrations will not be allowed on Federal property for security reasons.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Carissa Cyran, NEYAC Designated Federal Officer (1702A), Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460; telephone number: (202) 566-1353; email address: 
                        <E T="03">cyran.carissa@epa.gov.</E>
                         Additional information about the NEYAC is available at 
                        <E T="03">https://www.epa.gov/faca/national-environmental-youth-advisory-council-neyac.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The Charter of the NEYAC (available at 
                    <E T="03">https://www.epa.gov/faca/national-environmental-youth-advisory-council-neyac</E>
                    ) states that the advisory council will provide independent advice and recommendations to the Administrator of EPA on how to increase the agency's efforts to address a range of environmental issues as they relate to youth, with an emphasis on youth below 29 years of age. The NEYAC will provide a critical perspective on how the impacts of climate change and other environmental harms affects youth.
                </P>
                <HD SOURCE="HD1">I. Public Participation</HD>
                <P>
                    Individual registration is required for the public meeting. No two individuals can share the same registration link. Information on how to register is located at 
                    <E T="03">https://www.epa.gov/faca/national-environmental-youth-advisory-council-neyac.</E>
                     Registration for the meeting is available until the scheduled end time of the meeting. Registration to speak during the public comment period will close at 11:59 p.m., ET, on Wednesday, February 21, 2024. When registering, 
                    <PRTPAGE P="10071"/>
                    please provide your name, organization, city and state, and email address for follow up. Please also indicate whether you would like to provide public comment during the meeting, or if you are submitting written comments.
                </P>
                <HD SOURCE="HD2">A. Written Comments</HD>
                <P>
                    Submit your comments, identified by Docket ID No. EPA-HQ-OA-2024-0043, at 
                    <E T="03">https://www.regulations.gov</E>
                     (our preferred method), or the other methods identified in the 
                    <E T="02">ADDRESSES</E>
                     section. Comments must be submitted by 11:59 p.m. Eastern Time on Thursday, March 14, 2024. Once submitted, comments cannot be edited or removed from the docket. EPA may publish any comment received to its public docket. Do not submit to EPA's docket at 
                    <E T="03">https://www.regulations.gov</E>
                     any information you consider to be Confidential Business Information (CBI), Proprietary Business Information (PBI), or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. EPA will generally not consider comments or comment contents located outside of the primary submission (
                    <E T="03">i.e.,</E>
                     on the web, cloud, or other file sharing system). Please visit 
                    <E T="03">https://www.epa.gov/dockets/commenting-epa-dockets</E>
                     for additional submission methods; the full EPA public comment policy; information about CBI, PBI, or multimedia submissions; and general guidance on making effective comments.
                </P>
                <HD SOURCE="HD2">B. Participation Virtually and In-Person Public Meeting</HD>
                <P>
                    EPA will begin pre-registering speakers for the public meeting upon publication of this document in the 
                    <E T="04">Federal Register</E>
                    . To register to speak virtually or in-person, please use the online registration form available at 
                    <E T="03">https://www.epa.gov/faca/national-environmental-youth-advisory-council-neyac.</E>
                     The last day to pre-register to speak at the public meeting will be at 11:59 p.m., ET, on Wednesday, February 21, 2024.
                </P>
                <P>EPA will make every effort to follow the schedule as closely as possible on the day of the public meeting; however, please plan for the meeting to run either ahead of schedule or behind schedule.</P>
                <P>Individuals or groups making remarks during the public comment period will be limited to two (2)-three (3) minutes. Please be prepared to briefly describe your issue and your recommendation relevant to the current charges, topics, and questions under consideration by the NEYAC. EPA also recommends submitting the text of your oral comments as written comments to the rulemaking docket.</P>
                <P>Written statements and supporting information submitted during the comment period will be considered with the same weight as oral comments and supporting information presented at the public meeting.</P>
                <P>
                    Please note that any updates made to any aspect of the public meeting are posted online at 
                    <E T="03">https://www.epa.gov/faca/national-environmental-youth-advisory-council-neyac.</E>
                     While EPA expects the public meeting to go forward as set forth above, please monitor our website. EPA does not intend to publish a document in the 
                    <E T="04">Federal Register</E>
                     announcing updates.
                </P>
                <HD SOURCE="HD2">C. Information About Services for Individuals With Disabilities or Requiring English Language Translation Assistance</HD>
                <P>
                    To request special accommodations for a disability or other assistance, please submit your request at least five (5) working days prior to the meeting to give EPA sufficient time to process your request. All requests should be sent to the email listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section.
                </P>
                <SIG>
                    <NAME>Kathryn Avivah Jakob,</NAME>
                    <TITLE>Director, Office of Public Engagement, Office of Public Engagement and Environmental Education, Office of the Administrator.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02889 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL COMMUNICATIONS COMMISSION</AGENCY>
                <DEPDOC>[OMB 3060-0645; FR ID 201898]</DEPDOC>
                <SUBJECT>Information Collection Being Reviewed by the Federal Communications Commission</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Communications Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act of 1995 (PRA), the Federal Communications Commission (FCC or Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collections. Comments are requested concerning: whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.</P>
                    <P>The FCC may not conduct or sponsor a collection of information unless it displays a currently valid Office of Management and Budget (OMB) control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid OMB control number.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written PRA comments should be submitted on or before April 15, 2024. If you anticipate that you will be submitting comments but find it difficult to do so within the period of time allowed by this notice, you should advise the contact listed below as soon as possible.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Direct all PRA comments to Cathy Williams, FCC, via email to 
                        <E T="03">PRA@fcc.gov</E>
                         and to 
                        <E T="03">Cathy.Williams@fcc.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>For additional information about the information collection, contact Cathy Williams at (202) 418-2918.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">OMB Control Number:</E>
                     3060-0645.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Sections 17.4, 17.48 and 17.49, Antenna Structure Registration Requirements.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     N/A.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension of a currently approved collection.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     Business or other for-profit entities, not-for-profit institutions and state, local or tribal government.
                </P>
                <P>
                    <E T="03">Number of Respondents:</E>
                     16,300 respondents; 70,543 responses.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     .1-.25 hours.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     On occasion reporting requirement, recordkeeping requirement and third-party disclosure requirement.
                </P>
                <P>
                    <E T="03">Obligation to Respond:</E>
                     Required to obtain or retain benefits. Statutory authority for this information collection is contained in Sections 4, 303, 48 Stat. 1066, 1082, as amended; 47 U.S.C. 154, 303.
                </P>
                <P>
                    <E T="03">Total Annual Burden:</E>
                     10,326 hours.
                </P>
                <P>
                    <E T="03">Total Annual Cost:</E>
                     $56,230.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The Commission is seeking Office of Management and Budget (OMB) approval for an extension 
                    <PRTPAGE P="10072"/>
                    of this information collection in order to obtain the full three-year approval. The Commission has adjusted its burden and cost estimates in order to update the collection burdens necessary to implement a uniform registration process as well as safe and effective lighting procedures for owners of antenna structures.
                </P>
                <P>Section 17.4 includes third party disclosure requirements. Specifically, Section 17.4 requires the owner of any proposed or existing antenna structure that requires notice of proposed construction to the Federal Aviation Administration (FAA) to register the structure with the Commission. This includes those structures used as part of the stations licensed by the Commission for the transmission of radio energy, or to be used as part of a cable television head-end system. An antenna structure must be registered with the Commission if the antenna structure is taller than 200 feet above ground level or may interfere with the flight path of a nearby airport or heliport. Section 17.4(f) provides that antenna structure owners shall immediately provide to all tenant licensees and permittees notification that the structure has been registered. This may be done by providing either a copy of Form 854 or a link to the FCC antenna structure registration website. This notification may be done electronically or via paper mail.</P>
                <P>Section 17.4(g) requires antenna structure owners to display the Antenna Structure Registration Number in a conspicuous place that is readily visible near the base of the antenna. This rule specifically requires that the Antenna Structure Number be displayed so that it is conspicuously visible and legible from the publicly accessible area nearest the base of the antenna structure along the publicly accessible roadway or path. Where an antenna structure is surrounded by a perimeter fence, or where the point of access includes an access gate, the Antenna Structure Registration Number should be posted on the perimeter fence or access gate. Where multiple antenna structures having separate Antenna Structure Registration Numbers are located within a single fenced area, the Antenna Structure Registration Numbers must be posted both on the perimeter fence or access gate and near the base of each antenna structure. If the base of the antenna structure has more than one point of access, the rule requires that the Antenna Structure Registration Number be posted so that it is visible at the publicly accessible area nearest each such point of access. The registration number is issued to identify antenna structure owners in order to enforce the Congressionally mandated provisions related to the owners.</P>
                <P>Sections 17.48 and 17.49 contain reporting and recordkeeping requirements. Section 17.48(a) requires that antenna structure owners immediately report outages of top steady burning lights or flashing antenna structure lights to the FAA, if not corrected within 30 minutes. Upon receipt of the outage notification, the FAA will issue a Notice to Airmen (NOTAM), which notifies aircraft of the outage. Consistent with FAA requirements, if a lighting outage cannot be repaired within the FAA's original NOTAM period, Section 17.48(a) further requires the antenna structure owner to notify the FAA of that fact and provide any needed updates to its estimated return-to-service date. The rule also requires antenna structure owners to continue to provide these updates to the FAA every NOTAM period until its lights are repaired.</P>
                <P>Section 17.49 requires antenna structure owners to maintain a record of observed or otherwise known extinguishments or improper functioning of structure lights for two years and provide the records to the Commission upon request.</P>
                <SIG>
                    <FP>Federal Communications Commission.</FP>
                    <NAME>Marlene Dortch, </NAME>
                    <TITLE>Secretary, Office of the Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02886 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6712-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">FEDERAL COMMUNICATIONS COMMISSION</AGENCY>
                <DEPDOC>[OMB 3060-1287; FR ID 201492]</DEPDOC>
                <SUBJECT>Information Collection Being Reviewed by the Federal Communications Commission Under Delegated Authority</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Communications Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995, the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees. The FCC may not conduct or sponsor a collection of information unless it displays a currently valid control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid Office of Management and Budget (OMB) control number.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written PRA comments should be submitted on or before April 15, 2024. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contact listed below as soon as possible.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Direct all PRA comments to Nicole Ongele, FCC, via email 
                        <E T="03">PRA@fcc.gov</E>
                         and to 
                        <E T="03">nicole.ongele@fcc.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>For additional information about the information collection, contact Nicole Ongele, (202) 418-2991.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">OMB Control Number:</E>
                     3060-1287.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Secure Telephone Identity Governance Authority Token Revocation Review Process.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     N/A.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension of a currently-approved information collection.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     Business or other for-profit entities.
                </P>
                <P>
                    <E T="03">Number of Respondents and Responses:</E>
                     50 respondents; 50 responses.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     24 hours.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     On occasion reporting requirement.
                </P>
                <P>
                    <E T="03">Obligation to Respond:</E>
                     Mandatory and required to obtain or retain benefits. The statutory authority for these collections are contained in 47 U.S.C. 227b, 251(e), and 227(e) of the Communications Act of 1934.
                </P>
                <P>
                    <E T="03">Total Annual Burden:</E>
                     1,200 hours.
                </P>
                <P>
                    <E T="03">Total Annual Cost:</E>
                     No cost.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     On December 30, 2019, Congress enacted the Pallone-Thune Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act. The TRACED Act directed the Commission to require, no 
                    <PRTPAGE P="10073"/>
                    later than 18 months from enactment, all service providers to implement the STIR/SHAKEN caller ID authentication framework in the internet protocol (IP) portions of their networks and implement an effective caller ID authentication framework in the non-IP portions of their networks. To implement the TRACED Act's provisions related to caller ID authentication, the Commission adopted a Report and Order and Further Notice of Proposed Rulemaking on March 30, 2020, which required service providers to implement the STIR/SHAKEN caller ID authentication technology in the IP portions of their phone networks by June 30, 2021. The Commission then adopted a Second Report and Order on September 29, 2020 to further implement the remaining portions of the TRACED Act related to caller ID authentication and STIR/SHAKEN.
                </P>
                <P>
                    On August 5, 2021, the Commission adopted a Third Report and Order, which established a limited role for the Commission to oversee certificate revocation decisions by the private STIR/SHAKEN governance system that would have the effect of placing providers in noncompliance with the Commission's rules. Within the STIR/SHAKEN framework, service providers share a digital certificate along with each call as a means of maintaining trust and accountability. The STIR/SHAKEN governance system can revoke a service provider's access to these digital certificates due to that service provider's violation of a specified list of rules and policies. Because this revocation would place an affected service provider in noncompliance with the Commission's rules, the 
                    <E T="03">Third Report and Order</E>
                     established an oversight role for the Commission over the governance system's token revocation decisions similar to the one the Commission holds in the context of decisions by the Universal Service Administrative Company. The rules allow for review by the Wireline Competition Bureau in the first instance.
                </P>
                <P>Under the rules adopted in the Third Report and Order, a request for Commission review from a service provider, at a minimum, must contain: (1) a statement setting forth the service provider's asserted basis for appealing the governance system's revocation decision; (2) a full statement of relevant, material facts with supporting affidavits and documentation, including any background information the service provider deems useful to the Commission's review; and (3) the question presented for review, with reference, where appropriate, to any underlying Commission rule or STIR/SHAKEN governance system policy.</P>
                <SIG>
                    <FP>Federal Communications Commission.</FP>
                    <NAME>Marlene Dortch,</NAME>
                    <TITLE>Secretary, Office of the Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02871 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6712-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">FEDERAL COMMUNICATIONS COMMISSION</AGENCY>
                <DEPDOC>[OMB 3060-1189; FR ID 201556]</DEPDOC>
                <SUBJECT>Information Collection Being Reviewed by the Federal Communications Commission</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Communications Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act of 1995 (PRA), the Federal Communications Commission (FCC or Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collections. Comments are requested concerning: whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees. The FCC may not conduct or sponsor a collection of information unless it displays a currently valid Office of Management and Budget (OMB) control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid OMB control number.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written PRA comments should be submitted on or before April 15, 2024. If you anticipate that you will be submitting comments but find it difficult to do so within the period of time allowed by this notice, you should advise the contact listed below as soon as possible.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Direct all PRA comments to Cathy Williams, FCC, via email to 
                        <E T="03">PRA@fcc.gov</E>
                         and to 
                        <E T="03">Cathy.Williams@fcc.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>For additional information about the information collection, contact Cathy Williams at (202) 418-2918.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">OMB Control Number:</E>
                     3060-1189.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Signal Boosters, Sections 1.1307(b)(1), 20.3, 20.21(a)(2), 20.21(a)(5), 20.21(e)(2), 20.21(e)(8)(I)(G), 20.21(e)(9)(I)(H), 20.21(f), 20.21(h), 22.9, 24.9, 27.9. 90.203, 90.219(b)(l)(I), 90.219(d)(5), and 90.219(e)(5).
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     N/A.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension of a currently approved collection.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     Business or other for-profit entities, Not for profit institutions and Individuals or household.
                </P>
                <P>
                    <E T="03">Number of Respondents and Responses:</E>
                     632,534 respondents and 635,214 responses.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     .5 hours-40 hours.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     Recordkeeping requirement, On occasion reporting requirement and Third-party disclosure requirement.
                </P>
                <P>
                    <E T="03">Obligation to Respond:</E>
                     Required to obtain or retain benefits. The statutory authority for this information collection is contained in 47 U.S.C. 154(i), 303(g), 303(r) and 332.
                </P>
                <P>
                    <E T="03">Total Annual Burden:</E>
                     324,465 hours.
                </P>
                <P>
                    <E T="03">Total Annual Cost:</E>
                     No cost.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The Commission is seeking approval from the Office of Management and Budget (OMB) approval for a three-year time period for this information collection requirements approved under this collection. The following information collection requirements are approved under this collection: Labeling Requirements: Sections 20.21(a)(5), 20.21(f), 90.219(e)(5)—In order to avoid consumer confusion and provide consumers with needed information, the Commission adopted labeling requirements for Consumer and Industrial Signal Boosters. Consumer Signal Boosters must be labeled to identify the device as a “consumer” device and make the consumer aware that the device must be registered; may only be operated with the consent of the consumer's wireless provider; may only be operated with approved antennas and cables; and that E911 communications may be affected for calls served by using the device. Industrial Signal Boosters must include a label stating that the device is not a consumer device, is designed for installation by FCC licensees or a qualified installer, and the operator 
                    <PRTPAGE P="10074"/>
                    must have a FCC license or consent of a FCC licensee to operate the device. Accordingly, all signal boosters marketed on or after March 1, 2014, must include the advisories (1) in on-line point-of-sale marketing materials; (2) in any print or on-line owner's manual and installation instructions; (3) on the outside packaging of the device; and (4) on a label affixed to the device. Part 90 signal boosters marketed or sold on or after March 1, 2014, must include a label stating that the device is not a consumer device; the operator must have a FCC license or consent of a FCC licensee to operate the device; the operator must register Class B signal boosters; and unauthorized use may result in significant forfeitures.
                </P>
                <P>Section 20.21(f)(1)(iv)(A)(2)—In order to ensure that consumers are properly informed about which devices are suitable for their use and how to comply with our rules, the Commission required that all Consumer Signal Boosters certified for fixed, in-building operation include a label directing consumers that the device may only be operated in a fixed, in-building location. The Verizon Petitioners state that this additional labeling requirement is necessary to inform purchasers of fixed Consumer Signal Boosters that they may not lawfully be installed and operated in a moving vehicle or outdoor location. We recognize that our labeling requirement imposes additional costs on entities that manufacture Consumer Signal Boosters; however, on balance, we find that such costs are outweighed by the benefits of ensuring that consumers purchase appropriate devices. Accordingly, all fixed Consumer Signal Boosters, both Provider-Specific and Wideband, manufactured or imported on or after one year from the effective date of the rule change must include the following advisory (1) in on-line point-of-sale marketing materials, (2) in any print or on-line owner's manual and installation instructions, (3) on the outside packaging of the device, and (4) on a label affixed to the device: “This device may be operated ONLY in a fixed location for in-building use.”</P>
                <P>Section 1.1307(b)(1)—Radiofrequency (RF). This rule requires that a label is affixed to the transmitting antenna that provides adequate notice regarding potential RF safety hazards and references the applicable FCC-adopted limits for RF exposure. Provider Reporting Requirement: In order to facilitate review of wireless providers' behavior regarding Consumer Signal Boosters, the R&amp;O requires that on March 1, 2015, and March 1, 2016, all nationwide wireless providers publicly indicate their status regarding consent for each Consumer Signal Booster that has received FCC certification as listed in a Public Notice to be released by the Wireless Telecommunications Bureau 30 days prior to each reporting date. For each listed Consumer Signal Booster, wireless providers should publicly indicate whether they (1) consent to use of the device; (2) do not consent to use of the device; or (3) are still considering whether or not they will consent to the use of the device.</P>
                <P>Registration Requirements: Section 20.21(a)(2)—The rules require signal booster operators to register Consumer Signal Boosters, existing and new, with their serving wireless providers prior to operation. This is a mandatory requirement to continue or begin operation of a Consumer Signal Booster. The registration requirement will aid in interference resolution and facilitate provider control over Consumer Signal Boosters. The information collection contained in Section 20.21(a)(2) affects individuals or households; thus, there are impacts under the Privacy Act. However, the government is not directly collecting this information and the R&amp;O directs carriers to protect the information to the extent it is considered Customer Proprietary Network Information (CPNI).</P>
                <P>Section 20.21(h)—By March 1, 2014, all providers who voluntarily consent to *19619 the use of Consumer Signal Boosters on their networks must establish a free registration system for their subscribers. At a minimum, providers must collect (1) the name of the Consumer Signal Booster owner and/or operator, if different individuals; (2) the make, model, and serial number of the device; (3) the location of the device; and (4) the date of initial operation. Otherwise, the Commission permits providers to develop their own registration systems to facilitate provider control and interference resolution, providers should collect only such information that is reasonably related to achieving these dual goals. Wireless providers may determine how to collect such information and how to keep it up-to-date. Section 90.219(d)(5)—This rule requires operators of Part 90 Class B signal boosters to register these devices in a searchable on-line database that will be maintained and operated by the Wireless Telecommunications Bureau via delegated authority from the Commission. The Commission believes this will be a valuable tool to resolve interference should it occur.</P>
                <P>Certification Requirements: Sections 20.3, 20.21(e)(2), 20.21(e)(8)(i)(G), 20.21(e)(9)(i)(H), 90.203—These rules, in conjunction with the R&amp;O, require that signal booster manufacturers demonstrate that they meet the new technical specifications using the existing and unchanged equipment authorization application, including submitting a technical document with the application for FCC equipment authorization that shows compliance of all antennas, cables and/or coupling devices with the requirements of § 20.21(e). The R&amp;O further provides that manufacturers must make certain certifications when applying for device certification. Manufacturers must provide an explanation of all measures taken to ensure that the technical safeguards designed to inhibit harmful interference and protect wireless networks cannot be deactivated by the user. The R&amp;O requires that manufacturers of Provider-Specific Consumer Signal Boosters may only be certificated with the consent of the licensee so the manufacturer must certify that it has obtained such consent as part of the equipment certification process. The R&amp;O also requires that if a manufacturer claims that a device will not affect E911 communications, the manufacturer must certify this claim during the equipment certification process. Note: The “application for equipment” certification requirements are met under OMB Control Number 3060-0057, FCC Form 731.</P>
                <P>Antenna Kitting Documentation Requirement: Sections 20.21(e)(8)(i)(G), 20.21(e)(9)(i)(H)—The rules require that all consumer boosters must be sold with user manuals specifying all antennas and cables that meet the requirements of this section. Part 90 Licensee Consent Documentation Requirement: Section 90.219(b)(1)(i)—This rule requires that non-licensees seeking to operate part 90 signal boosters must obtain the express consent of the licensee(s) of the frequencies for which the device or system is intended to amplify. The rules further require that such consent must be maintained in a recordable format that can be presented to a FCC representative or other relevant licensee investigating interference.</P>
                <P>Cross-reference to Other Rule Parts: Sections 22.9, 24.9, and 27.9—Operation of a consumer signal booster under Parts 22, 24, and 27 of the Commission's rules must also comply with section 20.21 of the Commission's rules, including all relevant information collections.</P>
                <SIG>
                    <FP>Federal Communications Commission.</FP>
                    <NAME>Marlene Dortch, </NAME>
                    <TITLE>Secretary, Office of the Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02872 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6712-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="10075"/>
                <AGENCY TYPE="S">FEDERAL COMMUNICATIONS COMMISSION</AGENCY>
                <DEPDOC>[OMB 3060-1126; FR ID 202442]</DEPDOC>
                <SUBJECT>Information Collection Being Reviewed by the Federal Communications Commission</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Communications Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995, the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written PRA comments should be submitted on or before April 15, 2024. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contact listed below as soon as possible.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Direct all PRA comments to Nicole Ongele, FCC, via email 
                        <E T="03">PRA@fcc.gov</E>
                         and to 
                        <E T="03">nicole.ongele@fcc.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>For additional information about the information collection, contact Nicole Ongele, (202) 418-2991.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The FCC may not conduct or sponsor a collection of information unless it displays a currently valid control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid Office of Management and Budget (OMB) control number.</P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     3060-1126.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Testing and Logging Requirements for Wireless Emergency Alerts (WEA).
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     N/A.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Revision of a currently approved collection.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     Business or other for-profit; Not-for-profit institutions; State, Local or Tribal Government.
                </P>
                <P>
                    <E T="03">Number of Respondents and Responses:</E>
                     76 respondents, 429,020 responses.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     3.375 hours.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     Monthly and on occasion reporting and record keeping requirements.
                </P>
                <P>
                    <E T="03">Obligation to Respond:</E>
                     Required to obtain or retain benefits. Statutory authority for this collection is contained in 47 U.S.C. 151, 152, 154, 301, 303, 307, 309, 316, 403, 554, 606, 1201, 1202, 1203, 1204, and 1206 of the Communications Act of 1934.
                </P>
                <P>
                    <E T="03">Total Annual Burden:</E>
                     119,121 hours.
                </P>
                <P>
                    <E T="03">Total Annual Cost:</E>
                     No Cost.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     The Commission adopted requirements for Participating CMS Providers to log the basic attributes of alerts they receive at their Alert Gateway, to maintain those logs for at least 12 months, to make those logs available upon request to the Commission and FEMA, and to emergency management agencies that offer confidentiality protection at least equal to that provided by federal FOIA. The Commission also requires Participating CMS Providers to disclose information regarding their capabilities for geo-targeting Alert Messages initiated by that emergency management agency, and information regarding the results of WEA Performance and Public Awareness Testing. These recordkeeping and reporting requirements have potential to increase emergency managers' confidence that WEA will work as intended when needed. This increased confidence in system availability encourages emergency management agencies that do not currently use WEA to become authorized. These reporting and recordkeeping requirements also help to ensure a fundamental component of system integrity against which future iterations of WEA can be evaluated. Without records that can be used to describe the quality of system integrity, and the most common causes of message transmission failure it would be difficult to evaluate how any changes to WEA may effect system integrity.
                </P>
                <SIG>
                    <FP>Federal Communications Commission.</FP>
                    <NAME>Marlene Dortch,</NAME>
                    <TITLE>Secretary, Office of the Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02967 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6712-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL DEPOSIT INSURANCE CORPORATION</AGENCY>
                <SUBJECT>Sunshine Act Meetings</SUBJECT>
                <PREAMHD>
                    <HD SOURCE="HED">TIME AND DATE: </HD>
                    <P>3 p.m. on Friday, February 9, 2024.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">PLACE: </HD>
                    <P>The meeting was held via video conference on the internet.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">STATUS: </HD>
                    <P>Closed.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">MATTERS TO BE CONSIDERED: </HD>
                    <P>The Special Review Committee of the Federal Deposit Insurance Corporation met to consider matters related to the Corporation's corporate activities within its authority to act on behalf of the Federal Deposit Insurance Corporation. In calling the meeting, the Special Review Committee determined, by the unanimous vote of Director Jonathan P. McKernan and Director Michael J. Hsu (Acting Comptroller of the Currency), that Corporation business required its consideration of the matters which were to be the subject of this meeting on less than seven days' notice to the public; that no earlier notice of the meeting was practicable; that the public interest did not require consideration of the matters in a meeting open to public observation; and that the matters could be considered in a closed meeting by authority of subsections (c)(2),(c)(4), and (c)(6) of the “Government in the Sunshine Act” (5 U.S.C. 552b (c)(2),(c)(4), and (c)(6)).</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">CONTACT PERSON FOR MORE INFORMATION: </HD>
                    <P>Requests for further information concerning the meeting may be directed to Debra A. Decker, Executive Secretary of the Corporation, at 202-898-8748.</P>
                </PREAMHD>
                <SIG>
                    <DATED>Dated February 9, 2024.</DATED>
                    <FP>Federal Deposit Insurance Corporation.</FP>
                    <NAME>James P. Sheesley,</NAME>
                    <TITLE>Assistant Executive Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-03109 Filed 2-9-24; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 6714-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL RESERVE SYSTEM</AGENCY>
                <SUBJECT>Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company</SUBJECT>
                <P>
                    The notificants listed below have applied under the Change in Bank Control Act (Act) (12 U.S.C. 1817(j)) and § 225.41 of the Board's Regulation Y (12 CFR 225.41) to acquire shares of a bank 
                    <PRTPAGE P="10076"/>
                    or bank holding company. The factors that are considered in acting on the applications are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)).
                </P>
                <P>
                    The public portions of the applications listed below, as well as other related filings required by the Board, if any, are available for immediate inspection at the Federal Reserve Bank(s) indicated below and at the offices of the Board of Governors. This information may also be obtained on an expedited basis, upon request, by contacting the appropriate Federal Reserve Bank and from the Board's Freedom of Information Office at 
                    <E T="03">https://www.federalreserve.gov/foia/request.htm.</E>
                     Interested persons may express their views in writing on the standards enumerated in paragraph 7 of the Act.
                </P>
                <P>Comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors, Ann E. Misback, Secretary of the Board, 20th Street and Constitution Avenue, NW, Washington DC 20551-0001, not later than February 27, 2024.</P>
                <P>
                    <E T="03">A. Federal Reserve Bank of St. Louis</E>
                     (Holly A. Rieser, Senior Manager) P.O. Box 442, St. Louis, Missouri 63166-2034. Comments can also be sent electronically to 
                    <E T="03">Comments.applications@stls.frb.org:</E>
                </P>
                <P>
                    1. 
                    <E T="03">Bennie F. Ryburn, III, Ray Morrison Ryburn, Marion B. Ryburn, and Halley A. Ryburn, all of Monticello, Arkansas; Angelia D. Ryburn, Wilmar, Arkansas; Margaret Anne Ryburn, Atlanta, Georgia; and Madison A. Ryburn, Dallas, Texas;</E>
                     to join the Ryburn Family Control Group, a group acting in concert, to retain voting shares of Drew Bancshares, Inc., and thereby indirectly retain voting shares of Commercial Bank &amp; Trust Company, both of Monticello, Arkansas.
                </P>
                <P>
                    2. 
                    <E T="03">The Michael F. Bender Revocable Living Trust dated February 10, 2023, and The Diane M. Bender Revocable Living Trust dated February 10, 2023, Michael F. Bender and Diane M. Bender as co-trustees of both trusts, all of Farmington, Missouri;</E>
                     to retain voting shares of Midwest Regional Bancorp, Inc., Festus, Missouri, and thereby indirectly retain voting shares of Midwest Regional Bank, Clayton, Missouri.
                </P>
                <P>
                    <E T="03">A. Federal Reserve Bank of Kansas City</E>
                     (Jeffrey Imgarten, Assistant Vice President) 1 Memorial Drive, Kansas City, Missouri, 64198-0001. Comments can also be sent electronically to 
                    <E T="03">KCApplicationComments@kc.frb.org:</E>
                </P>
                <P>
                    1. 
                    <E T="03">Daniel J. Murphy, Elkhorn, Nebraska;</E>
                     to join the Murphy Family Control Group, a group acting in concert, to acquire voting shares of Ameriwest Corporation, and thereby indirectly acquire voting shares of First Westroads Bank, Inc., both of Omaha, Nebraska.
                </P>
                <SIG>
                    <P>Board of Governors of the Federal Reserve System.</P>
                    <NAME>Michele Taylor Fennell,</NAME>
                    <TITLE>Deputy Associate Secretary of the Board.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02848 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">FEDERAL RESERVE SYSTEM</AGENCY>
                <SUBJECT>Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company</SUBJECT>
                <P>The notificants listed below have applied under the Change in Bank Control Act (Act) (12 U.S.C. 1817(j)) and 225.41 of the Board's Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the applications are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)).</P>
                <P>
                    The public portions of the applications listed below, as well as other related filings required by the Board, if any, are available for immediate inspection at the Federal Reserve Bank(s) indicated below and at the offices of the Board of Governors. This information may also be obtained on an expedited basis, upon request, by contacting the appropriate Federal Reserve Bank and from the Board's Freedom of Information Office at 
                    <E T="03">https://www.federalreserve.gov/foia/request.htm.</E>
                     Interested persons may express their views in writing on the standards enumerated in paragraph 7 of the Act.
                </P>
                <P>Comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors, Ann E. Misback, Secretary of the Board, 20th Street and Constitution Avenue NW, Washington, DC 20551-0001, not later than February 28, 2024.</P>
                <P>
                    <E T="03">A. Federal Reserve Bank of St. Louis</E>
                     (Holly A. Rieser, Senior Manager) P.O. Box 442, St. Louis, Missouri 63166-2034. Comments can also be sent electronically to 
                    <E T="03">Comments.applications@stls.frb.org:</E>
                </P>
                <P>
                    1. 
                    <E T="03">Rondal L. Wright Irrevocable Grantor Trust, R. Brent Wright, individually and as trustee, both of Glasgow, Kentucky;</E>
                     to acquire voting shares of Buffalo Bancshares, Inc., and thereby indirectly acquire voting shares of Bank of Buffalo, both of Buffalo, Kentucky.
                </P>
                <SIG>
                    <P>Board of Governors of the Federal Reserve System.</P>
                    <NAME>Michele Taylor Fennell,</NAME>
                    <TITLE>Deputy Associate Secretary of the Board.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02947 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL TRADE COMMISSION</AGENCY>
                <DEPDOC>[File No. 202 3181]</DEPDOC>
                <SUBJECT>Blackbaud, Inc.; Analysis of Proposed Consent Order To Aid Public Comment</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Trade Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Proposed consent agreement; request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices. The attached Analysis of Proposed Consent Order to Aid Public Comment describes both the allegations in the complaint and the terms of the consent order—embodied in the consent agreement—that would settle these allegations.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before March 14, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Interested parties may file comments online or on paper by following the instructions in the Request for Comment part of the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section below. Please write “Blackbaud, Inc.; File No. 202 3181” on your comment and file your comment online at 
                        <E T="03">https://www.regulations.gov</E>
                         by following the instructions on the web-based form. If you prefer to file your comment on paper, please mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Mail Drop H-144 (Annex D), Washington, DC 20580.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Cathlin Tully (202-326-3644), Attorney, Division of Privacy and Identity Protection, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Pursuant to section 6(f) of the Federal Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, notice is hereby given that the above-captioned consent agreement containing a consent order to cease and desist, having been filed with and accepted, subject to final approval, by the Commission, has been placed on the public record for a period of 30 days. The following Analysis to Aid Public Comment describes the terms of the consent agreement and the allegations in the complaint. An 
                    <PRTPAGE P="10077"/>
                    electronic copy of the full text of the consent agreement package can be obtained at 
                    <E T="03">https://www.ftc.gov/news-events/commission-actions.</E>
                </P>
                <P>
                    You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before March 14, 2024. Write “Blackbaud, Inc.; File No. 202 3181,” on your comment. Your comment—including your name and your state—will be placed on the public record of this proceeding, including, to the extent practicable, on the 
                    <E T="03">https://www.regulations.gov</E>
                     website.
                </P>
                <P>
                    Because of heightened security screening, postal mail addressed to the Commission will be subject to delay. We strongly encourage you to submit your comments online through the 
                    <E T="03">https://www.regulations.gov</E>
                     website. If you prefer to file your comment on paper, write “Blackbaud, Inc.; File No. 202 3181” on your comment and on the envelope, and mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Mail Drop H-144 (Annex D), Washington, DC 20580.
                </P>
                <P>
                    Because your comment will be placed on the publicly accessible website at 
                    <E T="03">https://www.regulations.gov,</E>
                     you are solely responsible for making sure your comment does not include any sensitive or confidential information. In particular, your comment should not include sensitive personal information, such as your or anyone else's Social Security number; date of birth; driver's license number or other state identification number, or foreign country equivalent; passport number; financial account number; or credit or debit card number. You are also solely responsible for making sure your comment does not include sensitive health information, such as medical records or other individually identifiable health information. In addition, your comment should not include any “trade secret or any commercial or financial information which . . . is privileged or confidential”—as provided by Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)—including competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names.
                </P>
                <P>
                    Comments containing material for which confidential treatment is requested must be filed in paper form, must be clearly labeled “Confidential,” and must comply with FTC Rule § 4.9(c). In particular, the written request for confidential treatment that accompanies the comment must include the factual and legal basis for the request and must identify the specific portions of the comment to be withheld from the public record. 
                    <E T="03">See</E>
                     FTC Rule § 4.9(c). Your comment will be kept confidential only if the General Counsel grants your request in accordance with the law and the public interest. Once your comment has been posted on the 
                    <E T="03">https://www.regulations.gov</E>
                     website—as legally required by FTC Rule § 4.9(b)—we cannot redact or remove your comment from that website, unless you submit a confidentiality request that meets the requirements for such treatment under FTC Rule § 4.9(c), and the General Counsel grants that request.
                </P>
                <P>
                    Visit the FTC website at 
                    <E T="03">https://www.ftc.gov</E>
                     to read this document and the news release describing the proposed settlement. The FTC Act and other laws the Commission administers permit the collection of public comments to consider and use in this proceeding, as appropriate. The Commission will consider all timely and responsive public comments it receives on or before March 14, 2024. For information on the Commission's privacy policy, including routine uses permitted by the Privacy Act, see 
                    <E T="03">https://www.ftc.gov/site-information/privacy-policy.</E>
                </P>
                <HD SOURCE="HD1">Analysis of Proposed Consent Order To Aid Public Comment</HD>
                <P>The Federal Trade Commission (the “Commission”) has accepted, subject to final approval, an agreement containing consent order from Blackbaud, Inc. (“Respondent” or “Blackbaud”). The proposed consent order (“Proposed Order”) has been placed on the public record for 30 days for receipt of comments by interested persons. Comments received during this period will become part of the public record. After 30 days, the Commission will again review the agreement, along with any comments received, and will decide whether it should withdraw from the agreement and take appropriate action or make final the Proposed Order.</P>
                <P>Blackbaud is a publicly traded South Carolina corporation that provides a variety of data services and financial, fundraising, and administrative software solutions to over 45,000 companies, nonprofits, foundations, educational institutions, healthcare organizations, and individual customers throughout the U.S. and abroad. Blackbaud maintains the personal information of millions of U.S. consumers that have donor, student, patient, and other relationships with Blackbaud's customers.</P>
                <P>According to the FTC's Complaint, despite representing that it would protect consumers' data from unauthorized access through a variety of safeguards, from February through May 2020, Blackbaud's networks suffered a data breach from an attacker that exfiltrated data from thousands of Blackbaud customers. This data comprised millions of consumers' personal information, including, in some cases, sensitive information including social security numbers and financial information. Adding to the scope and severity of the breach was Blackbaud's indefinite retention of customer backup files, which impacted additional current, prospective, and former customers, whose consumer data would not have otherwise been impacted by the data breach. And when Blackbaud informed customers of the breach in July 2020, its initial breach notification statement inaccurately stated that the hacker had not stolen sensitive consumer data. Blackbaud did not correct this information until October 2020, despite knowing it was inaccurate only a couple of weeks after the initial breach notification.</P>
                <P>The Commission's proposed five-count complaint alleges that Respondent violated section 5(a) of the FTC Act by (1) failing to employ reasonable information security practices to protect consumers' personal information; (2) failing to implement and enforce reasonable data retention practices; (3) failing to accurately communicate about the breach in its initial breach notification; (4) misrepresenting that it used appropriate safeguards to protect consumers' personal information; and (5) misrepresenting the scope of the breach by stating that consumers' personal information had not been impacted by the breach in its initial notification. With respect to the first count, the proposed complaint alleges that Respondent:</P>
                <P>• failed to implement appropriate password controls, which resulted in employees often using default, weak or identical passwords;</P>
                <P>• failed to apply adequate multifactor authentication for both employees and customers to protect sensitive consumer information;</P>
                <P>
                    • failed to prevent data theft by (1) monitoring for unauthorized attempts to transfer or exfiltrate consumers' personal information from its networks; (2) continuously logging and monitoring its systems and assets to identify data security events; and (3) performing regular assessments as to the effectiveness of protection measures;
                    <PRTPAGE P="10078"/>
                </P>
                <P>• failed to implement and enforce appropriate data retention schedules and deletion practices for the vast amounts of consumers' personal information stored on its network;</P>
                <P>• failed to patch outdated software and systems in a timely manner;</P>
                <P>• failed to test, audit, assess or review its products' or applications' security features; and conduct regular risk assessments, vulnerability scans, and penetration testing of its networks and databases;</P>
                <P>• failed to implement appropriate firewall controls; and</P>
                <P>• failed to implement appropriate network segmentation to prevent attackers from moving freely across its networks and databases.</P>
                <P>The proposed complaint alleges that Respondent could have addressed each of these failures by implementing readily available and relatively low-cost security measures. With respect to the second count, the proposed complaint alleges that Respondent failed to implement and enforce reasonable data retention practices for sensitive consumer data maintained by its customers on its network. With respect to the third count, the proposed complaint alleges that Respondent failed to accurately communicate the scope and severity of the breach in its initial notification to consumers.</P>
                <P>The proposed complaint alleges that, with respect to counts one, two, and three, Respondent's failures caused, or are likely to cause, substantial injury to consumers that is not outweighed by countervailing benefits to consumers or competition and is not reasonably avoidable by consumers themselves. Such practices constitute unfair acts or practices under section 5 of the FTC Act.</P>
                <P>With respect the fourth count, the proposed complaint alleges that, at various times, Respondent claimed that is used appropriate safeguards to protect consumers' personal information. The proposed complaint alleges that, in reality, and as noted above, Respondent failed to implement reasonable measures to protect consumer's personal information. Such representations were deceptive under section 5 of the FTC Act.</P>
                <P>With respect to the fifth count, the proposed complaint alleges that, in its initial breach notification, Respondent claimed that consumers' personal information had not been subject to the breach. The proposed complaint alleges that, in reality, and as noted above, consumers' personal information had been exfiltrated by the attacker in the breach. Such representations were, therefore, deceptive under section 5 of the FTC Act.</P>
                <HD SOURCE="HD1">Summary of the Proposed Order With Respondent</HD>
                <P>The Proposed Order contains injunctive relief designed to prevent Respondent from engaging in the same or similar acts or practices in the future. Part I prohibits Respondent from misrepresenting the extent (1) to which it maintains, uses, deletes or disclosed consumers' personal information; (2) to which it protects the privacy, security, availability, confidentiality, or integrity of consumers' personal information; or (3) of any future data security incident or unauthorized disclosure of consumers' personal information.</P>
                <P>Part II requires Respondent to delete or destroy customer backup files containing consumers' personal information that are not being retained to provide its products or services and to refrain from maintaining consumers' personal information that is not necessary for the purposes for which it is maintained by Respondent. Part III requires that Respondent document and adhere to a retention schedule for its customer backup files containing consumers' personal information, including the purposes for which it maintains such information, the business needs for its retention, and the timeframe for its deletion.</P>
                <P>Part IV requires that Respondent establish and implement, and thereafter maintain, a comprehensive information security program that protects the security, availability, confidentiality, and integrity of consumers' personal information. Part V requires Respondent to obtain initial and biennial information security assessments by an independent, third-party professional for 20 years. Part VI requires Respondent to disclose all material facts to the assessor required by Part V and prohibits Respondent from misrepresenting any fact material to the assessments required by Part IV.</P>
                <P>Part VII requires Respondent to submit an annual certification from its Chief Information Security Officer that the company has implemented the requirements of the Order and is not aware of any material noncompliance that has not been corrected or disclosed to the Commission. Part VIII requires Respondent to notify the Commission any time it notifies a federal, state, or local government that consumer personal information was, or is reasonably believed to have been, accessed, acquired, or publicly exposed without authorization.</P>
                <P>Parts IX-XII are reporting and compliance provisions, which include recordkeeping requirements and provisions requiring Respondent to provide information or documents necessary for the Commission to monitor compliance. Part XIII states that the Proposed Order will remain in effect for 20 years, with certain exceptions.</P>
                <P>The purpose of this analysis is to facilitate public comment on the Proposed Order, and it is not intended to constitute an official interpretation of the complaint or Proposed Order, or to modify the Proposed Order's terms in any way.</P>
                <SIG>
                    <P>By direction of the Commission.</P>
                    <NAME>April J. Tabor,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
                <HD SOURCE="HD1">Joint Statement of Chair Lina M. Khan, Commissioner Rebecca Kelly Slaughter, and Commissioner Alvaro M. Bedoya</HD>
                <P>Today the FTC brings an enforcement action against Blackbaud for a series of unfair and deceptive data security practices. Blackbaud provides backend services for a variety of entities, ranging from businesses and nonprofits to schools and healthcare organizations. As noted in the FTC's complaint, Blackbaud in 2020 was struck by a data breach that exposed the personal data of millions of Americans. The FTC charges that Blackbaud's reckless data retention practices rendered its security failures much more costly: by hoarding reams of data that it did not reasonably need, Blackbaud's breach exposed far more data. Moreover, Blackbaud's notification alerting victims of the breach included false statements, which Blackbaud did not correct until months later—and months after it knew the statements were false.</P>
                <P>
                    The FTC's complaint alleges that Blackbaud's practices violated Section 5's prohibition on unfair or deceptive practices. The complaint marks a new step forward by alleging standalone unfairness counts for (a) failure to implement and enforce reasonable data retention practices (Count II) and (b) failure to accurately communicate the scope and severity of the breach in its notification to consumers (Count III).
                    <SU>1</SU>
                    <FTREF/>
                     Blackbaud's data retention failures exacerbated the harms of its data security failures because Blackbaud had failed to delete data it no longer needed. This action illustrates how indefinite retention of consumer data, which can lure hackers and magnify the harms stemming from a breach, is independently a prohibited unfair practice under the FTC Act. Similarly, Blackbaud's failure to accurately convey 
                    <PRTPAGE P="10079"/>
                    the scope and severity of the breach kept victims in the dark and delayed them from taking protective actions, making a bad situation even worse.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         Complaint, 
                        <E T="03">In re Blackbaud, Inc.,</E>
                         Docket No. C-4804 (Jan. 30, 2024) ¶¶ 29-34, 
                        <E T="03">https://www.ftc.gov/system/files/ftc_gov/pdf/Blackbaud-Complaint.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    Today's action builds on a series of cases that have made clear that maintaining a data retention and deletion schedule is a critical part of protecting consumers' data security.
                    <SU>2</SU>
                    <FTREF/>
                     The Commission has also made clear that efforts to downplay the extent or severity of a data breach run afoul of the law.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Press Release, Fed. Trade Comm'n, Rite Aid Banned from Using AI Facial Recognition After FTC Says Retailer Deployed Technology Without Reasonable Safeguards (Dec. 19, 2023), 
                        <E T="03">https://www.ftc.gov/news-events/news/press-releases/2023/12/rite-aid-banned-using-ai-facial-recognition-after-ftc-says-retailer-deployed-technology-without;</E>
                         Press Release, Fed. Trade Comm'n, FTC Finalizes Order With Online Alcohol Marketplace For Security Failures That Exposed Personal Data of 2.5 Million People (Jan. 10, 2023), 
                        <E T="03">https://www.ftc.gov/news-events/news/press-releases/2023/01/ftc-finalizes-order-online-alcohol-marketplace-security-failures-exposed-personal-data-25-million;</E>
                         Press Release, Fed. Trade Comm'n, FTC Brings Action Against Ed Tech Provider Chegg for Careless Security that Exposed Personal Data of Millions of Customers (Oct. 31, 2022); Press Release, Fed. Trade Comm'n, FTC Takes Action Against Global Tel*Link Corp. for Failing to Adequately Secure Data, Notify Consumers After Their Personal Data Was Breached (Nov. 16, 2023), 
                        <E T="03">https://www.ftc.gov/news-events/news/press-releases/2023/11/ftc-takes-action-against-global-tellink-corp-failing-adequately-secure-data-notify-consumers-after. See also</E>
                         FTC Technology Blog, Security Principles: Addressing Underlying Causes of Risk in Complex Systems (Feb. 1, 2023), 
                        <E T="03">https://www.ftc.gov/policy/advocacy-research/tech-at-ftc/2023/02/security-principles-addressing-underlying-causes-risk-complex-systems.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Press Release, Fed. Trade Comm'n, FTC Takes Action Against CafePress for Data Breach Cover Up (Mar. 15, 2022), 
                        <E T="03">https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-takes-action-against-cafepress-data-breach-cover. See also</E>
                         FTC Technology Blog, Security Beyond Prevention: The Importance of Effective Breach Disclosures (May 20, 2022), 
                        <E T="03">https://www.ftc.gov/policy/advocacy-research/tech-at-ftc/2022/05/security-beyond-prevention-importance-effective-breach-disclosures.</E>
                    </P>
                </FTNT>
                <P>
                    We are grateful to the Division of Privacy and Identity Protection for their excellent work, which enables us to continue making key strides in protecting people's data. As businesses face fresh incentives to hoard data to train AI models,
                    <SU>4</SU>
                    <FTREF/>
                     protecting Americans from unlawful data practices will be especially critical.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         Press Release, Fed. Trade Comm'n, FTC and DOJ Charge Amazon with Violating Children's Privacy Law by Keeping Kids' Alexa Voice Recordings Forever and Undermining Parents' Deletion Request (May 31, 2023), 
                        <E T="03">https://www.ftc.gov/news-events/news/press-releases/2023/05/ftc-doj-charge-amazon-violating-childrens-privacy-law-keeping-kids-alexa-voice-recordings-forever.</E>
                    </P>
                </FTNT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02970 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6750-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">GENERAL SERVICES ADMINISTRATION</AGENCY>
                <DEPDOC>[Notice-PBS-2024-02; Docket No. 2024-0002; Sequence No.3]</DEPDOC>
                <SUBJECT>Notice of Availability of a Draft Environmental Impact Statement for the Alcan Land Port of Entry Expansion and Modernization in Alcan, Alaska; Withdrawal</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Public Buildings Service, General Services Administration (GSA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; withdrawal.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>GSA is announcing the withdrawal of the Notice of availability of a draft environmental impact statement for the Alcan land port of entry expansion and modernization in Alcan, Alaska. The February 7,2024 notice announced GSAs intent to prepare a Draft Environmental Impact Statement (DEIS) to analyze the potential environmental effects of the proposed expansion and modernization of the existing Alcan LPOE.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Aaron Evanson, Capital Project Manager, (206) 445-5876, 
                        <E T="03">AlcanLPOE@gsa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The Notice of availability published in the 
                    <E T="04">Federal Register</E>
                     on February 7, 2024. GSA plans to publish at a later date.
                </P>
                <SIG>
                    <NAME>Lois Mandell,</NAME>
                    <TITLE>Director Regulatory Secretariat Division, Office of Government-wide Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02847 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6820-DL-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to 5 U.S.C. 1009(d), notice is hereby given of the following meeting.</P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended, and the Determination of the Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, CDC, pursuant to Public Law 92-463. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <P>
                    <E T="03">Name of Committee:</E>
                     Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP)—SIP24-012, Advancing Research in Immunization Services Network (ARISe Network).
                </P>
                <P>
                    <E T="03">Date:</E>
                     May 14, 2024.
                </P>
                <P>
                    <E T="03">Time:</E>
                     10 a.m.-6 p.m., EDT.
                </P>
                <P>
                    <E T="03">Place:</E>
                     Teleconference/Web Conference.
                </P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and evaluate grant applications.
                </P>
                <P>
                    <E T="03">For Further Information Contact:</E>
                     Catherine Barrett, Ph.D., Scientific Review Officer, National Center for Chronic Disease Prevention and Health Promotion, Centers for Disease Control and Prevention, 4770 Buford Highway, Mailstop S106-3, Atlanta, Georgia 30341-3717. Telephone: (404) 718-7664; Email: 
                    <E T="03">CBarrett@cdc.gov.</E>
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02885 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to 5 U.S.C. 1009(d), notice is hereby given of the following meeting.</P>
                <P>
                    The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), title 5 U.S.C., as amended, and the Determination of the Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, CDC, pursuant to Public Law 92-463. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
                    <PRTPAGE P="10080"/>
                </P>
                <P>
                    <E T="03">Name of Committee:</E>
                     Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP)—GH21-001, Conducting Public Health Research in Thailand: Technical collaboration with the Ministry of Public Health (MOPH) in the Kingdom of Thailand; GH21-003, Advancing Public Health Research in Kenya; GH23-003, Conducting Public Health Research with Universities in Thailand; and GH24-033, Advancing Public Health Research in Bangladesh.
                </P>
                <P>
                    <E T="03">Date:</E>
                     April 10, 2024.
                </P>
                <P>
                    <E T="03">Time:</E>
                     9 a.m.-2 p.m., EDT.
                </P>
                <P>
                    <E T="03">Place:</E>
                     Teleconference.
                </P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and evaluate grant applications.
                </P>
                <P>
                    <E T="03">For Further Information Contact:</E>
                     Hylan Shoob, Ph.D., Scientific Review Officer, Global Health Center, Centers for Disease Control and Prevention, 1600 Clifton Road NE, Mailstop H21-9, Atlanta, Georgia 30329-4027. Telephone: (404) 639-4796; Email: 
                    <E T="03">HShoob@cdc.gov.</E>
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02874 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to 5 U.S.C. 1009(d), notice is hereby given of the following meeting.</P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended, and the Determination of the Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, CDC, pursuant to Public Law 92-463. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <P>
                    <E T="03">Name of Committee:</E>
                     Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP)—SIP24-006, Nutrition Obesity Policy Research and Evaluation Network (NOPREN); SIP24-007, Physical Activity Policy and Evaluation Research Network (PAPREN): Policy Implementation Research to Advance Health Equity; and SIP24-010, Mental Health and Chronic Disease Prevention Network.
                </P>
                <P>
                    <E T="03">Date:</E>
                     May 2, 2024.
                </P>
                <P>
                    <E T="03">Time:</E>
                     10 a.m.-6 p.m., EDT.
                </P>
                <P>
                    <E T="03">Place:</E>
                     Teleconference/Web Conference.
                </P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and evaluate grant applications.
                </P>
                <P>
                    <E T="03">For Further Information Contact:</E>
                     Catherine Barrett, Ph.D., Scientific Review Officer, National Center for Chronic Disease Prevention and Health Promotion, Centers for Disease Control and Prevention, 4770 Buford Highway, Mailstop S106-3, Atlanta, Georgia 30341-3717. Telephone: (404) 718-7664; Email: 
                    <E T="03">CBarrett@cdc.gov.</E>
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02881 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to 5 U.S.C. 1009(d), notice is hereby given of the following meeting.</P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended, and the Determination of the Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, CDC, pursuant to Public Law 92-463. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <P>
                    <E T="03">Name of Committee:</E>
                     Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP)—SIP24-009, Arthritis Management and Wellbeing Network (AMWN).
                </P>
                <P>
                    <E T="03">Date:</E>
                     May 15, 2024.
                </P>
                <P>
                    <E T="03">Time:</E>
                     10 a.m.-6 p.m., EDT.
                </P>
                <P>
                    <E T="03">Place:</E>
                     Teleconference/Web Conference.
                </P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and evaluate grant applications.
                </P>
                <P>
                    <E T="03">For Further Information Contact:</E>
                     Natalie Brown, M.P.H., Scientific Review Officer, National Center for Chronic Disease Prevention and Health Promotion, Centers for Disease Control and Prevention, 4770 Buford Highway, Mailstop S106-3, Atlanta, Georgia 30341-3717. Telephone: (404) 639-4601; Email: 
                    <E T="03">NBrown3@cdc.gov.</E>
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02883 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to 5 U.S.C. 1009(d), notice is hereby given of the following meeting.</P>
                <P>
                    The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), title 5 U.S.C., as amended, and the Determination of the Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, CDC, pursuant to Public Law 92-463. The grant applications and the discussions could disclose confidential 
                    <PRTPAGE P="10081"/>
                    trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
                </P>
                <P>
                    <E T="03">Name of Committee:</E>
                     Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP)—DP24-138, Demonstration Projects to Research and Evaluate Strategies Aligned with CDC's What Works in Schools Approach.
                </P>
                <P>
                    <E T="03">Date:</E>
                     May 21, 2024.
                </P>
                <P>
                    <E T="03">Time:</E>
                     10 a.m.-6 p.m., EDT.
                </P>
                <P>
                    <E T="03">Place:</E>
                     Teleconference/Web Conference.
                </P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and evaluate grant applications.
                </P>
                <P>
                    <E T="03">For Further Information Contact:</E>
                     Catherine Barrett, Ph.D., Scientific Review Officer, National Center for Chronic Disease Prevention and Health Promotion, Centers for Disease Control and Prevention, 4770 Buford Highway, Mailstop S106-3, Atlanta, Georgia 30341-3717. Telephone: (404) 718-7664; Email: 
                    <E T="03">CBarrett@cdc.gov.</E>
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02873 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to 5 U.S.C. 1009(d), notice is hereby given of the following meeting.</P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended, and the Determination of the Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, CDC, pursuant to Public Law 92-463. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <P>
                    <E T="03">Name of Committee:</E>
                     Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP)—SIP24-004, Gauging Men's Reaction to Relabeling of GG1 Prostate Cancer and Understanding of Pathology Reports.
                </P>
                <P>
                    <E T="03">Date:</E>
                     May 8, 2024.
                </P>
                <P>
                    <E T="03">Time:</E>
                     10 a.m.-6 p.m., EDT.
                </P>
                <P>
                    <E T="03">Place:</E>
                     Teleconference/Web Conference.
                </P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and evaluate grant applications.
                </P>
                <P>
                    <E T="03">For Further Information Contact:</E>
                     Natalie Brown, M.P.H., Scientific Review Officer, National Center for Chronic Disease Prevention and Health Promotion, Centers for Disease Control and Prevention, 4770 Buford Highway, Mailstop S106-3, Atlanta, Georgia 30341-3717. Telephone: (404) 639-4601; Email: 
                    <E T="03">NBrown3@cdc.gov.</E>
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02880 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to 5 U.S.C. 1009(d), notice is hereby given of the following meeting.</P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), title 5 U.S.C., as amended, and the Determination of the Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, CDC, pursuant to Public Law 92-463. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <P>
                    <E T="03">Name of Committee:</E>
                     Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP)—GH21-001, Conducting Public Health Research in Thailand: Technical collaboration with the Ministry of Public Health (MOPH) in the Kingdom of Thailand; GH21-003, Advancing Public Health Research in Kenya; and GH23-003, Conducting Public Health Research with Universities in Thailand.
                </P>
                <P>
                    <E T="03">Date:</E>
                     April 11, 2024.
                </P>
                <P>
                    <E T="03">Time:</E>
                     9 a.m.-2 p.m., EDT.
                </P>
                <P>
                    <E T="03">Place:</E>
                     Teleconference.
                </P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and evaluate grant applications.
                </P>
                <P>
                    <E T="03">For Further Information Contact:</E>
                     Hylan Shoob, Ph.D., Scientific Review Officer, Global Health Center, Centers for Disease Control and Prevention, 1600 Clifton Road NE, Mailstop H21-9, Atlanta, Georgia 30329-4027. Telephone: (404) 639-4796; Email: 
                    <E T="03">HShoob@cdc.gov.</E>
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02875 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to 5 U.S.C. 1009(d), notice is hereby given of the following meeting.</P>
                <P>
                    The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended, and the Determination of the Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, CDC, pursuant to Public Law 92-463. The grant applications and the 
                    <PRTPAGE P="10082"/>
                    discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
                </P>
                <P>
                    <E T="03">Name of Committee:</E>
                     Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP)—SIP24-011, Assessment of Perceptions and Effectiveness of Interventions to Increase MMR Vaccination Among Children in Close-knit Communities with Longstanding Vaccine Hesitancy; and SIP24-013, Understanding the Potential of Schools in Promoting Non-mandated Childhood Vaccinations.
                </P>
                <P>
                    <E T="03">Date:</E>
                     May 7, 2024.
                </P>
                <P>
                    <E T="03">Time:</E>
                     10 a.m.-6 p.m., EDT.
                </P>
                <P>
                    <E T="03">Place:</E>
                     Teleconference/Web Conference.
                </P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and evaluate grant applications.
                </P>
                <P>
                    <E T="03">For Further Information Contact:</E>
                     Catherine Barrett, Ph.D., Scientific Review Officer, National Center for Chronic Disease Prevention and Health Promotion, Centers for Disease Control and Prevention, 4770 Buford Highway, Mailstop S106-3, Atlanta, Georgia 30341-3717. Telephone: (404) 718-7664; Email: 
                    <E T="03">CBarrett@cdc.gov.</E>
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02884 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to 5 U.S.C. 1009(d), notice is hereby given of the following meeting.</P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended, and the Determination of the Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, CDC, pursuant to Public Law 92-463. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <P>
                    <E T="03">Name of Committee:</E>
                     Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP)—SIP24-001, Understanding the Needs of Ovarian Cancer Survivors; SIP24-002, Survivorship Care Plans and Mortality Among Adult Cancer Survivors; and SIP24-005, How Does Reducing Social Isolation and Loneliness Impact Health Indices Among Cancer Survivors?
                </P>
                <P>
                    <E T="03">Date:</E>
                     April 30, 2024.
                </P>
                <P>
                    <E T="03">Time:</E>
                     10 a.m.-6 p.m., EDT.
                </P>
                <P>
                    <E T="03">Place:</E>
                     Teleconference/Web Conference.
                </P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and evaluate grant applications.
                </P>
                <P>
                    <E T="03">For Further Information Contact:</E>
                     Catherine Barrett, Ph.D., Scientific Review Officer, National Center for Chronic Disease Prevention and Health Promotion, Centers for Disease Control and Prevention, 4770 Buford Highway, Mailstop S106-3, Atlanta, Georgia 30341-3717. Telephone: (404) 718-7664; Email: 
                    <E T="03">CBarrett@cdc.gov.</E>
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02877 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to 5 U.S.C. 1009(d), notice is hereby given of the following meeting.</P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended, and the Determination of the Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, CDC, pursuant to Public Law 92-463. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <P>
                    <E T="03">Name of Committee:</E>
                     Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP)—GH24-033, Advancing Public Health Research in Bangladesh.
                </P>
                <P>
                    <E T="03">Date:</E>
                     April 9, 2024.
                </P>
                <P>
                    <E T="03">Time:</E>
                     9 a.m.-2 p.m., EDT.
                </P>
                <P>
                    <E T="03">Place:</E>
                     Teleconference.
                </P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and evaluate grant applications.
                </P>
                <P>
                    <E T="03">For Further Information Contact:</E>
                     Hylan Shoob, Ph.D., Scientific Review Officer, Global Health Center, Centers for Disease Control and Prevention, 1600 Clifton Road NE, Mailstop H21-9, Atlanta, Georgia 30329-4027. Telephone: (404) 639-4796; Email: 
                    <E T="03">HShoob@cdc.gov.</E>
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02876 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to 5 U.S.C. 1009(d), notice is hereby given of the following meeting.</P>
                <P>
                    The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended, and the Determination of the Director, Office of Strategic Business 
                    <PRTPAGE P="10083"/>
                    Initiatives, Office of the Chief Operating Officer, CDC, pursuant to Public Law 92-463. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
                </P>
                <P>
                    <E T="03">Name of Committee:</E>
                     Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP)—SIP24-008, Managing Epilepsy Well Network (MEW).
                </P>
                <P>
                    <E T="03">Date:</E>
                     May 9, 2024.
                </P>
                <P>
                    <E T="03">Time:</E>
                     10 a.m.-6 p.m., EDT.
                </P>
                <P>
                    <E T="03">Place:</E>
                     Teleconference/Web Conference.
                </P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and evaluate grant applications.
                </P>
                <P>
                    <E T="03">For Further Information Contact:</E>
                     Catherine Barrett, Ph.D., Scientific Review Officer, National Center for Chronic Disease Prevention and Health Promotion, Centers for Disease Control and Prevention, 4770 Buford Highway, Mailstop S106-3, Atlanta, Georgia 30341-3717. Telephone: (404) 718-7664; Email: 
                    <E T="03">CBarrett@cdc.gov.</E>
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02882 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Centers for Disease Control and Prevention</SUBAGY>
                <SUBJECT>Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to 5 U.S.C. 1009(d), notice is hereby given of the following meeting.</P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended, and the Determination of the Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, CDC, pursuant to Public Law 92-463. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <P>
                    <E T="03">Name of Committee:</E>
                     Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP)—SIP24-003, Cancer Prevention and Control Research Network (CPCRN).
                </P>
                <P>
                    <E T="03">Date:</E>
                     May 1, 2024.
                </P>
                <P>
                    <E T="03">Time:</E>
                     10 a.m.-6 p.m., EDT.
                </P>
                <P>
                    <E T="03">Place:</E>
                     Teleconference/Web Conference.
                </P>
                <P>
                    <E T="03">Agenda:</E>
                     To review and evaluate grant applications.
                </P>
                <P>
                    <E T="03">For Further Information Contact:</E>
                     Natalie Brown, M.P.H., Scientific Review Officer, National Center for Chronic Disease Prevention and Health Promotion, Centers for Disease Control and Prevention, 4770 Buford Highway, Mailstop S106-3, Atlanta, Georgia 30341-3717. Telephone: (404) 639-4601; Email: 
                    <E T="03">NBrown3@cdc.gov.</E>
                </P>
                <P>
                    The Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention, has been delegated the authority to sign 
                    <E T="04">Federal Register</E>
                     notices pertaining to announcements of meetings and other committee management activities, for both the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry.
                </P>
                <SIG>
                    <NAME>Kalwant Smagh,</NAME>
                    <TITLE>Director, Office of Strategic Business Initiatives, Office of the Chief Operating Officer, Centers for Disease Control and Prevention.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02878 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4163-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Administration for Children and Families</SUBAGY>
                <SUBJECT>Submission for Office of Management and Budget (OMB) Review; Social Services Block Grant Post-Expenditure Report, Pre-Expenditure Report, and Intended Use Plan (OMB #0970-0234)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Community Services, Administration for Children and Families, Department of Health and Human Services.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Request for public comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Administration for Children and Families' (ACF) Office of Community Services (OCS) is requesting from OMB a three-year extension of the Social Services Block Grant (SSBG) Post-Expenditure Report, Pre-Expenditure Report, and Intended Use Plan (OMB #0970-0234). OCS is proposing to make minor editorial modifications to some column titles in the Pre- and Post-Expenditure Reports, for clarification.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments are due within 30 days of publication.</E>
                         OMB must decide about the collection of information between 30 and 60 days after publication of this document in the 
                        <E T="04">Federal Register</E>
                        . Therefore, a comment is best assured of having full consideration if OMB receives it within 30 days of this publication.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function. You can also obtain copies of the proposed collection of information by emailing 
                        <E T="03">infocollection@acf.hhs.gov.</E>
                         Identify all emailed requests by the title of the information collection.
                    </P>
                </ADD>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Description:</E>
                     On an annual basis, states and territories are required to submit the following reports: (1) An Intended Use Plan that provides data and narrative descriptions related to the state's SSBG program. The Intended Use Plan includes details about the delivery of SSBG services and the state agency administering the SSBG Program. ACF is proposing to expand the currently approved information collection to include the collection of states' Intended Use Plans with a model format. Recipients are required to submit their Pre-Expenditure Report no less than 30 days prior to the start of the period covered by the report. (2) A Pre-Expenditure Report demonstrates the state's anticipated allocation of SSBG funding among the 29 pre-defined SSBG service categories. Historically, states have submitted this report using the Post-Expenditure Report Form, and the associated burden is included in the currently approved information collection. Recipients are required to submit their Intended Use Plan no less than 30 days prior to the start of the period covered by the report, together with the Pre-Expenditure Report. (3) A Post-Expenditure Report details the state's actual use of SSBG funding among each of the 29 service categories. 
                    <PRTPAGE P="10084"/>
                    Recipients are required to submit their Post-Expenditure Report within 6 months of the end of the period covered by the report.
                </P>
                <P>The law governing the programs at Title XX of the Social Security Act [42 U.S.C. 1397c] mandates states and territories submit to the federal administering office an Intended Use Plan and Pre-Expenditure report. These materials are to detail the planned use of funds. At the end of the fiscal year, the law also requires states to provide the federal agency with a reconciliation of the actual use of grant funds in the Post-Expenditure Report [42 U.S.C. 1397e].</P>
                <P>The forms and model plans support the states and territories in meeting the statutory requirement and provide a consistent set of tools for information collection on the grants' use for each state, as well as grant wide. The state and territory reports are congregated and analyzed and, in turn, comprise the SSBG Annual Report. The data informs the program's performance and efficiency measures for program impact and efficacy. OCS is proposing to make minor editorial modifications to some column titles in the Pre- and Post-Expenditure Reports, for clarification.</P>
                <P>
                    <E T="03">Respondents:</E>
                     Agencies that administer the SSBG at the state or territory level, including the 50 states; the District of Columbia; the Commonwealth of Puerto Rico; Massachusetts Commission for the Blind (M-CFB); and the territories of American Samoa, Guam, the U.S. Virgin Islands, and the Commonwealth of Northern Mariana Islands.
                </P>
                <GPOTABLE COLS="5" OPTS="L2,i1" CDEF="s50,12,12,12,12">
                    <TTITLE>Annual Burden Estimates</TTITLE>
                    <BOXHD>
                        <CHED H="1">Instrument</CHED>
                        <CHED H="1">
                            Total
                            <LI>number of</LI>
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">
                            Annual
                            <LI>number of</LI>
                            <LI>responses per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Average
                            <LI>burden hours</LI>
                            <LI>per response</LI>
                        </CHED>
                        <CHED H="1">
                            Annual
                            <LI>burden</LI>
                            <LI>hours</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Pre-Expenditure Report Form</ENT>
                        <ENT>57</ENT>
                        <ENT>1</ENT>
                        <ENT>2</ENT>
                        <ENT>114</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Intended Use Plan</ENT>
                        <ENT>57</ENT>
                        <ENT>1</ENT>
                        <ENT>40</ENT>
                        <ENT>2,280</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="01">Post-Expenditure Reporting Form</ENT>
                        <ENT>57</ENT>
                        <ENT>1</ENT>
                        <ENT>110</ENT>
                        <ENT>6,270</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Estimated Total Annual Burden Hours:</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT>8,664</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    <E T="03">Authority:</E>
                     42 U.S.C. 1397-1397e.
                </P>
                <SIG>
                    <NAME>Mary C. Jones,</NAME>
                    <TITLE>ACF/OPRE Certifying Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02851 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4184-24-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Food and Drug Administration</SUBAGY>
                <DEPDOC>[Docket No. FDA-2001-D-0219]</DEPDOC>
                <SUBJECT>Use of Data Monitoring Committees in Clinical Trials; Draft Guidance for Industry; Availability; Agency Information Collection Activities; Proposed Collection; Comment Request</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Food and Drug Administration, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of availability.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Food and Drug Administration (FDA, Agency, or we) is announcing the availability of a draft guidance for industry entitled “Use of Data Monitoring Committees in Clinical Trials.” This guidance is intended to assist sponsors of clinical trials in determining when a data monitoring committee (DMC) (also known as a data and safety monitoring board (DSMB), a data and safety monitoring committee (DSMC), or an independent data monitoring committee (IDMC)) would be useful for trial monitoring and what procedures and practices should be considered to guide their operation. When finalized, this guidance will supersede the final guidance for clinical trial sponsors entitled “Establishment and Operation of Clinical Trial Data Monitoring Committees,” issued in March 2006. This draft guidance is not final nor is it in effect at this time.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit either electronic or written comments on the draft guidance by April 15, 2024 to ensure that the Agency considers your comment on this draft guidance before it begins work on the final version of the guidance. Submit electronic or written comments on the proposed collection of information in the draft guidance by April 15, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments on any guidance at any time as follows:</P>
                </ADD>
                <HD SOURCE="HD2">Electronic Submissions</HD>
                <P>Submit electronic comments in the following way:</P>
                <P>
                    • 
                    <E T="03">Federal eRulemaking Portal: https://www.regulations.gov.</E>
                     Follow the instructions for submitting comments. Comments submitted electronically, including attachments, to 
                    <E T="03">https://www.regulations.gov</E>
                     will be posted to the docket unchanged. Because your comment will be made public, you are solely responsible for ensuring that your comment does not include any confidential information that you or a third party may not wish to be posted, such as medical information, your or anyone else's Social Security number, or confidential business information, such as a manufacturing process. Please note that if you include your name, contact information, or other information that identifies you in the body of your comments, that information will be posted on 
                    <E T="03">https://www.regulations.gov.</E>
                </P>
                <P>• If you want to submit a comment with confidential information that you do not wish to be made available to the public, submit the comment as a written/paper submission and in the manner detailed (see “Written/Paper Submissions” and “Instructions”).</P>
                <HD SOURCE="HD2">Written/Paper Submissions</HD>
                <P>Submit written/paper submissions as follows:</P>
                <P>
                    • 
                    <E T="03">Mail/Hand Delivery/Courier (for written/paper submissions):</E>
                     Dockets Management Staff (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
                </P>
                <P>• For written/paper comments submitted to the Dockets Management Staff, FDA will post your comment, as well as any attachments, except for information submitted, marked and identified, as confidential, if submitted as detailed in “Instructions.”</P>
                <P>
                    <E T="03">Instructions:</E>
                     All submissions received must include the Docket No. FDA-2001-D-0219 for “Use of Data Monitoring Committees in Clinical Trials.” Received comments will be placed in the docket and, except for those submitted as “Confidential Submissions,” publicly viewable at 
                    <E T="03">https://www.regulations.gov</E>
                     or at the Dockets Management Staff between 9 a.m. and 4 p.m., Monday through Friday, 240-402-7500.
                </P>
                <P>
                    • Confidential Submissions—To submit a comment with confidential 
                    <PRTPAGE P="10085"/>
                    information that you do not wish to be made publicly available, submit your comments only as a written/paper submission. You should submit two copies total. One copy will include the information you claim to be confidential with a heading or cover note that states “THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.” The Agency will review this copy, including the claimed confidential information, in its consideration of comments. The second copy, which will have the claimed confidential information redacted/blacked out, will be available for public viewing and posted on 
                    <E T="03">https://www.regulations.gov.</E>
                     Submit both copies to the Dockets Management Staff. If you do not wish your name and contact information to be made publicly available, you can provide this information on the cover sheet and not in the body of your comments and you must identify this information as “confidential.” Any information marked as “confidential” will not be disclosed except in accordance with 21 CFR 10.20 and other applicable disclosure law. For more information about FDA's posting of comments to public dockets, see 80 FR 56469, September 18, 2015, or access the information at: 
                    <E T="03">https://www.govinfo.gov/content/pkg/FR-2015-09-18/pdf/2015-23389.pdf.</E>
                </P>
                <P>
                    <E T="03">Docket:</E>
                     For access to the docket to read background documents or the electronic and written/paper comments received, go to 
                    <E T="03">https://www.regulations.gov</E>
                     and insert the docket number, found in brackets in the heading of this document, into the “Search” box and follow the prompts and/or go to the Dockets Management Staff, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852, 240-402-7500.
                </P>
                <P>You may submit comments on any guidance at any time (see 21 CFR 10.115(g)(5)).</P>
                <P>
                    Submit written requests for single copies of this draft guidance to the Division of Drug Information, Center for Drug Evaluation and Research, Food and Drug Administration, 10001 New Hampshire Ave., Hillandale Building, 4th Floor, Silver Spring, MD 20993-0002, or to the Office of Communication, Outreach and Development, Center for Biologics Evaluation and Research (CBER), Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 71, Rm. 3128, Silver Spring, MD 20993-0002, or to the Office of Policy, Guidance and Policy Development, Center for Devices and Radiological Health, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 66, Rm. 5431, Silver Spring, MD 20993-0002. Send one self-addressed adhesive label to assist that office in processing your requests. See the 
                    <E T="02">SUPPLEMENTARY INFORMATION</E>
                     section for information on electronic access to the draft guidance document.
                </P>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P/>
                    <P>
                        <E T="03">With regard to the draft guidance:</E>
                         Dat Doan, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 51, Rm. 3334 Silver Spring, MD 20993, 240-402-8926; or James Myers, Center for Biologics Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 71, Rm. 7256, Silver Spring, MD 20993-0002, 240-402-7911; or Ouided Rouabhi, Center for Devices and Radiological Health, Food and Drug Administration, 10903 New Hampshire Ave., Bldg. 66, Rm. G221, Silver Spring, MD 20993-0002, 301-796-6359.
                    </P>
                    <P>
                        <E T="03">With regard to the proposed collection of information:</E>
                         Rachel Showalter, Office of Operations, Food and Drug Administration, Three White Flint North, 10A-12M, 11601 Landsdown St., North Bethesda, MD 20852, 240-994-7399, 
                        <E T="03">PRAStaff@fda.hhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">I. Background</HD>
                <P>FDA is announcing the availability of a draft guidance for industry entitled “Use of Data Monitoring Committees in Clinical Trials.” This guidance pertains primarily to the sponsor's responsibility for clinical trial management and decision making, but may also be relevant to any individual or group to whom the sponsor has delegated applicable trial management responsibilities. This guidance provides recommendations to help sponsors of clinical trials determine: (1) when a DMC (also known as a DSMB, a DSMC, or an IDMC) would be useful for trial monitoring and (2) what procedures and practices should be considered to guide their operation. Under FDA regulations, sponsors are not required to use DMCs in clinical trials except under 21 CFR 50.24(a)(7)(iv), where an institutional review board can approve a clinical trial without requiring informed consent from all research subjects, provided certain requirements are met, including the establishment of an independent DMC.</P>
                <P>
                    Although the use of DMCs initially was more common in disease areas associated with significant morbidity or mortality, since 2006, there has been an increase in the use of DMCs in many disease areas not involving serious morbidity or mortality. For example, DMCs can provide the specialized expertise to evaluate emerging efficacy and safety data for trials in rare diseases (
                    <E T="03">e.g.,</E>
                     certain genetic disorders), for trials in vulnerable populations (
                    <E T="03">e.g.,</E>
                     neonates), and for oncologic therapies with highly specific targets and potential serious risks (
                    <E T="03">e.g.,</E>
                     biological products for genetic targets, immunotherapies). DMCs are also being used in early phase trials in serious diseases or conditions. With this growth of DMC use, a variety of approaches to DMC operations has been developed.
                </P>
                <P>This draft guidance revises the guidance for clinical trial sponsors entitled “Establishment and Operation of Clinical Trial Data Monitoring Committees” issued on March 28, 2006. Changes to the guidance reflect changes in DMC structure and practice since FDA issued the 2006 version. When finalized, this guidance will replace the 2006 guidance.</P>
                <P>Sponsors may be required to monitor clinical studies evaluating investigational drugs, biological products, and devices (see 21 CFR 312.50 and 312.56 (for drugs and biological products) and 21 CFR 812.2(b)(1)(iv), 812.40, and 812.46 (for devices)). Various groups and/or individuals play different roles in clinical trial monitoring and oversight. One such group is a DMC. A clinical trial DMC is established by a sponsor and is composed of a group of individuals with relevant expertise that reviews accumulating data on a regular basis from one or more clinical trials and recommends to the sponsor whether to continue, modify, or stop a trial or trials.</P>
                <P>Consistent with § 312.32(d)(1) (21 CFR 312.32(d)(1)), the sponsor must investigate a DMC's recommendation relating to an increased rate of serious unanticipated adverse events as potentially reportable to FDA under § 312.32. If the sponsor concludes that there is a “reasonable possibility” that the increased rate of serious unanticipated adverse events was associated with use of the drug, the finding, and support for it (which could include the DMC report, any analyses, and pertinent data) must be submitted to FDA as a serious unexpected suspected adverse reaction. Similar considerations would also apply if the sponsor concludes that an increased rate of adverse events constitutes an unanticipated adverse device effect under 21 CFR 812.46(b) and 812.150(b)(1).</P>
                <P>
                    In the guidance (section VI.B), FDA recommends that sponsors establish a charter describing DMC obligations, responsibilities, and standard operating procedures. The charter should address, for example, the following:
                    <PRTPAGE P="10086"/>
                </P>
                <P>1. Procedures for assessing financial and intellectual conflicts of interest of proposed DMC members, including identifying any concurrent service of any DMC member on other DMCs for trials of the same, related, or competing product;</P>
                <P>
                    2. how unblinded analyses will be prepared (
                    <E T="03">e.g.,</E>
                     by an independent statistician) for the DMC and at what frequency; and
                </P>
                <P>3. procedures to maintain the confidentiality of interim comparative data in communications between the DMC, the sponsor, and (if applicable) outside parties to ensure that such data available to the DMC are not inappropriately disclosed or disclosed without appropriate protections.</P>
                <P>This draft guidance is being issued consistent with FDA's good guidance practices regulation (21 CFR 10.115). The draft guidance, when finalized, will represent the current thinking of FDA on “Use of Data Monitoring Committees in Clinical Trials.” It does not establish any rights for any person and is not binding on FDA or the public. You can use an alternative approach if it satisfies the requirements of the applicable statutes and regulations.</P>
                <HD SOURCE="HD1">II. Paperwork Reduction Act of 1995</HD>
                <P>
                    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-3521), Federal Agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. “Collection of information” is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) and includes Agency requests or requirements that members of the public submit reports, keep records, or provide information to a third party. Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A)) requires Federal Agencies to provide a 60-day notice in the 
                    <E T="04">Federal Register</E>
                     concerning each proposed collection of information, including each proposed revision of an existing collection of information, before submitting the collection to OMB for approval. To comply with this requirement, FDA is publishing notice of the proposed collection of information set forth in this document.
                </P>
                <P>With respect to the following collection of information, FDA invites comments on these topics: (1) whether the proposed collection of information is necessary for the proper performance of FDA's functions, including whether the information will have practical utility; (2) the accuracy of FDA's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques, when appropriate, and other forms of information technology.</P>
                <HD SOURCE="HD1">Use of Data Monitoring Committees in Clinical Trials</HD>
                <HD SOURCE="HD2">OMB Control Number 0910-0581—Revision</HD>
                <P>This collection of information supports recommendations found in the Agency guidance. The draft guidance document entitled “Use of Data Monitoring Committees in Clinical Trials” addresses the roles, responsibilities, and operating procedures of DMCs and describes certain reporting and recordkeeping responsibilities, including the following: (1) sponsor reporting to FDA on DMC recommendations related to safety; (2) standard operating procedures (SOPs) for DMCs; (3) DMC meeting records; and (4) DMC reports based on meeting minutes to the sponsor. The submission of the requested information provides the appropriate parties with essential information regarding the clinical trial upon which they may base their recommendations.</P>
                <HD SOURCE="HD3">1. Sponsor Reporting to FDA on DMC Recommendations Related to Safety</HD>
                <P>FDA recommends that sponsors inform FDA about all DMC recommendations related to the safety of the investigational product, whether or not the adverse events that led to the recommendation meet the definition of serious.</P>
                <HD SOURCE="HD3">2. Charters and SOPs for DMCs</HD>
                <P>In section VI.B of the guidance, we outline recommendations for establishing a DMC charter describing SOPs. The SOPs ensure that established written procedures are followed and proper recordkeeping is performed.</P>
                <P>In section VII of the guidance, we outline the relationships of the DMC members and the sponsors to address the independence of the DMC from the sponsor.</P>
                <HD SOURCE="HD3">3. DMC Meeting Records</HD>
                <P>FDA recommends that the DMC keep minutes of all meetings but use separate minutes for open and closed sessions.</P>
                <HD SOURCE="HD3">4. DMC Reports of Meeting Minutes to the Sponsor</HD>
                <P>
                    The Agency recommends in the guidance that DMCs should issue a written report to the sponsor based on the DMC meeting minutes. This report should include sufficient information to explain the rationale for any recommended changes. Sponsors should establish procedures to minimize bias, such as requiring that reports to the sponsor include only those data generally available to the sponsor (
                    <E T="03">e.g.,</E>
                     number screened, number enrolled at each site) (see 21 CFR 314.126(b)(5) and 860.7(f)(1)). FDA may request copies of DMC meeting records when the trial is completed (21 CFR 312.58 and 812.150(b)(10)) and may also request access to the electronic data sets used for each set of interim analysis. FDA therefore recommends that sponsors arrange for archiving such electronic data sets.
                </P>
                <P>
                    <E T="03">Description of the Respondents:</E>
                     The submission and data collection recommendations described in this document affect sponsors of clinical trials and DMCs.
                </P>
                <P>FDA estimates the burden of this collection of information as follows:</P>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,12,12,12,r50,12">
                    <TTITLE>
                        Table 1—Estimated Annual Reporting Burden 
                        <SU>1</SU>
                    </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Section of guidance;
                            <LI>reporting activity</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>responses per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Total annual
                            <LI>responses</LI>
                        </CHED>
                        <CHED H="1">
                            Average
                            <LI>burden</LI>
                            <LI>per response</LI>
                        </CHED>
                        <CHED H="1">
                            Total
                            <LI>hours</LI>
                        </CHED>
                    </BOXHD>
                    <ROW RUL="n,s">
                        <ENT I="01">Section VIII; Sponsor reporting to FDA on DMC recommendations related to safety</ENT>
                        <ENT>74</ENT>
                        <ENT>1</ENT>
                        <ENT>74</ENT>
                        <ENT>0.5 (30 minutes)</ENT>
                        <ENT>37</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT>37</ENT>
                    </ROW>
                    <TNOTE>
                        <SU>1</SU>
                         There are no capital costs or operating and maintenance costs associated with this collection of information.
                    </TNOTE>
                </GPOTABLE>
                <PRTPAGE P="10087"/>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,15,15,15,15,15">
                    <TTITLE>
                        Table 2—Estimated Annual Recordkeeping Burden 
                        <SU>1</SU>
                    </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Section of guidance;
                            <LI>recordkeeping activity</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>recordkeepers</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>records per</LI>
                            <LI>recordkeeper</LI>
                        </CHED>
                        <CHED H="1">
                            Total annual
                            <LI>records</LI>
                        </CHED>
                        <CHED H="1">
                            Average
                            <LI>burden per</LI>
                            <LI>recordkeeping</LI>
                        </CHED>
                        <CHED H="1">
                            Total
                            <LI>hours</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Sections VI and VII; Charters and SOPs for DMCs</ENT>
                        <ENT>74</ENT>
                        <ENT>1</ENT>
                        <ENT>74</ENT>
                        <ENT>8</ENT>
                        <ENT>592</ENT>
                    </ROW>
                    <ROW RUL="n,s">
                        <ENT I="01">Section VI.6.C.4.b.; DMC meeting records</ENT>
                        <ENT>740</ENT>
                        <ENT>1</ENT>
                        <ENT>740</ENT>
                        <ENT>2</ENT>
                        <ENT>1,480</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="03">Total</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT>2,072</ENT>
                    </ROW>
                    <TNOTE>
                        <SU>1</SU>
                         There are no capital costs or operating and maintenance costs associated with this collection of information.
                    </TNOTE>
                </GPOTABLE>
                <GPOTABLE COLS="6" OPTS="L2,i1" CDEF="s50,12C,12C,12C,12C,12C">
                    <TTITLE>
                        Table 3—Estimated Annual Third-Party Disclosure Burden 
                        <SU>1</SU>
                    </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Section of guidance;
                            <LI>disclosure activity</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>disclosures</LI>
                            <LI>per</LI>
                            <LI>respondent</LI>
                        </CHED>
                        <CHED H="1">
                            Total annual
                            <LI>disclosures</LI>
                        </CHED>
                        <CHED H="1">
                            Average
                            <LI>burden per</LI>
                            <LI>disclosure</LI>
                        </CHED>
                        <CHED H="1">
                            Total
                            <LI>hours</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Section VI.C.4.; DMC reports of meeting minutes to the sponsor</ENT>
                        <ENT>740</ENT>
                        <ENT>2</ENT>
                        <ENT>1,480</ENT>
                        <ENT>1</ENT>
                        <ENT>1,480</ENT>
                    </ROW>
                    <TNOTE>
                        <SU>1</SU>
                         There are no capital costs or operating and maintenance costs associated with this collection of information.
                    </TNOTE>
                </GPOTABLE>
                <P>
                    <E T="03">Reporting, Recordkeeping, and Third-Party Disclosure Burdens:</E>
                     Based on our experience and the anticipated increase in DMC use, FDA estimates that there are approximately 1,480 clinical trials with DMCs regulated by the Center for Biologics Evaluation and Research, the Center for Drug Evaluation and Research, and the Center for Devices and Radiological Health. FDA estimates that the average length of a clinical trial is 2 years, resulting in an annual estimate of 740 clinical trials. For the purposes of this information collection, FDA estimates that each sponsor is responsible for approximately 10 trials, resulting in an estimated 74 sponsors that are affected by the guidance annually.
                </P>
                <P>Based on information provided to FDA by sponsors that have typically used DMCs for the kinds of studies for which this guidance recommends using a DMC, FDA estimates that the majority of sponsors have already prepared SOPs for DMCs, and only a minimum amount of time is necessary to revise or update them for use for other clinical studies. Based on FDA's experience with clinical trials using DMCs, FDA estimates that the sponsor on average would issue two interim reports per clinical trial to the DMC. FDA estimates that the DMCs would hold two meetings per year per clinical trial, resulting in the issuance of two DMC reports of meeting minutes (closed and open meeting sessions) to the sponsor. One set of both of the meeting records should be maintained per clinical trial.</P>
                <P>Based on a review of the information collection since our last request for OMB approval, our estimated burden for the information collection reflects an overall increase in burden of 1,183 hours and a corresponding increase of 1,794 responses. We attribute this increase generally to an adjustment in respondents based on our experience and the anticipated increase in DMC use. In table 3, since we removed the language in this draft guidance regarding waivers, we removed the “sponsor notification to the DMC regarding waivers” task from the burden table, resulting in a decrease of 1 response. In addition, the sections in the draft guidance were changed; therefore, we updated the section numbers in the burden tables in accordance with the draft guidance.</P>
                <P>This draft guidance also refers to previously approved FDA collections of information found in FDA regulations. The collections of information in 21 CFR parts 50 and 56 have been approved under OMB control number 0910-0130. The collections of information in 21 CFR part 312 have been approved under OMB control number 0910-0014. The collections of information in 21 CFR part 314 have been approved under OMB control number 0910-0001. The collections of information pertaining to good clinical practice have been approved under OMB control number 0910-0843. The collections of information in 21 CFR part 812 have been approved under OMB control number 0910-0078. The collections of information in 21 CFR part 54 pertaining to financial disclosure by clinical investigators have been approved under OMB control number 0910-0396.</P>
                <HD SOURCE="HD1">III. Electronic Access</HD>
                <P>
                    Persons with access to the internet may obtain an electronic version of the draft guidance at 
                    <E T="03">https://www.fda.gov/drugs/guidance-compliance-regulatory-information/guidances-drugs,</E>
                      
                    <E T="03">https://www.fda.gov/vaccines-blood-biologics/guidance-compliance-regulatory-information-biologics/biologics-guidances, https://www.fda.gov/medical-devices/device-advice-comprehensive-regulatory-assistance/guidance-documents-medical-devices-and-radiation-emitting-products, https://www.fda.gov/regulatory-information/search-fda-guidance-documents,</E>
                     or 
                    <E T="03">https://www.regulations.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 6, 2024.</DATED>
                    <NAME>Lauren K. Roth,</NAME>
                    <TITLE>Associate Commissioner for Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02849 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4164-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Health Resources and Services Administration</SUBAGY>
                <SUBJECT>Update to the Bright Futures Periodicity Schedule as Part of the HRSA-Supported Preventive Services Guidelines for Infants, Children, and Adolescents; Correction</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Health Resources and Services Administration (HRSA), Department of Health and Human Services (HHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notices; correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        HRSA published documents in the 
                        <E T="04">Federal Register</E>
                         of October 24, 
                        <PRTPAGE P="10088"/>
                        2023, and January 5, 2024, concerning updates to the Bright Futures Periodicity Schedule as part of the HRSA-supported preventive services guidelines for infants, children, and adolescents. These documents contained minor errors related to updates to two footnotes, including an error in the text of footnote 15 and an error in the description of footnote 21. These minor corrections align with information provided to the public on the Bright Futures web page and referenced by HRSA in the October 24, 2023, 
                        <E T="04">Federal Register</E>
                         notice that sought public comment on the proposed updates to the Bright Futures Periodicity Schedule. These corrections do not change the clinical recommendations in the Bright Futures Periodicity Schedule or the associated requirement for certain group health plans and health insurance issuers to provide coverage without cost-sharing under section 2713 of the Public Health Service Act.
                    </P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Savannah Kidd, M.S. MFT, Sr. Public Health Advisor, Division of Child, Adolescent and Family Health, Maternal and Child Health Bureau, HRSA, telephone: (301) 287-2601, email: 
                        <E T="03">SKidd@hrsa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Correction</HD>
                <P>
                    In the 
                    <E T="04">Federal Register</E>
                     of January 5, 2024, FR Doc. 2024-00024, on page 790, column 3, paragraph 2, correct the text of updated footnote 15 to read as follows: “A recommended tool to assess use of alcohol, tobacco and nicotine, and marijuana and other substances, including opioids, is available at 
                    <E T="03">http://crafft.org.</E>
                    ” The document incorrectly omitted the phrase, “and other substances, including opioids,” in this sentence.
                </P>
                <P>
                    In the 
                    <E T="04">Federal Register</E>
                     of January 5, 2024, FR Doc. 2024-00024, on page 790, column 3, paragraph 3, correct the description of the update to footnote 21 to read as follows: “This updated reference aligns with the Bright Futures recommendation for universal bilirubin screening for all newborn infants between 24 and 48 hours after birth.” The document incorrectly included the phrase “between 24 and 28 hours after birth” in this sentence.
                </P>
                <P>
                    In the 
                    <E T="04">Federal Register</E>
                     of October 24, 2023, FR Doc. 2023-23396, on page 73035, column 3, paragraph 3, correct the description of the proposed update to footnote 21 to read as follows: “This reference aligns with the Bright Futures recommendation for universal bilirubin screening for all newborn infants between 24 and 48 hours after birth.” The document incorrectly included the phrase “between 24 and 28 hours after birth.”
                </P>
                <SIG>
                    <NAME>Maria G. Button,</NAME>
                    <TITLE>Director, Executive Secretariat.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02959 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4165-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>National Advisory Child Health and Human Development Council Task Force on Research Specific to Pregnant Women and Lactating Women (PRGLAC) Implementation Working Group Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Institutes of Health, HHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The 
                        <E T="03">Eunice Kennedy Shriver</E>
                         National Institute of Child Health and Human Development (NICHD) PRGLAC Implementation Working Group of Council is charged with monitoring and reporting on implementation of the recommendations from the PRGLAC. This includes monitoring and reporting on implementation, updating regulations, and guidance, as applicable, regarding the inclusion of pregnant women and lactating women in clinical trials.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The in-person meeting will be held on March 22, 2024, from 8:30 a.m. to 4:30 p.m. EST.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The in-person meeting will be held on the NIH Campus, 1 Center Dr., Building 31/6C, Room A, Bethesda, MD 20892.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For information concerning this meeting, Dr. Emma Carpenter, Health Science Policy Analyst, Legislation and Public Policy Branch, Office of Legislation, Public Policy, and Ethics, NICHD, NIH, 6710B Rockledge Drive, Bethesda, MD 20892-7510, 
                        <E T="03">emma.carpenter@nih.gov,</E>
                         301-594-2572.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This notice is pursuant to 42 U.S.C. 285g. The National Advisory Child Health and Human Development Council Task Force on Research Specific to Pregnant Women and Lactating Women (PRGLAC) Implementation Working Group meeting will be open to the public as a virtual meeting. Individuals who need special assistance, such as sign language interpretation or other reasonable accommodations, should notify the Contact Person listed in advance of the meeting.</P>
                <P>
                    Any interested person may file written comments with the committee by forwarding the statement to the Contact Person listed on this notice. The statement should include the name, address, telephone number and when applicable, the business or professional affiliation of the interested person. Information is also available on the Institute's/Center's home page: 
                    <E T="03">https://www.nichd.nih.gov/about/advisory,</E>
                     where an agenda and any additional information for the meeting will be posted when available.
                </P>
                <EXTRACT>
                    <FP>(Catalogue of Federal Domestic Assistance Program Nos. 93.864, Population Research; 93.865, Research for Mothers and Children; 93.929, Center for Medical Rehabilitation Research; 93.209, Contraception and Infertility Loan Repayment Program, National Institutes of Health, HHS).</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Alison N. Cernich,</NAME>
                    <TITLE>Deputy Director, Eunice Kennedy Shriver National Institute of Child Health and Human Development, National Institutes of Health.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02904 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Coast Guard</SUBAGY>
                <DEPDOC>[Docket No. USCG-2023-0672]</DEPDOC>
                <SUBJECT>Collection of Information Under Review by Office of Management and Budget; OMB Control Number 1625-0031</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, DHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Thirty-day notice requesting comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In compliance with the Paperwork Reduction Act of 1995 the U.S. Coast Guard is forwarding an Information Collection Request (ICR), abstracted below, to the Office of Management and Budget (OMB), Office of Information and Regulatory Affairs (OIRA), requesting an extension of its approval for the following collection of information: 1625-0031, Plan Approval and Records for Electrical Engineering Regulations—Title 46 CFR Subchapter J; without change.</P>
                    <P>Our ICR describes the information we seek to collect from the public. Review and comments by OIRA ensure we only impose paperwork burdens commensurate with our performance of duties.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>You may submit comments to the Coast Guard and OIRA on or before March 14, 2024.</P>
                </DATES>
                <ADD>
                    <PRTPAGE P="10089"/>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Comments to the Coast Guard should be submitted using the Federal eRulemaking Portal at 
                        <E T="03">https://www.regulations.gov.</E>
                         Search for docket number [USCG-2023-0672]. Written comments and recommendations to OIRA for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">https://www.reginfo.gov/public/do/PRAMain.</E>
                    </P>
                    <P>Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.</P>
                    <P>
                        A copy of the ICR is available through the docket on the internet at 
                        <E T="03">https://www.regulations.gov.</E>
                         Additionally, copies are available from: Commandant (CG-6P), Attn: Paperwork Reduction Act Manager, U.S. Coast Guard, 2703 Martin Luther King Jr. Ave SE, STOP 7710, Washington, DC 20593-7710.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>A.L. Craig, Office of Privacy Management, telephone 202-475-3528, or fax 202-372-8405, for questions on these documents.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Public Participation and Request for Comments</HD>
                <P>
                    This notice relies on the authority of the Paperwork Reduction Act of 1995; 44 U.S.C. 3501 
                    <E T="03">et seq.,</E>
                     chapter 35, as amended. An ICR is an application to OIRA seeking the approval, extension, or renewal of a Coast Guard collection of information (Collection). The ICR contains information describing the Collection's purpose, the Collection's likely burden on the affected public, an explanation of the necessity of the Collection, and other important information describing the Collection. There is one ICR for each Collection.
                </P>
                <P>The Coast Guard invites comments on whether this ICR should be granted based on the Collection being necessary for the proper performance of Departmental functions. In particular, the Coast Guard would appreciate comments addressing: (1) the practical utility of the Collection; (2) the accuracy of the estimated burden of the Collection; (3) ways to enhance the quality, utility, and clarity of information subject to the Collection; and (4) ways to minimize the burden of the Collection on respondents, including the use of automated collection techniques or other forms of information technology. These comments will help OIRA determine whether to approve the ICR referred to in this Notice.</P>
                <P>We encourage you to respond to this request by submitting comments and related materials. Comments to Coast Guard or OIRA must contain the OMB Control Number of the ICR. They must also contain the docket number of this request, [USCG-2023-0672], and must be received by March 14, 2024.</P>
                <HD SOURCE="HD1">Submitting Comments</HD>
                <P>
                    We encourage you to submit comments through the Federal eRulemaking Portal at 
                    <E T="03">https://www.regulations.gov.</E>
                     If your material cannot be submitted using 
                    <E T="03">https://www.regulations.gov,</E>
                     contact the person in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section of this document for alternate instructions. Documents mentioned in this notice, and all public comments, are in our online docket at 
                    <E T="03">https://www.regulations.gov</E>
                     and can be viewed by following that website's instructions. Additionally, if you go to the online docket and sign up for email alerts, you will be notified when comments are posted.
                </P>
                <P>
                    We accept anonymous comments. All comments to the Coast Guard will be posted without change to 
                    <E T="03">https://www.regulations.gov</E>
                     and will include any personal information you have provided. For more about privacy and submissions to the Coast Guard in response to this document, see DHS's eRulemaking System of Records notice (85 FR 14226, March 11, 2020). For more about privacy and submissions to OIRA in response to this document, see the 
                    <E T="03">https://www.reginfo.gov,</E>
                     comment-submission web page. OIRA posts its decisions on ICRs online at 
                    <E T="03">https://www.reginfo.gov/public/do/PRAMain</E>
                     after the comment period for each ICR. An OMB Notice of Action on each ICR will become available via a hyperlink in the OMB Control Number: 1625-0031.
                </P>
                <HD SOURCE="HD1">Previous Request for Comments</HD>
                <P>This request provides a 30-day comment period required by OIRA. The Coast Guard published the 60-day notice (88 FR 77104, November 8, 2023) required by 44 U.S.C. 3506(c)(2). That notice elicited no comments. Accordingly, no changes have been made to the Collection.</P>
                <HD SOURCE="HD1">Information Collection Request</HD>
                <P>
                    <E T="03">Title:</E>
                     Plan Approval and Records for Electrical Engineering Regulations—Title 46 CFR Subchapter J.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1625-0031.
                </P>
                <P>
                    <E T="03">Summary:</E>
                     The information is needed to ensure compliance with our rules on electrical engineering for the design and construction of U.S.-flag commercial vessels.
                </P>
                <P>
                    <E T="03">Need:</E>
                     Title 46 U.S.C. 3306 and 3703 authorize the Coast Guard to establish rules to promote the safety of life and property in commercial vessels. The electrical engineering rules appear at 46 CFR subchapter J (parts 110 through 113).
                </P>
                <P>
                    <E T="03">Forms:</E>
                     None.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     Owners, operators, shipyards, designers, and manufacturers of vessels.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Hour Burden Estimate:</E>
                     The estimated burden has decreased from 6,536 hours to 4,662 hours a year, due to an estimated decrease in the annual number of responses.
                </P>
                <P>
                    <E T="03">Authority:</E>
                     The Paperwork Reduction Act of 1995; 44 U.S.C. 
                    <E T="03">et seq.,</E>
                     chapter 35, as amended.
                </P>
                <SIG>
                    <DATED>Dated: January 30, 2024.</DATED>
                    <NAME>Kathleen Claffie,</NAME>
                    <TITLE>Chief, Office of Privacy Management, U.S. Coast Guard.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02895 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-04-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</AGENCY>
                <DEPDOC>[Docket No. FR-6445-N-01]</DEPDOC>
                <SUBJECT>Annual Indexing of Basic Statutory Mortgage Limits for Multifamily Housing Programs</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with section 206A of the National Housing Act, HUD is providing notice of adjustment to the Basic Statutory Mortgage Limits for Multifamily Housing Programs for calendar year 2024.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The adjustments are effective January 1, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Willie Fobbs III, Director, Office of Multifamily Production, Room 6134, U.S. Department of Housing and Urban Development, 451 Seventh Street SW, Washington, DC 20410-8000, telephone (202) 402-6257 (this is not a toll-free number). HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech or communication disabilities. To learn more about how to make an accessible telephone call, please visit 
                        <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Section 206A of the National Housing Act (12 U.S.C. 1712a) provides authority for the annual adjustment for the following FHA multifamily statutory dollar limits:</P>
                <PRTPAGE P="10090"/>
                <FP SOURCE="FP-2">I. Section 207(c)(3)(A) (12 U.S.C. 1713(c)(3)(A));</FP>
                <FP SOURCE="FP-2">II. Section 213(b)(2)(A) (12 U.S.C. 1715e(b)(2)(A));</FP>
                <FP SOURCE="FP-2">III. Section 220(d)(3)(B)(iii)(I) (12 U.S.C. 1715k(d)(3)(B)(iii)(I));</FP>
                <FP SOURCE="FP-2">IV. Section 221(d)(3)(ii)(I) (12 U.S.C. 1715l(d)(3)(ii)(I));</FP>
                <FP SOURCE="FP-2">V. Section 221(d)(4)(ii)(I) (12 U.S.C. 1715l(d)(4)(ii)(I));</FP>
                <FP SOURCE="FP-2">VI. Section 231(c)(2)(A) (12 U.S.C. 1715v(c)(2)(A)); and</FP>
                <FP SOURCE="FP-2">VII. Section 234(e)(3)(A) (12 U.S.C. 1715y(e)(3)(A)).</FP>
                <P>Section 206A goes on to state:</P>
                <P>(a) [the preceding] “Dollar Amounts” shall be adjusted annually (commencing in 2004) on the effective date of the Federal Reserve Board's adjustment of the $400 figure in the Home Ownership and Equity Protection Act of 1994 (HOEPA). The adjustment of the Dollar Amounts shall be calculated using the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) as applied by the Federal Reserve Board for purposes of the above-described HOEPA adjustment.</P>
                <P>
                    (b) Notification[.] The Federal Reserve Board on a timely basis shall notify the Secretary, or his designee, in writing of the adjustment described in subsection (a) and of the effective date of such adjustment in order to permit the Secretary to undertake publication in the 
                    <E T="04">Federal Register</E>
                     of corresponding adjustments to the Dollar Amounts. The dollar amount of any adjustment shall be rounded to the next lower dollar.
                </P>
                <P>Note that 206A has not been updated to reflect the fact that HOEPA has been revised to use $1,000 as the basis for the adjustment rather than $400, and the Consumer Finance Protection Bureau has replaced the Federal Reserve Board in administering the adjustment. These changes were made by the Dodd-Frank Wall Street Reform and Consumer Protection Act's amendments to the Truth in Lending Act, as further explained in the regulatory implementation of said changes found in 78 FR 6856, 6879 (Jan. 31, 2013).</P>
                <P>The percentage change in the CPI-U used for the HOEPA adjustment is a 4.9 percent increase and the effective date of the HOEPA adjustment is January 1, 2024. The Dollar Amounts under section 206A have been adjusted correspondingly and have an effective date of January 1, 2024 (see 88 FR 65113, Sept. 21, 2023).</P>
                <P>These revised statutory limits may be applied to FHA multifamily mortgage insurance applications submitted or amended on or after January 1, 2024, so long as the loan has not been initially endorsed.</P>
                <P>The adjusted Dollar Amounts for Calendar Year 2024 are shown below.</P>
                <HD SOURCE="HD1">Basic Statutory Mortgage Limits for Calendar Year 2024 Multifamily Loan Program</HD>
                <FP SOURCE="FP-1">Section 207—Multifamily Housing;</FP>
                <FP SOURCE="FP-1">Section 207 pursuant to Section 223(f)—Purchase or Refinance Housing; and,</FP>
                <FP SOURCE="FP-1">Section 220—Housing in Urban Renewal Areas</FP>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Bedrooms</CHED>
                        <CHED H="1">Non-elevator</CHED>
                        <CHED H="1">Elevator</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">0</ENT>
                        <ENT>$64,979</ENT>
                        <ENT>$75,792</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>71,980</ENT>
                        <ENT>83,980</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>85,980</ENT>
                        <ENT>102,976</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>105,977</ENT>
                        <ENT>128,972</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4+</ENT>
                        <ENT>119,977</ENT>
                        <ENT>145,833</ENT>
                    </ROW>
                </GPOTABLE>
                <FP SOURCE="FP-1">Section 213—Cooperatives</FP>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Bedrooms</CHED>
                        <CHED H="1">Non-elevator</CHED>
                        <CHED H="1">Elevator</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">0</ENT>
                        <ENT>$70,419</ENT>
                        <ENT>$74,982</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>81,196</ENT>
                        <ENT>84,952</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>97,925</ENT>
                        <ENT>103,302</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>125,346</ENT>
                        <ENT>133,641</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4+</ENT>
                        <ENT>139,644</ENT>
                        <ENT>146,700</ENT>
                    </ROW>
                </GPOTABLE>
                <FP SOURCE="FP-1">Section 234—Condominium Housing</FP>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Bedrooms</CHED>
                        <CHED H="1">Non-elevator</CHED>
                        <CHED H="1">Elevator</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">0</ENT>
                        <ENT>$71,856</ENT>
                        <ENT>$75,620</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>82,853</ENT>
                        <ENT>86,687</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>99,923</ENT>
                        <ENT>105,414</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>127,906</ENT>
                        <ENT>136,372</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4+</ENT>
                        <ENT>142,493</ENT>
                        <ENT>149,693</ENT>
                    </ROW>
                </GPOTABLE>
                <FP SOURCE="FP-1">Section 221(d)(4)—Moderate Income Housing</FP>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Bedrooms</CHED>
                        <CHED H="1">Non-elevator</CHED>
                        <CHED H="1">Elevator</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">0</ENT>
                        <ENT>$64,666</ENT>
                        <ENT>$69,853</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>73,409</ENT>
                        <ENT>80,080</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>88,733</ENT>
                        <ENT>97,379</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>111,374</ENT>
                        <ENT>125,974</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4+</ENT>
                        <ENT>125,851</ENT>
                        <ENT>138,285</ENT>
                    </ROW>
                </GPOTABLE>
                <FP SOURCE="FP-1">Section 231—Housing for the Elderly</FP>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Bedrooms</CHED>
                        <CHED H="1">Non-elevator</CHED>
                        <CHED H="1">Elevator</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">0</ENT>
                        <ENT>$61,480</ENT>
                        <ENT>$69,853</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">1</ENT>
                        <ENT>68,732</ENT>
                        <ENT>80,080</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">2</ENT>
                        <ENT>82,077</ENT>
                        <ENT>97,379</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">3</ENT>
                        <ENT>98,776</ENT>
                        <ENT>125,974</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">4+</ENT>
                        <ENT>116,129</ENT>
                        <ENT>138,285</ENT>
                    </ROW>
                </GPOTABLE>
                <FP SOURCE="FP-1">Section 207—Manufactured Home Parks</FP>
                <P>Per Space—$29,830</P>
                <HD SOURCE="HD1">Environmental Impact</HD>
                <P>This notice involves a statutorily required establishment of mortgage loan limits that does not constitute a development decision affecting the physical condition of specific project areas or building sites. Accordingly, under 24 CFR 50.19(c)(6), this notice is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321).</P>
                <SIG>
                    <NAME>Julia R. Gordon,</NAME>
                    <TITLE>Assistant Secretary for Housing—Federal Housing Administration Commissioner.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02870 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4210-67-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</AGENCY>
                <DEPDOC>[Docket No. FR-6433-N-01]</DEPDOC>
                <SUBJECT>Request for Information Regarding Iron, Steel, Construction Materials, and Manufactured Products Used in Housing Programs Pursuant to the Build America, Buy America Act</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Secretary, Department of Housing and Urban Development (HUD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Request for information.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This Request for Information (RFI) seeks public input on the implementation of the Build America, Buy America Act (BABA or the Act) as it applies to HUD's Federal Financial Assistance (FFA) provided in support of the construction, alteration, maintenance, and repair of housing infrastructure projects in the United States. The purpose of this RFI is to improve HUD's understanding of the current state of the domestic market for products required in housing infrastructure projects. HUD is especially interested in comments detailing domestic materials sourcing, market readiness, other product supply considerations, and whether specific housing products or their components are manufactured in the United States.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comment Due Date: April 15, 2024. Late-filed comments will be considered to the extent practicable.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Interested persons are invited to submit comments on this RFI. Copies of all comments submitted are available for inspection and downloading at 
                        <E T="03">www.regulations.gov.</E>
                         To receive consideration as public comments, comments must be submitted through one of the two methods specified below. All submissions must refer to the above docket number and title. Commenters are encouraged to identify the number of the specific question or questions to which they are responding. Responses should include the name(s) of the person(s) or organization(s) filing the comment; however, because any responses received by HUD will be publicly available, responses should not include any personally identifiable 
                        <PRTPAGE P="10091"/>
                        information or confidential commercial information. Business confidential information can be submitted to 
                        <E T="03">BuildAmericaBuyAmerica@hud.gov.</E>
                    </P>
                    <P>
                        1. 
                        <E T="03">Electronic Submission of Comments.</E>
                         Interested persons may submit comments electronically through the Federal eRulemaking Portal at 
                        <E T="03">www.regulations.gov.</E>
                         HUD strongly encourages commenters to submit comments electronically. Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt by HUD, and enables HUD to make them immediately available to the public. Comments submitted electronically through the 
                        <E T="03">www.regulations.gov</E>
                         website can be viewed by other commenters and interested members of the public. Commenters should follow the instructions provided on that site to submit comments electronically.
                    </P>
                    <P>
                        2. 
                        <E T="03">Submission of Comments by Mail.</E>
                         Comments may be submitted by mail to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW, Room 10276, Washington, DC 20410-0500.
                    </P>
                    <P>
                        <E T="03">No Facsimile Comments.</E>
                         Facsimile (FAX) comments will not be accepted.
                    </P>
                    <P>
                        <E T="03">Public Inspection of Comments.</E>
                         All comments and communications properly submitted to HUD will be available for public inspection and copying between 8 a.m. and 5 p.m. weekdays at the above address. Due to security measures at the HUD Headquarters building, an advance appointment to review the public comments must be scheduled by calling the Regulations Division at (202) 708-3055 (this is not a toll-free number). HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech or communication disabilities. To learn more about how to make an accessible telephone call, please visit: 
                        <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E>
                         Copies of all comments submitted are available for inspection and downloading at 
                        <E T="03">http://www.regulations.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Faith Rogers, Department of Housing and Urban Development, 451 Seventh Street SW, Room 10126, Washington, DC 20410-5000, at (202) 402-7082 (this is not a toll-free number). HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech and communication disabilities. To learn more about how to make an accessible telephone call, please visit 
                        <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E>
                         HUD encourages submission of questions about this document be sent to 
                        <E T="03">BuildAmericaBuyAmerica@hud.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Responding to This Request for Information</HD>
                <P>HUD encourages supplier and other stakeholders to identify products and categories of products that currently have sufficient domestic availability to support HUD-assisted infrastructure projects, to assist contractors and project sponsors in incorporating compliant products in their projects, and to help HUD focus its activities to benefit domestic manufacturers. To assist in gathering this information, HUD seeks input from the public, including HUD's project sponsors, their contractors and offerors, manufacturers, labor unions, transportation and trade associations, and other interested parties. HUD seeks information in several categories related to the domestic availability of products commonly used in housing infrastructure projects that are compliant with the Buy America Preference (BAP) requirements.</P>
                <P>Please indicate in your written comments the area of interest (product or category of product) and the topic number(s) below you are commenting on and provide specific examples or information to illustrate your comments where possible. You do not need to address every topic and should focus on those where you have relevant expertise or experience. In all cases, to the extent possible, please cite any public data related to or that support your responses. If data is available, but non-public, describe such data to the extent permissible.</P>
                <HD SOURCE="HD1">II. Build America, Buy America</HD>
                <P>The Build America, Buy America Act (“BABA” or “the Act”) was enacted on November 15, 2021, as part of the Infrastructure Investment and Jobs Act (“IIJA”) (Pub. L. 117-58). The Act establishes a domestic content procurement preference, the BAP, for Federal infrastructure programs. Section 70914(a) of the Act establishes that no later than 180 days after the date of enactment, HUD must ensure that none of the funds made available for infrastructure projects may be obligated by the Department unless it has taken steps to ensure that the iron, steel, manufactured products, and construction materials used in a project are produced in the United States. In section 70912, the Act further defines a project to include “the construction, alteration, maintenance, or repair of infrastructure in the United States” and includes within the definition of infrastructure those items traditionally included, along with buildings and real property.</P>
                <PRTPAGE P="10092"/>
                <HD SOURCE="HD1">III. HUD's Implementation of BABA</HD>
                <P>
                    The IIJA and the Inflation Reduction Act (Pub. L. 117-169, Aug. 16, 2022) provided historic investments for federal infrastructure, including $1 billion in funding for green retrofits. These developments in addition to HUD's base funding, provide an opportunity for significant expansion of domestic manufacturing capacity for products. Since the enactment of BABA, HUD has worked diligently to develop a plan to fully implement the BAP across its FFA programs. HUD understands that advancing Made in America objectives is a continuous effort and believes setting forth transparent implementation guidance for FFA programs provides recipients, stakeholders, and industry partners with the ability to implement the BAP efficiently and effectively to infrastructure projects involving dwelling units for eligible residents of public and assisted housing funded by HUD FFA. As part of those efforts, HUD announced plans for a phased implementation of the BAP requirements in connection with its award of FFA to all HUD programs and corresponding waiver of the applicability of the BAP consistent with the published implementation schedule.
                    <SU>1</SU>
                    <FTREF/>
                     HUD also published two general applicability, public interest waivers covering Exigent Circumstances 
                    <SU>2</SU>
                    <FTREF/>
                     and De Minimis and Small Grants.
                    <SU>3</SU>
                    <FTREF/>
                     HUD subsequently published an extension of its Public Interest, General Applicability Waiver of Build America, Buy America Provisions as Applied to Tribal Recipients of HUD Federal Financial Assistance 
                    <SU>4</SU>
                    <FTREF/>
                     to provide additional time for consultation concerning its efforts to implement the Act and its Public Interest, General Applicability Waiver of Build America, Buy America Provisions as Applied to Pacific Island/Territory Recipients of HUD Federal Financial Assistance is under review.
                    <SU>5</SU>
                    <FTREF/>
                     All waivers can be found at 
                    <E T="03">https://www.hud.gov/program_offices/general_counsel/build_america_buy_america/waiver.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         88 FR 17001, March 21, 2023.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         87 FR 76505, December 14, 2022.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         87 FR 76502, December 14, 2022.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         88 FR 34514, May 30, 2023.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         88 FR 52197, September 1, 2023.
                    </P>
                </FTNT>
                <P>
                    On June 1, 2022, HUD published “Request for Information Relating to the Implementation of the Build America, Buy America Act” 
                    <SU>6</SU>
                    <FTREF/>
                     to, among other things, gather additional information necessary to fully implement the BAP for HUD programs. HUD thoroughly reviewed public comments received in response to its 2022 Request for Information and proposed general applicability waivers, in addition to housing stakeholders' self-initiated comments submitted since the initial effective date of BABA. Though helpful in informing prior actions, these comments did not provide the level of detail necessary for HUD to know what resources and guidance would be most helpful to help recipients transition to compliance with the Buy America preference requirements, to include identifying specific products purchased with FFA dollars and whether those items are being procured from domestic sources.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         87 FR 33193, June 1, 2022.
                    </P>
                </FTNT>
                <P>
                    HUD seeks greater clarity and data to analyze and respond to the stakeholder comments, particularly in light of the “Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure” (M-24-02) and the final Guidance for Grants and Agreements set forth in parts 184 and 200 of title 2 of the Code of Federal Regulations.
                    <SU>7</SU>
                    <FTREF/>
                     HUD is seeking more detailed product-specific information on the domestic availability of iron, steel, construction materials and manufactured products commonly used in HUD-assisted housing programs and infrastructure projects. Responses to this RFI will improve HUD's understanding of the current domestic market for these products to effectively implement BABA for projects funded by its housing programs and to evaluate the potential need for short-term product waivers from BABA requirements if products are unavailable. It will also assist HUD in determining how best to engage with industry to identify potential options to encourage the expansion of domestic production in areas that are not currently available and the timing for when items currently waived may become available from domestic sources.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         88 FR 57750, August 23, 2023'.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. OMB Implementation Guidance</HD>
                <P>
                    On April 18, 2022, OMB issued the M-22-11 to heads of Executive Departments and Agencies.
                    <SU>8</SU>
                    <FTREF/>
                     OMB provided initial guidance to assist agencies in developing interpretations of BABA and key terminology, how to apply the BAP to FFA used for infrastructure, and how agencies should structure a transparent waiver process.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Initial Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure, M-22-11, available at 
                        <E T="03">https://www.whitehouse.gov/wp-content/uploads/2022/04/M-22-11.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    On February 9, 2023, OMB issued a Notification of Proposed Guidance in the 
                    <E T="04">Federal Register</E>
                     proposing a new Part 184 in 2 CFR chapter 1 to support implementation of BABA and to clarify existing provisions in 2 CFR 200.322.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         2 CFR parts 184 and 200.
                    </P>
                </FTNT>
                <P>
                    On August 23, 2023, OMB published its final Guidance for Grants and Agreements in the 
                    <E T="04">Federal Register</E>
                     with revisions to provide additional guidance on implementing the BAP statutory requirements and improve FFA management and transparency. The new part 184.3 includes definitions for key terms, including iron or steel products, manufactured products, construction materials, and materials identified in section 70917(c) of the Act.
                    <SU>10</SU>
                    <FTREF/>
                     The guidance became effective October 23, 2023.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Public Law 117-58 at section 70917(c).
                    </P>
                </FTNT>
                <P>
                    On October 25, 2023, OMB issued M-24-02 to provide supplemental and updated guidance such as modifying Section VII of M-22-11 on “Issuing Buy America Waivers” and summarizing 2 CFR part 184 with definitions of key terms.
                    <SU>11</SU>
                    <FTREF/>
                     With final guidance, HUD is publishing this RFI in an effort to understand the impact of compliance and applying the BAP to construction materials and manufactured products as defined in Part 184.3 of the final guidance and pursuant to M-24-02.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         2 CFR 184.3.
                    </P>
                </FTNT>
                <P>BABA requires each covered Federal agency to ensure that “none of the funds made available for a Federal financial assistance program for infrastructure . . . [are] obligated for a project unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States” except if a waiver is granted. (Pub. L. 117-58, sec. 70914). These requirements apply to an entire infrastructure project funded by Federal financial assistance, including those funded by HUD housing programs, even if it is also funded by non-Federal funds. HUD is committed to ensuring strong and effective BABA implementation and compliance.</P>
                <P>For all predominantly iron or steel products used in infrastructure projects that involve the obligation of Federal financial assistance, all manufacturing processes of the iron and/or steel components, beginning with initial melting and including application of a coating, must occur in the United States. (Pub. L. 117-58, sec. 70912(6)(A)).</P>
                <P>
                    Manufactured products must be produced in the United States, meaning the final point of manufacturing must occur in the United States and the cost of the components of the manufactured product that are mined, produced, or manufactured in the United States is 
                    <PRTPAGE P="10093"/>
                    greater than 55 percent of the total cost of all components of the manufactured product. (Pub. L. 117-58, sec. 70912(6)(B)).
                </P>
                <P>For construction materials, all manufacturing processes must occur in the United States. (Pub. L. 117-58, sec. 70912(6)(c)). Construction materials include incorporated products primarily made of non-ferrous metals, plastic and polymer-based products (including polyvinylchloride), fiber optic cable (including drop cable), optical fiber, glass, lumber, engineered wood, and drywall. (Pub. L. 117-58, sec. 70911(5), and 2 CFR 184.6).</P>
                <HD SOURCE="HD1">V. Request for Information</HD>
                <P>This RFI will assist HUD in implementing and ensuring compliance with BABA based on the guidance provided by M-24-02 and the final guidance on Grants and Agreements as set forth in 2 CFR parts 184 and 200.322. Responses to this RFI will assist HUD in furthering the goals and objectives of BABA and provide information necessary to understand the best methods to implement the BAP for HUD FFA used in housing infrastructure projects to maximize the use of iron, steel, construction materials, and manufactured products produced in the United States. Through this RFI, HUD seeks information in Questions 1-4 regarding the domestic availability of specific housing infrastructure products identified in this notice. HUD is interested in promptly obtaining more information on this and other issues discussed in this notice to assess if enough products/systems are currently available to comply with BABA requirements or whether sufficient products would be available in the future, and if so, when. This information will also be supplied to all applicable federal agencies that also manage housing infrastructure programs. In Question 5, HUD also seeks input and recommendations on how to ensure efficient and cost-effective compliance with BAP.</P>
                <P>
                    HUD analysis of material and manufactured product sourcing for the construction of housing finds that many materials and manufactured products used in the construction of housing are largely available from domestic producers, such as: cement and concrete products; architectural and structural metals (
                    <E T="03">e.g.,</E>
                     metal windows and doors, sheet metal ductwork, and rails and fencing); petroleum and coal products (
                    <E T="03">e.g.,</E>
                     asphalt roofing and paving materials, any petroleum-based fuels and lubricating products); plastic products (
                    <E T="03">e.g.,</E>
                     plastic piping, plumbing fixtures and polystyrene foam insulation); household and institutional furniture and kitchen cabinets; wood products (sawn lumber and treated wood products, plywood and engineered wood products, and other wood products); and heating, ventilation, and air conditioning equipment.
                </P>
                <P>However, HUD identified items which may not be manufactured in the United States with standards compliant with the Act, as well as items which may be manufactured in the United States, but not with the requisite share of cost of components to be considered compliant. Through this notice, HUD is requesting information to assist HUD in implementing and ensuring compliance with OMB standards. HUD welcomes comments and information from the public on what products are most utilized in HUD-assisted housing projects, and their availability from domestic sources that meet requirements for iron, steel, construction materials or manufactured products as specified in the Act. See Section “I. Responding to this Request for Information” for more information about who is invited to comment on this notice.</P>
                <P>HUD specifically requests information from the public on all categories of products included in HUD infrastructure grant programs. The following is an example list but not exhaustive:</P>
                <FP SOURCE="FP-1">—Lighting fixtures</FP>
                <FP SOURCE="FP-1">—Electrical equipment and components</FP>
                <FP SOURCE="FP-1">—Electrical wiring</FP>
                <FP SOURCE="FP-1">—Ceramic plumbing fixtures</FP>
                <FP SOURCE="FP-1">—Windows</FP>
                <FP SOURCE="FP-1">—Home and garage doors</FP>
                <FP SOURCE="FP-1">—Elevators</FP>
                <FP SOURCE="FP-1">—Plumbing</FP>
                <FP SOURCE="FP-1">—Other products for energy efficiency upgrades and climate resilience: geothermal, solar panels, radiant heat, heat pumps, insultation (roof, ceiling, wall, floor)</FP>
                <P>Questions 1, 2, 3, 4: For each of these products or categories of products used in HUD infrastructure grant programs and based on your current understanding of BABA requirements, HUD is requesting the following information about the following four general topics: domestic materials sourcing and manufacturing, market readiness, delivery lead times and other. You may also respond to these prompts for products not included in this list that are essential to completing the construction, alteration, maintenance, or repair of HUD-assisted housing projects. At the beginning of your response, please specify the products for which you are providing an answer:</P>
                <HD SOURCE="HD2">1. Domestic Materials Sourcing and Manufacturing</HD>
                <P>a. For each of the products or categories of products you identified, please specify whether products are available that meet BABA requirements (described above) or are currently manufactured in the United States to meet a domestic final assembly condition. (Yes or no). To the best of your ability, please identify the countries of origin for the produces not sourced domestically.</P>
                <P>b. Please identify whether the products in your response fall within the iron and steel, manufactured products, or construction materials categories of BABA.</P>
                <P>c. If you answered “Yes” to Topic 1(a), to the best of your knowledge.</P>
                <P>i. Please identify all manufacturers that can either meet BABA requirements or can currently manufacture products or categories of products you specified in the United States. For products that meet the condition of manufactured in the United States, please identify the manufacturing location and percentage of components manufactured in the United States as calculated by cost of components (if known).</P>
                <P>ii. What is the current production capacity of the products that can meet BABA requirements?</P>
                <P>iii. What is the anticipated growth in BABA-compliant capacity over the next five years? Does this anticipated growth consider the increased funding provided across federal agencies to invest in clean energy products? Please explain.</P>
                <P>iv. For products able to meet BABA requirements, what is the estimated lead time from purchase order to delivery to the project site? Has this lead time increased or decreased in recent years?</P>
                <P>d. If you answered “No” to Topic 1a:</P>
                <P>i. What actions are manufacturers taking/could take to increase the manufacturing of products that will meet BABA requirements?</P>
                <P>
                    ii. What additional support or incentives (
                    <E T="03">e.g.,</E>
                     financial, rulemaking certainty, etc.) are needed to ensure a sufficient supply of products that meet BABA requirements?
                </P>
                <P>iii. How long might it take to implement the steps needed to increase or begin production of BABA compliant products?</P>
                <P>iv. If a plan is in place to manufacture BABA compliant products, what is the volume of specific products that will follow BABA requirements and in what time frame?</P>
                <P>
                    v. Will the volume of BABA compliant products be ramped up over time, and, if so, at what annual growth rate?
                    <PRTPAGE P="10094"/>
                </P>
                <P>vi. What are the limiting factors for the product's ability to meet criteria for BABA compliance? For example, are there components of these products for which it is hard to meet BABA requirements? Please describe each component separately and indicate approximately what percent of component value it represents.</P>
                <HD SOURCE="HD2">2. Market Readiness</HD>
                <P>a. For all products specified in Topic 1(a), provide your observations on the current and near-term demand expected for these products or categories of products, using specific numbers where possible. Does this estimate of future demand consider the increased funding described above? Please explain.</P>
                <P>b. Provide information regarding whether the current and/or near-term manufacturing capacity would be adequate to meet the expected market demand, citing specific numbers where possible. Please specify any factors helping or preventing the industry from meeting the expected demand today and in the near-term and provide information on the current and expected availability or unavailability of key components or sub-components of the product or category of products you specified. If applicable, please identify products where there is only one known domestic manufacturer prepared to meet Buy America requirements.</P>
                <P>c. Are there factors that make it difficult to credibly respond to questions a and b of this section? If so, please describe the limitations in your analysis as specifically as possible.</P>
                <P>
                    d. Are there opportunities for innovation (
                    <E T="03">e.g.,</E>
                     products that are currently or potentially being developed in the U.S. that could offer improved performance or reduced costs to HUD stakeholders?). If so, what challenges and opportunities do you see to advancing this innovation? (For example, some products, such as heat pumps, offer lower life-cycle costs but higher initial costs; this change in cost structure may lead to purchasing challenges.
                </P>
                <HD SOURCE="HD2">3. Timing</HD>
                <P>a. Where known, for each product/category of products specified in Topic 1, specify the current range of expected product delivery timeframes. Are any existing supply chain delays applicable or anticipated for the product(s) or critical components of the product(s)?</P>
                <P>b. Provide information, if available, on expected delivery timeframe outlooks through the near-term future. Provide information, if known, on whether current timing delivery concerns are related to a temporary disruption.</P>
                <P>c. Provide information on the current and expected near-term average customer delivery time.</P>
                <P>d. Provide information regarding global supply chain constraints, local permitting, safety requirements and needs that may affect delivery timeframes or extend installation time. Provide any known information of products that are in the process of “onshoring” as a result of recent statutory, regulatory, or market changes.</P>
                <HD SOURCE="HD2">4. Other Practical Considerations</HD>
                <P>Please specify any other considerations for HUD regarding production, products, systems, equipment, or components of products used in housing infrastructure.</P>
                <HD SOURCE="HD2">5. BAP Compliance and Impact</HD>
                <P>HUD seeks input and recommendations on how to ensure compliance with BABA in the most efficient and cost-effective way. HUD is interested in answers to the following questions that will help inform Agency technical assistance and implementation:</P>
                <P>a. What type of contractual language has been utilized to ensure compliance with the BAP? If contractual language has been utilized to ensure compliance with a Buy America requirement, when was it first added?</P>
                <P>b. Are there existing mechanisms to determine qualified contractors that use American made iron, steel, manufactured products, or construction materials? Furthermore, how do recipients currently track contractor sourcing? What resources have been identified with respect to contractor sourcing with the adoption of a domestic content procurement preference or the BAP?</P>
                <P>c. Is there a need for standard contractual provisions to deal with potential delays arising from BABA compliance? If there is a need for a product specific waiver, when would contractors know about the need?</P>
                <P>d. What other Federal agency funding do you use to complete a HUD funded housing project?</P>
                <P>e. What is the estimated impact of compliance with BAP on HUD assisted programs?</P>
                <P>f. What is the current cost associated with the development, maintenance, and operation of affordable housing compliant with applicable HUD requirements? What is the estimate of the impact of the implementation of the BAP in connection with HUD-funded projects? Examples of specific products would be especially helpful here.</P>
                <P>All information submitted will assist HUD in determining the extent to which additional guidance or other actions are necessary to facilitate the robust implementation of the BAP requirements across HUD's programs. Commenters should provide data and evidence to support their responses to the questions in this RFI.</P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Marcia L. Fudge,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02900 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4210-67-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">INSTITUTE OF AMERICAN INDIAN AND ALASKA NATIVE CULTURE AND ARTS DEVELOPMENT</AGENCY>
                <SUBJECT>Request for Nominations to the Board of Trustees</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Institute of American Indian and Alaska Native Culture and Arts Development (aka Institute of American Indian Arts).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; request for nominations.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Board directs the Administration of the Institute of American Indian and Alaska Native Culture and Arts Development, including soliciting, accepting, and disposing of gifts, bequests, and other properties for the benefit of the Institute. The Institute provides scholarly study of and instruction in Indian art and culture and establishes programs which culminate in the awarding of degrees in the various fields of Indian art and culture. The Board consists of thirteen members appointed by the President of the United States, by and with the consent of the U.S. Senate, who are American Indians or persons knowledgeable in the field of Indian art and culture. This notice requests nominations to fill five expiring terms on the Board of Trustees.</P>
                </SUM>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Institute of American Indian Arts, 83 Avan Nu Po Road, Santa Fe, New Mexico 87508.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Dr. Robert Martin, President, 505-424-2301.</P>
                    <SIG>
                        <DATED>Dated: January 30, 2024.</DATED>
                        <NAME>Robert Martin,</NAME>
                        <TITLE>President.</TITLE>
                    </SIG>
                </FURINF>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02975 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4312-W4-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="10095"/>
                <AGENCY TYPE="N">DEPARTMENT OF AGRICULTURE</AGENCY>
                <SUBAGY>Forest Service</SUBAGY>
                <AGENCY TYPE="O">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Fish and Wildlife Service</SUBAGY>
                <DEPDOC>[FWS-R7-SM-2023-N101; FF07J00000-245-FXRS12610700000]</DEPDOC>
                <SUBJECT>Alaska Subsistence Regional Advisory Council Meetings for 2024</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Forest Service, Agriculture; Fish and Wildlife Service, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of meetings.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Federal Subsistence Board (Board) announces the public meetings of the 10 Alaska Subsistence Regional Advisory Councils (Councils) for the winter and fall cycles of 2024. The Councils each meet approximately twice a year to provide advice and recommendations to the Board about subsistence hunting and fishing issues on Federal public lands in Alaska.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P/>
                    <P>
                        <E T="03">Winter 2024 Meetings:</E>
                         The Councils will meet during a joint session on March 5, 2024, will hold joint training session on March 6, 2024, and will hold individual concurrent sessions on March 7-8, 2024, in Anchorage, Alaska. The meetings will begin at 8 a.m. Alaska time and end at approximately 5 p.m. each day. For more information about accessing the meetings, visit the Federal Subsistence Management Program website, at 
                        <E T="03">https://www.doi.gov/subsistence/regions.</E>
                    </P>
                    <P>
                        <E T="03">Fall 2024 Meetings:</E>
                         The Councils will meet between August 19 and October 30, 2024, as shown in table 1. For more information about accessing the meetings, including start times, visit 
                        <E T="03">https://www.doi.gov/subsistence/regions.</E>
                    </P>
                </DATES>
                <GPOTABLE COLS="3" OPTS="L2,nj,i1" CDEF="s100,r50,xs70">
                    <TTITLE>Table 1—Fall 2024 Meetings of the Alaska Subsistence Regional Advisory Councils</TTITLE>
                    <BOXHD>
                        <CHED H="1">Regional Advisory Council</CHED>
                        <CHED H="1">Dates</CHED>
                        <CHED H="1">Location</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Southeast Alaska—Region 1</ENT>
                        <ENT>October 22-24</ENT>
                        <ENT>Ketchikan.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Southcentral Alaska—Region 2</ENT>
                        <ENT>October 10-11</ENT>
                        <ENT>Anchorage.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Kodiak/Aleutians—Region 3</ENT>
                        <ENT>September 4-6</ENT>
                        <ENT>Unalaska.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bristol Bay—Region 4</ENT>
                        <ENT>October 29-30</ENT>
                        <ENT>Dillingham.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Yukon-Kuskokwim Delta—Region 5</ENT>
                        <ENT>August 27-29</ENT>
                        <ENT>Bethel.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Western Interior—Region 6</ENT>
                        <ENT>October 2-3</ENT>
                        <ENT>Galena.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Seward Peninsula—Region 7</ENT>
                        <ENT>October 24-25</ENT>
                        <ENT>Nome.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Northwest Arctic—Region 8</ENT>
                        <ENT>October 28-29</ENT>
                        <ENT>Kotzebue.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Eastern Interior—Region 9</ENT>
                        <ENT>October 8-10</ENT>
                        <ENT>Tanana.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">North Slope—Region 10</ENT>
                        <ENT>August 19-20</ENT>
                        <ENT>Utqiagvik.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>All meetings are open to the public.</P>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Specific information about meeting locations and the final agendas can be found at 
                        <E T="03">https://www.doi.gov/subsistence/regions.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Chair, Federal Subsistence Board, c/o U.S. Fish and Wildlife Service; Attention: Amee Howard, Acting Assistant Regional Director, Office of Subsistence Management; (907) 786-3888 (phone) or 
                        <E T="03">subsistence@fws.gov</E>
                         (email). For questions specific to National Forest System lands, contact Gregory Risdahl, Subsistence Program Leader, (907) 302-7354 (phone) or 
                        <E T="03">gregory.risdahl@usda.gov</E>
                         (email). Individuals in the United States who are deaf, blind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States.
                    </P>
                    <P>
                        <E T="03">Reasonable Accommodations:</E>
                         The Federal Subsistence Board is committed to providing access to these meetings for all participants. Please make requests in advance for sign language interpreter services, assistive listening devices, or other reasonable accommodations. Please make requests to Katerina Wessels, (907) 786-3885 (phone) or 
                        <E T="03">katerina_wessels@fws.gov</E>
                         (email), at least 7 business days prior to the meeting you would like to attend, to give the U.S. Fish and Wildlife Service sufficient time to process your request. All reasonable accommodation requests are managed on a case-by-case basis.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Federal Subsistence Board (Board) announces the 2024 public meeting schedule for the 10 Alaska Subsistence Regional Advisory Councils (Councils), in accordance with the Federal Advisory Committee Act (5 U.S.C. ch. 10). Established in 1993, the Councils are statutory Federal advisory committees that provide a public forum for their regions and recommendations to the Board about subsistence hunting, trapping, and fishing issues on Federal public lands in Alaska, as authorized by section 805 of the Alaska National Interest Lands Conservation Act (ANILCA; 16 U.S.C. 3111-3126).</P>
                <P>The Councils are a crucial link between federally qualified subsistence users and the Board. The Board is a multi-agency body that includes representatives of the U.S. Fish and Wildlife Service, National Park Service, Bureau of Land Management, Bureau of Indian Affairs, and U.S. Forest Service, as well as a chair and two public members who are appointed by the Secretary of the Interior with the concurrence of the Secretary of Agriculture.</P>
                <P>Each Council meets approximately two times per calendar year, once in the winter and once in the fall, to attend to business and develop proposals and recommendations to the Board.</P>
                <HD SOURCE="HD1">Meeting Agendas</HD>
                <HD SOURCE="HD2">Winter Meetings</HD>
                <P>• Joint session of 10 Councils:</P>
                <P>○ Regional reports on subsistence uses and issues for each region.</P>
                <P>○ Office of Subsistence Management, Federal Subsistence Board, and other agency reports.</P>
                <P>○ Current trends in impacts to subsistence.</P>
                <P>○ Youth engagement in subsistence management.</P>
                <P>○ Awards and recognition of the Council members.</P>
                <P>• Individual Council breakout sessions:</P>
                <P>○ General Council business: Review and adoption of agenda, election of officers, review and approval of previous meeting minutes, Council Chair and members reports, public and Tribal comments on non-agenda items.</P>
                <P>○ Develop proposals and accept public comments on potential changes to regulations for subsistence take of fish and shellfish.</P>
                <P>
                    ○ Review and approve annual report.
                    <PRTPAGE P="10096"/>
                </P>
                <P>○ Agency, Tribal governments, Native organizations, State of Alaska, and nongovernmental organizations reports.</P>
                <P>○ Future meeting dates.</P>
                <HD SOURCE="HD2">Fall Meetings</HD>
                <P>• General Council business: Review and adoption of agenda, review and approval of previous meeting minutes, Council Chair and members reports, public and Tribal comments on non-agenda items.</P>
                <P>• Prepare recommendations and accept public comments on proposals to change subsistence take of fish and shellfish regulations and review and prepare recommendations on fisheries closures.</P>
                <P>• Define issues for upcoming annual report.</P>
                <P>• Develop priority information needs for the Fisheries Resource Monitoring Program.</P>
                <P>• Agency, Tribal governments, Native organizations, State of Alaska, and nongovernmental organizations reports. Future meeting dates.</P>
                <P>
                    A notice will be published with specific dates, times, and meeting locations in local and statewide newspapers prior to both series of meetings; in addition, announcements will be made on local radio stations and posted on social media and the Federal Subsistence Management Program website (
                    <E T="03">https://www.doi.gov/subsistence/regions</E>
                    ). Locations and dates may change based on weather or local circumstances. A teleconference will substitute for an in-person meeting if public health or safety restrictions are in effect. The final draft agendas, call-in numbers, instructions on how to participate and provide public comments, and other related meeting information will be posted on the Federal Subsistence Management Program website and at 
                    <E T="03">https://www.facebook.com/subsistencealaska/.</E>
                     Transcripts of the meetings are maintained by the program and will be available for public inspection within 14 days after each meeting at 
                    <E T="03">https://www.doi.gov/subsistence/regions.</E>
                </P>
                <HD SOURCE="HD1">Public Submission of Comments</HD>
                <P>Time will be allowed for any individual or organization wishing to present oral or written comments. If you are not available to submit your comments, you may have another party present your comments on your behalf. Any written comments received will be presented to the Council members by staff.</P>
                <HD SOURCE="HD1">Public Availability of Comments</HD>
                <P>Before including your address, phone number, email address, or other personally identifiable information in your comment, you should be aware that your entire comment—including your personal identifiable information—may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifiable information from public review, we cannot guarantee that we will be able to do so.</P>
                <HD SOURCE="HD1">Authority</HD>
                <P>5 U.S.C. ch. 10.</P>
                <SIG>
                    <NAME>Amee Howard,</NAME>
                    <TITLE>Acting Assistant Regional Director, U.S. Fish and Wildlife Service.</TITLE>
                    <NAME>Gregory Risdahl,</NAME>
                    <TITLE>Subsistence Program Leader, USDA—Forest Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02905 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4333-15-P; 3411-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[XXXD5198NI DS61100000 DNINR0000.000000 DX61104]</DEPDOC>
                <SUBJECT>Notice of Call for Nominations for the Exxon Valdez Oil Spill Public Advisory Committee</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Secretary, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Call for Nominations Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Department of the Interior is soliciting nominations for the 
                        <E T="03">Exxon Valdez</E>
                         Oil Spill Public Advisory Committee (Committee). This Committee advises the 
                        <E T="03">Exxon Valdez</E>
                         Oil Spill Trustee Council on decisions related to the planning, evaluation, funds allocation, and conduct of injury assessment and restoration activities related to the T/V 
                        <E T="03">Exxon Valdez</E>
                         oil spill of March 1989.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>All nominations must be received by March 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Send nomination packages by hard copy or via email to Shiway Wang, Executive Director, 
                        <E T="03">Exxon Valdez</E>
                         Oil Spill Trustee Council, 4230 University Drive, Suite 220, Anchorage, Alaska 99508-4650, or at 
                        <E T="03">shiway.wang@alaska.gov.</E>
                         Also please copy Joy Maglaqui, Executive Assistant, on any email correspondence at 
                        <E T="03">joy.maglaqui@alaska.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Grace Cochon, Department of the Interior, Office of Environmental Policy and Compliance, telephone number: (907) 786-3620; email: 
                        <E T="03">grace_cochon@ios.doi.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The Committee was created pursuant to Paragraph V.A.4 of the Memorandum of Agreement and Consent Decree entered into by the United States of America and the State of Alaska on August 27, 1991, and approved by the United States District Court for the District of Alaska in settlement of 
                    <E T="03">United States of America</E>
                     v. 
                    <E T="03">State of Alaska,</E>
                     Civil Action No. A91-081 CV. The Committee advises the Trustee Council on matters relating to decisions on injury assessment, restoration activities, or other use of natural resource damage recoveries obtained by the government. The Trustee Council consists of representatives of the U.S. Department of the Interior, U.S. Department of Agriculture, National Oceanic and Atmospheric Administration, Alaska Department of Fish and Game, Alaska Department of Environmental Conservation, and Alaska Department of Law.
                </P>
                <P>The Committee consists of 10 members to reflect balanced representation from each of the following principal interests: aquaculture/mariculture, commercial tourism, conservation/environmental, recreation, subsistence use, commercial fishing, native landownership, sport hunting/fishing, science/technology, and public-at-large. We are soliciting nominations for seven positions that represent aquaculture/mariculture, commercial tourism, recreation, subsistence use, commercial fishing, native landownership, and public-at-large interests. The Committee members will be selected and appointed by the Secretary of the Interior to serve a four-year term.</P>
                <P>
                    <E T="03">Nomination Process:</E>
                     Nominations for membership may be submitted by any source. Nominations should include a résumé providing an adequate description of the nominee's qualifications, including information that would enable the Department of the Interior to evaluate the nominee's ability to meet Committee membership requirements and to contact a potential member.
                </P>
                <P>
                    <E T="03">Authority:</E>
                     5 U.S.C. ch. 10.
                </P>
                <SIG>
                    <NAME>Lisa M. Fox,</NAME>
                    <TITLE>Regional Environmental Officer, Office of Environmental Policy and Compliance.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02960 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4334-63-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="10097"/>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Bureau of Land Management</SUBAGY>
                <DEPDOC>[BLM_OR_FRN_MO4500176898]</DEPDOC>
                <SUBJECT>Establishment and Call for Nominations for the San Juan Islands National Monument Advisory Committee</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Land Management, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Bureau of Land Management (BLM) is publishing this notice in accordance with the Federal Land Policy and Management Act (FLPMA) and the Federal Advisory Committee Act (FACA). The BLM gives notice that the Secretary of the Interior is establishing the San Juan Islands National Monument Advisory Committee (MAC) and seeking nominations for individuals to be considered as MAC members.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments regarding the establishment of this MAC must be submitted no later than February 28, 2024. Nominations for the MAC must be submitted by March 29, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Nominations for the MAC should be sent to 1103 N Fancher Rd., Spokane Valley, WA 99212; or email 
                        <E T="03">tedwards@blm.gov,</E>
                         with a subject line “2024 MAC Nominations.”
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Travis Edwards, BLM Spokane District Office, email: 
                        <E T="03">tedwards@blm.gov,</E>
                         telephone: (509) 361-1297. Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The MAC was established under the authority of Presidential Proclamation, “Establishment of the San Juan Islands National Monument” (March 25, 2013), to advise the Secretary of the Interior with respect to the preparation and maintenance of the San Juan Islands National Monument Resource Management Plan (RMP). The approved RMP and Record of Decision Notice of Availability was published in the 
                    <E T="04">Federal Register</E>
                     on January 31, 2023. Therefore, the MAC has sunset under its original authority. The Secretary of the Interior determined that the MAC remains an important part of ongoing management of the San Juan Islands National Monument (Monument), and it is being established as a discretionary committee under agency authority in accordance with section 309 of FLPMA, as amended (43 U.S.C. 1739). The BLM is also subject to standards and procedures for the creation, operation, and termination of BLM resource advisory councils at 43 CFR 1784.
                </P>
                <P>The MAC will include thirteen representative members to be appointed by the Secretary of the Interior as follows:</P>
                <P>(a) One member representing archeological, cultural, and heritage interests;</P>
                <P>(b) One member representing wildlife and ecological interests;</P>
                <P>(c) One member representing the interests of a nonprofit organization whose mission is conservation and/or management of natural resources, land, or water;</P>
                <P>(d) One member representing natural resource management or natural sciences interests;</P>
                <P>(e) One member representing recreation and tourism interests;</P>
                <P>(f) One member representing local youth, education, and interpretation interests;</P>
                <P>(g) Two members that have significant cultural or historic connections to, and knowledge about, the landscape, archeological sites, or cultural sites connected to the Monument;</P>
                <P>(h) One member who holds State, county, or local elected office;</P>
                <P>(i) One member representing conservation and/or management of natural resources, land, or water interests;</P>
                <P>(j) One member representing local interests that is a resident of Lopez Island; and</P>
                <P>(h) One member of the public-at-large.</P>
                <P>Members will be appointed to the MAC to serve three-year staggered terms.</P>
                <P>
                    <E T="03">Nominating Potential Members:</E>
                     Nominations should include a resume providing an adequate description of the nominee's qualifications, including information that would enable the Department of the Interior to make an informed decision regarding the membership requirements of the MAC and permit the Department of the Interior to contact a potential member. Nominees are strongly encouraged to include supporting letters from employers, associations, professional organizations, and/or other organizations that indicate support by a meaningful constituency for the nominee. Please indicate any BLM permits, leases, or licenses that you hold personally or are held by your employer.
                </P>
                <P>Members of the MAC serve without compensation. However, while away from their homes or regular places of business, members engaged in MAC business may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by 5 U.S.C. 5703, in the same manner as persons employed intermittently in Federal Government service.</P>
                <P>The MAC will meet approximately two to four times annually, and at such other times as designated by the Designated Federal Officer. Simultaneous with this notice, the BLM will issue a press releases providing additional information for submitting nominations.</P>
                <P>
                    <E T="03">Public Disclosure of Comments:</E>
                     Before including your address, phone number, email address, or other personally identifiable information (PII) in your comment, you should be aware that your entire comment—including your PII—may be made publicly available at any time. While you may ask us in your comment to withhold your PII from public review, we cannot guarantee that we will be able to do so.
                </P>
                <P>
                    <E T="03">Certification Statement:</E>
                     I hereby certify that the San Juan Islands National Monument Advisory Committee, is necessary, in the public interest, and is in connection with the performance of duties imposed on the Department of the Interior by the Bureau of Land Management Federal Land Policy and Management Act (43 U.S.C. 1739), and other statutes relating to the administration of the Bureau of Land Management.
                </P>
                <P>
                    <E T="03">Authority:</E>
                     43 CFR 1784.4-1.
                </P>
                <SIG>
                    <NAME>Deb Haaland,</NAME>
                    <TITLE>Secretary of the Interior.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02939 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4331-24-M</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Bureau of Land Management</SUBAGY>
                <DEPDOC>[LLHQ260000 L10600000.PC0000; OMB Control Number 1004-0042]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Protection, Management, and Control of Wild Horses and Burros</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Land Management, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of information collection; request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In accordance with the Paperwork Reduction Act of 1995 
                        <PRTPAGE P="10098"/>
                        (PRA), the Bureau of Land Management (BLM) proposes to renew an information collection.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Interested persons are invited to submit comments on or before March 14, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for this information collection request (ICR) should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        To request additional information about this ICR, contact Amy G. Ruhs by email at 
                        <E T="03">aruhs@blm.gov,</E>
                         or by telephone at (775) 525-4164. Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States. You may also view the ICR at 
                        <E T="03">http://www.reginfo.gov/public/do/PRAMain.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    In accordance with the PRA (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ) and 5 CFR 1320.8(d)(1), we invite the public and other Federal agencies to comment on new, proposed, revised and continuing collections of information. This helps the BLM assess impacts of its information collection requirements and minimize the public's reporting burden. It also helps the public understand BLM information collection requirements and ensure requested data are provided in the desired format.
                </P>
                <P>
                    A 
                    <E T="04">Federal Register</E>
                     notice with a 60-day public comment period soliciting comments on this collection of information was published on July 19, 2023 (88 FR 46175). Nineteen (19) comments were received in response to that notice. These comments, along with the BLM's response are summarized in the information collection request submitted to OMB and are available as noted in the 
                    <E T="02">ADDRESSES</E>
                     section of this notice.
                </P>
                <P>As part of our continuing effort to reduce paperwork and respondent burdens, we are again inviting the public and other Federal agencies to comment on the proposed ICR described below. The BLM is especially interested in public comment addressing the following:</P>
                <P>(1) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility.</P>
                <P>(2) The accuracy of our estimate of the burden for this collection of information, including the validity of the methodology and assumptions used.</P>
                <P>(3) Ways to enhance the quality, utility, and clarity of the information to be collected; and</P>
                <P>
                    (4) How might the agency minimize the burden of the collection of information on those who are to respond, including the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submission of response.
                </P>
                <P>Comments submitted in response to this notice are a matter of public record. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.</P>
                <P>
                    <E T="03">Abstract:</E>
                     In accordance with the Wild Free-Roaming Horses and Burros Act (16 U.S.C. 1331-1340) and the regulations at 43 CFR part 4700, the BLM collects specific information from individuals in order to determine (1) if applicants are qualified to adopt or purchase wild horses and burros, (2) whether or not to authorize an adopter or purchaser to maintain more than four wild horses and burros, (3) whether or not to grant requests for replacement animals or refunds, and (4) whether or not to terminate a private maintenance and care agreement. This OMB Control Number is currently scheduled to expire 05/31/2024. This request is for OMB to renew OMB control number 1004-0042 for an additional three (3) years.
                </P>
                <P>
                    <E T="03">Title of Collection:</E>
                     Protection, Management, and Control of Wild Horses and Burros (43 CFR part 4700).
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1004-0042.
                </P>
                <P>
                    <E T="03">Form Numbers:</E>
                     4710-10 and 4710-24.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension of a currently approved collection.
                </P>
                <P>
                    <E T="03">Respondents/Affected Public:</E>
                     Those who wish to adopt, purchase, foster, or train a wild horse or burro.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Respondents:</E>
                     8,045.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Responses:</E>
                     8,588.
                </P>
                <P>
                    <E T="03">Estimated Completion Time per Response:</E>
                     Varies from 10 minutes to 30 minutes, depending on activity.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Burden Hours:</E>
                     4,293.
                </P>
                <P>
                    <E T="03">Respondent's Obligation:</E>
                     Required to obtain or retain a benefit.
                </P>
                <P>
                    <E T="03">Frequency of Collection:</E>
                     On occasion.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Nonhour Burden Cost:</E>
                     $2,400.
                </P>
                <P>An agency may not conduct or sponsor and, notwithstanding any other provision of law, a person is not required to respond to a collection of information unless it displays a currently valid OMB control number.</P>
                <P>
                    The authority for this action is the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <SIG>
                    <NAME>Darrin King,</NAME>
                    <TITLE>Information Collection Clearance Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02952 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4310-84-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF JUSTICE</AGENCY>
                <DEPDOC>[OMB Number 1121-0030]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Proposed eCollection eComments Requested; Reinstatement of a Previously Approved Collection; Capital Punishment Report of Inmates Under Sentence of Death</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Justice Statistics, Department of Justice.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Bureau of Justice Statistics, Department of Justice (DOJ) will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are encouraged and will be accepted for 60 days until April 15, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have additional comments especially on the estimated public burden or associated response time, suggestions, or need a copy of the proposed information collection instrument with instructions or additional information, please contact Tracy L. Snell, Statistician, Bureau of Justice Statistics, 810 Seventh St. NW, Washington, DC 20531 (email: 
                        <E T="03">Tracy.L.Snell@usdoj.gov</E>
                         or telephone: 202-598-1660).
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Written comments and suggestions from the public and affected agencies concerning the proposed collection of information 
                    <PRTPAGE P="10099"/>
                    are encouraged. Your comments should address one or more of the following four points:
                </P>
                <FP SOURCE="FP-1">—Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Bureau of Justice Statistics, including whether the information will have practical utility;</FP>
                <FP SOURCE="FP-1">—Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used;</FP>
                <FP SOURCE="FP-1">—Evaluate whether and if so how the quality, utility, and clarity of the information to be collected can be enhanced; and</FP>
                <FP SOURCE="FP-1">
                    —Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </FP>
                <P>
                    <E T="03">Abstract:</E>
                     Capital punishment information is collected by the Bureau of Justice Statistics (BJS) annually as part of the National Prisoner Statistics data series (NPS-8). These establishment surveys provide BJS with the capacity to report annually on changes in the size and composition of persons under State or Federal sentence of death and changes to the laws regulating the imposition and implementation of death sentences in the United States. The NPS-8 covers all persons held in a State or Federal correctional facility under sentence of death at any time during the calendar year. The coverage includes capital prisoners transferred from death row to non-correctional institutions, such as mental hospitals, and prisoners who may have escaped custody. Excluded are capital prisoners who for any reason remain in local correctional institutions outside the jurisdiction of State or Federal correctional authorities from whom data are collected for this series. NPS-8 also excludes persons who were convicted and sentenced to death under the Uniform Code of Military Justice. Information such as statutory, demographic, and criminal history data collected through NPS-8 is not attainable from any other single data source.
                </P>
                <HD SOURCE="HD1">Overview of This Information Collection</HD>
                <P>
                    1. 
                    <E T="03">Type of Information Collection:</E>
                     Reinstatement of a previously approved collection.
                </P>
                <P>
                    2. 
                    <E T="03">The Title of the Form/Collection:</E>
                     Capital Punishment Report of Inmates Under Sentence of Death.
                </P>
                <P>
                    3. 
                    <E T="03">The agency form number, if any, and the applicable component of the Department sponsoring the collection:</E>
                     The Capital Punishment Report of Inmates Under Sentence of Death (NPS-8) contains four forms: NPS-8 (Report of Inmates Under Sentence of Death; NPS-8A (Update Report of Inmates Under Sentence of Death); NPS-8B (Status of Death Penalty Statutes—No Statute in Force); and NPS-8C (Status of Death Penalty Statutes—Statute in Force). The applicable component within the Department of Justice is the Bureau of Justice Statistics, in the Office of Justice Programs.
                </P>
                <P>
                    4. 
                    <E T="03">Affected public who will be asked or required to respond, as well as the obligation to respond:</E>
                     Affected Public—staff from State departments of correction, offices of State attorneys general, the Federal Bureau of Prisons, and the U.S. Attorney for the District of Columbia. The obligation to respond is voluntary.
                </P>
                <P>
                    5. 
                    <E T="03">An estimate of the total number of respondents and the amount of time estimated for an average respondent to respond:</E>
                     The NPS-8 will collect data from an estimated 85 respondents from State departments of correction, the Federal Bureau of Prisons, State Attorneys General, and the U.S. Attorney for the District of Columbia.
                </P>
                <P>For each data collection cycle, we estimate an average burden of 30 minutes for the NPA-8, 30 minutes for the NPS-8A, 15 minutes for the NPS-8B, and 15 minutes to complete the NPS-8C. We estimate that data quality follow-up is needed for 50% of NPS-8 forms (10) and 5% of NPS-8A forms (124) and will run an average of 15 minutes for each response. We estimate a 10-minute follow-up for 10% (5) of NPS-8B and NPS-8C respondents.</P>
                <P>
                    6. 
                    <E T="03">An estimate of the total annual burden (in hours) associated with the collection:</E>
                     There are approximately 1,292 total annual burden hours for this collection.
                </P>
                <P>
                    7. 
                    <E T="03">An estimate of the total annual cost burden associated with the collection, if applicable:</E>
                     $41,596.
                </P>
                <GPOTABLE COLS="9" OPTS="L2,p7,7/8,i1" CDEF="s50,12,6,12,12,12,12,12,xs80">
                    <TTITLE>Total Burden Hours</TTITLE>
                    <BOXHD>
                        <CHED H="1">Form</CHED>
                        <CHED H="1">
                            # of
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">Freq.</CHED>
                        <CHED H="1">Total annual resp.</CHED>
                        <CHED H="1">
                            Time per
                            <LI>survey</LI>
                            <LI>(mins)</LI>
                        </CHED>
                        <CHED H="1">Follow-up resp.</CHED>
                        <CHED H="1">
                            Time for
                            <LI>follow-up</LI>
                            <LI>(mins)</LI>
                        </CHED>
                        <CHED H="1">
                            Total time
                            <LI>(mins)</LI>
                        </CHED>
                        <CHED H="1">
                            Total annual burden
                            <LI>(hrs)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">NPS-8</ENT>
                        <ENT>33</ENT>
                        <ENT>1</ENT>
                        <ENT>19</ENT>
                        <ENT>30</ENT>
                        <ENT>10</ENT>
                        <ENT>15</ENT>
                        <ENT>720</ENT>
                        <ENT>12 (720 min/60 min).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">NPS-8A</ENT>
                        <ENT>33</ENT>
                        <ENT>1</ENT>
                        <ENT>2,469</ENT>
                        <ENT>30</ENT>
                        <ENT>124</ENT>
                        <ENT>15</ENT>
                        <ENT>75,930</ENT>
                        <ENT>1,266 (75930 min/60 min).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">NPS-8B/8C</ENT>
                        <ENT>52</ENT>
                        <ENT>1</ENT>
                        <ENT>52</ENT>
                        <ENT>15</ENT>
                        <ENT>5</ENT>
                        <ENT>10</ENT>
                        <ENT>830</ENT>
                        <ENT>14 (830 min/60 min).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Unduplicated Totals</ENT>
                        <ENT>85</ENT>
                        <ENT/>
                        <ENT>2,540</ENT>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT/>
                        <ENT>1,292.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>If additional information is required contact: Darwin Arceo, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE, 4W-218, Washington, DC.</P>
                <SIG>
                    <DATED>Dated: February 8, 2024.</DATED>
                    <NAME>Darwin Arceo,</NAME>
                    <TITLE>Department Clearance Officer for PRA, U.S. Department of Justice.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02924 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-18-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF JUSTICE</AGENCY>
                <DEPDOC>[OMB Number 1103-0098]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Proposed eCollection eComments Requested; Revision of a Previously Approved Collection; COPS Application Package</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Community Oriented Policing Services, Department of Justice.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>60-Day notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Office of Community Oriented Policing Services, (COPS), Department of Justice (DOJ), will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are encouraged and will be accepted for 60 days until April 15, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have additional comments especially on the estimated public burden or associated response time, suggestions, or need a copy of the 
                        <PRTPAGE P="10100"/>
                        proposed information collection instrument with instructions or additional information, please contact Dave Neely, Department of Justice, Office of Community Oriented Policing Services, 145 N St NE, Washington, DC 20530, telephone: (202) 514-8553 email: 
                        <E T="03">david.neely2@usdoj.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Written comments and suggestions from the public and affected agencies concerning the proposed collection of information are encouraged. Your comments should address one or more of the following four points:</P>
                <FP SOURCE="FP-1">—Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Bureau of Justice Statistics, including whether the information will have practical utility;</FP>
                <FP SOURCE="FP-1">—Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used;</FP>
                <FP SOURCE="FP-1">—Evaluate whether and if so how the quality, utility, and clarity of the information to be collected can be enhanced; and</FP>
                <FP SOURCE="FP-1">
                    —Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </FP>
                <P>
                    <E T="03">Abstract:</E>
                     Under the Violent Crime and Control Act of 1994, the U.S. Department of Justice would request grant application information from state, local and tribal law enforcement agencies to properly award grant funds to advance public safety through community policing.
                </P>
                <HD SOURCE="HD1">Overview of This Information Collection</HD>
                <P>
                    1. 
                    <E T="03">Type of Information Collection:</E>
                     Revision of a currently approved collection.
                </P>
                <P>
                    2. 
                    <E T="03">Title of the Form/Collection:</E>
                     COPS Application Package.
                </P>
                <P>
                    3. 
                    <E T="03">The agency form number, if any, and the applicable component of the Department sponsoring the collection:</E>
                     Application Attachment to SF-424, COPS. DOJ.
                </P>
                <P>
                    4. 
                    <E T="03">Affected public who will be asked or required to respond, as well as the obligation to respond:</E>
                     Affected Public: Law Enforcement Agencies. The obligation to respond is required to obtain or retain a benefit.
                </P>
                <P>
                    5. 
                    <E T="03">An estimate of the total number of respondents and the amount of time estimated for an average respondent to respond:</E>
                     The estimated total number of respondents is 5,000. The time per response is 11 hours to review and complete the application.
                </P>
                <P>
                    6. 
                    <E T="03">An estimate of the total annual burden (in hours) associated with the collection:</E>
                     An estimated 55,000 total annual burden hours are associated with this collection.
                </P>
                <P>
                    7. 
                    <E T="03">An estimate of the total annual cost burden associated with the collection, if applicable:</E>
                     $0.
                </P>
                <GPOTABLE COLS="6" OPTS="L2,tp0,i1" CDEF="s50,12,r50,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Activity</CHED>
                        <CHED H="1">
                            Number of
                            <LI>respondents</LI>
                        </CHED>
                        <CHED H="1">Frequency</CHED>
                        <CHED H="1">
                            Total annual
                            <LI>responses</LI>
                        </CHED>
                        <CHED H="1">
                            Time per
                            <LI>response</LI>
                        </CHED>
                        <CHED H="1">
                            Total annual burden
                            <LI>(hours)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">COPS Application Package</ENT>
                        <ENT>5,000</ENT>
                        <ENT>1/annually</ENT>
                        <ENT>5,000</ENT>
                        <ENT>11 </ENT>
                        <ENT>55,000 </ENT>
                    </ROW>
                </GPOTABLE>
                <P>If additional information is required contact: Darwin Arceo, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, Two Constitution Square, 145 N Street NE, 4W-218, Washington, DC.</P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Darwin Arceo,</NAME>
                    <TITLE>Department Clearance Officer for PRA, U.S. Department of Justice.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02846 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-AT-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF LABOR</AGENCY>
                <SUBAGY>Employment and Training Administration</SUBAGY>
                <SUBJECT>Agency Information Collection Activities, Trade Adjustment Assistance Administrative Collection of States; Comment Request</SUBJECT>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of Labor's (DOL) Employment and Training Administration (ETA) is soliciting comments concerning a proposed extension for the authority to conduct the information collection request (ICR) titled, “Trade Adjustment Assistance Administrative Collection of States (TAAACS).” This comment request is part of continuing Departmental efforts to reduce paperwork and respondent burden in accordance with the Paperwork Reduction Act of 1995 (PRA).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Consideration will be given to all written comments received by April 15, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>A copy of this ICR with applicable supporting documentation, including a description of the likely respondents, proposed frequency of response, and estimated total burden, may be obtained free by contacting Timothy Theberge by telephone at 202-693-3401 (this is not a toll-free number).</P>
                    <P>
                        Submit written comments about, or requests for a copy of this ICR by mail or courier to the U.S. Department of Labor, Employment and Training Administration, Office of Trade Adjustment Assistance, 200 Constitution Avenue NW, Room N-5428, Washington, DC 20210; by email: 
                        <E T="03">taa.reports@dol.gov;</E>
                         or by fax 202-693-3584.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Timothy Theberge by telephone at 202-693-3401 (this is not a toll-free number) or by email at 
                        <E T="03">theberge.timothy@dol.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>DOL, as part of continuing efforts to reduce paperwork and respondent burden, conducts a pre-clearance consultation program to provide the general public and Federal agencies an opportunity to comment on proposed and/or continuing collections of information before submitting them to the Office of Management and Budget (OMB) for final approval. This program helps to ensure requested data can be provided in the desired format, reporting burden (time and financial resources) is minimized, collection instruments are clearly understood, and the impact of collection requirements can be properly assessed.</P>
                <P>
                    The Office of Trade Adjustment Assistance (OTAA) is seeking to extend without change the Trade Adjustment Assistance Administrative Collection of States (TAAACS) to continue to collect discrete data on how State Workforce Agencies (SWAs) organize the Trade Adjustment Assistance for Workers (TAA) Program across eight (8) distinct categories. This data allows OTAA to analyze which practices are best supporting TAA participants, identify 
                    <PRTPAGE P="10101"/>
                    areas where more technical assistance is needed, and determine opportunities for greater program integration. Section 239(c) of Title II, Chapter 2 of the Trade Act of 1974, as amended (19 U.S.C. 2271 
                    <E T="03">et seq.</E>
                    ), authorizes this information collection.
                </P>
                <P>
                    This information collection is subject to the PRA. A Federal agency generally cannot conduct or sponsor a collection of information, and the public is generally not required to respond to an information collection, unless it is approved by OMB under the PRA and displays a currently valid OMB Control Number. In addition, notwithstanding any other provisions of law, no person shall generally be subject to penalty for failing to comply with a collection of information that does not display a valid Control Number. 
                    <E T="03">See</E>
                     5 CFR 1320.5(a) and 1320.6.
                </P>
                <P>
                    Interested parties are encouraged to provide comments to the contact shown in the 
                    <E T="02">ADDRESSES</E>
                     section. Comments must be written to receive consideration, and they will be summarized and included in the request for OMB approval of the final ICR. In order to help ensure appropriate consideration, comments should mention OMB Control No. 1205-0540.
                </P>
                <P>Submitted comments will also be a matter of public record for this ICR and posted on the internet, without redaction. DOL encourages commenters not to include personally identifiable information, confidential business data, or other sensitive statements/information in any comments.</P>
                <P>DOL is particularly interested in comments that:</P>
                <P>• Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility;</P>
                <P>• Evaluate the accuracy of the Agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used;</P>
                <P>• Enhance the quality, utility, and clarity of the information to be collected; and</P>
                <P>
                    • Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, (
                    <E T="03">e.g.,</E>
                     permitting electronic submission of responses).
                </P>
                <P>
                    <E T="03">Agency:</E>
                     DOL-ETA.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extention Without Changes.
                </P>
                <P>
                    <E T="03">Title of Collection:</E>
                     Trade Adjustment Assistance Administrative Collection of States (TAAACS).
                </P>
                <P>
                    <E T="03">Form:</E>
                     TAA State Survey.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1205-0540.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     State, Local, and Tribal Governments.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     52.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     Annual.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Responses:</E>
                     52.
                </P>
                <P>
                    <E T="03">Estimated Average Time per Response:</E>
                     5 hours.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     260 hours.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Other Cost Burden:</E>
                     $0.
                </P>
                <P>
                    <E T="03">Authority:</E>
                     44 U.S.C. 3506(c)(2)(A).
                </P>
                <SIG>
                    <NAME>Brent Parton,</NAME>
                    <TITLE>Principal Deputy Assistant Secretary for Employment and Training, Labor.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02892 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4510-FN-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF LABOR</AGENCY>
                <SUBAGY>Employment and Training Administration</SUBAGY>
                <SUBJECT>Labor Certification Process for the Temporary Employment of H-2A and H-2B Foreign Workers in the United States: Annual Update to Allowable Monetary Charges for Agricultural Workers' Meals and for Travel Subsistence Reimbursement, Including Lodging</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Employment and Training Administration, Department of Labor.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Employment and Training Administration (ETA) of the Department of Labor (DOL) is issuing this notice to announce the annual updates to allowable monetary charges employers of H-2A workers, in occupations other than herding or production of livestock on the range, may charge workers when the employer provides three meals per day. This notice also announces the maximum travel subsistence meal reimbursement a worker with receipts may claim under the H-2A and H-2B programs. Finally, this notice includes a reminder regarding employers' obligations with respect to overnight lodging costs as part of required subsistence.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>These allowable charges become effective February 13, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Brian Pasternak, Administrator, Office of Foreign Labor Certification, Employment and Training Administration, U.S. Department of Labor, 200 Constitution Avenue NW, Room N-5311, Washington, DC 20210, telephone (202) 693-8200 (this is not a toll-free number). Individuals with hearing or speech impairments may access the telephone numbers above via TTY/TDD by calling the toll-free Federal Information Relay Service at 1 (877) 889-5627.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The U.S. Citizenship and Immigration Services of the Department of Homeland Security will not approve an employer's petition for the admission of H-2A or H-2B nonimmigrant temporary workers in the U.S. unless the petitioner has received an H-2A or H-2B labor certification from DOL. The labor certification provides that: (1) there are not sufficient U.S. workers who are able, willing, and qualified and who will be available at the time and place needed to perform the labor or services involved in the petition; and (2) the employment of the foreign worker(s) in such labor or services will not adversely affect the wages and working conditions of workers in the U.S. similarly employed. 
                    <E T="03">See</E>
                     8 U.S.C. 1101(a)(15)(H)(ii)(a) and (b), 1184(c)(1), and 1188(a); 8 CFR 214.2(h)(5) and (6); 20 CFR 655.1(a) and 655.100.
                </P>
                <HD SOURCE="HD1">Allowable Meal Charge</HD>
                <P>
                    H-2A agricultural employers who are employing workers in occupations other than herding or production of livestock on the range must offer and provide workers three meals per day or free and convenient cooking facilities.
                    <SU>1</SU>
                    <FTREF/>
                      
                    <E T="03">See</E>
                     20 CFR 655.122(g). Where the employer provides the meals, the job offer must state the charge, if any, to the worker for such meals. 
                    <E T="03">See id.</E>
                     The amount of meal charges is governed by 20 CFR 655.173.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         H-2A employers must provide workers engaged in herding or the production of livestock on the range meals or food to prepare meals without charge or deposit charge. 
                        <E T="03">See</E>
                         20 CFR 655.210(e).
                    </P>
                </FTNT>
                <P>
                    By regulation, DOL has established the methodology for determining the maximum amount that H-2A agricultural employers may charge workers for providing them with three meals per day. 
                    <E T="03">See</E>
                     20 CFR 655.173(a). This methodology allows for annual adjustments of the previous year's maximum allowable charge based on the updated Consumer Price Index for All Urban Consumers for Food (CPI-U for Food), not seasonally adjusted. 
                    <E T="03">See id.</E>
                     The maximum amount employers may charge workers for providing meals is adjusted annually by the 12-month percentage change in the CPI-U for Food for the prior year (
                    <E T="03">i.e.,</E>
                     between December of the year just concluded and December of the prior year). 
                    <E T="03">See id.</E>
                      
                    <PRTPAGE P="10102"/>
                    The Office of Foreign Labor Certification (OFLC) Certifying Officer may also permit an employer to charge workers a higher amount for providing them with three meals a day if the higher amount is justified and sufficiently documented by the employer, as set forth in 20 CFR 655.173(b).
                </P>
                <P>
                    The percentage change in the CPI-U for Food between December 2022 and December 2023 was 2.7% percent.
                    <FTREF/>
                    <SU>2</SU>
                     Thus, the annual update to the H-2A allowable meal charge is calculated by multiplying the current allowable meal charge ($15.46) by the 12-month percentage change in the CPI-U for Food between December 2022 and December 2023 ($15.46 × 1.027 = $15.88.
                    <SU>3</SU>
                    <FTREF/>
                     Accordingly, the updated maximum allowable charge under 20 CFR 655.122(g) and 655.173 is $15.88 per day, and an employer is not permitted to charge a worker more than $15.88 per day unless the OFLC Certifying Officer approves a higher charge, as authorized under 20 CFR 655.173(b).
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Consumer Price Index—December 2023, published January 11, 2024, 
                        <E T="03">available at https://www.bls.gov/news.release/archives/cpi_01112024.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         In 2023, the maximum allowable charge under 20 CFR 655.122(g) and 655.173 was $15.46 per day. 
                        <E T="03">See</E>
                         88 FR 8478 (Feb. 9, 2023).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Reimbursement for Travel-Related Subsistence</HD>
                <P>
                    H-2B and H-2A employers must pay reasonable travel and subsistence costs, including the costs of meals and lodging, incurred by workers during travel to the place of employment from the place from which the worker has come to work for the employer and from the place of employment to the place from which the worker departed to work for the employer, as well as any such costs incurred by the worker incident to obtaining a visa authorizing entry to the United States for the purpose of H-2A or H-2B employment. 
                    <E T="03">See</E>
                     20 CFR 655.122(h)(1) and (2) and 655.20(j)(1)(i) and (ii).
                </P>
                <P>Specifically, an H-2A employer is responsible for providing, paying in advance, or reimbursing a worker for the reasonable costs incurred by the worker for transportation and daily travel-related subsistence from the place from which the worker has come to work for the employer, if the worker completes 50 percent of the work contract period. 20 CFR 655.122(h)(1). In general, the employer must provide (or pay at the time of departure) the worker's transportation and daily travel-related subsistence from the place of employment to the place from which the worker departed to work for the employer upon the worker completing the contract or being terminated without cause. 20 CFR 655.122(h)(2).</P>
                <P>Similarly, an H-2B employer is responsible for providing, paying in advance, or reimbursing a worker for transportation and daily travel-related subsistence from the place from which the worker has come to work for the employer, if the worker completes 50 percent of the job order period. 20 CFR 655.20(j)(1)(i). Upon the worker completing the job order period or being dismissed early (for any reason), the employer is generally responsible for providing (or paying at the time of departure) the worker's cost of return transportation and daily travel-related subsistence from the place of employment to the place from which the worker departed to work for the employer. 20 CFR 655.20(j)(1)(ii).</P>
                <P>
                    The amount of the daily subsistence must be at least the amount permitted in 20 CFR 655.173(a) (or the higher amount approved under 20 CFR 655.173(b), if any). The maximum daily amount an employer is required to reimburse workers for travel-related lodging and subsistence, as evidenced with receipts, is equal to the standard Continental United States (CONUS) per diem rate, as established by the General Services Administration (GSA) at 41 CFR part 301, formerly published in Appendix A and now found at 
                    <E T="03">https://www.gsa.gov/travel/plan-book/per-diem-rates. See</E>
                     Maximum Per Diem Reimbursement Rates for the Continental United States, 88 FR 56629 (Aug. 18, 2023). The standard CONUS meals and incidental expenses rate is $59.00 per day for 2024. 
                    <E T="03">See</E>
                     88 FR 56629, 56630. Workers who qualify for travel reimbursement are entitled to reimbursement for meals up to the standard CONUS meals and incidental expenses rate when they provide receipts. In determining the appropriate amount of reimbursement for meals for less than a full day, the employer may limit the meal expense reimbursement, with receipts, to 75 percent of the maximum reimbursement for meals, or $44.25, based on the GSA per diem schedule. 
                    <E T="03">See https://www.gsa.gov/travel/plan-book/per-diem-rates.</E>
                     If a worker does not provide receipts, the employer is not obligated to reimburse above the minimum stated at 20 CFR 655.173, as specified above.
                </P>
                <P>
                    If transportation and lodging are not provided by the employer, the amount an employer must pay for transportation and, where required, lodging must be no less than (and is not required to be more than) the most economical and reasonable costs. The employer is responsible for those costs necessary for the worker to travel to the worksite if the worker completes 50 percent of the work contract period but is not responsible for unauthorized detours. The employer also is responsible for the costs of return transportation and subsistence, including lodging costs where necessary, as described above. These requirements apply equally to instances where the worker is traveling within the U.S. or internationally to the employer's worksite. 
                    <E T="03">See</E>
                     20 CFR 655.122(h)(1) and (2) and 655.20(j)(1)(i) and (ii).
                </P>
                <P>
                    For further information on when the employer is responsible for lodging costs, please see the DOL's Meal Charges and Travel Subsistence, on OFLC's website at 
                    <E T="03">https://www.dol.gov/agencies/eta/foreign-labor/wages/meals-travel-subsistence,</E>
                     and H-2B Frequently Asked Questions on Job Offers and Employer Obligations, on OFLC's website at 
                    <E T="03">https://www.dol.gov/agencies/eta/foreign-labor/faqs/print.</E>
                </P>
                <P>
                    <E T="03">Authority:</E>
                     20 CFR 655.173.
                </P>
                <SIG>
                    <NAME>Brent Parton,</NAME>
                    <TITLE>Principal Deputy Assistant Secretary for Employment and Training, Labor.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02893 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4510-FP-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF LABOR</AGENCY>
                <SUBJECT>Agency Information Collection Activities; Submission for OMB Review; General Inquiries to State Agency Contacts</SUBJECT>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of availability; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of Labor (DOL) is submitting this Bureau of Labor Statistics (BLS)-sponsored information collection request (ICR) to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995 (PRA). Public comments on the ICR are invited.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The OMB will consider all written comments that the agency receives on or before March 14, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                    <P>
                        <E T="03">Comments are invited on:</E>
                         (1) whether the collection of information is necessary for the proper performance of 
                        <PRTPAGE P="10103"/>
                        the functions of the Department, including whether the information will have practical utility; (2) the accuracy of the agency's estimates of the burden and cost of the collection of information, including the validity of the methodology and assumptions used; (3) ways to enhance the quality, utility and clarity of the information collection; and (4) ways to minimize the burden of the collection of information on those who are to respond, including the use of automated collection techniques or other forms of information technology.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Nicole Bouchet by telephone at 202-693-0213, or by email at 
                        <E T="03">DOL_PRA_PUBLIC@dol.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    BLS awards funds to State Agencies in order to assist them in operating Labor Market Information and/or Occupational Safety and Health Statistics Federal/State cooperative statistical programs. To ensure a timely flow of information and to be able to evaluate and improve the programs, it is necessary to conduct ongoing communications between BLS and the State partners dealing with, for example, deliverables, program enhancements, and administrative issues. For additional substantive information about this ICR, see the related notice published in the 
                    <E T="04">Federal Register</E>
                     on December 4, 2023 (88 FRN 84172).
                </P>
                <P>
                    This information collection is subject to the PRA. A Federal agency generally cannot conduct or sponsor a collection of information, and the public is generally not required to respond to an information collection, unless the OMB approves it and displays a currently valid OMB Control Number. In addition, notwithstanding any other provisions of law, no person shall generally be subject to penalty for failing to comply with a collection of information that does not display a valid OMB Control Number. 
                    <E T="03">See</E>
                     5 CFR 1320.5(a) and 1320.6.
                </P>
                <P>
                    <E T="03">Agency:</E>
                     DOL-BLS.
                </P>
                <P>
                    <E T="03">Title of Collection:</E>
                     General Inquiries to State Agency Contacts.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1220-0168.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     State, Local, and Tribal Governments.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Respondents:</E>
                     54.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Responses:</E>
                     23,890.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Time Burden:</E>
                     15,927 hours.
                </P>
                <P>
                    <E T="03">Total Estimated Annual Other Costs Burden:</E>
                     $0.
                </P>
                <EXTRACT>
                    <FP>(Authority: 44 U.S.C. 3507(a)(1)(D))</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Nicole Bouchet,</NAME>
                    <TITLE>Senior Paperwork Reduction Act Analyst.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02891 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4510-24-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF LABOR</AGENCY>
                <SUBAGY>Mine Safety and Health Administration</SUBAGY>
                <SUBJECT>Petition for Modification of Application of Existing Mandatory Safety Standards</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Mine Safety and Health Administration, Labor.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This notice is a summary of a petition for modification submitted to the Mine Safety and Health Administration (MSHA) by the party listed below.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>All comments on the petition must be received by MSHA's Office of Standards, Regulations, and Variances on or before March 14, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments identified by Docket No. MSHA-2023-0056 by any of the following methods:</P>
                    <P>
                        1. 
                        <E T="03">Federal eRulemaking Portal: https://www.regulations.gov.</E>
                         Follow the instructions for submitting comments for MSHA-2023-0056.
                    </P>
                    <P>
                        2. 
                        <E T="03">Fax:</E>
                         202-693-9441.
                    </P>
                    <P>
                        3. 
                        <E T="03">Email: petitioncomments@dol.gov.</E>
                    </P>
                    <P>
                        4. 
                        <E T="03">Regular Mail or Hand Delivery:</E>
                         MSHA, Office of Standards, Regulations, and Variances, 201 12th Street South, 4th Floor West, Arlington, Virginia 22202-5452, 
                        <E T="03">Attention:</E>
                         S. Aromie Noe, Director, Office of Standards, Regulations, and Variances. Persons delivering documents are required to check in at the receptionist's desk in 4th Floor West. Individuals may inspect copies of the petition and comments during normal business hours at the address listed above. Before visiting MSHA in person, call 202-693-9455 to make an appointment, in keeping with the Department of Labor's COVID-19 policy. Special health precautions may be required.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        S. Aromie Noe, Office of Standards, Regulations, and Variances at 202-693-9440 (voice), 
                        <E T="03">Petitionsformodification@dol.gov</E>
                         (email), or 202-693-9441 (fax). [These are not toll-free numbers.]
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Section 101(c) of the Federal Mine Safety and Health Act of 1977 and title 30 of the Code of Federal Regulations (CFR) part 44 govern the application, processing, and disposition of petitions for modification.</P>
                <HD SOURCE="HD1">I. Background</HD>
                <P>Section 101(c) of the Federal Mine Safety and Health Act of 1977 (Mine Act) allows the mine operator or representative of miners to file a petition to modify the application of any mandatory safety standard to a coal or other mine if the Secretary of Labor determines that:</P>
                <P>1. An alternative method of achieving the result of such standard exists which will at all times guarantee no less than the same measure of protection afforded the miners of such mine by such standard; or</P>
                <P>2. The application of such standard to such mine will result in a diminution of safety to the miners in such mine.</P>
                <P>In addition, sections 44.10 and 44.11 of 30 CFR establish the requirements for filing petitions for modification.</P>
                <HD SOURCE="HD1">II. Petition for Modification</HD>
                <P>
                    <E T="03">Docket Number:</E>
                     M-2023-027-C.
                </P>
                <P>
                    <E T="03">Petitioner:</E>
                     Mountain Coal Company, LLC, 5174 Highway 133, Somerset, Colorado 81434.
                </P>
                <P>
                    <E T="03">Mine:</E>
                     West Elk Mine, MSHA ID No. 05-03672, located in Gunnison County, Colorado.
                </P>
                <P>
                    <E T="03">Regulation Affected:</E>
                     30 CFR 18.35(a)(5)(i) (Portable (trailing) cables and cords).
                </P>
                <P>
                    <E T="03">Modification Request:</E>
                     The petitioner requests a modification of 30 CFR 18.35(a)(5)(i) to increase the length of tailing cables to a maximum of 1,100 feet for mobile roof support machines and shuttle cars.
                </P>
                <P>The petitioner states that:</P>
                <P>(a) The petitioner has a previously granted petition for modification, docket number M-2012-036-C, to use trailing cables supplying three-phase, 995-volt AC power to continuous machines, roof bolting machines, and auxiliary face fans and 575-volt AC power to roof bolting machines and auxiliary face fans.</P>
                <P>(b) The petitioner is now requesting to add four Fletcher Mobile Roof Support machines, model MRS17, and Komatsu 10SC32 shuttle cars. The Fletcher Mobile Roof Support machines and Komatsu 10SC32 shuttle cars will be used under the same terms and conditions listed in the previously granted petition.</P>
                <P>The petitioner proposes the following alternative method:</P>
                <P>(a) The maximum trailing cable length shall be 1,100 feet for the No. 4 trailing cables for the mobile roof support machines and the No. 2 trailing cables for the shuttle cars.</P>
                <P>
                    (c) All circuit breakers used to protect the No. 4 trailing cables exceeding 1,000 feet for the 995-volt mobile roof support 
                    <PRTPAGE P="10104"/>
                    machines shall have instantaneous trip units calibrated to trip at 2,500 amperes. The trip setting of these circuit breakers shall be sealed or locked so that the setting cannot be changed. The circuit breakers shall have permanent legible labels displaying the maximum short circuit setting. Calibration, sealing, and labeling of circuit breakers shall be performed by the circuit breaker manufacturer, or an authorized repair facility outfitted with calibrated test equipment. Each label shall identify the circuit breaker as being suitable for protecting the No. 4 cables. The labels shall be maintained as legible.
                </P>
                <P>(c) Replacement instantaneous trip units used to protect the No. 4 trailing cables shall be calibrated to trip at 2,500 amperes and this setting shall be sealed or locked. Calibration, sealing, and labeling of the replacement units shall be conducted by the device manufacturer, or an authorized repair facility outfitted with calibrated test equipment.</P>
                <P>(d) All circuit breakers used to protect the No. 2 trailing cables exceeding 850 feet in length for the shuttle cars shall have instantaneous trip units calibrated to trip at 1,500 amperes. The trip setting of these circuit breakers shall be sealed or locked so that the setting cannot be changed. The circuit breakers shall have permanent legible labels displaying the maximum short circuit setting. Calibration, sealing, and labeling of circuit breakers shall be performed by the circuit breaker manufacturer, or an authorized repair facility outfitted with calibrated test equipment. Each label shall identify the circuit breaker as being suitable for protecting the No. 2 cables. The labels shall be maintained as legible.</P>
                <P>(e) Replacement instantaneous trip units used to protect the No. 2 trailing cables shall be calibrated to trip at 1,500 amperes and this setting shall be sealed or locked. Calibration, sealing, and labeling of the replacement units shall be conducted by the device manufacturer, or an authorized repair facility outfitted with calibrated test equipment.</P>
                <P>(f) All components that provide short-circuit protection shall have a sufficient interruption rating in accordance with the maximum calculated fault current available.</P>
                <P>(g) The trailing cables for the mobile roof support machines and shuttle cars shall be protected by being hung on well-installed insulated hangers from the section transformer to the slack pile of the trailing cable for each machine or to the last open crosscut, whichever is further outby.</P>
                <P>(h) Prior to putting the mobile roof support machines and shuttle cars in service for each shift, examinations by persons designated by the mine operator shall be made to visually examine the trailing cables to ensure that the cables are in safe operating condition. The instantaneous settings of the specially calibrated circuit breakers shall also be visually examined to ensure that the seals or locks have not been removed and that they do not exceed the settings stipulated in items (b) and (d).</P>
                <P>(i) Permanent warning labels shall be installed and maintained on the cover(s) of each circuit breaker and the trailing cable disconnecting device indicating that the cable can only be connected to a circuit breaker that is set to trip at its pre-determined instantaneous value. These labels shall warn miners not to change or alter these sealed short-circuit settings and warn them not to connect the trailing cable to an improperly adjusted circuit breaker.</P>
                <P>(j) Any trailing cable that is not in safe operating condition or damaged in any way shall be removed from service immediately and repaired or replaced. Each splice or repair in the trailing cables shall be made in a workmanlike manner and in accordance with the instructions of the manufacturer of the splice or repair materials. The splice or repair shall comply with 30 CFR 75.602 and 30 CFR 75.604.</P>
                <P>(k) Excessive cable shall be stored behind the anchor(s) on equipment that use cable reels to prevent cable(s) from overheating. Trailing cables anchoring points located along haulage roads, belt tailpiece, or feeder shall be arranged to prevent the shuttle cars from running over their trailing cables to minimize the need for secondary (temporary) trailing cable anchoring points and minimize back spooling.</P>
                <P>(l) Before implementation of the terms and conditions in MSHA's Proposed Decision and Order (PDO), all miners who have been designated to examine the integrity of seals or locks and to verify the short-circuit settings and proper procedures for examining trailing cables for defects and damage shall receive the training specified in item (n).</P>
                <P>(m) Before implementation of the terms and conditions in the PDO, the circuit breakers outlined above shall be inspected by MSHA to ensure their conformity with the terms and conditions of the PDO.</P>
                <P>(n) Within 60 days after the PDO becomes final, the petitioner shall submit proposed revisions for its approved 30 CFR part 48 training plan to the Mine Safety and Health Enforcement District Office for the District which the mine is located. The training shall include the following elements:</P>
                <P>(1) Training in the mining methods and operating procedures that will protect the trailing cables against damage;</P>
                <P>(2) Training in proper procedures for examining the trailing cables to ensure that they are in safe operating condition;</P>
                <P>(3) Training in the hazards of setting the short circuit interrupting device(s) too high to adequately protect the trailing cables;</P>
                <P>(4) Training in how to verify that the circuit interrupting device(s) protecting the trailing cable(s) are properly set and maintained; and</P>
                <P>(5) Training to protect the trailing cable(s) against damage caused by overheating due to excessive cable stored on the cable reel(s) and properly adjusting stored cable behind the cable anchor(s) as tramming distances change.</P>
                <P>In support of the proposed alternative method, the petitioner submitted fault analysis for 1,100 feet of the No. 4 and No. 2 trailing cables to demonstrate that there is enough current available to trip the short circuit protection at the time of a fault.</P>
                <P>The petitioner asserts that the alternate method proposed will at all times guarantee no less than the same measure of protection afforded the miners under the mandatory standard.</P>
                <SIG>
                    <NAME>Song-ae Aromie Noe,</NAME>
                    <TITLE>Director, Office of Standards, Regulations, and Variances.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02931 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4520-43-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">NATIONAL AERONAUTICS AND SPACE ADMINISTRATION</AGENCY>
                <DEPDOC>[Notice: (24-008)]</DEPDOC>
                <SUBJECT>Heliophysics Advisory Committee; Space Weather Council; Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Aeronautics and Space Administration.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Federal Advisory Committee Act, the National Aeronautics and Space Administration (NASA) announces a meeting of the Space Weather Council (SWC). The SWC is a subcommittee of the Heliophysics Advisory Committee, which functions in an advisory capacity to the Director, Heliophysics Division, in the NASA Science Mission Directorate. The meeting will be held for the purpose of soliciting, from the science community and other persons, scientific and technical information relevant to program planning.</P>
                </SUM>
                <DATES>
                    <PRTPAGE P="10105"/>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Thursday, February 22, 2024, 9 a.m.-5 p.m.; and Friday, February 23, 2024, 9 a.m.-5 p.m. eastern time.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Meeting will be virtual. See Webex and dial-in information below.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mrs. Karshelia Kinard, Science Mission Directorate, NASA Headquarters, Washington, DC 20546, (202) 358-2355 or 
                        <E T="03">karshelia.kinard@nasa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    This meeting will only be available by Webex or dial-in for members of the public. Any interested person may join via Webex at 
                    <E T="03">https://nasaenterprise.webex.com,</E>
                     the meeting number is 2761 312 2137, and the password is SWCWinter2024! (case sensitive), both days. To join by dial-in telephone call, use US Toll +1-415-527-5035 (Access code: 2761 312 2137), both days, to participate in this meeting.
                </P>
                <P>The agenda for the meeting includes the following topics:</P>
                <FP SOURCE="FP-1">• Discussion of Space Weather Council future advisory topics and activities such as:</FP>
                <FP SOURCE="FP1-2">○ Coordination of Space Weather Council with Other Space Weather Groups</FP>
                <FP SOURCE="FP1-2">○ Space Weather Science and Modeling Gap Analysis</FP>
                <FP SOURCE="FP1-2">○ Space Weather and Deep Space Exploration</FP>
                <FP SOURCE="FP1-2">○ Research to Operations to Research Process</FP>
                <SIG>
                    <NAME>Patricia Rausch,</NAME>
                    <TITLE>Advisory Committee Management Officer, National Aeronautics and Space Administration.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02869 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">NATIONAL CREDIT UNION ADMINISTRATION</AGENCY>
                <SUBJECT>Sunshine Act Meetings</SUBJECT>
                <PREAMHD>
                    <HD SOURCE="HED">TIME AND DATE:</HD>
                    <P>10 a.m., Thursday, February 15, 2024.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">PLACE:</HD>
                    <P>Board Room, 7th Floor, Room 7B, 1775 Duke Street (All visitors must use Diagonal Road Entrance) Alexandria, VA 22314-3428.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">STATUS:</HD>
                    <P>Open.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">MATTERS TO BE CONSIDERED:</HD>
                    <P/>
                    <P>1. Board Briefing, Share Insurance Fund Quarterly Report.</P>
                    <P>2. Final Interpretive Ruling and Policy Statement, Minority Depository Institution Preservation Program.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">CONTACT PERSON FOR MORE INFORMATION:</HD>
                    <P>Melane Conyers-Ausbrooks, Secretary of the Board, Telephone: 703-518-6304.</P>
                </PREAMHD>
                <SIG>
                    <NAME>Melane Conyers-Ausbrooks,</NAME>
                    <TITLE>Secretary of the Board.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02994 Filed 2-9-24; 11:15 am]</FRDOC>
            <BILCOD>BILLING CODE 7535-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">NUCLEAR REGULATORY COMMISSION</AGENCY>
                <DEPDOC>[NRC-2022-0224]</DEPDOC>
                <SUBJECT>Information Collection: Identity, Credential, and Access Management System</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Nuclear Regulatory Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Proposed information collection; request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Nuclear Regulatory Commission (NRC) invites public comment on this proposed information collection. The information collection is entitled, “Identity, Credential, and Access Management System.”</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Submit comments by April 15, 2024. Comments received after this date will be considered if it is practical to do so, but the Commission is able to ensure consideration only for comments received on or before this date.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments by any of the following methods; however, the NRC encourages electronic comment submission through the Federal rulemaking website:</P>
                    <P>
                        • 
                        <E T="03">Federal rulemaking website:</E>
                         Go to 
                        <E T="03">https://www.regulations.gov</E>
                         and search for Docket ID NRC-2022-0224. Address questions about Docket IDs in 
                        <E T="03">Regulations.gov</E>
                         to Stacy Schumann; telephone: 301-415-0624; email: 
                        <E T="03">Stacy.Schumann@nrc.gov.</E>
                         For technical questions, contact the individual listed in the 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                         section of this document.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail comments to:</E>
                         David C. Cullison, Office of the Chief Information Officer, Mail Stop: T-6 A10M, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001.
                    </P>
                    <P>
                        For additional direction on obtaining information and submitting comments, see “Obtaining Information and Submitting Comments” in the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section of this document.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        David Cullison, Office of the Chief Information Officer, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-2084; email: 
                        <E T="03">Infocollects.Resource@nrc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Obtaining Information and Submitting Comments</HD>
                <HD SOURCE="HD2">A. Obtaining Information</HD>
                <P>Please refer to Docket ID NRC-2022-0224 when contacting the NRC about the availability of information for this action. You may obtain publicly available information related to this action by any of the following methods:</P>
                <P>
                    • 
                    <E T="03">Federal Rulemaking Website:</E>
                     Go to 
                    <E T="03">https://www.regulations.gov</E>
                     and search for Docket ID NRC-2022-0224. A copy of the collection of information and related instructions may be obtained without charge by accessing Docket ID NRC-2022-0224 on this website.
                </P>
                <P>
                    • 
                    <E T="03">NRC's Agencywide Documents Access and Management System (ADAMS):</E>
                     You may obtain publicly available documents online in the ADAMS Public Documents collection at 
                    <E T="03">https://www.nrc.gov/reading-rm/adams.html.</E>
                     To begin the search, select “Begin Web-based ADAMS Search.” For problems with ADAMS, please contact the NRC's Public Document Room (PDR) reference staff at 1-800-397-4209, at 301-415-4737, or by email to 
                    <E T="03">PDR.Resource@nrc.gov.</E>
                     A copy of the collection of information and related instructions may be obtained without charge by accessing ADAMS Accession No. ML23325A121. The supporting statement and guidance document are available in ADAMS under Accession Nos. ML23206A192 and ML23331A942.
                </P>
                <P>
                    • 
                    <E T="03">NRC's PDR:</E>
                     The PDR, where you may examine and order copies of publicly available documents, is open by appointment. To make an appointment to visit the PDR, please send an email to 
                    <E T="03">PDR.Resource@nrc.gov</E>
                     or call 1-800-397-4209 or 301-415-4737, between 8 a.m. and 4 p.m. eastern time (ET), Monday through Friday, except Federal holidays.
                </P>
                <P>
                    • 
                    <E T="03">NRC's Clearance Officer:</E>
                     A copy of the collection of information and related instructions may be obtained without charge by contacting the NRC's Clearance Officer, David C. Cullison, Office of the Chief Information Officer, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-2084; email: 
                    <E T="03">Infocollects.Resource@nrc.gov.</E>
                </P>
                <HD SOURCE="HD2">B. Submitting Comments</HD>
                <P>
                    The NRC encourages electronic comment submission through the Federal rulemaking website (
                    <E T="03">https://www.regulations.gov</E>
                    ). Please include Docket ID NRC-2022-0224, in your comment submission.
                </P>
                <P>
                    The NRC cautions you not to include identifying or contact information in 
                    <PRTPAGE P="10106"/>
                    comment submissions that you do not want to be publicly disclosed in your comment submission. All comment submissions are posted at 
                    <E T="03">https://www.regulations.gov</E>
                     and entered into ADAMS. Comment submissions are not routinely edited to remove identifying or contact information.
                </P>
                <P>If you are requesting or aggregating comments from other persons for submission to the NRC, then you should inform those persons not to include identifying or contact information that they do not want to be publicly disclosed in their comment submission. Your request should state that comment submissions are not routinely edited to remove such information before making the comment submissions available to the public or entering the comment into ADAMS.</P>
                <HD SOURCE="HD1">II. Background</HD>
                <P>In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), the NRC is requesting public comment on its intention to request the OMB's approval for the information collection summarized below.</P>
                <P>
                    1. 
                    <E T="03">The title of the information collection:</E>
                     Identity, Credential, and Access Management System.
                </P>
                <P>
                    2. 
                    <E T="03">OMB approval number:</E>
                     An OMB control number has not yet been assigned to this proposed information collection.
                </P>
                <P>
                    3. 
                    <E T="03">Type of submission:</E>
                     New.
                </P>
                <P>
                    4. 
                    <E T="03">The form number, if applicable:</E>
                     Not applicable.
                </P>
                <P>
                    5. 
                    <E T="03">How often the collection is required or requested:</E>
                     Once, at the time access is requested.
                </P>
                <P>
                    6. 
                    <E T="03">Who will be required or asked to respond:</E>
                     Identity, Credential, and Access Management team at NRC.
                </P>
                <P>
                    7. 
                    <E T="03">The estimated number of annual responses:</E>
                     250.
                </P>
                <P>
                    8. 
                    <E T="03">The estimated number of annual respondents:</E>
                     250.
                </P>
                <P>
                    9. 
                    <E T="03">The estimated number of hours needed annually to comply with the information collection requirement or request:</E>
                     62.5 hours.
                </P>
                <P>
                    10. 
                    <E T="03">Abstract:</E>
                     The NRC collects information from external partners and members of the public that have a need to use NRC's secure web-based applications. An applicant can request an external partner digital credential using NRC's web-based credential enrollment system. Once the applicant has obtained an NRC digital credential, it can be used to access select NRC secure web-based applications directly over the internet. The information collected is limited to identity information required for credential issuance processes and includes: phone numbers, email addresses, physical mailing addresses, facial photographs, photo identity documents, date of birth, and identity information from a U.S. driver's license, U.S. Government PIV card, U.S. Passport, U.S. Military ID card, U.S. Military dependent's ID card, Permanent Resident card, Alien Registration Receipt card (Form I-551) or Employment Authorization Document (Form I-766).
                </P>
                <HD SOURCE="HD1">III. Specific Requests for Comments</HD>
                <P>The NRC is seeking comments that address the following questions:</P>
                <P>1. Is the proposed collection of information necessary for the NRC to properly perform its functions? Does the information have practical utility? Please explain your answer.</P>
                <P>2. Is the estimate of the burden of the information collection accurate? Please explain your answer.</P>
                <P>3. Is there a way to enhance the quality, utility, and clarity of the information to be collected?</P>
                <P>4. How can the burden of the information collection on respondents be minimized, including the use of automated collection techniques or other forms of information technology?</P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <P>For the Nuclear Regulatory Commission.</P>
                    <NAME>David C. Cullison,</NAME>
                    <TITLE>NRC Clearance Officer, Office of the Chief Information Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02933 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7590-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">NUCLEAR REGULATORY COMMISSION</AGENCY>
                <DEPDOC>[NRC-2024-0001]</DEPDOC>
                <SUBJECT>Sunshine Act Meetings</SUBJECT>
                <PREAMHD>
                    <HD SOURCE="HED">TIME AND DATE:</HD>
                    <P>
                        Weeks of February 12, 19, 26, and March 4, 11, 18, 2024. The schedule for Commission meetings is subject to change on short notice. The NRC Commission Meeting Schedule can be found on the internet at: 
                        <E T="03">https://www.nrc.gov/public-involve/public-meetings/schedule.html.</E>
                    </P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">PLACE:</HD>
                    <P>
                        The NRC provides reasonable accommodation to individuals with disabilities where appropriate. If you need a reasonable accommodation to participate in these public meetings or need this meeting notice or the transcript or other information from the public meetings in another format (
                        <E T="03">e.g.,</E>
                         braille, large print), please notify Anne Silk, NRC Disability Program Specialist, at 301-287-0745, by videophone at 240-428-3217, or by email at 
                        <E T="03">Anne.Silk@nrc.gov.</E>
                         Determinations on requests for reasonable accommodation will be made on a case-by-case basis.
                    </P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">STATUS:</HD>
                    <P>Public.</P>
                    <P>
                        Members of the public may request to receive the information in these notices electronically. If you would like to be added to the distribution, please contact the Nuclear Regulatory Commission, Office of the Secretary, Washington, DC 20555, at 301-415-1969, or by email at 
                        <E T="03">Betty.Thweatt@nrc.gov</E>
                         or 
                        <E T="03">Samantha.Miklaszewski@nrc.gov.</E>
                    </P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">MATTERS TO BE CONSIDERED:</HD>
                    <P/>
                </PREAMHD>
                <HD SOURCE="HD1">Week of February 12, 2024</HD>
                <P>There are no meetings scheduled for the week of February 12, 2024.</P>
                <HD SOURCE="HD1">Week of February 19, 2024—Tentative</HD>
                <HD SOURCE="HD2">Thursday, February 22, 2024</HD>
                <FP SOURCE="FP-2">9:00 a.m. Update on Research and Test Reactors Regulatory Program (Public Meeting) (Contact: Wesley Deschaine: 404-997-5301)</FP>
                <P>
                    <E T="03">Additional Information:</E>
                     The meeting will be held in the Commissioners' Conference Room, 11555 Rockville Pike, Rockville, Maryland. The public is invited to attend the Commission's meeting in person or watch live via webcast at the Web address—
                    <E T="03">https://video.nrc.gov/.</E>
                </P>
                <HD SOURCE="HD1">Week of February 26, 2024—Tentative</HD>
                <P>There are no meetings scheduled for the week of February 26, 2024.</P>
                <HD SOURCE="HD1">Week of March 4, 2024—Tentative</HD>
                <P>There are no meetings scheduled for the week of March 4, 2024.</P>
                <HD SOURCE="HD1">Week of March 11, 2024—Tentative</HD>
                <P>There are no meetings scheduled for the week of March 11, 2024.</P>
                <HD SOURCE="HD1">Week of March 18, 2024—Tentative</HD>
                <P>There are no meetings scheduled for the week of March 18, 2024.</P>
                <PREAMHD>
                    <HD SOURCE="HED">CONTACT PERSON FOR MORE INFORMATION:</HD>
                    <P>
                        For more information or to verify the status of meetings, contact Wesley Held at 301-287-3591 or via email at 
                        <E T="03">Wesley.Held@nrc.gov.</E>
                    </P>
                    <P>The NRC is holding the meetings under the authority of the Government in the Sunshine Act, 5 U.S.C. 552b.</P>
                </PREAMHD>
                <SIG>
                    <DATED>Dated: February 8, 2024.</DATED>
                    <P>For the Nuclear Regulatory Commission.</P>
                    <NAME>Wesley W. Held,</NAME>
                    <TITLE>Policy Coordinator, Office of the Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02983 Filed 2-9-24; 11:15 am]</FRDOC>
            <BILCOD>BILLING CODE 7590-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="10107"/>
                <AGENCY TYPE="S">NUCLEAR REGULATORY COMMISSION</AGENCY>
                <DEPDOC>[Docket Nos. 50-269, 50-270, and 50-287; NRC-2021-0146]</DEPDOC>
                <SUBJECT>Duke Energy Carolinas, LLC; Oconee Nuclear Station, Units 1, 2, and 3; Draft Supplemental Environmental Impact Statement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Nuclear Regulatory Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Request for comment; public comment meetings; opportunity to request a hearing and to petition for leave to intervene.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Nuclear Regulatory Commission (NRC) is issuing for public comment draft Site-Specific Supplement 2, Second Renewal, to the Generic Environmental Impact Statement (GEIS) for License Renewal of Nuclear Plants, NUREG-1437, regarding the proposed subsequent renewal of Renewed Facility Operating License Nos. DPR-38, DPR-47, and DPR-55, for an additional 20 years of operation for Oconee Nuclear Station, Units 1, 2, and 3 (Oconee Station). Oconee Station is located in Seneca, South Carolina, approximately 30 miles west of Greenville. Possible alternatives to the proposed action of subsequent license renewal (SLR) include no action and reasonable replacement power alternatives. A new notice of opportunity to request a hearing and petition for leave to intervene is also being issued.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        The staff will hold two public meetings, one in-person near Oconee Station and one through online webinar and teleconference call, on the draft site-specific environmental impact statement (EIS), including a presentation on the preliminary findings and a transcribed public comment session. The in-person meeting will be held on February 21, 2024, at 7 p.m. eastern time (ET) at the Madren Conference Center on the grounds of Clemson University. The virtual meeting will be held February 27, 2024, at 1 p.m. ET. The public meeting details can be found on the NRC's Public Meeting Schedule at 
                        <E T="03">https://www.nrc.gov/pmns/mtg.</E>
                         Members of the public are invited to submit comments within 45 days of an upcoming 
                        <E T="04">Federal Register</E>
                         notice anticipated to be published on February 16, 2024, by the Environmental Protection Agency. Comments received after that date will be considered if it is practical to do so, but the NRC is able to ensure consideration only for comments received on or before that date. Requests for a hearing or petitions for leave to intervene must be filed by April 15, 2024.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments by any of the following methods; however, the NRC encourages electronic comment submission through the Federal rulemaking website:</P>
                    <P>
                        • 
                        <E T="03">Federal rulemaking website:</E>
                         Go to 
                        <E T="03">https://www.regulations.gov</E>
                         and search for Docket ID NRC-2021-0146. Address questions about Docket IDs in 
                        <E T="03">Regulations.gov</E>
                         to Stacy Schumann; telephone: 301-415-0624; email: 
                        <E T="03">Stacy.Schumann@nrc.gov.</E>
                         For technical questions, contact the individual listed in the 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                         section of this document.
                    </P>
                    <P>
                        • 
                        <E T="03">Email:</E>
                         Comments may be submitted to the NRC electronically using the email address 
                        <E T="03">OconeeEnvironmental@nrc.gov.</E>
                    </P>
                    <P>
                        • 
                        <E T="03">Mail comments to:</E>
                         Office of Administration, Mail Stop: TWFN-7-A60M, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, ATTN: Program Management, Announcements and Editing Staff.
                    </P>
                    <P>
                        For additional direction on obtaining information and submitting comments, see “Obtaining Information and Submitting Comments” in the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section of this document.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Lance Rakovan, Senior Environmental Project Manager, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-2589; email: 
                        <E T="03">Lance.Rakovan@nrc.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Obtaining Information and Submitting Comments</HD>
                <HD SOURCE="HD2">A. Obtaining Information</HD>
                <P>Please refer to Docket ID NRC-2021-0146 when contacting the NRC about the availability of information regarding this document. You may obtain publicly available information related to this action using any of the following methods:</P>
                <P>
                    • 
                    <E T="03">Federal Rulemaking Website:</E>
                     Go to 
                    <E T="03">https://www.regulations.gov</E>
                     and search for Docket ID NRC-2021-0146.
                </P>
                <P>
                    • 
                    <E T="03">NRC's Agencywide Documents Access and Management System (ADAMS):</E>
                     You may obtain publicly available documents online in the ADAMS Public Documents collection at 
                    <E T="03">https://www.nrc.gov/reading-rm/adams.html.</E>
                     To begin the search, select “Begin Web-based ADAMS Search.” For problems with ADAMS, please contact the NRC's Public Document Room (PDR) reference staff at 1-800-397-4209, at 301-415-4737, or by email to 
                    <E T="03">PDR.Resource@nrc.gov.</E>
                     Draft Site-Specific Supplement 2, Second Renewal, to the GEIS for License Renewal of Nuclear Plants, NUREG-1437, is available in ADAMS under Accession No. ML24033A298.
                </P>
                <P>
                    • 
                    <E T="03">NRC's PDR:</E>
                     The PDR, where you may examine and order copies of publicly available documents, is open by appointment. To make an appointment to visit the PDR, please send an email to 
                    <E T="03">PDR.Resource@nrc.gov</E>
                     or call 1-800-397-4209 or 301-415-4737, between 8 a.m. and 4 p.m. ET, Monday through Friday, except Federal holidays.
                </P>
                <P>
                    • 
                    <E T="03">Public Library:</E>
                     A copy of the draft Site-Specific Supplement 2, Second Renewal, to the GEIS for License Renewal of Nuclear Plants, NUREG-1437, regarding the proposed subsequent renewal of Renewed Facility Operating License Nos. DPR-38, DPR-47, and DPR-55, for an additional 20 years of operation for Oconee Station, will be available for public review at the Oconee County Public Library, 300 E South 2nd St., Seneca, SC 29678.
                </P>
                <HD SOURCE="HD2">B. Submitting Comments</HD>
                <P>
                    The NRC encourages electronic comment submission through the Federal rulemaking website (
                    <E T="03">https://www.regulations.gov</E>
                    ). Please include Docket ID NRC-2021-0146 in your comment submission.
                </P>
                <P>
                    The NRC cautions you not to include identifying or contact information that you do not want to be publicly disclosed in your comment submission. The NRC will post all comment submissions at 
                    <E T="03">https://www.regulations.gov</E>
                     as well as enter the comment submissions into ADAMS. The NRC does not routinely edit comment submissions to remove identifying or contact information.
                </P>
                <P>If you are requesting or aggregating comments from other persons for submission to the NRC, then you should inform those persons not to include identifying or contact information that they do not want to be publicly disclosed in their comment submission. Your request should state that the NRC does not routinely edit comment submissions to remove such information before making the comment submissions available to the public or entering the comment into ADAMS.</P>
                <HD SOURCE="HD1">II. Discussion</HD>
                <P>
                    The NRC is issuing for public comment draft Site-Specific Supplement 2, Second Renewal, to the GEIS for License Renewal of Nuclear Plants, NUREG-1437, regarding the proposed subsequent renewal of 
                    <PRTPAGE P="10108"/>
                    Renewed Facility Operating License Nos. DPR-38, DPR-47, and DPR-55, for an additional 20 years of operation for Oconee Station. Draft site-specific Supplement 2, Second Renewal, to the GEIS includes the preliminary analysis that evaluates the environmental impacts of the proposed action and alternatives to the proposed action. It considers the impacts of all subsequent license renewal issues applicable to Oconee Station subsequent license renewal on a site-specific basis. The NRC staff prepared the draft site-specific Supplement 2, Second Renewal, to the GEIS for Oconee Station in accordance with the Commission's decisions in Commission Legal Issuance (CLI)-22-03 (ADAMS Accession No. ML22055A527), that references CLI-22-02 (ADAMS Accession No. ML22055A496), both dated February 24, 2022. Based on the NRC staff's (i) review of the SLR application, which includes the environmental report, supplemental documents, and the licensee's responses to the NRC staff's requests for additional information; (ii) consultation with Federal, State, Tribal, and local governmental agencies and consideration of input from other stakeholders; and (iii) independent environmental review as documented in the draft site-specific EIS, the NRC staff's preliminary recommendation is that the adverse environmental impacts of subsequent license renewal for Oconee Station are not so great that preserving the option of subsequent license renewal for energy-planning decisionmakers would be unreasonable.
                </P>
                <HD SOURCE="HD1">III. Opportunity To Request a Hearing and Petition for Leave To Intervene</HD>
                <P>As the Commission directed in CLI-22-03, a new notice of opportunity to request a hearing and petition for leave to intervene is being issued.</P>
                <P>Within 60 days after the date of publication of this notice, any persons (petitioner) whose interest may be affected by this action may file a request for a hearing and petition for leave to intervene (petition) with respect to the action. Petitions shall be filed in accordance with the Commission's “Agency Rules of Practice and Procedure” in 10 CFR part 2. Interested persons should consult 10 CFR 2.309. If a petition is filed, the presiding officer will rule on the petition and, if appropriate, a notice of a hearing will be issued.</P>
                <P>Petitions must be filed no later than 60 days from the date of publication of this notice in accordance with the filing instructions in the “Electronic Submissions (E-Filing)” section of this document. Petitions and motions for leave to file new or amended contentions that are filed after the deadline will not be entertained absent a determination by the presiding officer that the filing demonstrates good cause by satisfying the three factors in 10 CFR 2.309(c)(1)(i) through (iii).</P>
                <P>A State, local governmental body, federally recognized Indian Tribe, or designated agency thereof, may submit a petition to the Commission to participate as a party under 10 CFR 2.309(h) no later than 60 days from the date of publication of this notice. Alternatively, a State, local governmental body, federally recognized Indian Tribe, or agency thereof may participate as a non-party under 10 CFR 2.315(c).</P>
                <P>
                    For information about filing a petition and about participation by a person not a party under 10 CFR 2.315, see ADAMS Accession No. ML20340A053 (
                    <E T="03">https://adamswebsearch2.nrc.gov/webSearch2/main.jsp?AccessionNumber=ML20340A053</E>
                    ) and on the NRC's public website at 
                    <E T="03">https://www.nrc.gov/about-nrc/regulatory/adjudicatory/hearing.html#participate.</E>
                </P>
                <HD SOURCE="HD1">IV. Electronic Submissions (E-Filing)</HD>
                <P>
                    All documents filed in NRC adjudicatory proceedings, including documents filed by an interested State, local governmental body, federally recognized Indian Tribe, or designated agency thereof that requests to participate under 10 CFR 2.315(c), must be filed in accordance with 10 CFR 2.302. The E-Filing process requires participants to submit and serve all adjudicatory documents over the internet, or in some cases, to mail copies on electronic storage media, unless an exemption permitting an alternative filing method, as further discussed, is granted. Detailed guidance on electronic submissions is located in the “Guidance for Electronic Submissions to the NRC” (ADAMS Accession No. ML13031A056) and on the NRC's public website at 
                    <E T="03">https://www.nrc.gov/site-help/e-submittals.html.</E>
                </P>
                <P>
                    To comply with the procedural requirements of E-Filing, at least 10 days prior to the filing deadline, the participant should contact the Office of the Secretary by email at 
                    <E T="03">Hearing.Docket@nrc.gov</E>
                    , or by telephone at 301-415-1677, to (1) request a digital identification (ID) certificate, which allows the participant (or its counsel or representative) to digitally sign submissions and access the E-Filing system for any proceeding in which it is participating; and (2) advise the Secretary that the participant will be submitting a petition or other adjudicatory document (even in instances in which the participant, or its counsel or representative, already holds an NRC-issued digital ID certificate). Based upon this information, the Secretary will establish an electronic docket for the proceeding if the Secretary has not already established an electronic docket.
                </P>
                <P>
                    Information about applying for a digital ID certificate is available on the NRC's public website at 
                    <E T="03">https://www.nrc.gov/site-help/e-submittals/getting-started.html.</E>
                     After a digital ID certificate is obtained and a docket created, the participant must submit adjudicatory documents in Portable Document Format. Guidance on submissions is available on the NRC's public website at 
                    <E T="03">https://www.nrc.gov/site-help/electronic-sub-ref-mat.html.</E>
                     A filing is considered complete at the time the document is submitted through the NRC's E-Filing system. To be timely, an electronic filing must be submitted to the E-Filing system no later than 11:59 p.m. ET on the due date. Upon receipt of a transmission, the E-Filing system time-stamps the document and sends the submitter an email confirming receipt of the document. The E-Filing system also distributes an email that provides access to the document to the NRC's Office of the General Counsel and any others who have advised the Office of the Secretary that they wish to participate in the proceeding, so that the filer need not serve the document on those participants separately. Therefore, applicants and other participants (or their counsel or representative) must apply for and receive a digital ID certificate before adjudicatory documents are filed to obtain access to the documents via the E-Filing system.
                </P>
                <P>
                    A person filing electronically using the NRC's adjudicatory E-Filing system may seek assistance by contacting the NRC's Electronic Filing Help Desk through the “Contact Us” link located on the NRC's public website at 
                    <E T="03">https://www.nrc.gov/site-help/e-submittals.html,</E>
                     by email to 
                    <E T="03">MSHD.Resource@nrc.gov,</E>
                     or by a toll-free call at 1-866-672-7640. The NRC Electronic Filing Help Desk is available between 9 a.m. and 6 p.m., ET, Monday through Friday, except Federal holidays.
                </P>
                <P>
                    Participants who believe that they have good cause for not submitting documents electronically must file an exemption request, in accordance with 10 CFR 2.302(g), with their initial paper filing stating why there is good cause for not filing electronically and requesting authorization to continue to submit documents in paper format. Such filings must be submitted in accordance with 10 CFR 2.302(b)-(d). Participants filing adjudicatory documents in this manner 
                    <PRTPAGE P="10109"/>
                    are responsible for serving their documents on all other participants. Participants granted an exemption under 10 CFR 2.302(g)(2) must still meet the electronic formatting requirement in 10 CFR 2.302(g)(1), unless the participant also seeks and is granted an exemption from 10 CFR 2.302(g)(1).
                </P>
                <P>
                    Documents submitted in adjudicatory proceedings will appear in the NRC's electronic hearing docket, which is publicly available at 
                    <E T="03">https://adams.nrc.gov/ehd,</E>
                     unless excluded pursuant to an order of the presiding officer. If you do not have an NRC-issued digital ID certificate as previously described, click “cancel” when the link requests certificates and you will be automatically directed to the NRC's electronic hearing dockets where you will be able to access any publicly available documents in a particular hearing docket. Participants are requested not to include personal privacy information such as social security numbers, home addresses, or personal phone numbers in their filings unless an NRC regulation or other law requires submission of such information. With respect to copyrighted works, except for limited excerpts that serve the purpose of the adjudicatory filings and would constitute a Fair Use application, participants should not include copyrighted materials in their submission.
                </P>
                <P>
                    Detailed information about the subsequent license renewal process can be found on the NRC's public website, under Reactor License Renewal, at 
                    <E T="03">https://www.nrc.gov/reactors/operating/licensing/renewal.html.</E>
                     Materials involving the request to renew the operating licenses for Oconee Station are available for public inspection at the NRC's PDR, and at 
                    <E T="03">https://www.nrc.gov/reactors/operating/licensing/renewal/subsequent-license-renewal.html.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 8, 2024.</DATED>
                    <P>For the Nuclear Regulatory Commission.</P>
                    <NAME>Stephen S. Koenick,</NAME>
                    <TITLE>Chief, Environmental Project Management Branch 1, Division of Rulemaking, Environmental, and Financial Support, Office of Nuclear Material Safety and Safeguards.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02963 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7590-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">OFFICE OF PERSONNEL MANAGEMENT</AGENCY>
                <SUBJECT>Submission for Review: Questionnaire for Public Trust Positions (SF 85P) and Supplemental Questionnaire for Selected Positions (SF 85P-S); Correction</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Personnel Management.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day notice and request for comments; correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This notice corrects a word in the 
                        <E T="02">SUMMARY</E>
                         section of an information collection notice that was published in the 
                        <E T="04">Federal Register</E>
                         on January 31, 2024, regarding the renewal of the Questionnaire for Public Trust Positions (SF 85P) and Supplemental Questionnaire for Selected Positions (SF 85P-S).
                    </P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Alexys Stanley at 202-936-2501 or 
                        <E T="03">SuitEAForms@opm.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    In the 
                    <E T="04">Federal Register</E>
                     of January 31, 2024 (89 FR 6139-6140), in FR Doc. 2024-01859, on page 6139 in the first column, in the 7th line of the 
                    <E T="02">SUMMARY</E>
                     section, the word “revise” is corrected to read “reinstate”.
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Kayyonne Marston,</NAME>
                    <TITLE>Federal Register Liaison.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02887 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6325-66-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">POSTAL REGULATORY COMMISSION</AGENCY>
                <DEPDOC>[Docket Nos. MC2024-186 and CP2024-192; MC2024-187 and CP2024-193]</DEPDOC>
                <SUBJECT>New Postal Products</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Postal Regulatory Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Commission is noticing a recent Postal Service filing for the Commission's consideration concerning a negotiated service agreement. This notice informs the public of the filing, invites public comment, and takes other administrative steps.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Comments are due:</E>
                         February 15, 2024.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit comments electronically via the Commission's Filing Online system at 
                        <E T="03">http://www.prc.gov.</E>
                         Those who cannot submit comments electronically should contact the person identified in the 
                        <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                         section by telephone for advice on filing alternatives.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>David A. Trissell, General Counsel, at 202-789-6820.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Table of Contents</HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">I. Introduction</FP>
                    <FP SOURCE="FP-2">II. Docketed Proceeding(s)</FP>
                </EXTRACT>
                <HD SOURCE="HD1">I. Introduction</HD>
                <P>The Commission gives notice that the Postal Service filed request(s) for the Commission to consider matters related to negotiated service agreement(s). The request(s) may propose the addition or removal of a negotiated service agreement from the Market Dominant or the Competitive product list, or the modification of an existing product currently appearing on the Market Dominant or the Competitive product list.</P>
                <P>Section II identifies the docket number(s) associated with each Postal Service request, the title of each Postal Service request, the request's acceptance date, and the authority cited by the Postal Service for each request. For each request, the Commission appoints an officer of the Commission to represent the interests of the general public in the proceeding, pursuant to 39 U.S.C. 505 (Public Representative). Section II also establishes comment deadline(s) pertaining to each request.</P>
                <P>
                    The public portions of the Postal Service's request(s) can be accessed via the Commission's website (
                    <E T="03">http://www.prc.gov</E>
                    ). Non-public portions of the Postal Service's request(s), if any, can be accessed through compliance with the requirements of 39 CFR 3011.301.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See</E>
                         Docket No. RM2018-3, Order Adopting Final Rules Relating to Non-Public Information, June 27, 2018, Attachment A at 19-22 (Order No. 4679).
                    </P>
                </FTNT>
                <P>The Commission invites comments on whether the Postal Service's request(s) in the captioned docket(s) are consistent with the policies of title 39. For request(s) that the Postal Service states concern Market Dominant product(s), applicable statutory and regulatory requirements include 39 U.S.C. 3622, 39 U.S.C. 3642, 39 CFR part 3030, and 39 CFR part 3040, subpart B. For request(s) that the Postal Service states concern Competitive product(s), applicable statutory and regulatory requirements include 39 U.S.C. 3632, 39 U.S.C. 3633, 39 U.S.C. 3642, 39 CFR part 3035, and 39 CFR part 3040, subpart B. Comment deadline(s) for each request appear in section II.</P>
                <HD SOURCE="HD1">II. Docketed Proceeding(s)</HD>
                <P>
                    1. 
                    <E T="03">Docket No(s).:</E>
                     MC2024-186 and CP2024-192; 
                    <E T="03">Filing Title:</E>
                     USPS Request 
                    <PRTPAGE P="10110"/>
                    to Add Priority Mail Express International, Priority Mail International &amp; Commercial ePacket Contract 4 to Competitive Product List and Notice of Filing Materials Under Seal; 
                    <E T="03">Filing Acceptance Date:</E>
                     February 7, 2024; 
                    <E T="03">Filing Authority:</E>
                     39 U.S.C. 3642, 39 CFR 3040.130 through 3040.135, and 39 CFR 3035.105; 
                    <E T="03">Public Representative:</E>
                     Jennaca D. Upperman; 
                    <E T="03">Comments Due:</E>
                     February 15, 2024.
                </P>
                <P>
                    2. 
                    <E T="03">Docket No(s).:</E>
                     MC2024-187 and CP2024-193; 
                    <E T="03">Filing Title:</E>
                     USPS Request to Add Priority Mail &amp; USPS Ground Advantage Contract 186 to Competitive Product List and Notice of Filing Materials Under Seal; 
                    <E T="03">Filing Acceptance Date:</E>
                     February 7, 2024; 
                    <E T="03">Filing Authority:</E>
                     39 U.S.C. 3642, 39 CFR 3040.130 through 3040.135, and 39 CFR 3035.105; 
                    <E T="03">Public Representative:</E>
                     Jennaca D. Upperman; 
                    <E T="03">Comments Due:</E>
                     February 15, 2024.
                </P>
                <P>
                    This Notice will be published in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <NAME>Jennie L. Jbara,</NAME>
                    <TITLE>Alternate Certifying Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02909 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-FW-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">RAILROAD RETIREMENT BOARD</AGENCY>
                <SUBJECT>Sunshine Act Meetings</SUBJECT>
                <PREAMHD>
                    <HD SOURCE="HED">TIME AND DATE: </HD>
                    <P>10 a.m., February 21, 2024.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">PLACE: </HD>
                    <P>
                        Members of the public wishing to attend the meeting must submit a written request at least 24 hours prior to the meeting to receive dial-in information. All requests must be sent to 
                        <E T="03">SecretarytotheBoard@rrb.gov.</E>
                    </P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">STATUS: </HD>
                    <P>This meeting will be open to the public.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">MATTERS TO BE CONSIDERED:</HD>
                    <P/>
                    <P>Welcome new Director of Administration.</P>
                    <P>OLA Briefing on Appropriations and Pending Legislation.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">CONTACT PERSON FOR MORE INFORMATION: </HD>
                    <P>Stephanie Hillyard, Secretary to the Board, (312) 751-4920</P>
                </PREAMHD>
                <EXTRACT>
                    <FP>(Authority 5 U.S.C. 552b)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: February 9, 2024.</DATED>
                    <NAME>Stephanie Hillyard,</NAME>
                    <TITLE>Secretary to the Board.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-03062 Filed 2-9-24; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 7905-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[SEC File No. 270-658, OMB Control No. 3235-0716]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request; Extension: Form C</SUBJECT>
                <FP SOURCE="FP-1">
                    <E T="03">Upon Written Request Copies Available From:</E>
                     Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549-2736
                </FP>
                <P>
                    Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ), the Securities and Exchange Commission (“Commission”) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval.
                </P>
                <P>
                    Form C (17 CFR 239.900) is used by issuers offering securities in reliance on the crowdfunding exemption in Section 4(a)(6) (15 U.S.C. 77d(a)(6)) of the Securities Act of 1933 (“Securities Act”) (15 U.S.C. 77a 
                    <E T="03">et seq.</E>
                    ) Form C will also be used by issuers that have completed transactions in reliance on Section 4(a)(6) to file annual reports or to provide notice of the termination of reporting obligations.. The information collected is intended to create a framework for the filing and disclosure requirements of Title III Section 4A of the Jumpstart Our Business Startups Act (Pub. L. 112-106, 126 Stat. 306) to implement the exemption from Securities Act registration for offerings made in reliance on Section 4(a)(6). Form C takes approximately 49.9696 hours per response and is filed by approximately 3,476 respondents. We estimate that 75% of the 49.9696 hours per response (37.4772 hours) is prepared by the issuer for a total annual reporting burden of 130,271 hours (37.4772 hours per response × 3, 476 responses).
                </P>
                <P>Written comments are invited on: (a) whether this proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency's estimate of the burden imposed by the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication by April 15, 2024.</P>
                <P>An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number.</P>
                <P>
                    Please direct your written comment to David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549 or send an email to: 
                    <E T="03">PRA_Mailbox@sec.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 8, 2024.</DATED>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02950 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-99484; File No. SR-MSRB-2023-07]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Granting Approval of a Proposed Rule Change To Amend MSRB Rule G-12 To Promote the Completion of Allocations, Confirmations, and Affirmations by the End of Trade Date</SUBJECT>
                <DATE>February 7, 2024.</DATE>
                <HD SOURCE="HD1">I. Introduction</HD>
                <P>
                    On December 20, 2023, the Municipal Securities Rulemaking Board (“MSRB”) filed with the Securities and Exchange Commission (“SEC” or “Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act” or “Exchange Act”) 
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     a proposed rule change to amend MSRB Rules G-12 (“Rule G-12”), on uniform practice, to promote the completion of allocations, confirmations, and affirmations by the end of the day on trade date for municipal securities transactions between brokers, dealers and municipal securities dealers and their institutional customers to facilitate the move to a settlement cycle of one business day (the “proposed rule change”).
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Securities Exchange Act Release No. 34-99226 (December 21, 2023), 88 FR 89796 (December 28, 2023) (“Notice”).
                    </P>
                </FTNT>
                <P>
                    The MSRB requested that the proposed rule change be approved with an implementation date of May 28, 2024, to align with the implementation date for Exchange Act Rule 15c6-1, as 
                    <PRTPAGE P="10111"/>
                    amended,
                    <SU>4</SU>
                    <FTREF/>
                     and new Exchange Act Rule 15c6-2.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 96930 (Feb. 15, 2023), 88 FR 13872, 13916 (Mar. 6, 2023) (“SEC's T+1 Adopting Release”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         SEC's T+1 Adopting Release, 88 FR at 13918. If the Commission's compliance date were to change, the MSRB stated that it would issue a regulatory notice to modify the compliance date to remain aligned with the Commission's compliance date. 
                        <E T="03">See</E>
                         Notice, 88 FR at 89799.
                    </P>
                </FTNT>
                <P>
                    The proposed rule change was published for comment in the 
                    <E T="04">Federal Register</E>
                     on December 28, 2023.
                    <SU>6</SU>
                    <FTREF/>
                     The Commission received two comment letters 
                    <SU>7</SU>
                    <FTREF/>
                     on the proposed rule change. On February 1, 2024, the MSRB responded to the comment letters.
                    <SU>8</SU>
                    <FTREF/>
                     As described further below, the Commission is approving the proposed rule change.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Notice, 88 FR at 89796.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Letter from Leslie M. Norwood, Managing Director and Associate General Counsel, Securities Industry and Financial Markets Association, dated January 18, 2024 (“SIFMA Letter”); and Letter from RJ Rondini, Director, Securities Operations, Investment Company Institute, dated January 18, 2024 (“ICI Letter”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Letter to Secretary, Commission, from Ernesto A. Lanza, Chief Regulatory and Policy Officer, MSRB, dated February 1, 2024 (“MSRB Letter”).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Description of the Proposed Rule Change</HD>
                <P>
                    The MSRB stated that the proposed rule change would amend Rule G-12 by adding a new section (k) to promote the completion of allocations, confirmations, and affirmations by the end of the day on trade date for transactions in municipal securities between brokers, dealers and municipal securities dealers (“dealers”) and their institutional customers.
                    <SU>9</SU>
                    <FTREF/>
                     According to the MSRB, this proposed rule change would align with the same-day allocation, confirmation, and affirmation process for equities and corporate bonds under Exchange Act Rule 15c6-2, as adopted.
                    <SU>10</SU>
                    <FTREF/>
                     Although Exchange Act Rule 15c6-2, as adopted,
                    <SU>11</SU>
                    <FTREF/>
                     does not apply to municipal securities transactions, the MSRB believes that the same-day allocation, confirmation, and affirmation process for municipal securities transactions in the secondary market should be consistent with that for equity and corporate bond transactions.
                    <SU>12</SU>
                    <FTREF/>
                     According to the MSRB, the proposed rule change is designed to facilitate the industry's move to a settlement cycle of one business day (“T+1”) as described further below.
                    <SU>13</SU>
                    <FTREF/>
                     To align with Exchange Act Rule 15c6-2, as adopted,
                    <SU>14</SU>
                    <FTREF/>
                     the MSRB is proposing to amend Rule G-12 by adding a section (k) to require dealers effecting municipal securities transactions subject to the T+1 settlement cycle to either enter into written agreements as specified in the proposed rule change or establish, maintain, and enforce written policies and procedures reasonably designed to address certain objectives related to completing allocations, confirmations, and affirmations as soon as technologically practicable and no later than the end of the day on the trade date.
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         Notice, 88 FR at 89797.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         17 CFR 240.15c6-2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         Notice, 88 FR at 89797.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Notice, 88 FR at 89797-98.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">A. Background</HD>
                <P>
                    The Commission initially adopted Exchange Act Rule 15c6-1 
                    <SU>16</SU>
                    <FTREF/>
                     in 1993 to shorten the settlement cycle of most equity and corporate bond transactions from the industry standard of within five business days (“T+5”) to requiring settlement within three business days (“T+3”).
                    <SU>17</SU>
                    <FTREF/>
                     The T+3 settlement cycle remained in effect until 2017 when the Commission amended Exchange Act Rule 15c6-1 
                    <SU>18</SU>
                    <FTREF/>
                     to require the settlement of most equity and corporate bond transactions within two business days (“T+2”).
                    <SU>19</SU>
                    <FTREF/>
                     On February 15, 2023, the Commission adopted amendments to Exchange Act Rule 15c6-1 (“Amended Exchange Act Rule 15c6-1”) 
                    <SU>20</SU>
                    <FTREF/>
                     to further shorten the settlement process, requiring the settlement of most equity and corporate bond transactions on T+1. In alignment with Amended Exchange Act Rule 15c6-1, the MSRB amended its Rule G-12(b)(ii)(B)-(D) and Rule G-15(b)(ii)(B)-(C) to define regular-way settlement as occurring on the first business day following the trade date rather than on the second business day following the trade date.
                    <SU>21</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         17 CFR 240.15c6-1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         Exchange Act Release No. 33023 (Oct. 6, 1993), 58 FR 52891 (Oct. 13, 1993). In adopting Exchange Act Rule 15c6-1, the Commission set a compliance date of June 1, 1995, 58 FR at 52891.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         17 CFR 240.15c6-1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         Securities Exchange Act Release No. 80295 (Mar. 22, 2017), 82 FR 15564 (Mar. 29, 2017).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         17 CFR 240.15c6-1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Exchange Act Release No. 97585 (May 25, 2023), 88 FR 35961 (June 1, 2023) (File No. SR-MSRB-2023-03).
                    </P>
                </FTNT>
                <P>
                    In the SEC's T+1 Adopting Release, the Commission stated that implementing a T+1 standard settlement cycle would require significant improvements in the current rates of same-day allocations, confirmations, and affirmations to help ensure timely settlement in a T+1 environment.
                    <SU>22</SU>
                    <FTREF/>
                     In the SEC's T+1 Adopting Release, the Commission adopted new Exchange Act Rule 15c6-2 to establish requirements that facilitate the completion of allocations, confirmations, and affirmations by the end of the trade date, helping to facilitate the settlement of institutional transactions in a T+1 or shorter standard settlement cycle by promoting the timely and orderly transmission of trade data necessary to achieve settlement.
                    <SU>23</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         SEC's T+1 Adopting Release, 88 FR at 13890.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See id.</E>
                         at 13947.
                    </P>
                </FTNT>
                <P>
                    Exchange Act Rule 15c6-2 provides two options by which broker-dealers may comply with the rule, as adopted.
                    <SU>24</SU>
                    <FTREF/>
                     The first option under Exchange Act Rule 15c6-2 provides that, where parties have agreed to engage in an allocation, confirmation, or affirmation process, a broker-dealer would be prohibited from effecting or entering into a contract for the purchase or sale of a security (other than an exempted security, a government security, a municipal security, commercial paper, bankers' acceptances, or commercial bills) on behalf of a customer unless such broker-dealer has entered into a written agreement with the customer that requires the allocation, confirmation, affirmation, or any combination thereof, to be completed no later than the end of the day on trade date in such form as may be necessary to achieve settlement in compliance with Exchange Act Rule 15c6-1(a).
                    <SU>25</SU>
                    <FTREF/>
                     The second option under Exchange Act Rule 15c6-2 provides an alternative where, in lieu of a written agreement, a broker-dealer may choose to establish, maintain, and enforce written policies and procedures reasonably designed to ensure the completion of the allocation, confirmation, affirmation, or any combination thereof, for the transaction as soon as technologically practicable and no later than the end of the day on trade date in such form as necessary to achieve settlement of the transaction.
                    <SU>26</SU>
                    <FTREF/>
                     Exchange Act Rule 15c6-2 sets out several specific requirements for such written policies and procedures.
                    <SU>27</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         17 CFR 240.15c6-2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         17 CFR 240.15c6-2(a)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         17 CFR 240.15c6-2(a)(2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         17 CFR 240.15c6-2(b)(1-5).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Summary of the Proposed Rule Change</HD>
                <P>
                    The MSRB explained that shortening the affirmation, allocation, and confirmation process can serve to reduce operational risks that can be present between trade date and settlement date, which can promote investor protection, help reduce the risk settlement fails and the capital required 
                    <PRTPAGE P="10112"/>
                    to mitigate this risk.
                    <SU>28</SU>
                    <FTREF/>
                     The MSRB stated that, in support of these objectives and to promote regulatory consistency, the affirmation, allocation, and confirmation processes for municipal securities transactions in the secondary market should be consistent with that for equity and corporate bond transactions.
                    <SU>29</SU>
                    <FTREF/>
                     The MSRB noted that market efficiencies could be eroded if market participants encounter different affirmation, allocation, and confirmation processes when replacing equity or corporate bonds with municipal securities.
                    <SU>30</SU>
                    <FTREF/>
                     According to the MSRB, in order to continue to maintain consistency across asset classes and harmonize with Amended Exchange Act Rule 15c6-2,
                    <SU>31</SU>
                    <FTREF/>
                     it proposed to amend Rule G-12 to require affirmation, allocation, and confirmation as occurring on T+1.
                    <SU>32</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         Notice, 88 FR at 89800. 
                        <E T="03">See also</E>
                         SEC's T+1 Adopting Release, 88 FR at 13919.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See</E>
                         Notice, 88 FR at 89797.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Notice, 88 FR at 89800.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         17 CFR 240.15c6-2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         Notice, 88 FR at 89799.
                    </P>
                </FTNT>
                <P>
                    The MSRB stated that the proposed amendments to Rule G-12 would add a new section (k) that would establish the core standard of same-day allocation, confirmation and affirmation for all regular-way transactions in municipal securities required to be settled on the first business day following the trade date under Rule G-12(b)(ii)(B) or MSRB Rule G-15(b)(ii)(B).
                    <SU>33</SU>
                    <FTREF/>
                     The MSRB explained that, similar to Exchange Act Rule 15c6-2, proposed Rule G-12(k)(ii) would provide two options by which dealers would comply with the rule to meet the standard of same-day allocation, confirmation and affirmation for all regular-way transactions in municipal securities, also referred to as “same-day affirmation.” 
                    <SU>34</SU>
                    <FTREF/>
                     According to the MSRB, the first option under the newly added section (k)(ii)(A) to Rule G-12 would allow dealers to enter into a written agreement with the relevant parties to ensure completion of the allocation, confirmation, affirmation, or any combination thereof, for the transaction as soon as technologically practicable and no later than the end of the day on trade date in such form as necessary to achieve settlement of the transaction.
                    <SU>35</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See id.</E>
                         at 89797.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">See id.</E>
                         at 89797-98.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See id.</E>
                         at 89798.
                    </P>
                </FTNT>
                <P>
                    The MSRB also explained the second option to meet the core standard of same-day allocation, confirmation, and affirmation is listed in the proposed amendment to Rule G-12 under the newly added section (k)(ii)(B).
                    <SU>36</SU>
                    <FTREF/>
                     According to the MSRB, under this option dealers would be required to establish, maintain, and enforce written policies and procedures reasonably designed to ensure completion of the allocation, confirmation, and affirmation for the transaction as soon as technologically practicable and no later than the end of the day on trade date.
                    <SU>37</SU>
                    <FTREF/>
                     The MSRB explained that the proposed new section Rule G-12(k)(ii)(B) sets five minimum requirements that the policies and procedures must meet.
                    <SU>38</SU>
                    <FTREF/>
                     The MSRB also explained that under proposed Rule G-12(k)(iii)(A), such policies and procedures must be reasonably designed to ensure that the dealer considers holistically the range of systems and tools it has available to facilitate the same-day affirmation objective, as well as the range of operations and processes that a dealer uses to facilitate same-day affirmations across different customer and commercial relationships.
                    <SU>39</SU>
                    <FTREF/>
                     The MSRB stated that this policies and procedures alternative in proposed Rule G-12(k)(ii)(B) could help ensure that, when the parties to a transaction encounter obstacles that may prevent them from completing an allocation, confirmation, or affirmation on trade date, they have policies and procedures to navigate, address, and, when possible, mitigate or overcome such obstacles.
                    <SU>40</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Compliance Date</HD>
                <P>
                    The MSRB stated that the compliance date of the proposed rule change will correspond with the industry's transition to T+1 settlement consistent with the compliance date for amended Exchange Act Rule 15c6-1,
                    <SU>41</SU>
                    <FTREF/>
                     which is currently scheduled for May 28, 2024. The MSRB indicated that if the Commission's compliance date were to change, the MSRB would issue a regulatory notice to modify the compliance date of the proposed rule change to remain aligned with the Commission's revised compliance date.
                    <SU>42</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         Notice, 88 FR at 89799. 
                        <E T="03">See also</E>
                         SEC's T+1 Adopting Release, 88 FR at 13916.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         Notice, 88 FR at 89799.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">III. Summary of Comments Received to the Proposed Rule Change</HD>
                <P>
                    The Commission received two comment letters 
                    <SU>43</SU>
                    <FTREF/>
                     on the proposed rule change, as well as a response 
                    <SU>44</SU>
                    <FTREF/>
                     from the MSRB to the comment letters. The two commenters expressed support for the proposed rule change and no commenters objected to the proposed rule change.
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         SIFMA Letter; ICI Letter.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         MSRB Letter.
                    </P>
                </FTNT>
                <P>
                    Two commenters expressed support for the proposed rule change related to the alignment of the allocation, confirmation, and affirmation process for municipal securities with the process for equities and corporate bonds under Exchange Act Rule 15c6-2, as amended.
                    <SU>45</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         SIFMA Letter; ICI Letter.
                    </P>
                </FTNT>
                <P>
                    One commenter opined that that it is not practical for securities trading after 4:30 p.m. to meet the same-day affirmation requirements and requested that the affirmation process for securities trading after 4:30 p.m. be extended to the next day.
                    <SU>46</SU>
                    <FTREF/>
                     The MSRB responded that it appreciated this feedback, but noted that extending the affirmation process to the next day would deter the core purpose of the proposed rule change of facilitating the industry's move to T+1 settlement.
                    <SU>47</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         SIFMA Letter at 3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         MSRB Letter at 2-3.
                    </P>
                </FTNT>
                <P>
                    One commenter questioned the practicality of requiring trade allocations by 7:00 p.m. and affirmations by 9:00 p.m. on trade date.
                    <SU>48</SU>
                    <FTREF/>
                     The MSRB responded that the proposed rule change does not include a requirement to complete trade allocations by 7:00 p.m. and affirmations by 9:00 p.m. on trade date.
                    <SU>49</SU>
                    <FTREF/>
                     Instead, the MSRB explained, the proposed rule change intentionally adopts the language “end of the day on trade date” (rather than requiring a specific time) to allow firms to maximize their internal processes to meet the appropriate cutoff times and other deadlines, as soon as technologically practicable.
                    <SU>50</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         SIFMA Letter at 3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">See</E>
                         MSRB Letter at 3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    One commenter expressed concerns over examination and enforcement of the proposed rule change.
                    <SU>51</SU>
                    <FTREF/>
                     The MSRB responded that it does not have enforcement or examination authority and believes that the appropriate regulatory agencies will undertake their examination and enforcement duties in a manner consistent with Exchange Act Rule 15c6-2.
                    <SU>52</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">See</E>
                         SIFMA Letter at 3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See</E>
                         MSRB Letter at 4.
                    </P>
                </FTNT>
                <P>
                    One commenter requested that enforcement of the proposed rule change be delayed because of its opinion that dealers will have a shorter time frame to implement the provisions of the proposed rule change as compared to the implementation of Exchange Act Rule 15c6-2.
                    <SU>53</SU>
                    <FTREF/>
                     The MSRB 
                    <PRTPAGE P="10113"/>
                    responded that while it believes that dealers have had adequate notice to allow them to make the necessary preparations to comply with the proposed rule change, it is ultimately up to the Commission, the Financial Industry Regulatory Authority (“FINRA”), and other appropriate regulatory agencies to make determinations regarding their examination or enforcement postures.
                    <SU>54</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         
                        <E T="03">See</E>
                         SIFMA Letter at 4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         
                        <E T="03">See</E>
                         MSRB Letter at 4-5.
                    </P>
                </FTNT>
                <P>
                    The MSRB stated that it continues to believe the proposed rule change is reasonable and that the proposed rule change is necessary and appropriate to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in municipal securities by applying the same standard for same-day affirmation across all asset classes.
                    <SU>55</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         
                        <E T="03">See id.</E>
                         at 5.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Discussion and Commission's Findings</HD>
                <P>The Commission has carefully considered the proposed rule change, the comment letters received, and the MSRB's response thereto. The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to the MSRB.</P>
                <P>
                    In particular, the Commission believes that the proposed rule change is consistent with the provisions of Section 15B(b)(2)(C), which provides, in part, that the MSRB's rules shall be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in municipal securities and municipal financial products, to remove impediments to and perfect the mechanism of a free and open market in municipal securities and municipal financial products, and, in general, to protect investors, municipal entities, obligated persons, and the public interest.
                    <SU>56</SU>
                    <FTREF/>
                     The Commission believes that the proposed rule change will: (i) foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in municipal securities by applying the same standard for same-day allocation, confirmation and affirmation established by the SEC to transactions in municipal securities; (ii) remove impediments to and perfect the mechanism of a free and open market in municipal securities and municipal financial products; and (iii) protect investors, municipal entities, obligated persons, and the public interest.
                </P>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         15 U.S.C. 78
                        <E T="03">o</E>
                        -4(b)(2)(C).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">A. Foster Cooperation and Coordination With Persons Engaged in Regulating, Clearing, Settling, Processing Information With Respect to, and Facilitating Transactions in Municipal Securities</HD>
                <P>
                    The Commission believes that the proposed amendments to Rule G-12 would foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in municipal securities and municipal financial products. In particular, the Commission notes that the proposed rule change applies the same standard for same-day allocation, confirmation and affirmation established by the Commission to transactions in municipal securities. As such, the Commission finds that the proposed rule change would continue to ensure that the standard for same-day allocation, confirmation and affirmation remains synchronous across classes of securities (including municipal securities). By avoiding different standards for same-day allocation, confirmation and affirmation for municipal securities, the proposed rule change would avoid regulatory confusion, simplify compliance, and reduce risk (
                    <E T="03">e.g.,</E>
                     operational error).
                </P>
                <P>In addition, the proposed rule change would foster cooperation and coordination among regulators (such as the MSRB, the Commission, FINRA, and other authorities that examine dealers for compliance with MSRB rules) by having similar same-day allocation, confirmation, and affirmation standards as the Commission. The Commission further believes that the proposed rule change would foster cooperation and coordination among market participants by incentivizing dealers to identify and deploy effective practices for achieving allocations, confirmations, and affirmations ex ante, thereby improving the rate of allocations, confirmations, and affirmations over time, which in turn can enhance the adoption of the industry's move to T+1. These positive effects would be experienced by municipal securities market participants involved in regulating, clearing and settling, and processing information for municipal securities transactions. As the proposed rule change promotes cooperation and coordination among market participants and regulators, the Commission finds that the proposed rule change would foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in municipal securities and municipal financial products.</P>
                <HD SOURCE="HD2">B. Remove Impediments to and Perfect the Mechanism of a Free and Open Market</HD>
                <P>The Commission also believes the proposed rule change would serve to remove impediments to and perfect the mechanism of a free and open market in municipal securities and municipal financial products. The Commission notes that the proposed rule change yields long-term benefits for a range of market participants by promoting an orderly settlement process that reduces exceptions and other processing errors that could lead to settlement failures. In particular, the Commission notes that proposed rule change would allow for agreements or policies and procedures to be in place that would give dealers means by which to address potential obstacles in the same-day affirmation, allocation, and confirmation processes. The Commission believes that such agreements or policies and procedures will promote accuracy and efficiency in the market by lowering the likelihood of a settlement failure and fostering improvements to processes over time. As the proposed rule change reduces operational risk and increases accuracy and efficiency, the Commission finds that the proposed rule change removes impediments to and perfects the mechanism of a free and open market in municipal securities and municipal financial products.</P>
                <HD SOURCE="HD2">C. Protect Investors, Municipal Entities, Obligated Persons, and the Public Interest</HD>
                <P>
                    The Commission believes that the proposed rule change would promote investor protection and the public interest. The Commission notes that without the proposed rule change, market participants would encounter different standards between municipal securities and other securities such as equity and corporate bonds, which could result in market inefficiencies and cause confusion, especially for investors who trade both municipal securities and other securities. The Commission notes that the proposed rule change harmonizes those standards across security classes, which reduces the potential for settlement failures, and more generally, reduces the potential for operational risk. Given the associated 
                    <PRTPAGE P="10114"/>
                    risk reduction, the Commission finds that the proposed rule change would promote investor protection and the public interest.
                </P>
                <P>
                    In approving the proposed rule change, the Commission has considered the proposed rule change's impact on efficiency, competition, and capital formation. Section 15B(b)(2)(C) of the Act 
                    <SU>57</SU>
                    <FTREF/>
                     requires that MSRB rules not be designed to impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Commission believes the proposed rule change to amend Rule G-12 would not impose any burden on competition and would not have an impact on competition, as the proposed rule change would apply a uniform standard for same-day allocation, confirmation, and affirmation for municipal securities to align with the standard applicable to, among other securities, equity and corporate bond transactions under Amended Exchange Act Rule 15c6-2.
                    <SU>58</SU>
                    <FTREF/>
                     In addition, the proposed rule change would apply equally to all dealers. As all components of the proposed rule change would be applied equally to all registered dealers transacting in municipal securities, the Commission believes that the proposed rule change would not impose any additional burdens on competition that are not necessary or appropriate in furtherance of the purposes of the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         15 U.S.C. 78o-4(b)(2)(C).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         17 CFR 240.15c6-2.
                    </P>
                </FTNT>
                <P>The Commission also finds that the proposed rule change will not hinder capital formation. As noted above, the proposed rule change ensures a uniform standard for same-day allocation, confirmation, and affirmation across all asset classes of securities (including municipal securities), and would be applied equally to all dealers. As such, the Commission believes that the proposed rule change would promote clearer regulatory requirements for the trade matching and affirmation process of municipal securities transactions. Furthermore, a shorter standard for allocations, confirmations, and affirmations may reduce the volume of unsettled transactions that could potentially pose settlement risk, and decrease liquidity risk by enabling market participants to access the proceeds of their transactions sooner. Therefore, the Commission also finds that the proposed rule change would promote efficiency of the trade matching and affirmation process, and would not negatively impact the municipal securities market's operational efficiency.</P>
                <P>As noted above, the Commission received two comment letters on the filing. The Commission believes that the MSRB, through its response, addressed the commenters' concerns. For the reasons noted above, the Commission believes that the proposed rule change is consistent with the Exchange Act.</P>
                <HD SOURCE="HD1">V. Conclusion</HD>
                <P>
                    It is therefore ordered, pursuant to Section 19(b)(2) of the Exchange Act,
                    <SU>59</SU>
                    <FTREF/>
                     that the proposed rule change (SR-MSRB-2023-07) be, and hereby is, approved.
                </P>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         15 U.S.C. 78s(b)(2).
                    </P>
                </FTNT>
                <SIG>
                    <P>
                        For the Commission, pursuant to delegated authority.
                        <SU>60</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>60</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02862 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[SEC File No. 270-819, OMB Control No. 3235-0780]</DEPDOC>
                <SUBJECT>Submission for OMB Review; Comment Request; Extension: Rule 0-5</SUBJECT>
                <FP SOURCE="FP-1">
                    <E T="03">Upon Written Request, Copies Available From:</E>
                     Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549-2736
                </FP>
                <P>
                    Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ), the Securities and Exchange Commission (the “Commission”) has submitted to the Office of Management and Budget a request for approval of the collection of information discussed below.
                </P>
                <P>
                    Rule 0-5 (17 CFR 270.0-5) under the Investment Company Act (the “Act”) (15 U.S.C. 80a 
                    <E T="03">et seq.</E>
                    ) entitled “Procedure with Respect to Applications and Other Matters,”) sets forth procedure for applications seeking orders for exemptions or other relief under the Investment Company Act. Rule 0-5(e) requires applicants seeking expedited review to include certain information with the application. Rule 0-5(e)(1) requires that the cover page of the application include a notation prominently stating “EXPEDITED REVIEW REQUESTED UNDER 17 CFR 270.0-5(d).” Rule 0-5(e)(2) requires applicants to submit exhibits with marked copies of the application showing changes from the final versions of two precedent applications identified as substantially identical. Rule 0-5(e)(3) requires an accompanying cover letter, signed, on behalf of the applicant, by the person executing the application (i) identifying two substantially identical applications and explaining why the applicant chose those particular applications, and if more recent applications of the same type have been approved, why the applications chosen, rather than the more recent applications, are appropriate; and (ii) certifying that that the applicant believes the application meets the requirements of rule 0-5(d) and that the marked copies required by rule 0-5(e)(2) are complete and accurate.
                </P>
                <P>Rule 0-5(g) provides that, if an applicant has not responded in writing to a request for clarification or modification of an application filed under standard review within 120 days after the request, the application will be deemed withdrawn. As an oral response would not stop an application from being deemed withdrawn, rule 0-5(g), requires applicants to respond “in writing” and therefore create an additional cost within the meaning of the PRA.</P>
                <P>The information collected under rule 0-5(g) and (e) is intended to provide an expedited review procedure for certain applications and establish an internal timeframe for review of applications outside of the expedited procedure. The rule is meant to provide relief as efficiently and timely as possible, while also ensuring that applications continue to be carefully analyzed consistent with the relevant statutory standards.</P>
                <P>Applicants for orders under the Act can include investment companies and affiliated persons of investment companies. Applicants file applications as they deem necessary. The Commission receives approximately 116 applications per year under the Act, and of the 116 applications, we estimate to receive approximately 32 applications seeking expedited review under the Act. Although each application is typically submitted on behalf of multiple entities, the entities in the vast majority of cases are related companies and are treated as a single applicant for purposes of this analysis. Each application subject to rules 0-5(e) and 0-5(g) does not impose any ongoing obligations or burdens on the part of an applicant.</P>
                <P>Much of the work of preparing an application is performed by outside counsel. Based on conversations with applicants and Staff experience, approximately 20 percent of applications are prepared by in-house counsel.</P>
                <P>
                    The mandatory requirements under rule 0-5(e) increase the estimated hour 
                    <PRTPAGE P="10115"/>
                    or cost burden for applicants utilizing in-house counsel by 7 hours 
                    <SU>1</SU>
                    <FTREF/>
                     or $3,388 
                    <FTREF/>
                    <SU>2</SU>
                     per application. Therefore, the mandatory requirements under rule 0-5(e) increase the total estimated annual hour burden by approximately 50 hours utilizing in-house counsel.
                    <SU>3</SU>
                    <FTREF/>
                     The total estimated annual cost burden for utilizing in-house counsel is $24,200.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         This estimate is based on the following calculation: 5 hours (estimated hours per application to prepare the marked copies) + 2 hour (estimated hours per application to explain, notate, and certify) = 7 hours.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         This estimate is based on the following calculation: 5 (estimated hours per application to prepare the marked copies) × $484 (hourly rate for an in-house counsel) = $2,420; 2 (estimated hours per application to explain, notate, and certify) × $484 (hourly rate for an in-house counsel) = $968; $2,420 (estimated cost per application to prepare the marked copies) + $968 (estimated cost per application to explain, notate, and certify) = $3,388; the hourly wages data is from the Securities Industry Financial Markets Association's Management &amp; Professional Earnings in the Securities Industry 2013, modified by Commission Staff to account for an 1,800-hour work-year and inflation, and multiplied by 5.35 (professionals) to account for bonuses, firm size, employee benefits, and overhead, suggests that the cost for in-house counsel is $484 per hour.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         This estimate is based on the following calculations: [5 (estimated hours per application to prepare the marked copies) + 2 (estimated hours per application to explain, notate, and certify)] × 32 (estimated number of applications under expedited review) × 0.20 (approximate percentage of applications prepared by in-house counsel) = 44.8 (rounded up to 50).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         This estimate is based on the following calculation: 50 (estimated total hours utilizing in-house counsel) × $484 (hourly rate for an in-house counsel) = $24,200.
                    </P>
                </FTNT>
                <P>
                    We estimate to receive approximately 84 applications 
                    <SU>5</SU>
                    <FTREF/>
                     per year seeking standard review under the Act and of the 84 applications, we estimate that in approximately 10 percent of those, the applicants respond “in writing” to avoid the application being deemed withdrawn pursuant to rule 0-5(g). We believe the “in writing” requirement under rule 0-5(g) increases the burden for applicants utilizing in-house counsel by 2 hours or $968 per application.
                    <SU>6</SU>
                    <FTREF/>
                     Therefore, the “in writing” requirement under rule 0-5(g) increases the total estimated annual hour burden by approximately 3.36 hours utilizing in-house counsel.
                    <SU>7</SU>
                    <FTREF/>
                     The total estimated annual cost burden utilizing in-house counsel is $1,626.24.
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         This estimate is based on the following calculation: 116 (estimated number of all applications)—32 (estimated number of applications under expedited review) = 84.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         This estimate is based on the following calculation: 2 (estimated hours to prepare “in writing” response) × $484 (hourly rate for an in-house counsel) = $968.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         This estimate is based on the following calculations: 2 (estimated hours to prepare “in writing” response) × 84 (estimated number of applications under standard review) × 0.10 (approximate percentage of application required to respond “in writing”) × 0.20 (approximate percentage of applications prepared by in-house counsel) = 3.36.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         This estimate is based on the following calculation: 3.36 (estimated total hours utilizing in-house counsel) × $484 (hourly rate for an in-house counsel) = $1,626.24.
                    </P>
                </FTNT>
                <P>
                    The public may view background documentation for this information collection at the following website: 
                    <E T="03">www.reginfo.gov.</E>
                     Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function. Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice by March 14, 2024 to (i) 
                    <E T="03">MBX.OMB.OIRA.SEC_desk_officer@omb.eop.gov</E>
                     and (ii) David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or by sending an email to: 
                    <E T="03">PRA_Mailbox@sec.gov</E>
                    .
                </P>
                <SIG>
                    <DATED>Dated: February 8, 2024.</DATED>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02906 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[SEC File No. 270-823, OMB Control No. 3235-0778]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request; Extension: Market Data Infrastructure</SUBJECT>
                <FP SOURCE="FP-1">
                    <E T="03">Upon Written Request, Copies Available From:</E>
                     Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549-2736
                </FP>
                <P>
                    Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (“PRA”) (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ), the Securities and Exchange Commission (“Commission”) is soliciting comments on the existing collection of information provided for in Rules 603 and 614 (17 CFR 242.603 and 17 CFR 242.614, respectively), under the Securities Exchange Act of 1934 (“Act”) (15 U.S.C. 78a 
                    <E T="03">et seq.</E>
                    ). The Commission plans to submit this existing collection of information to the Office of Management and Budget (“OMB”) for extension and approval.
                </P>
                <P>On December 9, 2020, the Commission updated the content of national market system (“NMS”) information that is required to be collected, consolidated, and disseminated as part of the national market system under Regulation NMS. Second, the Commission amended the method by which “consolidated market data,” as now defined, is collected, consolidated, and disseminated by introducing a decentralized consolidation model with competing consolidators, which replaces the centralized consolidation model that relies on exclusive securities information processors (“exclusive SIPs”).</P>
                <P>The amendments, as adopted, establish seven new collections of information.</P>
                <P>1. Registration requirements and Form CC: Rule 614(a)(1)(i) requires each competing consolidator to register with the Commission by filing Form CC electronically in accordance with the instructions contained on the form. Competing consolidators will be required to file amendments to the form in accordance with the rule and file notice of its cessation of operations.</P>
                <P>2. Competing consolidator duties and data collection: Rule 614(d)(1)-(4) requires competing consolidators to (i) collect from each SRO the information with respect to quotations for and transactions in NMS stocks as provided in Rule 603(b); (ii) calculate and generate consolidated market data products; (iii) make consolidated market data products available to subscribers with the required timestamps on terms that are not unreasonably discriminatory; and (iv) timestamp the information collected from the SROs at certain specified times.</P>
                <P>3. Competing consolidators' public posting of Form CC: Rule 614(c) requires competing consolidators to make public on its website a direct URL hyperlink to the Commission website that contains each effective initial Form CC, as amended, order of ineffective initial Form CC, and Form CC amendments to an effective Form CC.</P>
                <P>4. Recordkeeping: Rule 614(d)(7) requires each competing consolidator to keep and preserve at least one copy of all documents as defined in the rule for a period of no less than five years, the first two in an easily accessible place. Rule 614(d)(8) requires each competing consolidator, upon request of any representative of the Commission, to promptly furnish copies of any documents to such representative.</P>
                <P>5. Reports and Reviews: Rule 614(d)(5) requires competing consolidators to publish on their websites certain monthly performance metrics. Rule 614(d)(6) requires competing consolidators to publish certain monthly data quality information.</P>
                <P>
                    6. Amendment to the effective national market system plan(s) for NMS 
                    <PRTPAGE P="10116"/>
                    stocks: Rule 614(e) requires the participants to the effective national market system plan(s) for NMS stocks to submit an amendment to such plan(s) within 150 days of the effectiveness of the amendments that contain certain specified provisions.
                </P>
                <P>7. Collection and dissemination of information by national securities exchanges and national securities associations: The amendment to Rule 603(b) requires every national securities exchange on which an NMS stock is traded and the national securities association to make available to all competing consolidators and self-aggregators all information with respect to quotations for and transactions in NMS stocks, including all data necessary to generate consolidated market data products, in the same manner and using the same methods, including all methods of access and using the same format as such exchange or association makes available any information with respect to quotations for and transactions in NMS stocks to any person.</P>
                <P>These collections of information are necessary to further the national market system objectives set forth in Section 11A(a)(1) of the Exchange Act. Without Rules 603 and 614, the Commission would be unable to fulfill these statutory responsibilities.</P>
                <P>The staff estimates that 8 entities may register as competing consolidators and therefore are subject to the collection of information described in paragraph 1 through 5 above. The staff estimates that there are 19 entities that are subject to the collection of information described in paragraph 6 above. The staff estimates that there are 17 entities that are subject to the collection of information described in paragraph 7 above. The staff estimates that the aggregate annual compliance burden for the industry is 35,715 hours and $45,611,043.</P>
                <P>Compliance with Rules 603 and 614 is mandatory. Competing consolidators are required to keep and preserve at least one copy of all documents, including all correspondence, memoranda, papers, books, notices, accounts, and such other records as shall be made or received by it in the course of its business as such and in the conduct of its business. Competing consolidators must keep these documents for a period of no less than five years, the first two years in an easily accessible place. This requirement is consistent with current SEC rules for SROs. The Form CC and amendments to the effective national market system plan(s) will not be confidential; they will be posted on the Commission's public website. Competing consolidators will make available to subscribers consolidated market data products, which therefore will not be confidential. Competing consolidator records will be available to the Commission and other regulators. The reports and reviews of competing consolidators will be published on competing consolidator websites and will not be confidential. Finally, the exchanges and associations will make available to competing consolidators and self-aggregators quotation and transaction information.</P>
                <P>Written comments are invited on: (a) whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; (b) the accuracy of the Commission's estimates of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted by April 15, 2024.</P>
                <P>An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information under the PRA unless it displays a currently valid OMB control number.</P>
                <P>
                    Please direct your written comments to: David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: 
                    <E T="03">PRA_Mailbox@sec.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 8, 2024.</DATED>
                    <NAME>Sherry R. Haywood</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02951 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[SEC File No. 270-072, OMB Control No. 3235-0076]</DEPDOC>
                <SUBJECT>Proposed Collection; Comment Request; Extension: Regulation D (Form D)</SUBJECT>
                <FP SOURCE="FP-1">
                    <E T="03">Upon Written Request Copies Available From:</E>
                     Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549-2736.
                </FP>
                <P>
                    Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    ), the Securities and Exchange Commission (“Commission”) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval.
                </P>
                <P>
                    Form D (17 CFR 239.500) is a notice of sales filed by issuers making an offering of securities in reliance on an exemption under Regulation D (17 CFR 230.501 
                    <E T="03">et seq.</E>
                    ) or Section 4(a)(5) of the Securities Act of 1933 (15 U.S.C. 77d(a)(5)). Regulation D sets forth rules governing the limited offer and sale of securities without Securities Act registration. The purpose of Form D is to collect empirical data, which provides a continuing basis for action by the Commission either in terms of amending existing rules and regulations or proposing new ones. In addition, the Form D allows the Commission to elicit information necessary in assessing the effectiveness of Regulation D (17 CFR 230.501 
                    <E T="03">et seq.</E>
                    ) and Section 4(6) of the Securities Act of 1933 (15 U.S.C. 77d(6)) as capital-raising devices for all businesses. Approximately 38,735 issuers file Form D and it takes approximately 5 hours per response. We estimate that 25% of 5 hours per response (1.25 hour per response) is prepared by the issuer for an annual reporting burden 48,419 hours (1.25 hour per response × 38,735 responses).
                </P>
                <P>Written comments are invited on: (a) whether this proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency's estimate of the burden imposed by the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication by April 15, 2024.</P>
                <P>An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number.</P>
                <P>
                    Please direct your written comment to David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, 
                    <PRTPAGE P="10117"/>
                    DC 20549 or send an email to: 
                    <E T="03">PRA_Mailbox@sec.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02856 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-99491; File No. SR-Phlx-2024-03]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchanges Fees for Top of PHLX Options (TOPO), PHLX Orders, and TOPO Plus Orders</SUBJECT>
                <DATE>February 7, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on January 29, 2024, Nasdaq PHLX LLC (“Phlx” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend the Exchange's fees for Top of PHLX Options (TOPO), PHLX Orders, and TOPO Plus Orders.</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://listingcenter.nasdaq.com/rulebook/phlx/rules,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The purpose of the proposed rule change is to amend the Exchange's proprietary data fees for Top of PHLX Options (“TOPO”), PHLX Orders, and TOPO Plus Orders at Options 7, Section 10.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The proposed changes were initially filed on November 16, 2023, as SR-Phlx-2023-51. On December 5, 2023, SR-Phlx-2023-51 was withdrawn and replaced with SR-Phlx-2023-57. On January 29, 2024, SR-Phlx-2023-57 was withdrawn and replaced with the instant filing to provide additional detail regarding the proposal.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Top of PHLX Options (“TOPO”)</HD>
                <P>
                    TOPO is a direct data feed that provides subscribers with PHLX Best Bid and Offer (“BBO”) 
                    <SU>4</SU>
                    <FTREF/>
                     and last sale information.
                    <SU>5</SU>
                    <FTREF/>
                     The data distributed on TOPO is identical to the data simultaneously sent to the Options Price Reporting Authority (“OPRA”).
                    <SU>6</SU>
                    <FTREF/>
                     The TOPO feed also provides administrative information to facilitate trading on the Exchange such as, for example, the list of symbols trading on a particular day.
                    <SU>7</SU>
                    <FTREF/>
                     TOPO reduces the transmission and processing latencies for top of book information relative to the OPRA feed by avoiding the latencies generated by the latter in consolidating data.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         The Best Bid and Offer includes aggregate size information based on displayable order and quoting interest on the Exchange.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         PHLX, “Top of Phlx Options,” available at 
                        <E T="03">https://www.nasdaqtrader.com/Micro.aspx?id=TOPO#:~:text=Top%20of%20PHLX%20Options%20(TOPO,in%20the%20consolidated%20market%20feed.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Options 3 (Options Trading Rules), Section 23(a)(1) (Data Feeds and Trade Information) (“The data contained in the TOPO data feed is identical to the data simultaneously sent to the processor for the OPRA and subscribers of the data feed.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Nasdaq, “Top of Phlx Options Interface Specifications, Version 3.4” Section 4.3 available at 
                        <E T="03">https://www.nasdaqtrader.com/content/technicalsupport/specifications/dataproducts/topofphlx.pdf</E>
                         (describing the start of day options directory message, which lists all symbols eligible for the auction process).
                    </P>
                </FTNT>
                <P>
                    Monthly fees for TOPO are currently $2,000 for Internal Distributors,
                    <SU>8</SU>
                    <FTREF/>
                     $2,500 for External Distributors,
                    <SU>9</SU>
                    <FTREF/>
                     $1 for a Non-Professional Subscriber,
                    <SU>10</SU>
                    <FTREF/>
                     and $40 for a Professional Subscriber.
                    <SU>11</SU>
                    <FTREF/>
                     None of these fees have changed for over a decade, since January 2013.
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 10 (Proprietary Data Feed Fees) (Top of PHLX Options) (“A `distributor' of Nasdaq PHLX data is any entity that receives a feed or data file . . . directly from Nasdaq PHLX or indirectly through another entity and then distributes it either internally (within that entity) or externally (outside that entity). All distributors execute a Nasdaq PHLX distributor agreement.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See id.</E>
                         (“A Non-Professional Subscriber is a natural person who is neither: (i) registered or qualified in any capacity with the Commission, the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association; (ii) engaged as an `investment adviser' as that term is defined in Section 201(11) of the Investment Advisors Act of 1940 (whether or not registered or qualified under that Act); nor (iii) employed by a bank or other organization exempt from registration under federal or state securities laws to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt. A Non-Professional Subscriber may only use the data provided for personal purposes and not for any commercial purpose.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See id.</E>
                         (“A Professional Subscriber is any Subscriber that is not a Non-Professional Subscriber. If the Nasdaq Subscriber agreement is signed in the name of a business or commercial entity, such entity would be considered a Professional Subscriber.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 68576 (January 3, 2013), 78 FR 1886 (January 9, 2013) (SR-Phlx-2012-145).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">PHLX Orders</HD>
                <P>
                    PHLX Orders is a real-time order book feed with pricing information for displayed orders on the PHLX order book.
                    <SU>13</SU>
                    <FTREF/>
                     The data provided for each options series includes the symbols (series and underlying security), a put or call indicator, expiration date, and the strike price of the series. It also provides the real-time status of simple and complex orders 
                    <SU>14</SU>
                    <FTREF/>
                     on the order book, including new orders and changes to orders resting on the PHLX book for all PHLX-listed options.
                    <SU>15</SU>
                    <FTREF/>
                     The PHLX Orders feed includes data on the opening imbalance, Price Improvement XL (PIXL),
                    <SU>16</SU>
                    <FTREF/>
                     and Complex Order Live Auction (COLA).
                    <SU>17</SU>
                    <FTREF/>
                     A notification 
                    <PRTPAGE P="10118"/>
                    message is sent for symbols entering an auction.
                    <SU>18</SU>
                    <FTREF/>
                     PHLX Orders also furnishes an historical record of all simple and complex order message data from the PHLX Orders data feed. PHLX Orders information is not sent to OPRA.
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Options 3 (Options Trading Rules), Section 23(a)(2) (Data Feeds and Trade Information).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         Options 3 (Options Trading Rules), Section 23(a)(2) (Data Feeds and Trade Information); Section 14(a)(i) (“Complex Order. For purposes of the electronic trading of Complex Orders, a Complex Order is an order involving the simultaneous purchase and/or sale of two or more different options series in the same underlying security, priced as a net debit or credit based on the relative prices of the individual components, for the same account, for the purpose of executing a particular investment strategy.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Nasdaq, “PHLX Orders,” available at 
                        <E T="03">https://www.nasdaqtrader.com/Micro.aspx?id=PHLXOrders.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Options 3 (Options Trading Rules), Section 23(a)(2); Section 13 (Price Improvement XL) (“A member may electronically submit for execution an order it represents as agent on behalf of a Public Customer, broker-dealer, or any other entity (`PIXL Order') against principal interest or against any other order (except as provided in sub-paragraph (a)(6) below) it represents as agent (an `Initiating Order') provided it submits the PIXL Order for electronic execution into the PIXL Auction (`Auction') pursuant to this Rule.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Options 3, Section 14(e) (describing the process for the Complex Order Live Auction (“COLA”)).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         Nasdaq, “PHLX Orders Interface Specification,” (Version 1.92) available at 
                        <E T="03">https://www.nasdaqtrader.com/content/technicalsupport/specifications/dataproducts/topoplusorders.pdf</E>
                         (describing auction notification message).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Limited Liability Company Agreement of Options Price Reporting Authority, LLC Article V, Section 5.2(c)(i) (January 1, 2010), available at 
                        <E T="03">https://assets.website-files.com/5ba40927ac854d8c97bc92d7/5d0bd57d87d3ccca102102d7_OPRA%20Plan%20with%20Updated%20Exhibit%20A%20-%2006-19-2019.pdf</E>
                         (describing last sale and best bid and offer information disseminated by OPRA).
                    </P>
                </FTNT>
                <P>
                    PHLX Orders is an alternative to PHLX Depth of Market. It is an optimized technical channel designed to lower technology costs, reduce processing time, and facilitate the ingestion of data while still providing customers insight beyond the top of book by viewing active buy and sell orders. PHLX Orders excludes quotations by market makers and other authorized entities that is included in PHLX Depth of Market.
                    <SU>20</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Options 3 (Options Trading Rules), Section 23(a)(3) (Data Feeds and Trade Information) (“PHLX Depth of Market is a data product that provides: (i) order 
                        <E T="03">and quotation</E>
                         information for 
                        <E T="03">individual quotes</E>
                         and orders on the order book . . .”) (emphasis added); Section 4(b) (Entry and display of Quotes) (identifying the market participants authorized to submit quotes to the Exchange).
                    </P>
                </FTNT>
                <P>What is the utility of an orders-only data feed? It provides customers with the opportunity to reduce bandwidth (and therefore data processing costs) by several orders of magnitude relative to the full depth of book feed, while retaining a view of customer orders (setting aside liquidity offered by market makers that is not attracting orders).</P>
                <P>
                    The December 2023 bandwidth report shows that the PHLX Depth of Market feed transmitted a maximum of 14.3 billion messages per day during the month of December,
                    <SU>21</SU>
                    <FTREF/>
                     while the PHLX Orders feed transmitted a maximum of 53.6 million messages over the same period (41.5 million messages for simple orders, and 12.1 million messages for complex orders). The Exchange's full depth of book feed requires the customer to process over 200 times more messages than the orders feed over the course of a day; replacing a depth of book feed with an orders feed allows a customer to reduce the maximum number of daily messages it receives by 99.6%.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Nasdaq, “December 2023 Bandwidth Report,” available at 
                        <E T="03">https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fwww.nasdaqtrader.com%2Fcontent%2Ftechnicalsupport%2Fspecifications%2Fdataproducts%2Fbandwidthreport.xls&amp;wdOrigin=BROWSELINK.</E>
                    </P>
                </FTNT>
                <P>To cite another example, the 1millisecond bandwidth peak for PHLX Depth of Market was 13.96 million messages; the comparable number of messages for orders was 1.45 million (891 thousand for simple and 561 thousand for complex orders). Replacing depth of book with orders can therefore reduce the number of messages processed at peak at the 1 millisecond bandwidth by nearly 90%.</P>
                <P>Approximately 56% of customers who take any data feed at all from the PHLX exchange take an orders feed (either Orders only or TOPO Plus Orders) without depth of book. Another 38% of customers take both orders and depth feeds. The remaining 6% take either top of book or depth of book alone.</P>
                <P>What type of customer takes an orders feed in lieu of depth? In general, firms that only need information on actively trading options do so. There are a great number of use cases that fit this broad description, but, for purposes of illustration, the Exchange is aware of at least two such types of customers.</P>
                <P>The first is the market participant that does not engage in order routing. These are broker dealers that use third parties to route orders, either because the originating broker-dealer is not a member of the exchange or to save costs. Without the need for additional information to inform routing decisions, such customers often focus on active trading alone, and therefore purchase the orders feed.</P>
                <P>A second category of customers are those that use options data to analyze trends in other markets. One example of this type of customer is the equity trader that analyzes equity-based options to gauge market sentiment in the underlying equity. For such customers, there is relatively little utility in the full depth feed, given that market sentiment is best gauged using options that are being actively traded, rather than those that are dormant.</P>
                <P>As noted above, there are some customers that purchase both orders and depth. Vendors are one example of this type of customer. They purchase market data solely for resale, not for trading on behalf of themselves or others. Another example is the firm that uses orders for analysis and depth for order routing. As noted above, the orders feed can be useful for assessing sentiment in equity markets, while depth is often used in order routing decisions. Firms that engage in both functions can lower overall processing requirements by using orders for analytics and depth for routing.</P>
                <P>Purchase of PHLX Orders is optional. Customers can obtain all of the data contained in PHLX Orders from PHLX Depth of Market feed, and may purchase the latter if they do not realize the cost savings offered by PHLX Orders.</P>
                <P>PHLX Orders is a derivative product designed as a lower-cost alternative to a depth of book feed. It is not a complement to any other product offered by the Exchange or any of its competitors. Customers are free to purchase PHLX Orders or not, and can reject the feed for any reason, including the fee charged.</P>
                <P>
                    Current monthly fees for PHLX Orders are $3,000 for Internal Distributors, $3,500 for External Distributors, $1 for a Non-Professional Subscriber, and $40 for a Professional Subscriber. None of these fees have changes for over a decade, since January 2013.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 68576 (January 3, 2013), 78 FR 1886 (January 9, 2013) (SR-Phlx-2012-145).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">TOPO Plus Orders</HD>
                <P>
                    TOPO Plus is a direct market data product that offers subscribers both TOPO and PHLX Orders for a consolidated fee that is less than the combined fee of the two products.
                    <SU>23</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         PHLX, TOPO Plus PHLX Orders, available at 
                        <E T="03">https://www.nasdaqtrader.com/Micro.aspx?id=TOPOPlusOrders.</E>
                    </P>
                </FTNT>
                <P>Monthly fees for TOPO Plus Orders are currently $4,500 for Internal Distributors, $5,000 for External Distributors, $1 for a Non-Professional Subscriber, and $40 for a Professional Subscriber.</P>
                <P>
                    Internal Distributor fees for TOPO Plus Orders were modified in January 2018, over five years ago,
                    <SU>24</SU>
                    <FTREF/>
                     but the other TOPO Plus Orders fees have not changed since January 2013.
                    <SU>25</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 82495 (January 12, 2018), 83 FR 2839 (January 19, 2018) (SR-Phlx-2018-08).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 68576 (January 3, 2013), 78 FR 1886 (January 9, 2013) (SR-Phlx-2012-145).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposed Changes</HD>
                <P>For TOPO, the Exchange proposes to increase the monthly charge for Internal Distributors from $2,000 to $2,500, and the monthly charge for External Distributors from $2,500 to $3,000. No changes are proposed for Non-Professional and Professional Subscriber fees.</P>
                <P>
                    For PHLX Orders, the Exchange proposes to increase the monthly charge for Internal Distributors from $3,000 to $3,500, and the monthly charge for External Distributors from $3,500 to $4,000. No changes are proposed for Non-Professional and Professional Subscriber fees.
                    <PRTPAGE P="10119"/>
                </P>
                <P>For TOPO Plus Orders, the Exchange proposes to increase the monthly charge for Internal Distributors from $4,500 to $5,500, and the monthly charge for External Distributors from $5,000 to $6,000. No changes are proposed for Non-Professional and Professional Subscriber fees.</P>
                <P>The proposed changes are designed to update data fees to reflect their current value, rather than their value when these fees were set 5 or 10 years ago.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
                    <SU>26</SU>
                    <FTREF/>
                     in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,
                    <SU>27</SU>
                    <FTREF/>
                     in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         15 U.S.C. 78f(b)(4) and (5).
                    </P>
                </FTNT>
                <P>This belief is based on several factors.</P>
                <P>
                    <E T="03">First,</E>
                     exchange fees are constrained because market participants can choose among seventeen different venues for options trading, and therefore no single venue can charge excessive fees without losing customers and market share.
                </P>
                <P>
                    <E T="03">Second,</E>
                     fees for TOPO are constrained because the identical top of book data is sent to OPRA, and certain market participants may choose to rely exclusively on OPRA rather than purchasing the proprietary data product.
                </P>
                <P>
                    <E T="03">Third,</E>
                     the purchase of PHLX Orders is optional. It is designed as a lower-cost alternative to depth of book, and, as such, is not a complement to any other product offered by the Exchange or any of its competitors. Customers may purchase PHLX Orders or not, and can reject the feed for any reason, including the fee charged.
                </P>
                <P>
                    <E T="03">Fourth,</E>
                     the proposed fees are comparable to, and in some cases less than, those of similarly situated exchanges.
                </P>
                <P>
                    <E T="03">Fifth,</E>
                     the current fees do not properly reflect the value of the underlying product, as fees for the products in question have been static in nominal terms, and therefore falling in real terms (due to inflation), while the amount of information transmitted in those fees have more than doubled in just the past five years, reflecting a substantial increase in customer value due to the significantly higher levels of liquidity currently available on the Exchange.
                </P>
                <P>
                    <E T="03">Sixth,</E>
                     higher fees for the external distribution of TOPO, PHLX Orders, and TOPO Plus Orders are based on the additional value vendors receive from distributing data to their own customers and typically charging for the service.
                </P>
                <HD SOURCE="HD3">Customers Have A Choice in Trading Venue</HD>
                <P>
                    Customers face many choices in where to trade options. Until recently, sixteen exchanges have offered options trading services,
                    <SU>28</SU>
                    <FTREF/>
                     and they are now being joined by a 17th member.
                    <SU>29</SU>
                    <FTREF/>
                     Not a single options exchange trades more than 11 percent of the options market by volume.
                    <SU>30</SU>
                    <FTREF/>
                     PHLX, the second largest options exchange by volume, only has 9 percent of the options market.
                    <SU>31</SU>
                    <FTREF/>
                     Only one of the 17 options exchanges have a market share over 10 percent.
                    <SU>32</SU>
                    <FTREF/>
                     This broad dispersion of market share demonstrates that market participants can and do exercise choice in options trading venues. As the number of exchanges continues to grow, competition will become fiercer and customer choice will continue to expand.
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         OPRA Plan, list of OPRA Participant Exchanges, available at 
                        <E T="03">https://www.opraplan.com/faqs.</E>
                         (All options exchanges are members of the OPRA Plan.).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 98388 (September 14, 2023), 88 FR 64963 (September 20, 2023) (File No. 4-443) (“Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the Plan for the Purpose of Developing and Implementing Procedures Designed To Facilitate the Listing and Trading of Standardized Options To Add MEMX LLC as a Plan Sponsor”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Nasdaq, Options Market Statistics (Last updated November 3, 2023), available at 
                        <E T="03">https://www.nasdaqtrader.com/Trader.aspx?id=OptionsVolumeSummary.</E>
                         On November 3, 2023, the total percentage of options market volume by exchange was as follows: ARCA: 11%; PHLX: 9%; CBOE: 9%; BOX: 8%; ISE: 7%; EDGX: 7%; AMEX: 7%; MIAX: 7%; MPRL: 7%; NOM: 6%; BATS: 6%; C2: 5%; EMLD: 4%; MRX: 3%; GEMX: 3%; BXOP: 3%; MEMX: 0%.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    In light of the number of trading venues available to customers, the Exchange must price its products, including TOPO, PHLX Orders, and TOPO Plus Orders (as well as other products), competitively. If not, customers would move to other venues. “If competitive forces are operative, the self-interest of the exchanges themselves will work powerfully to constrain unreasonable or unfair behavior.” 
                    <SU>33</SU>
                    <FTREF/>
                     Accordingly, “the existence of significant competition provides a substantial basis for finding that the terms of an exchange's fee proposal are equitable, fair, reasonable, and not unreasonably or unfairly discriminatory.” 
                    <SU>34</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 59039 (December 2, 2008), 73 FR 74,770 (December 9, 2008) (SR-NYSEArca-2006-21).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">The Top of Book Data in TOPO Is Sent to OPRA</HD>
                <P>
                    The top of book data in TOPO is sent to OPRA; under OPRA rules, proprietary options information is available to customers that have equivalent access to OPRA information, and therefore is supplementary to the OPRA feed.
                    <SU>35</SU>
                    <FTREF/>
                     Specifically, Section 5.2(c)(iii) of the OPRA Plan provides that “[a] Member [of the OPRA Plan] may disseminate its Proprietary Information,” provided that “such dissemination is limited to other Members and to persons who also have equivalent access to consolidated Options Information disseminated by OPRA for the same classes or series of options that are included in the Proprietary Information. . . .” 
                    <SU>36</SU>
                    <FTREF/>
                     “Consolidated Options Information” refers to “consolidated Last Sale Reports combined with either consolidated Quotation Information or the BBO furnished by OPRA.” 
                    <SU>37</SU>
                    <FTREF/>
                     Access is deemed to be “equivalent” “if both if both kinds of information are equally accessible on the same terminal or work station . . . .” 
                    <SU>38</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         Limited Liability Company Agreement of Options Price Reporting Authority, LLC section 5.2(c)(iii) (January 1, 2010), available at 
                        <E T="03">https://assets.website-files.com/5ba40927ac854d8c97bc92d7/5d0bd57d87d3ccca102102d7_OPRA%20Plan%20with%20Updated%20Exhibit%20A%20-%2006-19-2019.pdf</E>
                         (“OPRA Plan”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Any customer that purchases proprietary options data from the Exchange, including TOPO and TOPO Plus Orders, must also have equivalent access to the OPRA Plan. As noted above, the best bid and offer and last sale information available from TOPO and TOPO Plus Orders fees is identical to the information simultaneously sent to OPRA by the Exchange.
                    <SU>39</SU>
                    <FTREF/>
                     OPRA provides NBBO and last sale information on options transactions. TOPO and TOPO Plus Orders provide additional administrative information unique to trading on the Exchange, and also reduce the transmission and processing latencies generated through the process of consolidating data into 
                    <PRTPAGE P="10120"/>
                    the OPRA feed.
                    <SU>40</SU>
                    <FTREF/>
                     Because top of book and last sale information is available on OPRA as well as TOPO, and customers who purchase TOPO have equivalent access to the OPRA feed, certain customers may choose to rely on the OPRA feed in lieu of purchasing PHLX data, thereby limiting the ability of the Exchange from charging excessive fees for its TOPO and TOPO Plus Orders feeds.
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         As noted above, the TOPO feed includes administrative information (but not data) that is not provided on the OPRA feed, such as symbol directory messages. 
                        <E T="03">See</E>
                         Nasdaq, “Top of Phlx Options Interface Specifications, Version 3.4” Section 4.3 available at 
                        <E T="03">https://www.nasdaqtrader.com/content/technicalsupport/specifications/dataproducts/topofphlx.pdf</E>
                         (describing the start of day options directory message, which lists all symbols eligible for the auction process).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         The bid and offer and last sale information provided with the TOPO Plus Orders product is identical to the data sent to OPRA, although the “orders” component of TOPO Plus Orders is not.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">The Purchase of PHLX Orders Is Optional</HD>
                <P>Purchase of PHLX Orders is optional. As explained above, customers can obtain all of the data contained in PHLX Orders from PHLX Depth of Market feed, and may purchase the latter if they do not realize the cost savings offered by PHLX Orders. PHLX Orders is not a complement to any other product offered by the Exchange or any of its competitors; customers are free to purchase PHLX Orders or not, and can reject the feed for any reason, including the fee charged.</P>
                <HD SOURCE="HD3">The Proposed Fees are Comparable to Those of Other Exchanges</HD>
                <P>
                    The proposed fees are comparable to, and in some cases less than, those of other similarly situated exchange fees. Options market statistics show that PHLX has a market share of approximately 9%. ARCA, with an 11% market share, and CBOE, with a 9% market share, are its closest competitors.
                    <SU>41</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">See</E>
                         Nasdaq, Options Market Statistics (Last updated November 3, 2023), available at 
                        <E T="03">https://www.nasdaqtrader.com/Trader.aspx?id=OptionsVolumeSummary.</E>
                    </P>
                </FTNT>
                <P>
                    To obtain top of book and depth of book information for internal distribution (including both simple and complex options) from ARCA, a customer would be required to pay an Access Fee of $3,000 per month, a Non-Display fee of at least $5,000 per month for simple options, and a Non-Display fee of $1,000 for Complex Options, for a total of $9,000 per month.
                    <SU>42</SU>
                    <FTREF/>
                     To obtain the same information from PHLX under the new proposal, a customer would pay the Internal Distributor fee of $2,500 for TOPO, and an Internal Distributor fee of $4,000 for PHLX Depth Data,
                    <SU>43</SU>
                    <FTREF/>
                     for a total of $6,500 per month.
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See,</E>
                         NYSE Arca Options Proprietary Market Data Fees (as of July 3, 2023), available at 
                        <E T="03">https://www.nyse.com/publicdocs/nyse/data/NYSE_Arca_Options_Proprietary_Data_Fee_Schedule.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 10 (Proprietary Data Feed Fees) (PHLX Depth Data). ARCA does not charge separately for top of book and depth of book. Although PHLX is not proposing to change fees for depth of book information, PHLX depth of book information is included here to maintain comparability.
                    </P>
                </FTNT>
                <P>
                    To obtain comparable information for Cboe Options, a customer would be required to pay a combined fee of $9,000 per month.
                    <SU>44</SU>
                    <FTREF/>
                     As noted above, a PHLX customer would pay the Internal Distributor fee of $2,500 for TOPO, and an Internal Distributor fee of $4,000 for PHLX Depth Data,
                    <SU>45</SU>
                    <FTREF/>
                     for a total of $6,500 per month.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Cboe Data Services (CDS), Market Data Product Price List (updated July 1, 2023), available at 
                        <E T="03">https://cdn.cboe.com/resources/membership/US_Market_Data_Product_Price_List.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         Options 7, Section 10 (Proprietary Data Feed Fees) (PHLX Depth Data). ARCA does not charge separately for top of book and depth of book. Although PHLX is not proposing to change fees for depth of book information, PHLX depth of book information is included here to ensure comparability.
                    </P>
                </FTNT>
                <P>As such, the proposed fees are comparable to fees charged by industry peers, and therefore presumptively reasonable.</P>
                <HD SOURCE="HD3">Real Exchange Fees Have Fallen While Traffic Has Increased</HD>
                <P>
                    As explained above, the Internal Distributor fee for TOPO Plus Orders was increased in 2018,
                    <SU>46</SU>
                    <FTREF/>
                     while none of the other fees have changed for over a decade, since January 2013.
                    <SU>47</SU>
                    <FTREF/>
                     This means that fees for TOPO, PHLX Orders, and TOPO Plus Orders have fallen in real terms due to inflation. Using data generated by the Department of Commerce to estimate inflation in the market for portfolio management and investment services,
                    <SU>48</SU>
                    <FTREF/>
                     inflation has increased prices by 63.9% since January 2013, when most of the fees at issue were set, and 15.7% since January 2018, when internal distributor fees for TOPO Plus Orders were last modified. At the same time, the average daily message count of PHLX has more than doubled in just five years, from approximately 3.0 billion messages per day in 2018 to approximately 8.2 billion messages in 2023.
                    <SU>49</SU>
                    <FTREF/>
                     PHLX grew in conjunction with options trading overall, which in the aggregate grew at a faster pace than PHLX alone. Between January 2018 and December 2023, options volume on PHLX grew by 31%, while options volume on all exchanges nearly doubled, from 467 million options to 912 million instruments.
                    <SU>50</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 82495 (January 12, 2018), 83 FR 2839 (January 19, 2018) (SR-Phlx-2018-08).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 68576 (January 3, 2013), 78 FR 1886 (January 9, 2013) (SR-Phlx-2012-145).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         Bureau of Economic Analysis, U.S. Department of Commerce, “Personal Consumption Expenditures Price Index,” available at 
                        <E T="03">https://www.bea.gov/data/personal-consumption-expenditures-price-index.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         PHLX Data (Average Daily Message Count was 2,979,919,551.32 in 2018, and 8,243,516,029.17 thus far in 2023). The significant increases in data traffic have also required technological upgrades to manage the larger traffic volume and to respond to overall technological change in the industry. 
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 82495 (January 12, 2018), 83 FR 2839 (January 19, 2018) (SR-Phlx-2018-08) (discussing a number of functional enhancements to both TOPO and PHLX Orders).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         Options Clearing Corporation, “Volume and Open Interest,” available at 
                        <E T="03">https://www.theocc.com/market-data/market-data-reports/volume-and-open-interest/volume-by-exchange.</E>
                    </P>
                </FTNT>
                <P>Growth in options trading means better value for the consumer. The greater variety of options contracts traded means that customers have more choice. The greater number of buyers and sellers in the market means that there is more liquidity, resulting in tighter spreads and better consumer value on each trade. Greater choice and tighter spreads mean that the consumer obtains more value from options markets overall, which should be reflected in fees for exchange services, including market data. The proposal is therefore reasonable in light of the substantial increase in customer value generate by the higher levels of liquidity now available on the Exchange, coupled with the fall in real prices due to inflation.</P>
                <HD SOURCE="HD3">External Distributors Receive Additional Value</HD>
                <P>External Distributors receive additional value not available to Internal Distributors by disseminating information externally and typically charging for the service. This additional value supports higher fees for external distribution for TOPO, PHLX Orders, and TOPO Plus Orders. Higher fees for external distribution of data are common throughout the industry, and nearly universal among exchanges. The difference in value between internal and external distribution is also reflected in the current fee schedule, which has previously been shown to be consistent with the Exchange Act.</P>
                <STARS/>
                <P>
                    In summary, the proposal represents an equitable allocation of reasonable dues, fees and other charges because: (i) customers have a choice in trading venue, and will exercise that choice and trade at another venue if exchange fees are not set competitively; (ii) the top of book data sent in the TOPO feed are also sent to OPRA, and customers have the option of relying on OPRA data; (iii) the purchase of PHLX Orders is entirely optional as it is a low-cost alternative to the PHLX Depth of Market product; (iv) the proposed fees are comparable to those of other exchanges; (v) exchange 
                    <PRTPAGE P="10121"/>
                    fees have fallen in real terms while the amount of liquidity available on the exchange has increased, and (vi) external vendors receive additional value from distributing data to their own customers and typically charging for the service, and therefore charging higher fees for external distribution is fair and reasonable.
                </P>
                <HD SOURCE="HD3">No Unfair Discrimination</HD>
                <P>The Proposal is not unfairly discriminatory. The three market data feeds at issue here—TOPO, PHLX Orders, and TOPO Plus Orders—are used by a variety of market participants for a variety of purposes. Users include regulators, market makers, competing exchanges, media, retail, academics, portfolio managers. Market data feeds will be available to members of all of these groups on a non-discriminatory basis.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.</P>
                <P>Nothing in the Proposal burdens inter-market competition (the competition among self-regulatory organizations) because approval of the Proposal does not impose any burden on the ability of other options exchanges to compete. PHLX fees are comparable to, and in some cases less than, those of other exchanges, as discussed above.</P>
                <P>Nothing in the Proposal burdens intra-market competition (the competition among consumers of exchange data) because PHLX market data is available to any customer under the same fee schedule as any other customer, and any market participant that wishes to purchase PHLX market data can do so on a non-discriminatory basis.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were either solicited or received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.
                    <SU>51</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         15 U.S.C. 78s(b)(3)(A)(ii).
                    </P>
                </FTNT>
                <P>At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-Phlx-2024-03 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-Phlx-2024-03. 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 internet website (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-Phlx-2024-03 and should be submitted on or before March 5, 2024.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>52</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02861 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-99488; File No. SR-CboeBZX-2024-007]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend the Definition of Retail Order, and Codify Interpretations and Policies Regarding Permissible Uses of Algorithms by RMOs</SUBJECT>
                <DATE>February 7, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on January 25, 2024, Cboe BZX Exchange, Inc. (the “Exchange” or “BZX”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    Cboe BZX Exchange, Inc. (the “Exchange” or “BZX”) is filing with the Securities and Exchange Commission (the “Commission”) a proposal to (i) amend the definition of “Retail Order” as defined by Exchange Rule 11.25(a)(2); (ii) codify proposed Interpretation and Policy. 01, which describes the meaning of the term, “retail investor,” as referenced in proposed Rule 11.25(a)(2); (iii) codify proposed Interpretation and Policy .02, which describes the meaning of the term, “natural person,” as referenced in proposed Rule 11.25(a)(2); (iv) codify proposed Interpretation and Policy .03, which describes acceptable uses of algorithms or other computerized methodology by Retail Member Organizations; and (v) codify proposed Interpretation and Policy .04 
                    <PRTPAGE P="10122"/>
                    which explains that Rule 11.25(a)(2)'s provision preventing the terms of an order with respect to price is not intended to prevent a Retail Member Organization from changing the terms of the order to ensure a better execution experience for a retail investor. The text of the proposed rule change is provided in Exhibit 5.
                </P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The purpose of this rule filing is to (i) amend the definition of “Retail Order” as defined by Exchange Rule 11.25(a)(2); (ii) codify proposed Interpretation and Policy. 01, which describes the meaning of the term, “retail investor,” as referenced in proposed Rule 11.25(a)(2); (iii) codify proposed Interpretation and Policy .02, which describes the meaning of the term, “natural person,” as referenced in proposed Rule 11.25(a)(2); (iv) codify proposed Interpretation and Policy .03, which describes acceptable uses of algorithms or other computerized methodology by Retail Member Organizations; and (v) codify proposed Interpretation and Policy .04 which explains that Rule 11.25(a)(2)'s provision preventing the terms of an order with respect to price is not intended to prevent a Retail Member Organization from changing the terms of the order to ensure a better execution experience for a retail investor.</P>
                <P>
                    The Exchange, along with its affiliate exchanges Cboe BYX Exchange, Inc. (“BYX”), Cboe EDGA Exchange, Inc. (“EDGA), and Cboe EDGX Exchange, Inc. (“EDGX”), believes that retail investors are a key part of the trading ecosystem, and as such, has designed products and programs to execute retail orders quickly, with high execution quality and at a low-cost, with added pricing incentives. For instance, targeted retail order types on EDGX 
                    <SU>3</SU>
                    <FTREF/>
                     and BYX,
                    <SU>4</SU>
                    <FTREF/>
                     execute both marketable and non-marketable retail orders with price improvement, and enhanced speed and fill rates. Additionally, both EDGX and BYX offer retail-only pricing incentives for low cost remove and premium rebates. EDGX also offers Retail Member Organizations (“RMO”) 
                    <SU>5</SU>
                    <FTREF/>
                     discounts on port fees and market data, and retail tiers give growing retail firms additional rebates.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         EDGX's Retail Priority program seeks to enhanced execution quality for individual investors who trade U.S. equities on EDGX. Retail Priority offers a distinct allocation model, which differs from the traditional time-based allocation model used by most U.S. equities market centers that allocate trades to orders that arrive first in time at each price point. Retail Priority focuses on improving execution quality and trading outcomes for individual investors, and the firms facilitating their orders, by reducing their time to execution. Under Retail Priority, individual investors' displayed limit orders will post at the front of the order queue for same-priced orders submitted on EDGX.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         Orders designated by a Retail Member Organization as “Retail Orders” (defined 
                        <E T="03">infra</E>
                        ) are eligible for participation in BYX's Retail Price Improvement Program. Through the Retail Price Improvement Program, any BYX Member may input Retail Price Improving (RPI) orders on the BYX order book that will offer price improvement on $.001 increments to RMOs that enter a Retail Order. In addition to the price improvement opportunities, Retail Orders that interact with price improving orders receive an enhanced rebate on BYX. 
                        <E T="03">See generally</E>
                         “Cboe Retail Price Improvement” available at: 
                        <E T="03">https://www.cboe.com/us/equities/trading/offerings/retail_price_improvement/ See generally,</E>
                         “BYX Retail Price Improvement (RPI) Program” available at: 
                        <E T="03">https://cdn.cboe.com/resources/release_notes/2012/BATS-Introduces-Retail-Price-Improvement-Program.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         The term, Retail Member Organization or RMO, means “a Member (or a division thereof) that has been approved by the Exchange under this Rule to submit Retail Orders.” 
                        <E T="03">See</E>
                         Rule 11.2525(a)(1), definition of, “Retail Member Organization”.”
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Retail Order Definition</HD>
                <P>
                    As currently defined in Rule 11.25(a)(2), a “Retail Order” is an agency or riskless principal order that meets the criteria of FINRA Rule 5320.03 
                    <SU>6</SU>
                    <FTREF/>
                     that originates from a natural person and is submitted to the Exchange by a RMO, provided that no change is made to the terms of the order with respect to price or side of the order and the order does not originate from a trading algorithm or any other computerized methodology.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         FINRA Rule 5320.03 provides for a Riskless Principal Exception. 
                        <E T="03">See</E>
                         FINRA Rule 5320, Prohibition Against Trading Ahead of Customer Orders, available at: 
                        <E T="03">https://www.finra.org/rules-guidance/rulebooks/finra-rules/5320.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange has received Member feedback,
                    <SU>7</SU>
                    <FTREF/>
                     however, that it is unclear whether Rule 11.25 permits the use of algorithms or other computerized methodologies (hereinafter, collectively referred to as “algorithms”) when submitting individual retail investors' orders to the Exchange.
                    <SU>8</SU>
                    <FTREF/>
                     The impact of the rule's ambiguity is twofold: first, while Members may route orders entered by retail investors to the Exchange for execution, they are doing so as non-RMOs and without designating such orders as Retail Orders; second, potential new Members considering registering as RMOs may be discouraged doing from so. In both cases, the ambiguity of the Exchange's current definition is discouraging the routing of retail order flow to the Exchange and preventing individual investors from receiving the benefits provided to Retail Orders executed on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         The Exchange has spoken with various current and prospective Members, ranging from smaller, regional broker-dealers to larger, bulge bracket broker-dealers, that are responsible for handling and routing retail orders for execution.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The Exchange notes that this is not a novel question and that this issue was initially raised by SIFMA in its comment letter to the New York Stock Exchange's Retail Liquidity Program rule filing, in which SIFMA noted that a broad prohibition on algorithmic and computerized methodologies could be read to mean only orders submitted via phone may be considered Retail Orders, or that even orders entered through an online broker by an actual retail customer would not qualify. 
                        <E T="03">See</E>
                         SIFMA Comment Letter (March 23, 2012), to Securities Exchange Act Release No. 34-66346 (File No. SR-NYSE-2011-55 and File No. SR-NYSEAmex-2011-84) (“Retail Liquidity Program”).
                    </P>
                </FTNT>
                <P>
                    The Exchange now seeks to amend the definition of Retail Order to clarify for Members, including potential new Members, that the use of an algorithm to submit orders to the Exchange on behalf of a retail investor, does not automatically preclude an RMO from designating such orders as, “Retail Orders.” Specifically, use of an algorithm to submit a Retail Order to the Exchange is permissible provided that the order, or investment criteria for the order (discussed 
                    <E T="03">infra</E>
                    ) originates from a natural person, such as the investor him/herself, or a natural person on behalf of a retail investor (
                    <E T="03">e.g.,</E>
                     a Financial Advisor (“FA”), or trader), and such order is submitted to the Exchange by an RMO. Additionally, except as described in proposed Interpretation and Policy .03 (discussed 
                    <E T="03">infra</E>
                    ), no change to the terms of the order with respect to price or side, may be made.
                </P>
                <P>
                    By amending the Retail Order definition, more RMOs may choose to avail themselves of the benefits offered by the Exchange's Retail Attribution 
                    <PRTPAGE P="10123"/>
                    Program, which allows RMOs to designate a Retail Order to be identified as a Retail Order on the Exchange's proprietary feeds offered by the Exchange, either on an order-by-order basis or on a port-by-port basis. In turn, the enhanced opportunity interact with retail flow is likely to incentivize more retail liquidity provision, as it is generally considered preferable to trade with retail orders than with orders of professional investors that are typically more informed regarding short-term price movements.
                    <SU>9</SU>
                    <FTREF/>
                     Enhanced RMO participation and retail liquidity provision will ultimately foster transparency and price discovery, and provide Retail Orders with additional price improvement opportunities as liquidity providers compete to interact with retail flow on BZX.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Indeed, even the Commission noted “the markets generally distinguish between individual retail investors, whose orders are considered desirable by liquidity providers because such retail investors are presumed on average to be less informed about short-term price movements, and professional traders, whose orders are presumed on average to be more informed.” 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 34-68303 (November 27, 2012), 77 FR 71652 (December 3, 2012) (SR-BYX-2012-019) (“Order Granting Approval to Proposed Rule Change, as Modified by Amendment No. 2, to Adopt a Retail Price Improvement Program”).
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that the proposed amendments are merely a codification of how retail trading occurs in today's markets and helps to ensure that retail customers are not inadvertently excluded from enhanced execution quality simply because they utilize automated trading solutions widely utilized by other market participants that have been developed since the current definition was added to the BZX rulebook. As noted in the Staff Report on Algorithmic Trading in U.S. Capital Markets, the current markets for secondary trading in NMS stocks is predominantly electronic, with most of the trading lifecycle, including order generation, routing, and execution, being fully automated.
                    <SU>10</SU>
                    <FTREF/>
                     Indeed, both retail and institutional investors utilize algorithms to actively make investment and trading decisions.
                    <SU>11</SU>
                    <FTREF/>
                     Additionally, some specialized brokers provide individual retail investors with sophisticated broker algorithms, or allow them to create their own algorithms,
                    <SU>12</SU>
                    <FTREF/>
                     as well as utilize auto-investing technology that trades for retail customers based on how much money a retail customer wishes to invest, and their preferred investment horizon.
                    <SU>13</SU>
                    <FTREF/>
                     Given the prevalent use of trading algorithms in the securities markets, the Exchange believes it necessary to modify the definition of Retail Order to align Exchange rules with current market practice, and to provide clarity to Members and potential new Members regarding the definition of Retail Order.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         “Staff Report on Algorithmic Trading in U.S. Capital Markets” (August 5, 2020), available at 
                        <E T="03">https://www.sec.gov/tm/reports-and-publications/special-studies/algo_trading_report_2020.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See generally</E>
                         Betterment©, Automated Investing, available at: 
                        <E T="03">https://www.betterment.com/investing</E>
                         (Betterment© provides retail customers access to technology that automatically invests in the market based on the retail customer's available funds and stated investment period) (“Automated Technology is how we make investing easier, better, and more accessible”); 
                        <E T="03">see also</E>
                         (DriveWealth©, LLC, Robo, available at: 
                        <E T="03">https://www.drivewealth.com/solutions/robo</E>
                         (“DriveWealth's© technology enables our partners to design cutting-edge robo-investing experiences for your customers . . . or you can empower people to make their own investment decisions with robo-advisory capability.”)
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .01</HD>
                <P>
                    The Exchange also seeks to adopt proposed Interpretation and Policy .01, which seeks to describe the meaning of the term, “retail investor,” which is referenced in proposed Rule 11.25(a)(2). To ensure that orders from only bona fide retail investors may qualify as Retail Orders, the Exchange believes it important to first specify what type of investor is considered a retail investor for the purposes of Rule 11.25. Specifically, a retail investor is intended to refer to a non-professional, individual investor that invests money in their own account, held at a brokerage firm. A retail investor may also refer to an account held in corporate form (
                    <E T="03">e.g.,</E>
                     corporation, or limited liability company) that has been established for the benefit of an individual or group of related family members (
                    <E T="03">e.g.,</E>
                     the legal representative for a family office).
                    <SU>14</SU>
                    <FTREF/>
                     Furthermore, the investment goals of a retail investor are mainly saving for retirement and/or education, generating income, or growing wealth over the long-term. A retail investor may trade directly on his or her own behalf (
                    <E T="03">e.g.,</E>
                     self-directed online brokerage account), utilize online investing platforms that employ software algorithms to create and enters orders, and manage investment portfolios based on an investor's investment criteria (
                    <E T="03">e.g.,</E>
                     “robo-advisors”), or utilize a FA who makes investment decisions and enters orders on the retail investor's behalf.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         Family offices are “entities established by wealthy families to manage their wealth and provide other services to family members, such as tax and estate planning services. 
                        <E T="03">See generally</E>
                         Small Entity Compliance Guide, “Family Office”, available at: 
                        <E T="03">https://www.sec.gov/rules/final/2011/ia-3220-secg.htm.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that this description will help to make clear to investors whether their trading practices and investment goals are consistent with the Exchange's view of what constitutes retail trading activity. Additionally, this description should help to make clear that Retail Orders can also include orders entered on behalf of entities organized for the benefit of retail investors, and are not strictly limited to humans—
                    <E T="03">e.g.,</E>
                     orders entered by a legal representative for a family office may be considered Retail Orders as they ultimately benefit a retail investor.
                </P>
                <P>
                    Conversely, the term retail investor is 
                    <E T="03">not</E>
                     intended to include individual investors that engage in more professional trading strategies designed to profit from bid-ask spreads, short-term price movements, and arbitrage, or in trading behavior where multiple buy and sell orders are entered over a short period of time based on market conditions.
                    <SU>15</SU>
                    <FTREF/>
                     While the Exchange acknowledges that certain industry offerings may provide individual investors the tools to trade in such a manner, such trading strategies are not considered those of a retail investor for the purposes of Rule 11.25.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         The Exchange notes that the items noted herein are not intended to be an exhaustive list of restricted trading strategies. Indeed, what is noteworthy is that such trading activity is not representative of the type of activity an “ordinary” investor would engage in. Accordingly, while certain trading strategies may not be explicitly noted, trading representative of more sophisticated investors would similarly be prohibited for the purposes of Rule 11.25.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .02</HD>
                <P>
                    The Exchange also seeks to adopt proposed Interpretation and Policy .02, which seeks to describe the meaning of the term, “natural person,” which is referenced in proposed Rule 11.25(a)(2). Specifically, for the purposes of Rule 11.25, the Exchange intends for the term “natural person” to refer to a human who enters an order or investment criteria for an order (discussed 
                    <E T="03">infra</E>
                    ). This individual may be the retail investor him/herself, or a natural person entering the order on behalf of a retail investor (
                    <E T="03">e.g.,</E>
                     an FA or trader).
                </P>
                <P>
                    The Exchange believes that this clarification will help to ensure that only bona fide retail orders are submitted to the Exchange as Retail Orders by making clear that orders generated automatically by an algorithm, without human intervention, shall not be considered Retail Orders. For the sake of clarity, while the proposed definition of Retail Order requires an order to be entered by a human, a retail investor may utilize an online brokerage platform that employs algorithms to create and manage orders 
                    <PRTPAGE P="10124"/>
                    based on investment criteria (discussed 
                    <E T="03">infra</E>
                    ) entered by a natural person. The Exchange believes that such orders still require 
                    <E T="03">human intervention,</E>
                     and the initial impetus to trade was not generated by an algorithm. In other words, the use of an algorithm comes only after investment criteria is entered by a human.
                </P>
                <P>
                    Additionally, the Exchange believes that proposed Interpretation and Policy .02 will place professional investors and trading firms on notice that orders generated from algorithms, without human intervention, that are entered and routed to the Exchange for professional trading purposes such as market making, high-frequency trading, and proprietary trading, etc., shall not satisfy the definition of Retail Order.
                    <SU>16</SU>
                    <FTREF/>
                     While certain industry offerings may provide individual investors sophisticated tools enabling them to trade in a more automated fashion, the Exchange does not believe that such trading strategies and corresponding orders should be considered Retail Orders for the purposes of Rule 11.25.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .03</HD>
                <P>Importantly, the Exchange seeks to ensure that only bona fide retail flow is designated as a Retail Order and does not intend for professional investors and professional trading firms to avail themselves of the benefits provided to RMOs by the Exchange. Therefore, the Exchange also seeks adopt Interpretation and Policy .03 to describe how an RMO can permissibly utilize an algorithm when entering Retail Orders onto the Exchange.</P>
                <P>
                    The Exchange believes that an RMO can utilize an algorithm to enter individual investors' orders onto the Exchange, and permissibly designate such orders as Retail Orders, provided the order or investment criteria used to generate an order, originates from a natural person, such as the retail investor him/herself, or a natural person on behalf of a retail investor (
                    <E T="03">e.g.,</E>
                     an FA or trader), and is submitted to the Exchange for execution by an RMO. Examples of acceptable uses of algorithms by an RMO include, but are not limited to: a smart order router to route the Retail Order to the Exchange for execution; a smart order router to assess trading venues for the best priced quotation and liquidity prior to routing the Retail Order to the Exchange; an order management system, smart order router, or other functionality to change the terms an order to seek a better execution price; use of an order management system to assist with portfolio rebalancing and asset reallocation for the accounts of retail investors; and a retail investor's use of automated investment management tools offered by RMOs to manage their assets based on their goals and risk tolerance (
                    <E T="03">i.e.,</E>
                     robo-advisory solutions).
                </P>
                <P>
                    One example of an acceptable use of an algorithm by an RMO includes the use of a smart order router to route a Retail Order to the Exchange for execution. Here, an RMO may permissibly use a smart order router to send an order to the Exchange that: (i) an employee of the RMO (
                    <E T="03">e.g.,</E>
                     an FA or trader) entered into their trading system on behalf of a retail investor, (ii) was entered by the retail investor him/herself and is being managed by the RMO algorithmically (
                    <E T="03">e.g.,</E>
                     an order entered by an individual investor via a self-directed brokerage account), (iii) was created by the RMO's automated investment algorithm that creates orders based on investment criteria entered into a brokerage platform by a retail investor (
                    <E T="03">i.e.,</E>
                     robo-advisory solutions), or (iv) the RMO is managing on behalf of their broker-dealer customer that manages retail flow through the same channels described in (i)-(iii). In each use case, such algorithmic usage is permissible because the orders or investment criteria were not generated without intervention by a natural person and the algorithms are only used after the orders or investment criteria have been entered.
                </P>
                <P>
                    Another permissible use of an algorithm by an RMO includes the use of a smart order router to assess trading venues for the best priced quotation and liquidity prior to routing the Retail Order entered through the channels described in (i)-(iv) above. Here, there is no automated generation of an order by an algorithm without intervention by a natural person—whether by order entry or entry of investment criteria (
                    <E T="03">i.e.,</E>
                     the robo-advisory scenario noted above, and discussed further 
                    <E T="03">infra</E>
                    ). Rather, the RMO is using algorithmic technology post-order entry to assess the best market for the retail investor's orders, which is consistent with an RMO's duty to provide best execution 
                    <SU>17</SU>
                    <FTREF/>
                     and integral to providing optimal execution quality.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See.</E>
                         FINRA Rule 5310, Best Execution and Interpositioning, available at: 
                        <E T="03">https://www.finra.org/rules-guidance/guidance/reports/2021-finras-examination-and-risk-monitoring-program/best-execution.</E>
                         FINRA Rule 5310 requires, amongst other things, that in any transaction for or with a customer or a customer of another broker-dealer, a FINRA member and persons associated with a FINRA member shall use reasonable diligence to ascertain the best market for the subject security and buy or sell in such market so that the resultant price to the customer is favorable as possible under prevailing market conditions.
                    </P>
                </FTNT>
                <P>An RMO's use of an order management system, smart order router, or other functionality to change the terms an order to seek a better execution price, may also be a permissible use of an algorithm. As discussed further below, an RMO may utilize such technology to monitor and manage orders previously routed to the Exchange on behalf of a retail investor to help work the order towards execution, by amending an order's limit price, or changing the size of an order. Here, an order is not being automatically generated by an algorithm without intervention by a natural person. Rather, the RMO is utilizing trading technology post-order entry by a natural person to help achieve best execution for the retail investors' orders, and to help achieve optimal execution quality.</P>
                <P>Moreover, use of an order management system to assist with portfolio rebalancing and asset reallocation for the accounts of retail investors may be a permissible use of an algorithm by an RMO. Here, a natural person employed by an RMO, such as an FA, often manages the accounts of multiple retail investors. In managing the assets of these accounts, FAs may often utilize order management systems, or other software that automatically rebalances their customers' equity security allocations, and simultaneously generates a pro-rata buy or sell order to execute the change in position for these accounts in order to eliminate the need to manually enter multiple buy and/or sell orders across multiple accounts. Here, an FA is utilizing an order management system to help manage orders they are entering on behalf of retail investors. While the generation of the order may be based on automated actions from the order management system, the creation of the order is originating from the intervention of a natural person, the FA, in a manner consistent with the FA's understanding of her/his clients' investment criteria.</P>
                <P>
                    Finally, the use of robo-advisory solutions offered by RMOs to retail investors to help them manage their personal assets based on their investment criteria (discussed 
                    <E T="03">infra</E>
                    ) may also be an acceptable use of algorithms. As discussed below, robo-advisory solutions involve the algorithmic creation and management of orders based on investment criteria entered into the trading tool by a natural person. Despite the automated creation of an order by the RMO's algorithm, the Exchange believes that the algorithms offered by robo-advisory solutions are only utilized after a natural person enters his/her investment criteria and 
                    <PRTPAGE P="10125"/>
                    provides certain guidelines for his/her account. While robo-advisory solutions represent a relatively new type of trading platform available to retail investors, these platforms are investing solutions widely used by retail investors and offered by numerous brokerage firms. Given the popularity of robo-advisory solutions, to exclude such automated trading technology would be ignore the reality of how many retail investors participate in today's markets.
                </P>
                <P>
                    Conversely, orders automatically generated and submitted to the Exchange by an algorithm based on factors such as market conditions and price movements, which do not originate from a manual entry of order terms or investment criteria by a natural person, shall not be considered Retail Orders. Examples of such algorithms include, but are not limited to, algorithms developed for market-making, high-frequency trading, liquidity provision, arbitrage, hedging, or proprietary trading. In addition to the fact that such orders do not typically originate from a natural person, entities engaging in such trading strategies are not typically doing so for the account of a retail investor. While retail investors may be offered certain technologies that would permit them to engage in the trading strategies mentioned above, this activity is generally outside the scope of the investment goals of a traditional retail investor (discussed 
                    <E T="03">supra</E>
                    ) and should be excluded from the type of permissible algorithm usage for Retail Orders.
                </P>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .04</HD>
                <P>The Exchange believes that proposed Rule 11.25(a)(2)'s provisions prohibiting the changing of a Retail Order's price or side may discourage the submission of Retail Orders to the Exchange, as it may be unclear how an RMO may handle a Retail Order it submitted to the Exchange algorithmically. As such, the Exchange seeks to codify Interpretation and Policy .04 to mitigate any confusion that RMOs may have in this regard. Specifically, despite proposed Rule 11.25(a)(2)'s provision preventing the changing of the price or side of a Retail Order, Interpretation and Policy .04 would provide that post-order entry an RMO may algorithmically amend the Retail Order's price and/or size provided such amendments are made for the purposes of seeking better execution, enhance execution quality, or minimize market impact.</P>
                <P>
                    Accordingly, an RMO may utilize an algorithm to add a limit price to an unpriced order, amend an order's price and/or size to manage an order's marketability and/or mitigate the risk of receiving executions at aberrant prices, or adjust the price and/or size of an order as market conditions or trading objectives may dictate. For example, an RMO that receives unpriced orders from its retail clients may choose to assign limit prices to such orders to prevent unintended market impact and to prevent such orders from executing at undesirable price levels, or to ensure an order's limit price falls within the Limit Up/Limit Down (“LULD”) 
                    <SU>18</SU>
                    <FTREF/>
                     bands. In this regard, Interpretation and Policy .04 will help to ensure that an order submitted by a retail investor does not lose its standing as a Retail Order simply because the RMO that submitted the order assigned limit prices to the orders to help ensure better priced executions.
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         The Limit Up/Limit Down Plan is designed to prevent trades in NMS Stocks from occurring outside specified price bands, which are set at a percentage level above and below the average reference price of a security over the preceding five-minute period. The percentage level is determined by a security's designation as a Tier 1 or Tier 2 security. Tier 1 comprises all securities in the S&amp;P 500, the Russell 1000 and select Exchange Traded Products (ETPs). Tier 2 comprises all other NMS securities, except for rights and warrants, which are specifically excluded from coverage. The Plan applies during regular trading hours of 9:30 a.m. ET-4:00 p.m. ET.
                    </P>
                </FTNT>
                <P>
                    Importantly, such order amendments may be made manually by a natural person who entered the order on behalf of the retail investor (
                    <E T="03">e.g.,</E>
                     an RMO's trader, an FA, or a retail investor via their online brokerage account), by the smart order router used by the RMO to route the order to the Exchange, and/or by the algorithm utilized by the RMO to manage the order's execution. While the changing of an order's price or size by an algorithm or smart order router may be automated, the Exchange believes such behavior is permissible provided the RMO is making such amendments are made to satisfy their best execution obligations, prevent outsized market impact due to an order's super-marketable limit price, or to ensure an order's marketable limit price falls within the Limit Up/Limit Down bands.
                </P>
                <HD SOURCE="HD3">Retail Segments That Will Benefit From the Proposed Amendments</HD>
                <P>
                    The Exchange believes that the proposed definition may encourage financial advisors from wealth management firms that are RMOs to send their Retail Orders to the Exchange, as these RMOs will have additional certainty as to how algorithms may be used in the submission of Retail Orders. When managing their retail customers' portfolios, even financial advisors rely on automated technologies such as trading algorithms and automated smart order routing solutions to assist them with efficiently managing and entering orders for their various customer accounts.
                    <SU>19</SU>
                    <FTREF/>
                     Yet, in speaking with some of the Exchange's Members, they are hesitant to allow send their FAs retail order flow to the Exchange given the ambiguity of the current definition of Retail Order. In this regard, the Exchange believes that the proposed rule change will provide further guidance to these Members and encourage them to route their Retail Orders to the Exchange where they can benefit from retail-only pricing incentives. Certainly, orders originating from FAs who are responsible for managing individuals' securities accounts are quintessentially retail, and the qualification of such orders as Retail Orders should not be in doubt simply because FAs may elect to utilize automated trading technologies currently utilized by a broad array of other market participants.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         For instance, many brokerage firms offer investment advisory programs where FAs manage their clients' portfolios based on their clients' investment criteria and risk profiles. In managing these accounts, FAs may determine that a certain equity security has reached a price point triggering the buying (selling) of such security across multiple client accounts. Rather than individually buying (selling) the security multiple times for each client account, an FA may instead choose to manage the accounts through automated technology, such as an order management system, trading algorithm, and smart order router. The Exchange believes that the Retail Order definition should include such activity, as the order activity is being entered by a natural person (
                        <E T="03">i.e.,</E>
                         the FA), on behalf of natural persons (
                        <E T="03">i.e.,</E>
                         retail investors).
                    </P>
                </FTNT>
                <P>
                    Additionally, the proposed rule may also make clear to specialized brokers and traditional brokerage firms 
                    <SU>20</SU>
                    <FTREF/>
                     that provide retail investors with automated trading solutions, that orders from retail investors may qualify as Retail Orders. By way of background, automated trading solutions generally begin by providing retail investors with a questionnaire that asks them for investment criteria, such as personal information regarding their age, investing time horizon, investing goals, and a target dollar amount to guide asset allocation. From there, a retail investor's investments are initially allocated and 
                    <PRTPAGE P="10126"/>
                    subsequently re-allocated according to pre-determined models developed by the brokerage firm. Typically, automated rebalancing may also occur when a retail investor adds or withdraws money from the account, or an allocation percentage drifts from the retail investor's desired range. Retail investors utilizing such services typically complete a periodic review to confirm that their portfolio is still aligned with their investment goals, and when their portfolios are reallocated, they must accept the changes before an allocation is executed. In this use case, natural persons (
                    <E T="03">i.e.,</E>
                     retail customers) are directly entering their investment criteria into a brokerage firm's platform, and algorithms and trading models automatically generate orders based on such data after the retail customer provides the criteria from which an order can be generated. If such orders do not qualify as Retail Orders, it would be hard to contemplate what types of orders do satisfy such a definition.
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         For example, Merrill Guided Investing offers retail investors an automated investing tool. 
                        <E T="03">See</E>
                         Merrill Guided Investing, available at: 
                        <E T="03">https://merrilledge.com/investing/merrill-guided-investing; see also</E>
                         Fidelity Go®, which provides retail investors with technology to help automate investing based on information retail investors provide about themselves and their financial institution, available at: 
                        <E T="03">https://www.fidelity.com/managed-accounts/fidelity-go/overview; see also</E>
                         Schwab Intelligent Portfolios®, which offers retail investors automated investing through a robo-advisor that helps build and manage retail investors' portfolios, available at: 
                        <E T="03">https://intelligent.schwab.com/.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Existing Framework Ensuring Only Bona Fide Retail Orders Satisfy Rule 11.25.</HD>
                <P>The Exchange notes that it already has in place robust protections designed to ensure only bona fide retail orders are designated as Retail Orders. The proposed amendments will not eliminate or diminish the strength of the existing protections. Rather, the proposed amendments will augment the Exchange's existing RMO framework.</P>
                <P>
                    Currently, Rule 11.25(b)(1)-(6) sets forth an objective process by which a Member organization applies to become a RMO. First, to qualify as a Retail Member Organization, a Member must conduct a retail routing business or route retail orders on behalf of another broker-dealer.
                    <SU>21</SU>
                    <FTREF/>
                     To become an RMO, a Member is required to submit an application form,
                    <SU>22</SU>
                    <FTREF/>
                     supporting documentation (
                    <E T="03">e.g.,</E>
                     marketing literature, website screenshots, and other publicly disclosed materials) confirming that the applicant's order flow would meet the requirements of the Retail Order definition,
                    <SU>23</SU>
                    <FTREF/>
                     and an attestation 
                    <SU>24</SU>
                    <FTREF/>
                     in a form prescribed by the Exchange, that substantially all orders submitted as Retail Orders will qualify as such under the Rule.
                    <SU>25</SU>
                    <FTREF/>
                     After submission of these materials, various Exchange functions, including legal and operations, review the application to assess whether the applicant's order flow complies with Exchange rules.
                    <SU>26</SU>
                    <FTREF/>
                     Applicants are then notified, in writing, of the Exchange's decision.
                    <SU>27</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Rule 11.25(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 11.25(b)(2)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Rule 11.25(b)(2)(B).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         section, “Retail Member Organization—Broker-Dealer Customer Agreement”, and “Broker-Dealer Customer Annual Attestation” of “Cboe BYX Exchange, Inc., Retail Member Organization Application”, available at: 
                        <E T="03">https://cdn.cboe.com/resources/membership/BYX_Retail_Member_Organization_Application.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Rule 11.25(b)(2)(C).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Rule 11.25(b)(3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Furthermore, all RMOs must have in place policies and procedures reasonably designed to ensure that it will only designate orders as Retail Orders if all requirements of a Retail Order are met.
                    <SU>28</SU>
                    <FTREF/>
                     These policies and procedures must require the Member to (i) exercise due diligence before entering a Retail Order to assure that entry as a Retail Order is in compliance with the requirements of the Rule, and (ii) monitor whether orders entered as Retail Orders meet the applicable requirements.
                    <SU>29</SU>
                    <FTREF/>
                     If a RMO does not itself conduct a retail business but routes Retail Orders on behalf of another broker-dealer, the RMO's supervisory procedures must be reasonably designed to assure that the orders it receives from the other broker-dealer that are designated as Retail Orders meets the definition of a Retail Order.
                    <SU>30</SU>
                    <FTREF/>
                     In these cases, the RMO must (i) obtain an annual written representation, in a form acceptable to the Exchange, from each other broker-dealer that sends the RMO orders to be designated as Retail Orders that the entry of such orders as Retail Orders will be in compliance with the requirements of this Rule; and (ii) monitor whether Retail Order flow routed on behalf of other such broker-dealers meets the applicable requirements.
                    <SU>31</SU>
                    <FTREF/>
                     Importantly, the Exchange's regulatory and surveillance functions provide appropriate oversight by the Exchange by monitoring for continued compliance with the terms of these provisions. If a RMO fails to abide by the Retail Order requirements, the Exchange in its sole discretion may disqualify a Member from its status as a RMO.
                    <SU>32</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         Rule 11.(b)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         Rule 1121(b)(d)(1). [
                        <E T="03">sic</E>
                        ]
                    </P>
                </FTNT>
                <P>
                    Overall, the Exchange believes it has in place an effective framework for ensuring that only bona fide retail orders are designated as Retail Orders by RMOs, and notes that the proposed amendments will only seek to enhance Members' understanding of Exchange rules regarding Retail Orders, as well as augment the Exchange's ability to enforce its rules related to Retail Orders. Therefore, while the proposed amendments may broaden the spectrum of retail investors whose orders are eligible to be routed to the Exchange by RMOs, the enhanced clarity of these rules will help to enable Members to make routing decisions in compliance with applicable Exchange rules. In this regard, the Exchange believes it important to note that as Members of the Exchange, RMOs must be registered brokers or dealers. As registered brokers or dealers, RMOs are subject to a panoply of rules, such as FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade), BZX Rule 2.2. (Obligation of Members and the Exchange), and BZX Rule 3.1 (Business Conduct of Members). These rules require, amongst other things, that as brokers or dealers, Members are required to conduct business with the highest standards of commercial honor, and obligate Members to comply with all Exchange rules, by-laws, and regulations.
                    <SU>33</SU>
                    <FTREF/>
                     While the Exchange has an obligation to maintain fair and orderly markets and carry out it its duties as a self-regulatory organization, RMOs are also obligated to ensure that only orders that comply with Exchange rules are routed to the Exchange and designated as Retail Orders.
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         While the RMO application process discussed above does rely on information provided by the applicant, the Exchange believes that ultimately it must be allowed to rely on representations made by registered brokers or dealers that are obligated to conduct their securities business consistent with the highest standards of commercial honor, and in submitting their application, have attested to the accuracy of the information provided to the Exchange.
                    </P>
                </FTNT>
                <P>The Exchange also believes that the proposed amendments will provide the Exchange's regulatory and surveillance functions with a rule set that is more aligned with today's retail order routing practices. With the prevalent use of algorithms in today's equity markets, more descriptive rule text will aid the Exchange's business associates in properly guiding its Members through the RMO process, as well as further strengthen the regulatory and surveillance function's ability to enforce Exchange rules.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule changes are consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>34</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 
                    <PRTPAGE P="10127"/>
                    6(b)(5) 
                    <SU>35</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>36</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Retail Order Definition</HD>
                <P>
                    The Exchange believes that the proposed rule change is consistent with these principles because it would increase competition among execution venues, encourage additional on-exchange retail liquidity, and offer retail investors the opportunity to receive order book priority [
                    <E T="03">sic</E>
                    ] ahead of all other interest on the BZX Book. The Exchange notes that a significant percentage of the orders of individual investors are executed over the counter,
                    <SU>37</SU>
                    <FTREF/>
                     and that by amending the definition of Retail Order more retail flow may be directed to the Exchange and have the opportunity to execute on a regulated, transparent market. Indeed, even the Commission has noted that “a very large percentage of marketable (immediately executable) order flow of individual investors is `executed' or `internalized' by broker-dealers in the [over-the-counter-markets].” 
                    <SU>38</SU>
                    <FTREF/>
                     The Commission has also noted that a review of the order flow of eight retail brokers revealed that nearly 100% of their customer market orders were routed to over-the-counter market makers, often pursuant to payment for order flow arrangements.
                    <SU>39</SU>
                    <FTREF/>
                     By helping to incentivize RMOs to send Retail Orders to the Exchange, RMOs will have another alternative to over-the-counter market makers. In turn, an increase in the number of Retail Orders submitted onto the Exchange will encourage more retail liquidity provision, thereby deepening BZX's retail liquidity pool, fostering enhanced price discovery, and offering Retail Orders more price improvement opportunities as liquidity providers compete to trade with Retail Orders increases.
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         Ninety-plus percent (90%) of retail marketable orders are routed to wholesalers and executed off-exchange. 
                        <E T="03">See</E>
                         Chair Gensler's remarks, “Market Structure and the Retail Investors: Remarks Before the Piper Sandler Global Exchange Conference”, (June 2, 2022), available at: 
                        <E T="03">https://www.sec.gov/news/speech/gensler-remarks-piper-sandler-global-exchange-conference-060822</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         See Securities Exchange Act Release No. 61358 (January 14, 2010), 75 FR 3594, 3600 (January 21, 2010) (“Concept Release on Equity Market Structure”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that the proposed amendment to the definition of “Retail Order” promotes just and equitable principles of trade and is not unfairly discriminatory. While the proposed amendment treats Retail Orders differently than non-retail orders, the Exchange believes that such a distinction does not constitute 
                    <E T="03">unfair</E>
                     discrimination, and in fact benefits both liquidity providers and retail investors alike. As noted by the Commission in its order approving the BYX RPI program,
                    <SU>40</SU>
                    <FTREF/>
                     the markets already distinguish between retail investors, whose orders are considered desirable by liquidity providers because retail investors are presumed to be, on average, less informed about short-term price movements, and professional traders, whose orders are presumed, on average, to be more informed about short-term price movements.
                    <SU>41</SU>
                    <FTREF/>
                     Because of this distinction, the Commission noted that liquidity providers prefer to provide price improvement opportunities to less informed retail orders than to informed professional orders, and that absent price improvement opportunities, retail investors are likely to encounter wider spreads which are a consequence of their interaction with more informed order flow.
                    <SU>42</SU>
                    <FTREF/>
                     The Exchange believes that in clarifying the definition of Retail Order, RMOs will be more encouraged to enter orders onto the Exchange, where they will receive beneficial retail-only Exchange pricing. Moreover, increased RMO participation may in turn attract additional retail liquidity, benefitting both the retail investing community and professional traders.
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">Supra</E>
                         note 9.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>The proposed amendment to the definition of Retail Order is also designed to protect investors and the public interest. In conjunction with proposed Interpretations and Policies .01-.04, the Exchange seeks to clarify precisely how Retail Orders may be entered onto the Exchange by RMOs through the use of algorithms. This clarity is designed to not only encourage Members to submit Retail Orders onto the Exchange, but to ensure that only bona fide retail orders are able to take advantage of the benefits provided to Retail Orders by the Exchange.</P>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .01</HD>
                <P>Proposed Interpretation and Policy .01 is designed to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. By providing additional guidance to market participants about what is meant by the term “retail investor”, the Exchange is helping to ensure that only bona fide retail activity is entered onto the Exchange, and that professional investors cannot somehow avail themselves of the benefits offered to Retail Orders by the Exchange.</P>
                <P>The proposed clarification may also provide Members, and potential new Members, with the necessary assurances that they are in fact managing retail order flow, encouraging them to enter their Retail Orders onto the Exchange as RMOs. Increased RMO participation may in turn foster more retail liquidity provision as more sophisticated order flow seeks to trade with retail flow. The increase in liquidity provision and RMO provision will likely lead to deeper liquidity on the Exchange that will help to enhance price discovery and increased price improvement opportunities for not only retail investors, but all investors submitting order flow to the Exchange. Additionally, by routing Retail Orders to the Exchange, RMOs and their retail investors will benefit from the Exchange's retail-only pricing incentives.</P>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .02</HD>
                <P>Proposed Interpretation and Policy .02 is designed to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. By providing additional guidance around the term “natural person”, it will be clearer to Members that an order, or investment criteria for an order, must be entered by a human and cannot originate from an algorithm without human intervention. This will help to ensure that only bona fide retail orders are designated as “Retail Orders” and mitigate the likelihood that professional investors that utilize fully automated trading technology designed to participate in certain trading strategies inappropriately seek to designate their orders as Retail Orders.</P>
                <P>
                    Furthermore, by clarifying that orders created through broker-dealers' robo-advisory programs can qualify as Retail Orders if the investment criteria are 
                    <PRTPAGE P="10128"/>
                    entered by a natural person, additional order flow from robo-advisory program may be directed to the Exchange for execution. Similarly, by making clear that a “natural person” may also be an account held in corporate form, such as an individual retirement account or limited liability corporation (
                    <E T="03">e.g.,</E>
                     family office), more retail flow may be directed to the Exchange. By executing on the Exchange RMOs will be able to avail themselves of retail-specific pricing, which they can pass onto their retail clients in the form of reduced commissions and transaction costs. Additionally, these orders will have the opportunity to participate in the Exchange's Retail Priority program [
                    <E T="03">sic</E>
                    ], which focuses on improving execution quality and trading outcomes for individual investors, and the firms facilitating their orders, by reducing their time to execution.
                </P>
                <P>
                    Finally, as noted throughout, increased retail flow will augment the Exchange's liquidity pools, thereby fostering price discovery, and creating more opportunities for price improvement. With improved on-execution experiences more investors may be incentivized to route their retails orders on-exchange (
                    <E T="03">i.e.,</E>
                     BZX) exposing retail flow to on-exchange price competition.
                </P>
                <HD SOURCE="HD3">Proposed Interpretation and Policy. 03</HD>
                <P>Proposed Interpretation and Policy .03 is designed to protect investors and the markets by making clear to RMOs using algorithms to enter Retail Orders onto the Exchange that orders must be entered by a retail investor or a natural person on behalf of a retail investor, and that in the case of robo-advisory solutions, the retail investor must enter the investment criteria that the brokerage firm's algorithm uses to generate orders. By providing examples of both acceptable and unacceptable uses of algorithms, market participants will be clearer as to whether the orders they route to the Exchange for execution are indeed “Retail Orders”. In doing so, the Exchange is helping to ensure that only bona fide retail orders qualify as Retail Orders, and that professional investors are not inappropriately receiving benefits specifically reserved for retail investors.</P>
                <P>Proposed Interpretation and Policy .03 will also help to remove impediments to and perfect the mechanism of a free and open market and a national market system. By providing additional guidance on how RMOs may use algorithms when submitting Retail Orders to the Exchange, Members will be more certain as to whether their orders in fact qualify as Retail Orders. In doing so, RMOs may route more Retail Orders to the Exchange and in turn, may encourage more market participants to provide additional retail liquidity thereby deepening the liquidity pool, and enhancing price discovery and transparency. As more investors are incentivized to execute their retail flow on the Exchange an increasing number of individual investors' orders will be exposed to on-exchange price competition, increasing their opportunity to receive price improvement and improved execution quality.</P>
                <HD SOURCE="HD3">Interpretation and Policy .04</HD>
                <P>Interpretation and Policy .04 helps to remove impediments to and perfect the mechanism of a free and open market and a national market system. The provision preventing the changing of the price or side of an order in both the current and proposed definition of Retail Order was designed to ensure that orders entered onto the Exchange by RMOs were submitted on behalf of retail investors, and not institutional orders which typically have the terms of price and size amended, canceled, or replaced frequently throughout the day. However, the Exchange recognizes that RMOs may sometimes receive unpriced orders from their retail customers or may deem a certain limit price to be appropriate for the purposes of seeking a better execution and/or preventing an order from executing at undesirable price levels. As such, by clarifying that Retail Orders may in fact be amended provided it is to affect a better execution experience for the retail investor, or to manage market impact, RMOs may be more encouraged to send more Retail Orders to the Exchange. As noted throughout, increased RMO activity and retail liquidity provision will only serve to deepen liquidity for Retail Orders, which in turn will lead to price competition and increased price improvement opportunities for individual investors' orders.</P>
                <P>The Exchange also believes that proposed Interpretations and Policies .01-.04 promote just and equitable principles of trade and are not unfairly discriminatory because they are intended to provide guidance to all Members, in particular RMOs, as to what constitutes a Retail Order.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>The Exchange does not believe that the proposed rule changes will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes its proposed amendment to the definition of Retail Order and codification of Interpretation and Policies .01-.04 will benefit intramarket competition rather than burden competition. The proposed changes serve to provide additional clarity to Members and RMOs as to the types of persons or accounts eligible to submit Retail Orders and describe the permissible and impermissible uses of algorithms available to Members and RMOs when submitting Retail Orders. The Exchange believes this additional information will lead to additional retail order flow being submitted to the Exchange by RMOs, which all contra-side orders are eligible to interact with. Greater overall order flow and trading opportunities benefits all market participants on the Exchange. An increase in RMO activity and liquidity providing orders will serve to enhance the Exchange's available liquidity. Deeper liquidity pools will, in turn, enhance price discovery, as well as price improvement opportunities for retail investors as liquidity providers compete for retail executions. Liquidity providers also benefit by being able to interact with retail order flow that is often executed off-exchange, and therefore generally inaccessible to those trading in the lit markets.</P>
                <P>
                    While the proposed definition will help to ensure that only bona fide retail investors receive the benefits of afforded to Retail Orders, prioritization of retail investors is not a novel concept in the securities market. In this regard, the proposed amendments should not result in any new or novel issues to be considered by the Commission, or that have not already been contemplated by today's market participants. Indeed, as noted in the Amendment 1 of the EDGX's Retail Priority filing,
                    <SU>43</SU>
                    <FTREF/>
                     customer priority has a long tradition in the options market where orders entered on behalf of non-broker dealer public customers have historically been afforded priority over orders submitted by registered broker dealers. In fact, most options exchanges, including the Exchange's equity options platform,
                    <SU>44</SU>
                    <FTREF/>
                     employ a customer priority execution algorithm where orders submitted by a subset of public customer with more limited trading activity are provided order book priority ahead of orders submitted by broker-dealers or other market professionals at the same price.
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 86280 (July 2, 2019), 84 FR 32808 (July 9, 2019) (“Notice of Amendment No. 1”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         BZX Rule 21.8(d)(1). [
                        <E T="03">sic</E>
                        ]
                    </P>
                </FTNT>
                <P>
                    The Exchange further believes that the proposed rule change will increase 
                    <PRTPAGE P="10129"/>
                    intermarket competition by enabling the Exchange to better compete with other exchanges and off-exchange trading venues for retail order flow. The Commission has spoken about “increasing competition and enhancing the direct exposure of individual investor orders to a broader spectrum of market participants” 
                    <SU>45</SU>
                    <FTREF/>
                     and the Exchange believes its proposed amendments to the definition of Retail Order and introduction of Interpretations and Policies .01-.04 provide sufficient guidance to RMOs to encourage additional retail order flow be sent to the Exchange. In turn, retail investors will have additional opportunities to receive executions on a transparent, regulated, national securities exchange in addition to the currently available off-exchange trading venues. Additionally, a revised definition of Retail Order may encourage additional competition for retail order flow on-exchange that would be eligible to avail themselves of retail specific benefits and order types offered by the Exchange, such as Retail Attribution. This, in turn, could create additional incentives for regulated exchanges to develop additional liquidity programs designed at providing additional benefits to retail investors, thus promoting additional intermarket competition.
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 96495 (December 14, 2022), 88 FR 128 (January 3, 2023) (“Order Competition Rule”) at 178.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    Within 45 days of the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                     or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission will:
                </P>
                <P>A. by order approve or disapprove such proposed rule change, or</P>
                <P>B. institute proceedings to determine whether the proposed rule change should be disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeBZX-2024-007 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeBZX-2024-007. 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 internet website (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-CboeBZX-2024-007 and should be submitted on or before March 5, 2024.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>46</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02858 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-99490; File No. SR-CboeEDGX-2024-009]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend the Definition of Retail Order, and Codify Interpretations and Policies Regarding Permissible Uses of Algorithms by RMOs</SUBJECT>
                <DATE>February 7, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on January 25, 2024, Cboe EDGX Exchange, Inc. (the “Exchange” or “EDGX”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe EDGX Exchange, Inc. (the “Exchange” or “EDGX”) is filing with the Securities and Exchange Commission (the “Commission”) a proposal to (i) amend the definition of “Retail Order” as defined by Exchange Rule 11.21(a)(2); (ii) codify proposed Interpretation and Policy. 01, which describes the meaning of the term, “retail investor,” as referenced in proposed Rule 11.21(a)(2); (iii) codify proposed Interpretation and Policy .02, which describes the meaning of the term, “natural person,” as referenced in proposed Rule 11.21(a)(2); (iv) codify proposed Interpretation and Policy .03, which describes acceptable uses of algorithms or other computerized methodology by Retail Member Organizations; and (v) codify proposed Interpretation and Policy .04 which explains that Rule 11.21(a)(2)'s provision preventing the terms of an order with respect to price is not intended to prevent a Retail Member Organization from changing the terms of the order to ensure a better execution experience for a retail investor. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">
                        http://markets.cboe.com/us/
                        <PRTPAGE P="10130"/>
                        options/regulation/rule_filings/edgx/
                    </E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The purpose of this rule filing is to (i) amend the definition of “Retail Order” as defined by Exchange Rule 11.21(a)(2); (ii) codify proposed Interpretation and Policy. 01, which describes the meaning of the term, “retail investor,” as referenced in proposed Rule 11.21(a)(2); (iii) codify proposed Interpretation and Policy .02, which describes the meaning of the term, “natural person,” as referenced in proposed Rule 11.21(a)(2); (iv) codify proposed Interpretation and Policy .03, which describes acceptable uses of algorithms or other computerized methodology by Retail Member Organizations; and (v) codify proposed Interpretation and Policy .04 which explains that Rule 11.21(a)(2)'s provision preventing the terms of an order with respect to price is not intended to prevent a Retail Member Organization from changing the terms of the order to ensure a better execution experience for a retail investor.</P>
                <P>
                    The Exchange, along with its affiliate exchanges Cboe BYX Exchange, Inc. (“BYX”), Cboe BZX Exchange, Inc. (“BZX”), and Cboe EDGA Exchange, Inc. (“EDGA”), believes that retail investors are a key part of the trading ecosystem, and as such, has designed products and programs to execute retail orders quickly, with high execution quality and at a low-cost, with added pricing incentives. For instance, targeted retail order types on EDGX 
                    <SU>3</SU>
                    <FTREF/>
                     and BYX,
                    <SU>4</SU>
                    <FTREF/>
                     execute both marketable and non-marketable retail orders with price improvement, and enhanced speed and fill rates. Additionally, both EDGX and BYX offer retail-only pricing incentives for low cost remove and premium rebates. EDGX also offers Retail Member Organizations (“RMO”) 
                    <SU>5</SU>
                    <FTREF/>
                     discounts on port fees and market data, and retail tiers give growing retail firms additional rebates.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         EDGX's Retail Priority program seeks to enhanced execution quality for individual investors who trade U.S. equities on EDGX. Retail Priority offers a distinct allocation model, which differs from the traditional time-based allocation model used by most U.S. equities market centers that allocate trades to orders that arrive first in time at each price point. Retail Priority focuses on improving execution quality and trading outcomes for individual investors, and the firms facilitating their orders, by reducing their time to execution. Under Retail Priority, individual investors' displayed limit orders will post at the front of the order queue for same-priced orders submitted on EDGX.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         Orders designated by a Retail Member Organization as “Retail Orders” (defined 
                        <E T="03">infra</E>
                        ) are eligible for participation in BYX's Retail Price Improvement Program. Through the Retail Price Improvement Program, any BYX Member may input Retail Price Improving (RPI) orders on the BYX order book that will offer price improvement on $.001 increments to RMOs that enter a Retail Order. In addition to the price improvement opportunities, Retail Orders that interact with price improving orders receive an enhanced rebate on BYX. 
                        <E T="03">See generally</E>
                         “Cboe Retail Price Improvement” available at: 
                        <E T="03">https://www.cboe.com/us/equities/trading/offerings/retail_price_improvement/See generally,</E>
                         “BYX Retail Price Improvement (RPI) Program” available at: 
                        <E T="03">https://cdn.cboe.com/resources/release_notes/2012/BATS-Introduces-Retail-Price-Improvement-Program.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         The term, Retail Member Organization or RMO, means “a Member (or a division thereof) that has been approved by the Exchange under this Rule to submit Retail Orders.” 
                        <E T="03">See</E>
                         Rule 11.21(a)(1), definition of, “Retail Member Organization”.”
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Retail Order Definition</HD>
                <P>
                    As currently defined in Rule 11.21(a)(2), a “Retail Order” is an agency or riskless principal order that meets the criteria of FINRA Rule 5320.03 
                    <SU>6</SU>
                    <FTREF/>
                     that originates from a natural person and is submitted to the Exchange by a RMO, provided that no change is made to the terms of the order with respect to price or side of the order and the order does not originate from a trading algorithm or any other computerized methodology.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         FINRA Rule 5320.03 provides for a Riskless Principal Exception. 
                        <E T="03">See</E>
                         FINRA Rule 5320, Prohibition Against Trading Ahead of Customer Orders, available at: 
                        <E T="03">https://www.finra.org/rules-guidance/rulebooks/finra-rules/5320.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange has received Member feedback,
                    <SU>7</SU>
                    <FTREF/>
                     however, that it is unclear whether Rule 11.21 permits the use of algorithms or other computerized methodologies (hereinafter, collectively referred to as “algorithms”) when submitting individual retail investors' orders to the Exchange.
                    <SU>8</SU>
                    <FTREF/>
                     The impact of the rule's ambiguity is twofold: first, while Members may route orders entered by retail investors to the Exchange for execution, they are doing so as non-RMOs and without designating such orders as Retail Orders; second, potential new Members considering registering as RMOs may be discouraged doing from so. In both cases, the ambiguity of the Exchange's current definition is discouraging the routing of retail order flow to the Exchange and preventing individual investors from receiving the benefits provided to Retail Orders executed on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         The Exchange has spoken with various current and prospective Members, ranging from smaller, regional broker-dealers to larger, bulge bracket broker-dealers, that are responsible for handling and routing retail orders for execution.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The Exchange notes that this is not a novel question and that this issue was initially raised by SIFMA in its comment letter to the New York Stock Exchange's Retail Liquidity Program rule filing, in which SIFMA noted that a broad prohibition on algorithmic and computerized methodologies could be read to mean only orders submitted via phone may be considered Retail Orders, or that even orders entered through an online broker by an actual retail customer would not qualify. 
                        <E T="03">See</E>
                         SIFMA Comment Letter (March 23, 2012), to Securities Exchange Act Release No. 34-66346 (File No. SR-NYSE-2011-55 and File No. SR-NYSEAmex-2011-84) (“Retail Liquidity Program”).
                    </P>
                </FTNT>
                <P>
                    The Exchange now seeks to amend the definition of Retail Order to clarify for Members, including potential new Members, that the use of an algorithm to submit orders to the Exchange on behalf of a retail investor, does not automatically preclude an RMO from designating such orders as, “Retail Orders.” Specifically, use of an algorithm to submit a Retail Order to the Exchange is permissible provided that the order, or investment criteria for the order (discussed 
                    <E T="03">infra</E>
                    ) originates from a natural person, such as the investor him/herself, or a natural person on behalf of a retail investor (
                    <E T="03">e.g.,</E>
                     a Financial Advisor (“FA”), or trader), and such order is submitted to the Exchange by an RMO. Additionally, except as described in proposed Interpretation and Policy .03 (discussed 
                    <E T="03">infra</E>
                    ), no change to the terms of the order with respect to price or side, may be made.
                </P>
                <P>
                    The Exchange believes that the proposed definition could encourage additional Members to become RMOs and route their Retail Orders to the Exchange. If more Members choose to become RMOs, the Exchange believes there will be additional opportunities to interact with retail order flow, which is likely to incentivize more retail liquidity provision, as it is generally considered preferable to trade with retail orders than with orders of professional investors that are typically more informed regarding short-term 
                    <PRTPAGE P="10131"/>
                    price movements.
                    <SU>9</SU>
                    <FTREF/>
                     By amending the Retail Order definition, RMOs and their retail customers will have the potential to receive enhanced execution quality on EDGX—a transparent, well-regulated, public exchange—receive low cost remove fees and enhanced rebates, as well as be eligible to participate in the Exchange's Retail Priority 
                    <SU>10</SU>
                    <FTREF/>
                     offering.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Indeed, even the Commission noted “the markets generally distinguish between individual retail investors, whose orders are considered desirable by liquidity providers because such retail investors are presumed on average to be less informed about short-term price movements, and professional traders, whose orders are presumed on average to be more informed.” 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 34-68303 (November 27, 2012), 77 FR 71652 (December 3, 2012) (SR-BYX-2012-019) (“Order Granting Approval to Proposed Rule Change, as Modified by Amendment No. 2, to Adopt a Retail Price Improvement Program”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">Supra</E>
                         note 3. 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 34-87200 (October 2, 2019), 84 FR 53788 (October 8, 2019) (SR-CboeEDGX-2019-012) (“Order Granting Approval of Proposed Rule Change, as modified by Amendment No. 1, to Introduce Retail Priority”).
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that the proposed amendments are merely a codification of how retail trading occurs in today's markets and helps to ensure that retail customers are not inadvertently excluded from enhanced execution quality simply because they utilize automated trading solutions widely utilized by other market participants that have been developed since the current definition was added to the EDGX rulebook. As noted in the Staff Report on Algorithmic Trading in U.S. Capital Markets, the current markets for secondary trading in NMS stocks is predominantly electronic, with most of the trading lifecycle, including order generation, routing, and execution, being fully automated.
                    <SU>11</SU>
                    <FTREF/>
                     Indeed, both retail and institutional investors utilize algorithms to actively make investment and trading decisions.
                    <SU>12</SU>
                    <FTREF/>
                     Additionally, some specialized brokers provide individual retail investors with sophisticated broker algorithms, or allow them to create their own algorithms,
                    <SU>13</SU>
                    <FTREF/>
                     as well as utilize auto-investing technology that trades for retail customers based on how much money a retail customer wishes to invest, and their preferred investment horizon.
                    <SU>14</SU>
                    <FTREF/>
                     Given the prevalent use of trading algorithms in the securities markets, the Exchange believes it necessary to modify the definition of Retail Order to align Exchange rules with current market practice, and to provide clarity to Members and potential new Members regarding the definition of Retail Order.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         “Staff Report on Algorithmic Trading in U.S. Capital Markets” (August 5, 2020), available at 
                        <E T="03">https://www.sec.gov/tm/reports-and-publications/special-studies/algo_trading_report_2020.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See generally</E>
                         Betterment©, Automated Investing, available at: 
                        <E T="03">https://www.betterment.com/investing</E>
                         (Betterment© provides retail customers access to technology that automatically invests in the market based on the retail customer's available funds and stated investment period) (“Automated Technology is how we make investing easier, better, and more accessible”); 
                        <E T="03">see also</E>
                         (DriveWealth,© LLC, Robo, available at: 
                        <E T="03">https://www.drivewealth.com/solutions/robo</E>
                         (“DriveWealth's© technology enables our partners to design cutting-edge robo-investing experiences for your customers . . . or you can empower people to make their own investment decisions with robo-advisory capability.”)
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .01</HD>
                <P>
                    The Exchange also seeks to adopt proposed Interpretation and Policy .01, which seeks to describe the meaning of the term, “retail investor,” which is referenced in proposed Rule 11.21(a)(2). To ensure that orders from only bona fide retail investors may qualify as Retail Orders, the Exchange believes it important to first specify what type of investor is considered a retail investor for the purposes of Rule 11.21. Specifically, a retail investor is intended to refer to a non-professional, individual investor that invests money in their own account, held at a brokerage firm. A retail investor may also refer to an account held in corporate form (
                    <E T="03">e.g.,</E>
                     corporation, or limited liability company) that has been established for the benefit of an individual or group of related family members (
                    <E T="03">e.g.,</E>
                     the legal representative for a family office).
                    <SU>15</SU>
                    <FTREF/>
                     Furthermore, the investment goals of a retail investor are mainly saving for retirement and/or education, generating income, or growing wealth over the long-term. A retail investor may trade directly on his or her own behalf (
                    <E T="03">e.g.,</E>
                     self-directed online brokerage account), utilize online investing platforms that employ software algorithms to create and enters orders, and manage investment portfolios based on an investor's investment criteria (
                    <E T="03">e.g.,</E>
                     “robo-advisors”), or utilize a FA who makes investment decisions and enters orders on the retail investor's behalf.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         Family offices are “entities established by wealthy families to manage their wealth and provide other services to family members, such as tax and estate planning services. 
                        <E T="03">See generally</E>
                         Small Entity Compliance Guide, “Family Office”, available at: 
                        <E T="03">https://www.sec.gov/rules/final/2011/ia-3220-secg.htm.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that this description will help to make clear to investors whether their trading practices and investment goals are consistent with the Exchange's view of what constitutes retail trading activity. Additionally, this description should help to make clear that Retail Orders can also include orders entered on behalf of entities organized for the benefit of retail investors, and are not strictly limited to humans—
                    <E T="03">e.g.,</E>
                     orders entered by a legal representative for a family office may be considered Retail Orders as they ultimately benefit a retail investor.
                </P>
                <P>
                    Conversely, the term retail investor is 
                    <E T="03">not</E>
                     intended to include individual investors that engage in more professional trading strategies designed to profit from bid-ask spreads, short-term price movements, and arbitrage, or in trading behavior where multiple buy and sell orders are entered over a short period of time based on market conditions.
                    <SU>16</SU>
                    <FTREF/>
                     While the Exchange acknowledges that certain industry offerings may provide individual investors the tools to trade in such a manner, such trading strategies are not considered those of a retail investor for the purposes of Rule 11.21.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         The Exchange notes that the items noted herein are not intended to be an exhaustive list of restricted trading strategies. Indeed, what is noteworthy is that such trading activity is not representative of the type of activity an “ordinary” investor would engage in. Accordingly, while certain trading strategies may not be explicitly noted, trading representative of more sophisticated investors would similarly be prohibited for the purposes of Rule 11.21.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .02</HD>
                <P>
                    The Exchange also seeks to adopt proposed Interpretation and Policy .02, which seeks to describe the meaning of the term, “natural person,” which is referenced in proposed Rule 11.21(a)(2). Specifically, for the purposes of Rule 11.21, the Exchange intends for the term “natural person” to refer to a human who enters an order or investment criteria for an order (discussed 
                    <E T="03">infra</E>
                    ). This individual may be the retail investor him/herself, or a natural person entering the order on behalf of a retail investor (
                    <E T="03">e.g.,</E>
                     an FA or trader).
                </P>
                <P>
                    The Exchange believes that this clarification will help to ensure that only bona fide retail orders are submitted to the Exchange as Retail Orders by making clear that orders generated automatically by an algorithm, without human intervention, shall not be considered Retail Orders. For the sake of clarity, while the proposed definition of Retail Order requires an order to be entered by a human, a retail investor may utilize an online brokerage platform that employs algorithms to create and manage orders based on investment criteria (discussed 
                    <E T="03">infra</E>
                    ) entered by a natural person. The Exchange believes that such orders still require 
                    <E T="03">human intervention,</E>
                     and the initial impetus to trade was not generated by an algorithm. In other words, the use of an algorithm comes 
                    <PRTPAGE P="10132"/>
                    only after investment criteria or order is entered by a human.
                </P>
                <P>
                    Additionally, the Exchange believes that proposed Interpretation and Policy .02 will place professional investors and trading firms on notice that orders generated from algorithms, without human intervention, that are entered and routed to the Exchange for professional trading purposes such as market making, high-frequency trading, and proprietary trading, etc., shall not satisfy the definition of Retail Order.
                    <SU>17</SU>
                    <FTREF/>
                     While certain industry offerings may provide individual investors sophisticated tools enabling them to trade in a more automated fashion, the Exchange does not believe that such trading strategies and corresponding orders should be considered Retail Orders for the purposes of Rule 11.21.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .03</HD>
                <P>Importantly, the Exchange seeks to ensure that only bona fide retail flow is designated as a Retail Order and does not intend for professional investors and professional trading firms to avail themselves of the benefits provided to RMOs by the Exchange. Therefore, the Exchange also seeks adopt Interpretation and Policy .03 to describe how an RMO can permissibly utilize an algorithm when entering Retail Orders onto the Exchange.</P>
                <P>
                    The Exchange believes that an RMO can utilize an algorithm to enter individual investors' orders onto the Exchange, and permissibly designate such orders as Retail Orders, provided the order or investment criteria used to generate an order, originates from a natural person, such as the retail investor him/herself, or a natural person on behalf of a retail investor (
                    <E T="03">e.g.,</E>
                     an FA or trader), and is submitted to the Exchange for execution by an RMO. Examples of acceptable uses of algorithms by an RMO include, but are not limited to: a smart order router to route the Retail Order to the Exchange for execution; a smart order router to assess trading venues for the best priced quotation and liquidity prior to routing the Retail Order to the Exchange; an order management system, smart order router, or other functionality to change the terms an order to seek a better execution price; use of an order management system to assist with portfolio rebalancing and asset reallocation for the accounts of retail investors; and a retail investor's use of automated investment management tools offered by RMOs to manage their assets based on their goals and risk tolerance (
                    <E T="03">i.e.</E>
                     robo-advisory solutions).
                </P>
                <P>
                    One example of an acceptable use of an algorithm by an RMO includes the use of a smart order router to route a Retail Order to the Exchange for execution. Here, an RMO may permissibly use a smart order router to send an order to the Exchange that: (i) an employee of the RMO (
                    <E T="03">e.g.,</E>
                     an FA or trader) entered into their trading system on behalf of a retail investor, (ii) was entered by the retail investor him/herself and is being managed by the RMO algorithmically (
                    <E T="03">e.g.,</E>
                     an order entered by an individual investor via a self-directed brokerage account), (iii) was created by the RMO's automated investment algorithm that creates orders based on investment criteria entered into a brokerage platform by a retail investor (
                    <E T="03">i.e.,</E>
                     robo-advisory solutions), or (iv) the RMO is managing on behalf of their broker-dealer customer that manages retail flow through the same channels described in (i)-(iii). In each use case, such algorithmic usage is permissible because the orders or investment criteria were not generated without intervention by a natural person and the algorithms are only used after the orders or investment criteria have been entered.
                </P>
                <P>
                    Another permissible use of an algorithm by an RMO includes the use of a smart order router to assess trading venues for the best priced quotation and liquidity prior to routing the Retail Order entered through the channels described in (i)-(iv) above. Here, there is no automated generation of an order by an algorithm without intervention by a natural person—whether by order entry or entry of investment criteria (
                    <E T="03">i.e.,</E>
                     the robo-advisory scenario noted above, and discussed further 
                    <E T="03">infra</E>
                    ). Rather, the RMO is using algorithmic technology post-order entry to assess the best market for the retail investor's orders, which is consistent with an RMO's duty to provide best execution 
                    <SU>18</SU>
                    <FTREF/>
                     and integral to providing optimal execution quality.
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See.</E>
                         FINRA Rule 5310, Best Execution and Interpositioning, available at: 
                        <E T="03">https://www.finra.org/rules-guidance/guidance/reports/2021-finras-examination-and-risk-monitoring-program/best-execution.</E>
                         FINRA Rule 5310 requires, amongst other things, that in any transaction for or with a customer or a customer of another broker-dealer, a FINRA member and persons associated with a FINRA member shall use reasonable diligence to ascertain the best market for the subject security and buy or sell in such market so that the resultant price to the customer is favorable as possible under prevailing market conditions.
                    </P>
                </FTNT>
                <P>An RMO's use of an order management system, smart order router, or other functionality to change the terms an order to seek a better execution price, may also be a permissible use of an algorithm. As discussed further below, an RMO may utilize such technology to monitor and manage orders previously routed to the Exchange on behalf of a retail investor to help work the order towards execution, by amending an order's limit price, or changing the size of an order. Here, an order is not being automatically generated by an algorithm without intervention by a natural person. Rather, the RMO is utilizing trading technology post-order entry by a natural person to help achieve best execution for the retail investors' orders, and to help achieve optimal execution quality.</P>
                <P>Moreover, use of an order management system to assist with portfolio rebalancing and asset reallocation for the accounts of retail investors may be a permissible use of an algorithm by an RMO. Here, a natural person employed by an RMO, such as an FA, often manages the accounts of multiple retail investors. In managing the assets of these accounts, FAs may often utilize order management systems, or other software that automatically rebalances their customers' equity security allocations, and simultaneously generates a pro-rata buy or sell order to execute the change in position for these accounts in order to eliminate the need to manually enter multiple buy and/or sell orders across multiple accounts. Here, an FA is utilizing an order management system to help manage orders they are entering on behalf of retail investors. While the generation of the order may be based on automated actions from the order management system, the creation of the order is originating from the intervention of a natural person, the FA, in a manner consistent with the FA's understanding of her/his clients' investment criteria.</P>
                <P>
                    Finally, the use of robo-advisory solutions offered by RMOs to retail investors to help them manage their personal assets based on their investment criteria (discussed 
                    <E T="03">infra</E>
                    ) may also be an acceptable use of algorithms. As discussed below, robo-advisory solutions involve the algorithmic creation and management of orders based on investment criteria entered into the trading tool by a natural person. Despite the automated creation of an order by the RMO's algorithm, the Exchange believes that the algorithms offered by robo-advisory solutions are only utilized after a natural person enters his/her investment criteria and provides certain guidelines for his/her account. While robo-advisory solutions represent a relatively new type of trading platform available to retail investors, these platforms are investing solutions widely used by retail investors and offered by numerous brokerage 
                    <PRTPAGE P="10133"/>
                    firms. Given the popularity of robo-advisory solutions, to exclude such automated trading technology would be ignore the reality of how many retail investors participate in today's markets.
                </P>
                <P>
                    Conversely, orders automatically generated and submitted to the Exchange by an algorithm based on factors such as market conditions and price movements, which do not originate from a manual entry of order terms or investment criteria by a natural person, shall not be considered Retail Orders. Examples of such algorithms include, but are not limited to, algorithms developed for market-making, high-frequency trading, liquidity provision, arbitrage, hedging, or proprietary trading. In addition to the fact that such orders do not typically originate from a natural person, entities engaging in such trading strategies are not typically doing so for the account of a retail investor. While retail investors may be offered certain technologies that would permit them to engage in the trading strategies mentioned above, this activity is generally outside the scope of the investment goals of a traditional retail investor (discussed 
                    <E T="03">supra</E>
                    ) and should be excluded from the type of permissible algorithm usage for Retail Orders.
                </P>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .04</HD>
                <P>The Exchange believes that proposed Rule 11.21(a)(2)'s provisions prohibiting the changing of a Retail Order's price or side may discourage the submission of Retail Orders to the Exchange, as it may be unclear how an RMO may handle a Retail Order it submitted to the Exchange algorithmically. As such, the Exchange seeks to codify Interpretation and Policy .04 to mitigate any confusion that RMOs may have in this regard. Specifically, despite proposed Rule 11.21(a)(2)'s provision preventing the changing of the price or side of a Retail Order, Interpretation and Policy .04 would provide that post-order entry an RMO may algorithmically amend the Retail Order's price and/or size provided such amendments are made for the purposes of seeking better execution, enhance execution quality, or minimize market impact.</P>
                <P>
                    Accordingly, an RMO may utilize an algorithm to add a limit price to an unpriced order, amend an order's price and/or size to manage an order's marketability and/or mitigate the risk of receiving executions at aberrant prices, or adjust the price and/or size of an order as market conditions or trading objectives may dictate. For example, an RMO that receives unpriced orders from its retail clients may choose to assign limit prices to such orders to prevent unintended market impact and to prevent such orders from executing at undesirable price levels, or to ensure an order's limit price falls within the Limit Up/Limit Down (“LULD”) 
                    <SU>19</SU>
                    <FTREF/>
                     bands. In this regard, Interpretation and Policy .04 will help to ensure that an order submitted by a retail investor does not lose its standing as a Retail Order simply because the RMO that submitted the order assigned limit prices to the orders to help ensure better priced executions.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         The Limit Up/Limit Down Plan is designed to prevent trades in NMS Stocks from occurring outside specified price bands, which are set at a percentage level above and below the average reference price of a security over the preceding five-minute period. The percentage level is determined by a security's designation as a Tier 1 or Tier 2 security. Tier 1 comprises all securities in the S&amp;P 500, the Russell 1000 and select Exchange Traded Products (ETPs). Tier 2 comprises all other NMS securities, except for rights and warrants, which are specifically excluded from coverage. The Plan applies during regular trading hours of 9:30 a.m. ET-4:00 p.m. ET.
                    </P>
                </FTNT>
                <P>
                    Importantly, such order amendments may be made manually by a natural person who entered the order on behalf of the retail investor (
                    <E T="03">e.g.,</E>
                     an RMO's trader, an FA, or a retail investor via their online brokerage account), by the smart order router used by the RMO to route the order to the Exchange, and/or by the algorithm utilized by the RMO to manage the order's execution. While the changing of an order's price or size by an algorithm or smart order router may be automated, the Exchange believes such behavior is permissible provided the RMO is making such amendments are made to satisfy their best execution obligations, prevent outsized market impact due to an order's super-marketable limit price, or to ensure an order's marketable limit price falls within the Limit Up/Limit Down bands.
                </P>
                <HD SOURCE="HD3">Retail Segments That Will Benefit From the Proposed Amendments</HD>
                <P>
                    The Exchange believes that the proposed definition may encourage financial advisors from wealth management firms that are RMOs to send their Retail Orders to the Exchange, as these RMOs will have additional certainty as to how algorithms may be used in the submission of Retail Orders. When managing their retail customers' portfolios, even financial advisors rely on automated technologies such as trading algorithms and automated smart order routing solutions to assist them with efficiently managing and entering orders for their various customer accounts.
                    <SU>20</SU>
                    <FTREF/>
                     Yet, in speaking with some of the Exchange's Members, they are hesitant to allow send their FAs retail order flow to the Exchange given the ambiguity of the current definition of Retail Order. In this regard, the Exchange believes that the proposed rule change will provide further guidance to these Members and encourage them to route their Retail Orders to the Exchange where they are eligible to receive order priority and enhanced execution quality via EDGX's Retail Priority mechanism as well as benefit from retail-only pricing incentives. Certainly, orders originating from FAs who are responsible for managing individuals' securities accounts are quintessentially retail, and the qualification of such orders as Retail Orders should not be in doubt simply because FAs may elect to utilize automated trading technologies currently utilized by a broad array of other market participants.
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         For instance, many brokerage firms offer investment advisory programs where FAs manage their clients' portfolios based on their clients' investment criteria and risk profiles. In managing these accounts, FAs may determine that a certain equity security has reached a price point triggering the buying (selling) of such security across multiple client accounts. Rather than individually buying (selling) the security multiple times for each client account, an FA may instead choose to manage the accounts through automated technology, such as an order management system, trading algorithm, and smart order router. The Exchange believes that the Retail Order definition should include such activity, as the order activity is being entered by a natural person (
                        <E T="03">i.e.,</E>
                         the FA), on behalf of natural persons (
                        <E T="03">i.e.,</E>
                         retail investors).
                    </P>
                </FTNT>
                <P>
                    Additionally, the proposed rule may also make clear to specialized brokers and traditional brokerage firms 
                    <SU>21</SU>
                    <FTREF/>
                     that provide retail investors with automated trading solutions, that orders from retail investors may qualify as Retail Orders. By way of background, automated trading solutions generally begin by providing retail investors with a questionnaire that asks them for investment criteria, such as personal information regarding their age, investing time horizon, investing goals, and a target dollar amount to guide asset allocation. From there, a retail investor's investments are initially allocated and subsequently re-allocated according to pre-determined models developed by the brokerage firm. Typically, automated rebalancing may also occur 
                    <PRTPAGE P="10134"/>
                    when a retail investor adds or withdraws money from the account, or an allocation percentage drifts from the retail investor's desired range. Retail investors utilizing such services typically complete a periodic review to confirm that their portfolio is still aligned with their investment goals, and when their portfolios are reallocated, they must accept the changes before an allocation is executed. In this use case, natural persons (
                    <E T="03">i.e.,</E>
                     retail customers) are directly entering their investment criteria into a brokerage firm's platform, and algorithms and trading models automatically generate orders based on such data after the retail customer provides the criteria from which an order can be generated. If such orders do not qualify as Retail Orders, it would be hard to contemplate what types of orders do satisfy such a definition.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         For example, Merrill Guided Investing offers retail investors an automated investing tool. 
                        <E T="03">See</E>
                         Merrill Guided Investing, available at: 
                        <E T="03">https://merrilledge.com/investing/merrill-guided-investing; see also</E>
                         Fidelity Go®, which provides retail investors with technology to help automate investing based on information retail investors provide about themselves and their financial institution, available at: 
                        <E T="03">https://www.fidelity.com/managed-accounts/fidelity-go/overview; see also</E>
                         Schwab Intelligent Portfolios®, which offers retail investors automated investing through a robo-advisor that helps build and manage retail investors' portfolios, available at: 
                        <E T="03">https://intelligent.schwab.com/.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Existing Framework Ensuring Only Bona Fide Retail Orders Satisfy Rule 11.21.</HD>
                <P>The Exchange notes that it already has in place robust protections designed to ensure only bona fide retail orders are designated as Retail Orders. The proposed amendments will not eliminate or diminish the strength of the existing protections. Rather, the proposed amendments will augment the Exchange's existing RMO framework.</P>
                <P>
                    Currently, Rule 11.21(b)(1)-(6) sets forth an objective process by which a Member organization applies to become a RMO. First, to qualify as a Retail Member Organization, a Member must conduct a retail routing business or route retail orders on behalf of another broker-dealer.
                    <SU>22</SU>
                    <FTREF/>
                     To become an RMO, a Member is required to submit an application form,
                    <SU>23</SU>
                    <FTREF/>
                     supporting documentation (
                    <E T="03">e.g.,</E>
                     marketing literature, website screenshots, and other publicly disclosed materials) confirming that the applicant's order flow would meet the requirements of the Retail Order definition,
                    <SU>24</SU>
                    <FTREF/>
                     and an attestation 
                    <SU>25</SU>
                    <FTREF/>
                     in a form prescribed by the Exchange, that substantially all orders submitted as Retail Orders will qualify as such under the Rule.
                    <SU>26</SU>
                    <FTREF/>
                     After submission of these materials, various Exchange functions, including legal and operations, review the application to assess whether the applicant's order flow complies with Exchange rules.
                    <SU>27</SU>
                    <FTREF/>
                     Applicants are then notified, in writing, of the Exchange's decision.
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 11.21(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Rule 11.21(b)(2)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Rule 11.21(b)(2)(B).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         section, “Retail Member Organization—Broker-Dealer Customer Agreement”, and “Broker-Dealer Customer Annual Attestation” of “Cboe EDGX Exchange, Inc., Retail Member Organization Application”, available at: 
                        <E T="03">https://cdn.cboe.com/resources/membership/EDGX_Retail_Member_Organization_Application.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Rule 11.21(b)(2)(C).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Rule 11.21(b)(3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Furthermore, all RMOs must have in place policies and procedures reasonably designed to ensure that it will only designate orders as Retail Orders if all requirements of a Retail Order are met.
                    <SU>29</SU>
                    <FTREF/>
                     These policies and procedures must require the Member to (i) exercise due diligence before entering a Retail Order to assure that entry as a Retail Order is in compliance with the requirements of the Rule, and (ii) monitor whether orders entered as Retail Orders meet the applicable requirements.
                    <SU>30</SU>
                    <FTREF/>
                     If a RMO does not itself conduct a retail business but routes Retail Orders on behalf of another broker-dealer, the RMO's supervisory procedures must be reasonably designed to assure that the orders it receives from the other broker-dealer that are designated as Retail Orders meets the definition of a Retail Order.
                    <SU>31</SU>
                    <FTREF/>
                     In these cases, the RMO must (i) obtain an annual written representation, in a form acceptable to the Exchange, from each other broker-dealer that sends the RMO orders to be designated as Retail Orders that the entry of such orders as Retail Orders will be in compliance with the requirements of this Rule; and (ii) monitor whether Retail Order flow routed on behalf of other such broker-dealers meets the applicable requirements.
                    <SU>32</SU>
                    <FTREF/>
                     Importantly, the Exchange's regulatory and surveillance functions provide appropriate oversight by the Exchange by monitoring for continued compliance with the terms of these provisions. If a RMO fails to abide by the Retail Order requirements, the Exchange in its sole discretion may disqualify a Member from its status as a RMO.
                    <SU>33</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See</E>
                         Rule 11.21(b)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         Rule 1121(b)(d)(1). [
                        <E T="03">sic</E>
                        ].
                    </P>
                </FTNT>
                <P>Rule 11.9 Interpretation and Policy .01 also provides additional protections designed to ensure that that only bona fide retail orders participate in the Exchange's Retail Priority program. Specifically, Interpretation and Policy .01 defines a Retail Priority Order as a Retail Order (as defined in Rule 11.21(a)(2)) that is entered on behalf of a person that does not place more than 390 equity orders per day on average during a calendar month for its own beneficial account(s). Retail Orders for any retail customer that had an average of more than 390 orders per day during any month of a calendar quarter are not eligible to be entered as Retail Priority for the next calendar quarter.</P>
                <P>In addition, Interpretation and Policiy .02 requires RMOs that enter Retail Priority Orders to have reasonable policies and procedures in place to ensure that such orders are appropriately represented on the Exchange. These policies and procedures should provide for a review of retail customers' activity on at least a quarterly basis. RMOs are required to conduct a quarterly review and make any appropriate changes to the way in which they are representing orders within five business days after the end of each calendar quarter. Moreover, if during a quarter the Exchange identifies a retail customer for which orders are being represented as Retail Priority Orders but that has averaged more than 390 orders per day during a month, the Exchange will notify the RMO, and the RMO will be required to change the manner in which it is representing the retail customer's orders within five business days.</P>
                <P>
                    Overall, the Exchange believes it has in place an effective framework for ensuring that only bona fide retail orders are designated as Retail Orders by RMOs, and notes that the proposed amendments will only seek to enhance Members' understanding of Exchange rules regarding Retail Orders, as well as augment the Exchange's ability to enforce its rules related to Retail Orders. Therefore, while the proposed amendments may broaden the spectrum of retail investors whose orders are eligible to be routed to the Exchange by RMOs, the enhanced clarity of these rules will help to enable Members to make routing decisions in compliance with applicable Exchange rules. In this regard, the Exchange believes it important to note that as Members of the Exchange, RMOs must be registered brokers or dealers. As registered brokers or dealers, RMOs are subject to a panoply of rules, such as FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade), EDGX Rule 2.2. (Obligation of Members and the Exchange), and EDGX Rule 3.1 (Business Conduct of Members). These rules require, amongst other things, that as brokers or dealers, Members are required to conduct business with the highest standards of commercial honor, and obligate Members to comply with all Exchange rules, by-laws, and regulations.
                    <SU>34</SU>
                    <FTREF/>
                     While the Exchange has 
                    <PRTPAGE P="10135"/>
                    an obligation to maintain fair and orderly markets and carry out it its duties as a self-regulatory organization, RMOs are also obligated to ensure that only orders that comply with Exchange rules are routed to the Exchange and designated as Retail Orders.
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         While the RMO application process discussed above does rely on information provided by the applicant, the Exchange believes that ultimately it 
                        <PRTPAGE/>
                        must be allowed to rely on representations made by registered brokers or dealers that are obligated to conduct their securities business consistent with the highest standards of commercial honor, and in submitting their application, have attested to the accuracy of the information provided to the Exchange.
                    </P>
                </FTNT>
                <P>The Exchange also believes that the proposed amendments will provide the Exchange's regulatory and surveillance functions with a rule set that is more aligned with today's retail order routing practices. With the prevalent use of algorithms in today's equity markets, more descriptive rule text will aid the Exchange's business associates in properly guiding its Members through the RMO process, as well as further strengthen the regulatory and surveillance function's ability to enforce Exchange rules.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule changes are consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>35</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>36</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>37</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Retail Order Definition</HD>
                <P>
                    The Exchange believes that the proposed rule change is consistent with these principles because it would increase competition among execution venues, encourage additional on-exchange retail liquidity, and offer retail investors the opportunity to receive orderbook priority ahead of all other interest on the EDGX Book. The Exchange notes that a significant percentage of the orders of individual investors are executed over the counter,
                    <SU>38</SU>
                    <FTREF/>
                     and that by amending the definition of Retail Order more retail flow may be directed to the Exchange and have the opportunity to execute on a regulated, transparent market. Indeed, even the Commission has noted that “a very large percentage of marketable (immediately executable) order flow of individual investors is `executed' or `internalized' by broker-dealers in the [over-the-counter-markets].” 
                    <SU>39</SU>
                    <FTREF/>
                     The Commission has also noted that a review of the order flow of eight retail brokers revealed that nearly 100% of their customer market orders were routed to over-the-counter market makers, often pursuant to payment for order flow arrangements.
                    <SU>40</SU>
                    <FTREF/>
                     By helping to incentivize RMOs to send Retail Orders to the Exchange, RMOs will have another alternative to over-the-counter market makers, and will receive beneficial retail-only Exchange pricing. In turn, an increase in the number of Retail Orders submitted onto the Exchange will encourage more retail liquidity provision, thereby deepening EDGX's retail liquidity pool, fostering enhanced price discovery, and offering Retail Orders more price improvement opportunities as liquidity providers compete to trade with Retail Orders increases.
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         Ninety-plus percent (90%) of retail marketable orders are routed to wholesalers and executed off-exchange. 
                        <E T="03">See</E>
                         Chair Gensler's remarks, “Market Structure and the Retail Investors: Remarks Before the Piper Sandler Global Exchange Conference”, (June 2, 2022), available at: 
                        <E T="03">https://www.sec.gov/news/speech/gensler-remarks-piper-sandler-global-exchange-conference-060822</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         See Securities Exchange Act Release No. 61358 (January 14, 2010), 75 FR 3594, 3600 (January 21, 2010) (“Concept Release on Equity Market Structure”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that the proposed amendment to the definition of “Retail Order” promotes just and equitable principles of trade and is not unfairly discriminatory. While the proposed amendment treats Retail Orders differently than non-retail orders, the Exchange believes that such a distinction does not constitute 
                    <E T="03">unfair</E>
                     discrimination, and in fact benefits both liquidity providers and retail investors alike. As noted by the Commission in its order approving the BYX RPI program,
                    <SU>41</SU>
                    <FTREF/>
                     the markets already distinguish between retail investors, whose orders are considered desirable by liquidity providers because retail investors are presumed to be, on average, less informed about short-term price movements, and professional traders, whose orders are presumed, on average, to be more informed about short-term price movements.
                    <SU>42</SU>
                    <FTREF/>
                     Because of this distinction, the Commission noted that liquidity providers prefer to provide price improvement opportunities to less informed retail orders than to informed professional orders, and that absent price improvement opportunities, retail investors are likely to encounter wider spreads which are a consequence of their interaction with more informed order flow.
                    <SU>43</SU>
                    <FTREF/>
                     The Exchange believes that in clarifying the definition of Retail Order, RMOs will be more encouraged to enter orders onto the Exchange, which in turn may attract retail liquidity, benefitting both the retail investing community and professional traders.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">Supra</E>
                         note 9.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>The proposed amendment to the definition of Retail Order is also designed to protect investors and the public interest. In conjunction with proposed Interpretations and Policies .01-.04, the Exchange seeks to clarify precisely how Retail Orders may be entered onto the Exchange by RMOs through the use of algorithms. This clarity is designed to not only encourage Members to submit Retail Orders onto the Exchange, but to ensure that only bona fide retail orders are able to take advantage of the benefits provided to Retail Orders by the Exchange.</P>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .01</HD>
                <P>Proposed Interpretation and Policy .01 is designed to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. By providing additional guidance to market participants about what is meant by the term “retail investor”, the Exchange is helping to ensure that only bona fide retail activity is entered onto the Exchange, and that professional investors cannot somehow avail themselves of the benefits offered to Retail Orders by the Exchange.</P>
                <P>
                    The proposed clarification may also provide Members, and potential new Members, with the necessary assurances that they are in fact managing retail order flow, encouraging them to enter their Retail Orders onto the Exchange as RMOs. Increased RMO participation may in turn foster more retail liquidity provision as more sophisticated order flow seeks to trade with retail flow. The 
                    <PRTPAGE P="10136"/>
                    increase in liquidity provision and RMO provision will likely lead to deeper liquidity on the Exchange that will help to enhance price discovery and increased price improvement opportunities for not only retail investors, but all investors submitting order flow to the Exchange. Additionally, by routing Retail Orders to the Exchange, RMOs and their retail investors will benefit from the Exchange's retail-only pricing incentives, as well as increased price improvement opportunities and enhanced order priority offered by EDGX's Retail Priority program.
                </P>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .02</HD>
                <P>Proposed Interpretation and Policy .02 is designed to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. By providing additional guidance around the term “natural person”, it will be clearer to Members that an order, or investment criteria for an order, must be entered by a human and cannot originate from an algorithm without human intervention. This will help to ensure that only bona fide retail orders are designated as “Retail Orders” and mitigate the likelihood that professional investors that utilize fully automated trading technology designed to participate in certain trading strategies inappropriately seek to designate their orders as Retail Orders.</P>
                <P>
                    Furthermore, by clarifying that orders created through broker-dealers' robo-advisory programs can qualify as Retail Orders if the investment criteria are entered by a natural person, additional order flow from robo-advisory program may be directed to the Exchange for execution. Similarly, by making clear that a “natural person” may also be an account held in corporate form, such as an individual retirement account or limited liability corporation (
                    <E T="03">e.g.,</E>
                     family office), more retail flow may be directed to the Exchange. By executing on the Exchange RMOs will be able to avail themselves of retail-specific pricing, which they can pass onto their retail clients in the form of reduced commissions and transaction costs. Additionally, these orders will have the opportunity to participate in the Exchange's Retail Priority program, which focuses on improving execution quality and trading outcomes for individual investors, and the firms facilitating their orders, by reducing their time to execution.
                </P>
                <P>
                    Finally, as noted throughout, increased retail flow will augment the Exchange's liquidity pools, thereby fostering price discovery, and creating more opportunities for price improvement. With improved on-execution experiences more investors may be incentivized to route their retails orders on-exchange (
                    <E T="03">i.e.,</E>
                     EDGX) exposing retail flow to on-exchange price competition.
                </P>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .03</HD>
                <P>Proposed Interpretation and Policy .03 is designed to protect investors and the markets by making clear to RMOs using algorithms to enter Retail Orders onto the Exchange that orders must be entered by a retail investor or a natural person on behalf of a retail investor, and that in the case of robo-advisory solutions, the retail investor must enter the investment criteria that the brokerage firm's algorithm uses to generate orders. By providing examples of both acceptable and unacceptable uses of algorithms, market participants will be clearer as to whether the orders they route to the Exchange for execution are indeed “Retail Orders”. In doing so, the Exchange is helping to ensure that only bona fide retail orders qualify as Retail Orders, and that professional investors are not inappropriately receiving benefits specifically reserved for retail investors.</P>
                <P>Proposed Interpretation and Policy .03 will also help to remove impediments to and perfect the mechanism of a free and open market and a national market system. By providing additional guidance on how RMOs may use algorithms when submitting Retail Orders to the Exchange, Members will be more certain as to whether their orders in fact qualify as Retail Orders. In doing so, RMOs may route more Retail Orders to the Exchange and in turn, may encourage more market participants to provide additional retail liquidity thereby deepening the liquidity pool, and enhancing price discovery and transparency. As more investors are incentivized to execute their retail flow on the Exchange an increasing number of individual investors' orders will be exposed to on-exchange price competition, increasing their opportunity to receive price improvement and improved execution quality.</P>
                <HD SOURCE="HD3">Interpretation and Policy .04</HD>
                <P>Interpretation and Policy .04 helps to remove impediments to and perfect the mechanism of a free and open market and a national market system. The provision preventing the changing of the price or side of an order in both the current and proposed definition of Retail Order was designed to ensure that orders entered onto the Exchange by RMOs were submitted on behalf of retail investors, and not institutional orders which typically have the terms of price and size amended, canceled, or replaced frequently throughout the day. However, the Exchange recognizes that RMOs may sometimes receive unpriced orders from their retail customers or may deem a certain limit price to be appropriate for the purposes of seeking a better execution and/or preventing an order from executing at undesirable price levels. As such, by clarifying that Retail Orders may in fact be amended provided it is to affect a better execution experience for the retail investor, or to manage market impact, RMOs may be more encouraged to send more Retail Orders to the Exchange. As noted throughout, increased RMO activity and retail liquidity provision will only serve to deepen liquidity for Retail Orders, which in turn will lead to price competition and increased price improvement opportunities for individual investors' orders.</P>
                <P>The Exchange also believes that proposed Interpretations and Policies .01-.04 promote just and equitable principles of trade and are not unfairly discriminatory because they are intended to provide guidance to all Members, in particular RMOs, as to what constitutes a Retail Order.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    The Exchange does not believe that the proposed rule changes will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes its proposed amendment to the definition of Retail Order and codification of Interpretation and Policies .01-.04 will benefit intramarket competition rather than burden competition. The proposed changes serve to provide additional clarity to Members and RMOs as to the types of persons or accounts eligible to submit Retail Orders and describe the permissible and impermissible uses of algorithms available to Members and RMOs when submitting Retail Orders. The Exchange believes this additional information will lead to additional retail order flow being submitted to the Exchange by RMOs, which all contra-side orders are eligible to interact with. Greater overall order flow and trading opportunities benefits all market participants on the Exchange. An increase in RMO activity and liquidity providing orders will serve to enhance the Exchange's available liquidity. Deeper liquidity pools will, in turn, enhance price discovery, as well as 
                    <PRTPAGE P="10137"/>
                    price improvement opportunities for retail investors as liquidity providers compete for retail executions. Liquidity providers also benefit by being able to interact with retail order flow that is often executed off-exchange, and therefore generally inaccessible to those trading in the lit markets.
                </P>
                <P>
                    While the proposed definition will help to ensure that only bona fide retail investors receive the benefits of afforded to Retail Orders, prioritization of retail investors is not a novel concept in the securities market. In this regard, the proposed amendments should not result in any new or novel issues to be considered by the Commission, or that have not already been contemplated by today's market participants. Indeed, as noted in the Amendment 1 of the Exchange's Retail Priority filing,
                    <SU>44</SU>
                    <FTREF/>
                     customer priority has a long tradition in the options market where orders entered on behalf of non-broker dealer public customers have historically been afforded priority over orders submitted by registered broker dealers. In fact, most options exchanges, including the Exchange's equity options platform,
                    <SU>45</SU>
                    <FTREF/>
                     employ a customer priority execution algorithm where orders submitted by a subset of public customer with more limited trading activity are provided order book priority ahead of orders submitted by broker-dealers or other market professionals at the same price.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 86280 (July 2, 2019), 84 FR 32808 (July 9, 2019) (“Notice of Amendment No. 1”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         EDGX Rule 21.8(d)(1).
                    </P>
                </FTNT>
                <P>
                    The Exchange further believes that the proposed rule change will increase intermarket competition by enabling the Exchange to better compete with other exchanges and off-exchange trading venues for retail order flow. The Commission has spoken about “increasing competition and enhancing the direct exposure of individual investor orders to a broader spectrum of market participants” 
                    <SU>46</SU>
                    <FTREF/>
                     and the Exchange believes its proposed amendments to the definition of Retail Order and introduction of Interpretations and Policies .01-.04 provide sufficient guidance to RMOs to encourage additional retail order flow be sent to the Exchange. In turn, retail investors will have additional opportunities to receive executions on a transparent, regulated, national securities exchange in addition to the currently available off-exchange trading venues. Additionally, a revised definition of Retail Order may encourage additional competition for retail order flow on-exchange that would be eligible to participate in the various retail liquidity programs offered by exchanges,
                    <SU>47</SU>
                    <FTREF/>
                     including the Exchange's Retail Priority program. This, in turn, could create additional incentives for regulated exchanges to develop additional liquidity programs designed at providing additional benefits to retail investors, thus promoting additional intermarket competition.
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 96495 (December 14, 2022), 88 FR 128 (January 3, 2023) (“Order Competition Rule”) at 178.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See also,</E>
                         Cboe BYX Exchange Retail Price Improvement (
                        <E T="03">https://www.cboe.com/us/equities/trading/offerings/retail_price_improvement/</E>
                        ); Nasdaq retail services (
                        <E T="03">https://www.nasdaqtrader.com/content/productsservices/Trading/EquitiesRetailOfferingOverview.pdf</E>
                        ); NYSE and NYSE National Retail Liquidity (
                        <E T="03">https://www.nyse.com/markets/liquidity-programs</E>
                        ); IEX Retail Program (
                        <E T="03">https://www.iexexchange.io/products/retail-program</E>
                        ).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    Within 45 days of the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                     or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission will:
                </P>
                <P>A. by order approve or disapprove such proposed rule change, or</P>
                <P>B. institute proceedings to determine whether the proposed rule change should be disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeEDGX-2024-009 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeEDGX-2024-009. 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 internet website (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-CboeEDGX-2024-009 and should be submitted on or before March 5, 2024.
                    <FTREF/>
                </FP>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         17 CFR 200.30-3(a)(12).
                    </P>
                </FTNT>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>48</SU>
                    </P>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02859 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="10138"/>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-99489; File No. SR-CboeBYX-2024-004]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend the Definition of Retail Order, and Codify Interpretations and Policies Regarding Permissible Uses of Algorithms by RMOs</SUBJECT>
                <DATE>February 7, 2024.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on January 25, 2024, Cboe BYX Exchange, Inc. (the “Exchange” or “BYX”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe BYX Exchange, Inc. (the “Exchange” or “BYX”) is filing with the Securities and Exchange Commission (the “Commission”) a proposal to (i) amend the definition of “Retail Order” as defined by Exchange Rule 11.24(a)(2); (ii) codify proposed Interpretation and Policy. 01, which describes the meaning of the term, “retail investor,” as referenced in proposed Rule 11.24(a)(2); (iii) codify proposed Interpretation and Policy .02, which describes the meaning of the term, “natural person,” as referenced in proposed Rule 11.24(a)(2); (iv) codify proposed Interpretation and Policy .03, which describes acceptable uses of algorithms or other computerized methodology by Retail Member Organizations; and (v) codify proposed Interpretation and Policy .04 which explains that Rule 11.24(a)(2)'s provision preventing the terms of an order with respect to price is not intended to prevent a Retail Member Organization from changing the terms of the order to ensure a better execution experience for a retail investor. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/byx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The purpose of this rule filing is to (i) amend the definition of “Retail Order” as defined by Exchange Rule 11.24(a)(2); (ii) codify proposed Interpretation and Policy. 01, which describes the meaning of the term, “retail investor,” as referenced in proposed Rule 11.24(a)(2); (iii) codify proposed Interpretation and Policy .02, which describes the meaning of the term, “natural person,” as referenced in proposed Rule 11.24(a)(2); (iv) codify proposed Interpretation and Policy .03, which describes acceptable uses of algorithms or other computerized methodology by Retail Member Organizations; and (v) codify proposed Interpretation and Policy .04 which explains that Rule 11.24(a)(2)'s provision preventing the terms of an order with respect to price is not intended to prevent a Retail Member Organization from changing the terms of the order to ensure a better execution experience for a retail investor.</P>
                <P>
                    The Exchange, along with its affiliate exchanges Cboe BZX Exchange, Inc. (“BZX”), Cboe EDGX Exchange, Inc. (“EDGX”), and Cboe EDGA Exchange, Inc. (“EDGA”), believes that retail investors are a key part of the trading ecosystem, and as such, has designed products and programs to execute retail orders quickly, with high execution quality and at a low-cost, with added pricing incentives. For instance, targeted retail order types on EDGX 
                    <SU>3</SU>
                    <FTREF/>
                     and BYX,
                    <SU>4</SU>
                    <FTREF/>
                     execute both marketable and non-marketable retail orders with price improvement, and enhanced speed and fill rates. Additionally, both EDGX and BYX offer retail-only pricing incentives for low cost remove and premium rebates. EDGX also offers Retail Member Organizations (“RMO”) 
                    <SU>5</SU>
                    <FTREF/>
                     discounts on port fees and market data, and retail tiers give growing retail firms additional rebates.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         EDGX's Retail Priority program seeks to enhanced execution quality for individual investors who trade U.S. equities on EDGX. Retail Priority offers a distinct allocation model, which differs from the traditional time-based allocation model used by most U.S. equities market centers that allocate trades to orders that arrive first in time at each price point. Retail Priority focuses on improving execution quality and trading outcomes for individual investors, and the firms facilitating their orders, by reducing their time to execution. Under Retail Priority, individual investors' displayed limit orders will post at the front of the order queue for same-priced orders submitted on EDGX.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         Orders designated by a Retail Member Organization as “Retail Orders” (defined 
                        <E T="03">infra</E>
                        ) are eligible for participation in BYX's Retail Price Improvement Program. Through the Retail Price Improvement Program, any BYX Member may input Retail Price Improving (RPI) orders on the BYX order book that will offer price improvement on $.001 increments to RMOs that enter a Retail Order. In addition to the price improvement opportunities, Retail Orders that interact with price improving orders receive an enhanced rebate on BYX. 
                        <E T="03">See generally</E>
                         “Cboe Retail Price Improvement” available at: 
                        <E T="03">https://www.cboe.com/us/equities/trading/offerings/retail_price_improvement/See generally,</E>
                         “BYX Retail Price Improvement (RPI) Program” available at: 
                        <E T="03">https://cdn.cboe.com/resources/release_notes/2012/BATS-Introduces-Retail-Price-Improvement-Program.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         The term, Retail Member Organization or RMO, means “a Member (or a division thereof) that has been approved by the Exchange under this Rule to submit Retail Orders.” 
                        <E T="03">See</E>
                         Rule 11.24(a)(1), definition of, “Retail Member Organization”.”
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Retail Order Definition</HD>
                <P>
                    As currently defined in Rule 11.24(a)(2), a “Retail Order” is an agency or riskless principal order that meets the criteria of FINRA Rule 5320.03 
                    <SU>6</SU>
                    <FTREF/>
                     that originates from a natural person and is submitted to the Exchange by a RMO, provided that no change is made to the terms of the order with respect to price or side of the order and the order does not originate from a trading algorithm or any other computerized methodology.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         FINRA Rule 5320.03 provides for a Riskless Principal Exception. 
                        <E T="03">See</E>
                         FINRA Rule 5320, Prohibition Against Trading Ahead of Customer Orders, available at: 
                        <E T="03">https://www.finra.org/rules-guidance/rulebooks/finra-rules/5320.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange has received Member feedback,
                    <SU>7</SU>
                    <FTREF/>
                     however, that it is unclear whether Rule 11.24 permits the use of algorithms or other computerized methodologies (hereinafter, collectively referred to as “algorithms”) when submitting individual retail investors' orders to the Exchange.
                    <SU>8</SU>
                    <FTREF/>
                     The impact of 
                    <PRTPAGE P="10139"/>
                    the rule's ambiguity is twofold: first, while Members may route orders entered by retail investors to the Exchange for execution, they are doing so as non-RMOs and without designating such orders as Retail Orders; second, potential new Members considering registering as RMOs may be discouraged doing from so. In both cases, the ambiguity of the Exchange's current definition is discouraging the routing of retail order flow to the Exchange and preventing individual investors from receiving the benefits provided to Retail Orders executed on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         The Exchange has spoken with various current and prospective Members, ranging from smaller, regional broker-dealers to larger, bulge bracket broker-dealers, that are responsible for handling and routing retail orders for execution.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The Exchange notes that this is not a novel question and that this issue was initially raised by SIFMA in its comment letter to the New York Stock 
                        <PRTPAGE/>
                        Exchange's Retail Liquidity Program rule filing, in which SIFMA noted that a broad prohibition on algorithmic and computerized methodologies could be read to mean only orders submitted via phone may be considered Retail Orders, or that even orders entered through an online broker by an actual retail customer would not qualify. 
                        <E T="03">See</E>
                         SIFMA Comment Letter (March 23, 2012), to Securities Exchange Act Release No. 34-66346 (File No. SR-NYSE-2011-55 and File No. SR-NYSEAmex-2011-84) (“Retail Liquidity Program”).
                    </P>
                </FTNT>
                <P>
                    The Exchange now seeks to amend the definition of Retail Order to clarify for Members, including potential new Members, that the use of an algorithm to submit orders to the Exchange on behalf of a retail investor, does not automatically preclude an RMO from designating such orders as, “Retail Orders.” Specifically, use of an algorithm to submit a Retail Order to the Exchange is permissible provided that the order, or investment criteria for the order (discussed 
                    <E T="03">infra</E>
                    ) originates from a natural person, such as the investor him/herself, or a natural person on behalf of a retail investor (
                    <E T="03">e.g.,</E>
                     a Financial Advisor (“FA”), or trader), and such order is submitted to the Exchange by an RMO. Additionally, except as described in proposed Interpretation and Policy .03 (discussed 
                    <E T="03">infra</E>
                    ), no change to the terms of the order with respect to price or side, may be made.
                </P>
                <P>
                    The Exchange believes that the proposed definition could encourage additional Members to become RMOs and route their Retail Orders to the Exchange. If more Members choose to become RMOs, the Exchange believes there will be additional opportunities to interact with retail order flow, which is likely to incentivize more retail liquidity provision, as it is generally considered preferable to trade with retail orders than with orders of professional investors that are typically more informed regarding short-term price movements.
                    <SU>9</SU>
                    <FTREF/>
                     By amending the Retail Order definition, RMOs and their retail customers will have the potential to receive price improved on BYX—a transparent, well-regulated, public exchange—receive low cost remove fees and enhanced rebates, as well as be eligible to participate in the Exchange's RPI Program 
                    <SU>10</SU>
                    <FTREF/>
                     offering.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Indeed, even the Commission noted “the markets generally distinguish between individual retail investors, whose orders are considered desirable by liquidity providers because such retail investors are presumed on average to be less informed about short-term price movements, and professional traders, whose orders are presumed on average to be more informed.” 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 34-68303 (November 27, 2012), 77 FR 71652 (December 3, 2012) (SR-BYX-2012-019) (“Order Granting Approval to Proposed Rule Change, as Modified by Amendment No. 2, to Adopt a Retail Price Improvement Program”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">Supra</E>
                         note 4.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that the proposed amendments are merely a codification of how retail trading occurs in today's markets and helps to ensure that retail customers are not inadvertently excluded from enhanced execution quality simply because they utilize automated trading solutions widely utilized by other market participants that have been developed since the current definition was added to the BYX rulebook. As noted in the Staff Report on Algorithmic Trading in U.S. Capital Markets, the current markets for secondary trading in NMS stocks is predominantly electronic, with most of the trading lifecycle, including order generation, routing, and execution, being fully automated.
                    <SU>11</SU>
                    <FTREF/>
                     Indeed, both retail and institutional investors utilize algorithms to actively make investment and trading decisions.
                    <SU>12</SU>
                    <FTREF/>
                     Additionally, some specialized brokers provide individual retail investors with sophisticated broker algorithms, or allow them to create their own algorithms,
                    <SU>13</SU>
                    <FTREF/>
                     as well as utilize auto-investing technology that trades for retail customers based on how much money a retail customer wishes to invest, and their preferred investment horizon.
                    <SU>14</SU>
                    <FTREF/>
                     Given the prevalent use of trading algorithms in the securities markets, the Exchange believes it necessary to modify the definition of Retail Order to align Exchange rules with current market practice, and to provide clarity to Members and potential new Members regarding the definition of Retail Order.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         “Staff Report on Algorithmic Trading in U.S. Capital Markets” (August 5, 2020), available at 
                        <E T="03">https://www.sec.gov/tm/reports-and-publications/special-studies/algo_trading_report_2020.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See generally</E>
                         Betterment©, Automated Investing, available at: 
                        <E T="03">https://www.betterment.com/investing</E>
                         (Betterment© provides retail customers access to technology that automatically invests in the market based on the retail customer's available funds and stated investment period) (“Automated Technology is how we make investing easier, better, and more accessible”); 
                        <E T="03">see also</E>
                         (DriveWealth,© LLC, Robo, available at: 
                        <E T="03">https://www.drivewealth.com/solutions/robo</E>
                         (“DriveWealth's© technology enables our partners to design cutting-edge robo-investing experiences for your customers . . . or you can empower people to make their own investment decisions with robo-advisory capability.”)
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .01</HD>
                <P>
                    The Exchange also seeks to adopt proposed Interpretation and Policy .01, which seeks to describe the meaning of the term, “retail investor,” which is referenced in proposed Rule 11.24(a)(2). To ensure that orders from only bona fide retail investors may qualify as Retail Orders, the Exchange believes it important to first specify what type of investor is considered a retail investor for the purposes of Rule 11.24. Specifically, a retail investor is intended to refer to a non-professional, individual investor that invests money in their own account, held at a brokerage firm. A retail investor may also refer to an account held in corporate form (
                    <E T="03">e.g.,</E>
                     corporation, or limited liability company) that has been established for the benefit of an individual or group of related family members (
                    <E T="03">e.g.,</E>
                     the legal representative for a family office).
                    <SU>15</SU>
                    <FTREF/>
                     Furthermore, the investment goals of a retail investor are mainly saving for retirement and/or education, generating income, or growing wealth over the long-term. A retail investor may trade directly on his or her own behalf (
                    <E T="03">e.g.,</E>
                     self-directed online brokerage account), utilize online investing platforms that employ software algorithms to create and enters orders, and manage investment portfolios based on an investor's investment criteria (
                    <E T="03">e.g.,</E>
                     “robo-advisors”), or utilize a FA who makes investment decisions and enters orders on the retail investor's behalf.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         Family offices are “entities established by wealthy families to manage their wealth and provide other services to family members, such as tax and estate planning services. 
                        <E T="03">See generally</E>
                         Small Entity Compliance Guide, “Family Office”, available at: 
                        <E T="03">https://www.sec.gov/rules/final/2011/ia-3220-secg.htm.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that this description will help to make clear to investors whether their trading practices and investment goals are consistent with the Exchange's view of what constitutes retail trading activity. Additionally, this description should help to make clear that Retail Orders can also include orders entered on behalf of entities organized for the benefit of retail investors, and are not strictly limited to humans—
                    <E T="03">e.g.,</E>
                     orders entered by a legal representative for a family office may be considered Retail Orders as they ultimately benefit a retail investor.
                    <PRTPAGE P="10140"/>
                </P>
                <P>
                    Conversely, the term retail investor is 
                    <E T="03">not</E>
                     intended to include individual investors that engage in more professional trading strategies designed to profit from bid-ask spreads, short-term price movements, and arbitrage, or in trading behavior where multiple buy and sell orders are entered over a short period of time based on market conditions.
                    <SU>16</SU>
                    <FTREF/>
                     While the Exchange acknowledges that certain industry offerings may provide individual investors the tools to trade in such a manner, such trading strategies are not considered those of a retail investor for the purposes of Rule 11.24.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         The Exchange notes that the items noted herein are not intended to be an exhaustive list of restricted trading strategies. Indeed, what is noteworthy is that such trading activity is not representative of the type of activity an “ordinary” investor would engage in. Accordingly, while certain trading strategies may not be explicitly noted, trading representative of more sophisticated investors would similarly be prohibited for the purposes of Rule 11.21[
                        <E T="03">sic</E>
                        ].
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .02</HD>
                <P>
                    The Exchange also seeks to adopt proposed Interpretation and Policy .02, which seeks to describe the meaning of the term, “natural person,” which is referenced in proposed Rule 11.24(a)(2). Specifically, for the purposes of Rule 11.24, the Exchange intends for the term “natural person” to refer to a human who enters an order or investment criteria for an order (discussed 
                    <E T="03">infra</E>
                    ). This individual may be the retail investor him/herself, or a natural person entering the order on behalf of a retail investor (
                    <E T="03">e.g.,</E>
                     an FA or trader).
                </P>
                <P>
                    The Exchange believes that this clarification will help to ensure that only bona fide retail orders are submitted to the Exchange as Retail Orders by making clear that orders generated automatically by an algorithm, without human intervention, shall not be considered Retail Orders. For the sake of clarity, while the proposed definition of Retail Order requires an order to be entered by a human, a retail investor may utilize an online brokerage platform that employs algorithms to create and manage orders based on investment criteria (discussed 
                    <E T="03">infra</E>
                    ) entered by a natural person. The Exchange believes that such orders still require 
                    <E T="03">human intervention,</E>
                     and the initial impetus to trade was not generated by an algorithm. In other words, the use of an algorithm comes only after investment criteria is entered by a human.
                </P>
                <P>
                    Additionally, the Exchange believes that proposed Interpretation and Policy .02 will place professional investors and trading firms on notice that orders generated from algorithms, without human intervention, that are entered and routed to the Exchange for professional trading purposes such as market making, high-frequency trading, and proprietary trading, etc., shall not satisfy the definition of Retail Order.
                    <SU>17</SU>
                    <FTREF/>
                     While certain industry offerings may provide individual investors sophisticated tools enabling them to trade in a more automated fashion, the Exchange does not believe that such trading strategies and corresponding orders should be considered Retail Orders for the purposes of Rule 11.24.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .03</HD>
                <P>Importantly, the Exchange seeks to ensure that only bona fide retail flow is designated as a Retail Order and does not intend for professional investors and professional trading firms to avail themselves of the benefits provided to RMOs by the Exchange. Therefore, the Exchange also seeks adopt Interpretation and Policy .03 to describe how an RMO can permissibly utilize an algorithm when entering Retail Orders onto the Exchange.</P>
                <P>
                    The Exchange believes that an RMO can utilize an algorithm to enter individual investors' orders onto the Exchange, and permissibly designate such orders as Retail Orders, provided the order or investment criteria used to generate an order, originates from a natural person, such as the retail investor him/herself, or a natural person on behalf of a retail investor (
                    <E T="03">e.g.,</E>
                     an FA or trader), and is submitted to the Exchange for execution by an RMO. Examples of acceptable uses of algorithms by an RMO include, but are not limited to: a smart order router to route the Retail Order to the Exchange for execution; a smart order router to assess trading venues for the best priced quotation and liquidity prior to routing the Retail Order to the Exchange; an order management system, smart order router, or other functionality to change the terms an order to seek a better execution price; use of an order management system to assist with portfolio rebalancing and asset reallocation for the accounts of retail investors; and a retail investor's use of automated investment management tools offered by RMOs to manage their assets based on their goals and risk tolerance (
                    <E T="03">i.e.</E>
                     robo-advisory solutions).
                </P>
                <P>
                    One example of an acceptable use of an algorithm by an RMO includes the use of a smart order router to route a Retail Order to the Exchange for execution. Here, an RMO may permissibly use a smart order router to send an order to the Exchange that: (i) an employee of the RMO (
                    <E T="03">e.g.,</E>
                     an FA or trader) entered into their trading system on behalf of a retail investor, (ii) was entered by the retail investor him/herself and is being managed by the RMO algorithmically (
                    <E T="03">e.g.,</E>
                     an order entered by an individual investor via a self-directed brokerage account), (iii) was created by the RMO's automated investment algorithm that creates orders based on investment criteria entered into a brokerage platform by a retail investor (
                    <E T="03">i.e.,</E>
                     robo-advisory solutions), or (iv) the RMO is managing on behalf of their broker-dealer customer that manages retail flow through the same channels described in (i)-(iii). In each use case, such algorithmic usage is permissible because the orders or investment criteria were not generated without intervention by a natural person and the algorithms are only used after the orders or investment criteria have been entered.
                </P>
                <P>
                    Another permissible use of an algorithm by an RMO includes the use of a smart order router to assess trading venues for the best priced quotation and liquidity prior to routing the Retail Order entered through the channels described in (i)-(iv) above. Here, there is no automated generation of an order by an algorithm without intervention by a natural person—whether by order entry or entry of investment criteria (
                    <E T="03">i.e.,</E>
                     the robo-advisory scenario noted above, and discussed further 
                    <E T="03">infra</E>
                    ). Rather, the RMO is using algorithmic technology post-order entry to assess the best market for the retail investor's orders, which is consistent with an RMO's duty to provide best execution 
                    <SU>18</SU>
                    <FTREF/>
                     and integral to providing optimal execution quality.
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See.</E>
                         FINRA Rule 5310, Best Execution and Interpositioning, available at: 
                        <E T="03">https://www.finra.org/rules-guidance/guidance/reports/2021-finras-examination-and-risk-monitoring-program/best-execution.</E>
                         FINRA Rule 5310 requires, amongst other things, that in any transaction for or with a customer or a customer of another broker-dealer, a FINRA member and persons associated with a FINRA member shall use reasonable diligence to ascertain the best market for the subject security and buy or sell in such market so that the resultant price to the customer is favorable as possible under prevailing market conditions.
                    </P>
                </FTNT>
                <P>
                    An RMO's use of an order management system, smart order router, or other functionality to change the terms an order to seek a better execution price, may also be a permissible use of an algorithm. As discussed further below, an RMO may utilize such technology to monitor and manage orders previously routed to the Exchange on behalf of a retail investor to help work the order towards execution, by amending an order's limit price, or changing the size of an order. Here, an order is not being 
                    <PRTPAGE P="10141"/>
                    automatically generated by an algorithm without intervention by a natural person. Rather, the RMO is utilizing trading technology post-order entry by a natural person to help achieve best execution for the retail investors' orders, and to help achieve optimal execution quality.
                </P>
                <P>Moreover, use of an order management system to assist with portfolio rebalancing and asset reallocation for the accounts of retail investors may be a permissible use of an algorithm by an RMO. Here, a natural person employed by an RMO, such as an FA, often manages the accounts of multiple retail investors. In managing the assets of these accounts, FAs may often utilize order management systems, or other software that automatically rebalances their customers' equity security allocations, and simultaneously generates a pro-rata buy or sell order to execute the change in position for these accounts in order to eliminate the need to manually enter multiple buy and/or sell orders across multiple accounts. Here, an FA is utilizing an order management system to help manage orders they are entering on behalf of retail investors. While the generation of the order may be based on automated actions from the order management system, the creation of the order is originating from the intervention of a natural person, the FA, in a manner consistent with the FA's understanding of her/his clients' investment criteria.</P>
                <P>
                    Finally, the use of robo-advisory solutions offered by RMOs to retail investors to help them manage their personal assets based on their investment criteria (discussed 
                    <E T="03">infra</E>
                    ) may also be an acceptable use of algorithms. As discussed below, robo-advisory solutions involve the algorithmic creation and management of orders based on investment criteria entered into the trading tool by a natural person. Despite the automated creation of an order by the RMO's algorithm, the Exchange believes that the algorithms offered by robo-advisory solutions are only utilized after a natural person enters his/her investment criteria and provides certain guidelines for his/her account. While robo-advisory solutions represent a relatively new type of trading platform available to retail investors, these platforms are investing solutions widely used by retail investors and offered by numerous brokerage firms. Given the popularity of robo-advisory solutions, to exclude such automated trading technology would be ignore the reality of how many retail investors participate in today's markets.
                </P>
                <P>
                    Conversely, orders automatically generated and submitted to the Exchange by an algorithm based on factors such as market conditions and price movements, which do not originate from a manual entry of order terms or investment criteria by a natural person, shall not be considered Retail Orders. Examples of such algorithms include, but are not limited to, algorithms developed for market-making, high-frequency trading, liquidity provision, arbitrage, hedging, or proprietary trading. In addition to the fact that such orders do not typically originate from a natural person, entities engaging in such trading strategies are not typically doing so for the account of a retail investor. While retail investors may be offered certain technologies that would permit them to engage in the trading strategies mentioned above, this activity is generally outside the scope of the investment goals of a traditional retail investor (discussed 
                    <E T="03">supra</E>
                    ) and should be excluded from the type of permissible algorithm usage for Retail Orders.
                </P>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .04</HD>
                <P>
                    The Exchange believes that proposed Rule 11.21(a)(2)'s [
                    <E T="03">sic</E>
                    ] provisions prohibiting the changing of a Retail Order's price or side may discourage the submission of Retail Orders to the Exchange, as it may be unclear how an RMO may handle a Retail Order it submitted to the Exchange algorithmically. As such, the Exchange seeks to codify Interpretation and Policy .04 to mitigate any confusion that RMOs may have in this regard. Specifically, despite proposed Rule 11.21(a)(2)'s [
                    <E T="03">sic</E>
                    ] provision preventing the changing of the price or side of a Retail Order, Interpretation and Policy .04 would provide that post-order entry an RMO may algorithmically amend the Retail Order's price and/or size provided such amendments are made for the purposes of seeking better execution, enhance execution quality, or minimize market impact.
                </P>
                <P>
                    Accordingly, an RMO may utilize an algorithm to add a limit price to an unpriced order, amend an order's price and/or size to manage an order's marketability and/or mitigate the risk of receiving executions at aberrant prices, or adjust the price and/or size of an order as market conditions or trading objectives may dictate. For example, an RMO that receives unpriced orders from its retail clients may choose to assign limit prices to such orders to prevent unintended market impact and to prevent such orders from executing at undesirable price levels, or to ensure an order's limit price falls within the Limit Up/Limit Down (“LULD”) 
                    <SU>19</SU>
                    <FTREF/>
                     bands. In this regard, Interpretation and Policy .04 will help to ensure that an order submitted by a retail investor does not lose its standing as a Retail Order simply because the RMO that submitted the order assigned limit prices to the orders to help ensure better priced executions.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         The Limit Up/Limit Down Plan is designed to prevent trades in NMS Stocks from occurring outside specified price bands, which are set at a percentage level above and below the average reference price of a security over the preceding five-minute period. The percentage level is determined by a security's designation as a Tier 1 or Tier 2 security. Tier 1 comprises all securities in the S&amp;P 500, the Russell 1000 and select Exchange Traded Products (ETPs). Tier 2 comprises all other NMS securities, except for rights and warrants, which are specifically excluded from coverage. The Plan applies during regular trading hours of 9:30 a.m. ET-4:00 p.m. ET.
                    </P>
                </FTNT>
                <P>
                    Importantly, such order amendments may be made manually by a natural person who entered the order on behalf of the retail investor (
                    <E T="03">e.g.,</E>
                     an RMO's trader, an FA, or a retail investor via their online brokerage account), by the smart order router used by the RMO to route the order to the Exchange, and/or by the algorithm utilized by the RMO to manage the order's execution. While the changing of an order's price or size by an algorithm or smart order router may be automated, the Exchange believes such behavior is permissible provided the RMO is making such amendments are made to satisfy their best execution obligations, prevent outsized market impact due to an order's super-marketable limit price, or to ensure an order's marketable limit price falls within the Limit Up/Limit Down bands.
                </P>
                <HD SOURCE="HD3">Retail Segments That Will Benefit From the Proposed Amendments</HD>
                <P>
                    The Exchange believes that the proposed definition may encourage financial advisors from wealth management firms that are RMOs to send their Retail Orders to the Exchange, as these RMOs will have additional certainty as to how algorithms may be used in the submission of Retail Orders. When managing their retail customers' portfolios, even financial advisors rely on automated technologies such as trading algorithms and automated smart order routing solutions to assist them with efficiently managing and entering orders for their various customer accounts.
                    <SU>20</SU>
                    <FTREF/>
                     Yet, in speaking with some 
                    <PRTPAGE P="10142"/>
                    of the Exchange's Members, they are hesitant to allow send their FAs retail order flow to the Exchange given the ambiguity of the current definition of Retail Order. In this regard, the Exchange believes that the proposed rule change will provide further guidance to these Members and encourage them to route their Retail Orders to the Exchange where they will have the opportunity to receive price improvement through BYX's RPI Program as well as benefit from retail-only pricing incentives. Certainly, orders originating from FAs who are responsible for managing individuals' securities accounts are quintessentially retail, and the qualification of such orders as Retail Orders should not be in doubt simply because FAs may elect to utilize automated trading technologies currently utilized by a broad array of other market participants.
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         For instance, many brokerage firms offer investment advisory programs where FAs manage their clients' portfolios based on their clients' investment criteria and risk profiles. In managing these accounts, FAs may determine that a certain equity security has reached a price point triggering the buying (selling) of such security across multiple 
                        <PRTPAGE/>
                        client accounts. Rather than individually buying (selling) the security multiple times for each client account, an FA may instead choose to manage the accounts through automated technology, such as an order management system, trading algorithm, and smart order router. The Exchange believes that the Retail Order definition should include such activity, as the order activity is being entered by a natural person (
                        <E T="03">i.e.,</E>
                         the FA), on behalf of natural persons (
                        <E T="03">i.e.,</E>
                         retail investors).
                    </P>
                </FTNT>
                <P>
                    Additionally, the proposed rule may also make clear to specialized brokers and traditional brokerage firms 
                    <SU>21</SU>
                    <FTREF/>
                     that provide retail investors with automated trading solutions, that orders from retail investors may qualify as Retail Orders. By way of background, automated trading solutions generally begin by providing retail investors with a questionnaire that asks them for investment criteria, such as personal information regarding their age, investing time horizon, investing goals, and a target dollar amount to guide asset allocation. From there, a retail investor's investments are initially allocated and subsequently re-allocated according to pre-determined models developed by the brokerage firm. Typically, automated rebalancing may also occur when a retail investor adds or withdraws money from the account, or an allocation percentage drifts from the retail investor's desired range. Retail investors utilizing such services typically complete a periodic review to confirm that their portfolio is still aligned with their investment goals, and when their portfolios are reallocated, they must accept the changes before an allocation is executed. In this use case, natural persons (
                    <E T="03">i.e.,</E>
                     retail customers) are directly entering their investment criteria into a brokerage firm's platform, and algorithms and trading models automatically generate orders based on such data after the retail customer provides the criteria from which an order can be generated. If such orders do not qualify as Retail Orders, it would be hard to contemplate what types of orders do satisfy such a definition.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         For example, Merrill Guided Investing offers retail investors an automated investing tool. 
                        <E T="03">See</E>
                         Merrill Guided Investing, available at: 
                        <E T="03">https://merrilledge.com/investing/merrill-guided-investing; see also</E>
                         Fidelity Go®, which provides retail investors with technology to help automate investing based on information retail investors provide about themselves and their financial institution, available at: 
                        <E T="03">https://www.fidelity.com/managed-accounts/fidelity-go/overview; see also</E>
                         Schwab Intelligent Portfolios®, which offers retail investors automated investing through a robo-advisor that helps build and manage retail investors' portfolios, available at: 
                        <E T="03">https://intelligent.schwab.com/.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Existing Framework Ensuring Only Bona Fide Retail Orders Satisfy Rule 11.24</HD>
                <P>The Exchange notes that it already has in place robust protections designed to ensure only bona fide retail orders are designated as Retail Orders. The proposed amendments will not eliminate or diminish the strength of the existing protections. Rather, the proposed amendments will augment the Exchange's existing RMO framework.</P>
                <P>
                    Currently, Rule 11.24(b)(1)-(6) sets forth an objective process by which a Member organization applies to become a RMO. First, to qualify as a Retail Member Organization, a Member must conduct a retail routing business or route retail orders on behalf of another broker-dealer.
                    <SU>22</SU>
                    <FTREF/>
                     To become an RMO, a Member is required to submit an application form,
                    <SU>23</SU>
                    <FTREF/>
                     supporting documentation (
                    <E T="03">e.g.,</E>
                     marketing literature, website screenshots, and other publicly disclosed materials) confirming that the applicant's order flow would meet the requirements of the Retail Order definition,
                    <SU>24</SU>
                    <FTREF/>
                     and an attestation 
                    <SU>25</SU>
                    <FTREF/>
                     in a form prescribed by the Exchange, that substantially all orders submitted as Retail Orders will qualify as such under the Rule.
                    <SU>26</SU>
                    <FTREF/>
                     After submission of these materials, various Exchange functions, including legal and operations, review the application to assess whether the applicant's order flow complies with Exchange rules.
                    <SU>27</SU>
                    <FTREF/>
                     Applicants are then notified, in writing, of the Exchange's decision.
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 11.24(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Rule 11.24(b)(2)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Rule 11.24(b)(2)(B).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         section, “Retail Member Organization—Broker-Dealer Customer Agreement”, and “Broker-Dealer Customer Annual Attestation” of “Cboe BYX Exchange, Inc., Retail Member Organization Application”, available at: 
                        <E T="03">https://cdn.cboe.com/resources/membership/BYX_Retail_Member_Organization_Application.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Rule 11.24(b)(2)(C).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Rule 11.24(b)(3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Furthermore, all RMOs must have in place policies and procedures reasonably designed to ensure that it will only designate orders as Retail Orders if all requirements of a Retail Order are met.
                    <SU>29</SU>
                    <FTREF/>
                     These policies and procedures must require the Member to (i) exercise due diligence before entering a Retail Order to assure that entry as a Retail Order is in compliance with the requirements of the Rule, and (ii) monitor whether orders entered as Retail Orders meet the applicable requirements.
                    <SU>30</SU>
                    <FTREF/>
                     If a RMO does not itself conduct a retail business but routes Retail Orders on behalf of another broker-dealer, the RMO's supervisory procedures must be reasonably designed to assure that the orders it receives from the other broker-dealer that are designated as Retail Orders meets the definition of a Retail Order.
                    <SU>31</SU>
                    <FTREF/>
                     In these cases, the RMO must (i) obtain an annual written representation, in a form acceptable to the Exchange, from each other broker-dealer that sends the RMO orders to be designated as Retail Orders that the entry of such orders as Retail Orders will be in compliance with the requirements of this Rule; and (ii) monitor whether Retail Order flow routed on behalf of other such broker-dealers meets the applicable requirements.
                    <SU>32</SU>
                    <FTREF/>
                     Importantly, the Exchange's regulatory and surveillance functions provide appropriate oversight by the Exchange by monitoring for continued compliance with the terms of these provisions. If a RMO fails to abide by the Retail Order requirements, the Exchange in its sole discretion may disqualify a Member from its status as a RMO.
                    <SU>33</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See</E>
                         Rule 11.24(b)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         Rule 1121(b)(d)(1). [
                        <E T="03">sic</E>
                        ]
                    </P>
                </FTNT>
                <P>
                    Overall, the Exchange believes it has in place an effective framework for ensuring that only bona fide retail orders are designated as Retail Orders by RMOs, and notes that the proposed amendments will only seek to enhance Members' understanding of Exchange rules regarding Retail Orders, as well as augment the Exchange's ability to enforce its rules related to Retail Orders. Therefore, while the proposed amendments may broaden the spectrum of retail investors whose orders are eligible to be routed to the Exchange by RMOs, the enhanced clarity of these rules will help to enable Members to make routing decisions in compliance 
                    <PRTPAGE P="10143"/>
                    with applicable Exchange rules. In this regard, the Exchange believes it important to note that as Members of the Exchange, RMOs must be registered brokers or dealers. As registered brokers or dealers, RMOs are subject to a panoply of rules, such as FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade), BYX Rule 2.2. (Obligation of Members and the Exchange), and BYX Rule 3.1 (Business Conduct of Members). These rules require, amongst other things, that as brokers or dealers, Members are required to conduct business with the highest standards of commercial honor, and obligate Members to comply with all Exchange rules, by-laws, and regulations.
                    <SU>34</SU>
                    <FTREF/>
                     While the Exchange has an obligation to maintain fair and orderly markets and carry out it its duties as a self-regulatory organization, RMOs are also obligated to ensure that only orders that comply with Exchange rules are routed to the Exchange and designated as Retail Orders.
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         While the RMO application process discussed above does rely on information provided by the applicant, the Exchange believes that ultimately it must be allowed to rely on representations made by registered brokers or dealers that are obligated to conduct their securities business consistent with the highest standards of commercial honor, and in submitting their application, have attested to the accuracy of the information provided to the Exchange.
                    </P>
                </FTNT>
                <P>The Exchange also believes that the proposed amendments will provide the Exchange's regulatory and surveillance functions with a rule set that is more aligned with today's retail order routing practices. With the prevalent use of algorithms in today's equity markets, more descriptive rule text will aid the Exchange's business associates in properly guiding its Members through the RMO process, as well as further strengthen the regulatory and surveillance function's ability to enforce Exchange rules.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule changes are consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>35</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>36</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>37</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Retail Order Definition</HD>
                <P>
                    The Exchange believes that the proposed rule change is consistent with these principles because it would increase competition among execution venues, encourage additional on-exchange retail liquidity, and offer retail investors the opportunity to receive orderbook priority ahead of all other interest on the BYX Book. The Exchange notes that a significant percentage of the orders of individual investors are executed over the counter,
                    <SU>38</SU>
                    <FTREF/>
                     and that by amending the definition of Retail Order more retail flow may be directed to the Exchange and have the opportunity to execute on a regulated, transparent market. Indeed, even the Commission has noted that “a very large percentage of marketable (immediately executable) order flow of individual investors is `executed' or `internalized' by broker-dealers in the [over-the-counter-markets].” 
                    <SU>39</SU>
                    <FTREF/>
                     The Commission has also noted that a review of the order flow of eight retail brokers revealed that nearly 100% of their customer market orders were routed to over-the-counter market makers, often pursuant to payment for order flow arrangements.
                    <SU>40</SU>
                    <FTREF/>
                     By helping to incentivize RMOs to send Retail Orders to the Exchange, RMOs will have another alternative to over-the-counter market makers. In turn, an increase in the number of Retail Orders submitted onto the Exchange will encourage more retail liquidity provision, thereby deepening BYX's retail liquidity pool, fostering enhanced price discovery, and offering Retail Orders more price improvement opportunities as liquidity providers compete to trade with Retail Orders increases.
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         Ninety-plus percent (90%) of retail marketable orders are routed to wholesalers and executed off-exchange. 
                        <E T="03">See</E>
                         Chair Gensler's remarks, “Market Structure and the Retail Investors: Remarks Before the Piper Sandler Global Exchange Conference”, (June 2, 2022), available at: 
                        <E T="03">https://www.sec.gov/news/speech/gensler-remarks-piper-sandler-global-exchange-conference-060822</E>
                        ).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         See Securities Exchange Act Release No. 61358 (January 14, 2010), 75 FR 3594, 3600 (January 21, 2010) (“Concept Release on Equity Market Structure”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that the proposed amendment to the definition of “Retail Order” promotes just and equitable principles of trade and is not unfairly discriminatory. While the proposed amendment treats Retail Orders differently than non-retail orders, the Exchange believes that such a distinction does not constitute 
                    <E T="03">unfair</E>
                     discrimination, and in fact benefits both liquidity providers and retail investors alike. As noted by the Commission in its order approving the BYX RPI program,
                    <SU>41</SU>
                    <FTREF/>
                     the markets already distinguish between retail investors, whose orders are considered desirable by liquidity providers because retail investors are presumed to be, on average, less informed about short-term price movements, and professional traders, whose orders are presumed, on average, to be more informed about short-term price movements.
                    <SU>42</SU>
                    <FTREF/>
                     Because of this distinction, the Commission noted that liquidity providers prefer to provide price improvement opportunities to less informed retail orders than to informed professional orders, and that absent price improvement opportunities, retail investors are likely to encounter wider spreads which are a consequence of their interaction with more informed order flow.
                    <SU>43</SU>
                    <FTREF/>
                     The Exchange believes that in clarifying the definition of Retail Order, RMOs will be more encouraged to enter orders onto the Exchange, which in turn may attract retail liquidity, benefitting both the retail investing community and professional traders.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">Supra</E>
                         note 9.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>The proposed amendment to the definition of Retail Order is also designed to protect investors and the public interest. In conjunction with proposed Interpretations and Policies .01-.04, the Exchange seeks to clarify precisely how Retail Orders may be entered onto the Exchange by RMOs through the use of algorithms. This clarity is designed to not only encourage Members to submit Retail Orders onto the Exchange, but to ensure that only bona fide retail orders are able to take advantage of the benefits provided to Retail Orders by the Exchange.</P>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .01</HD>
                <P>
                    Proposed Interpretation and Policy .01 is designed to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. By 
                    <PRTPAGE P="10144"/>
                    providing additional guidance to market participants about what is meant by the term “retail investor”, the Exchange is helping to ensure that only bona fide retail activity is entered onto the Exchange, and that professional investors cannot somehow avail themselves of the benefits offered to Retail Orders by the Exchange.
                </P>
                <P>The proposed clarification may also provide Members, and potential new Members, with the necessary assurances that they are in fact managing retail order flow, encouraging them to enter their Retail Orders onto the Exchange as RMOs. Increased RMO participation may in turn foster more retail liquidity provision as more sophisticated order flow seeks to trade with retail flow. The increase in liquidity provision and RMO provision will likely lead to deeper liquidity on the Exchange that will help to enhance price discovery and increased price improvement opportunities for not only retail investors, but all investors submitting order flow to the Exchange. Additionally, by routing Retail Orders to the Exchange, RMOs and their retail investors will benefit from the Exchange's retail-only pricing incentives, as well as increased price improvement opportunities and enhanced order priority offered by BYX's RPI Program.</P>
                <HD SOURCE="HD3">Proposed Interpretation and Policy .02</HD>
                <P>Proposed Interpretation and Policy .02 is designed to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. By providing additional guidance around the term “natural person”, it will be clearer to Members that an order, or investment criteria for an order, must be entered by a human and cannot originate from an algorithm without human intervention. This will help to ensure that only bona fide retail orders are designated as “Retail Orders” and mitigate the likelihood that professional investors that utilize fully automated trading technology designed to participate in certain trading strategies inappropriately seek to designate their orders as Retail Orders.</P>
                <P>
                    Furthermore, by clarifying that orders created through broker-dealers' robo-advisory programs can qualify as Retail Orders if the investment criteria are entered by a natural person, additional order flow from robo-advisory program may be directed to the Exchange for execution. Similarly, by making clear that a “natural person” may also be an account held in corporate form, such as an individual retirement account or limited liability corporation (
                    <E T="03">e.g.,</E>
                     family office), more retail flow may be directed to the Exchange. By executing on the Exchange RMOs will be able to avail themselves of retail-specific pricing, which they can pass onto their retail clients in the form of reduced commissions and transaction costs.
                </P>
                <P>
                    Finally, as noted throughout, increased retail flow will augment the Exchange's liquidity pools, thereby fostering price discovery, and creating more opportunities for price improvement. With improved on-execution experiences more investors may be incentivized to route their retails orders on-exchange (
                    <E T="03">i.e.,</E>
                     BYX) exposing retail flow to on-exchange price competition.
                </P>
                <HD SOURCE="HD3">Proposed Interpretation and Policy. 03</HD>
                <P>Proposed Interpretation and Policy .03 is designed to protect investors and the markets by making clear to RMOs using algorithms to enter Retail Orders onto the Exchange that orders must be entered by a retail investor or a natural person on behalf of a retail investor, and that in the case of robo-advisory solutions, the retail investor must enter the investment criteria that the brokerage firm's algorithm uses to generate orders. By providing examples of both acceptable and unacceptable uses of algorithms, market participants will be clearer as to whether the orders they route to the Exchange for execution are indeed “Retail Orders”. In doing so, the Exchange is helping to ensure that only bona fide retail orders qualify as Retail Orders, and that professional investors are not inappropriately receiving benefits specifically reserved for retail investors.</P>
                <P>Proposed Interpretation and Policy .03 will also help to remove impediments to and perfect the mechanism of a free and open market and a national market system. By providing additional guidance on how RMOs may use algorithms when submitting Retail Orders to the Exchange, Members will be more certain as to whether their orders in fact qualify as Retail Orders. In doing so, RMOs may route more Retail Orders to the Exchange and in turn, may encourage more market participants to provide additional retail liquidity thereby deepening the liquidity pool, and enhancing price discovery and transparency. As more investors are incentivized to execute their retail flow on the Exchange an increasing number of individual investors' orders will be exposed to on-exchange price competition, increasing their opportunity to receive price improvement and improved execution quality.</P>
                <HD SOURCE="HD3">Interpretation and Policy .04</HD>
                <P>Interpretation and Policy .04 helps to remove impediments to and perfect the mechanism of a free and open market and a national market system. The provision preventing the changing of the price or side of an order in both the current and proposed definition of Retail Order was designed to ensure that orders entered onto the Exchange by RMOs were submitted on behalf of retail investors, and not institutional orders which typically have the terms of price and size amended, canceled, or replaced frequently throughout the day. However, the Exchange recognizes that RMOs may sometimes receive unpriced orders from their retail customers or may deem a certain limit price to be appropriate for the purposes of seeking a better execution and/or preventing an order from executing at undesirable price levels. As such, by clarifying that Retail Orders may in fact be amended provided it is to affect a better execution experience for the retail investor, or to manage market impact, RMOs may be more encouraged to send more Retail Orders to the Exchange. As noted throughout, increased RMO activity and retail liquidity provision will only serve to deepen liquidity for Retail Orders, which in turn will lead to price competition and increased price improvement opportunities for individual investors' orders.</P>
                <P>The Exchange also believes that proposed Interpretations and Policies .01-.04 promote just and equitable principles of trade and are not unfairly discriminatory because they are intended to provide guidance to all Members, in particular RMOs, as to what constitutes a Retail Order.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    The Exchange does not believe that the proposed rule changes will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes its proposed amendment to the definition of Retail Order and codification of Interpretation and Policies .01-.04 will benefit intramarket competition rather than burden competition. The proposed changes serve to provide additional clarity to Members and RMOs as to the types of persons or accounts eligible to submit Retail Orders and describe the permissible and impermissible uses of algorithms available to Members and RMOs when submitting Retail Orders. The Exchange believes this additional 
                    <PRTPAGE P="10145"/>
                    information will lead to additional retail order flow being submitted to the Exchange by RMOs, which all contra-side orders are eligible to interact with. Greater overall order flow and trading opportunities benefits all market participants on the Exchange. An increase in RMO activity and liquidity providing orders will serve to enhance the Exchange's available liquidity. Deeper liquidity pools will, in turn, enhance price discovery, as well as price improvement opportunities for retail investors as liquidity providers compete for retail executions. Liquidity providers also benefit by being able to interact with retail order flow that is often executed off-exchange, and therefore generally inaccessible to those trading in the lit markets.
                </P>
                <P>
                    While the proposed definition will help to ensure that only bona fide retail investors receive the benefits of afforded to Retail Orders, prioritization of retail investors is not a novel concept in the securities market. In this regard, the proposed amendments should not result in any new or novel issues to be considered by the Commission, or that have not already been contemplated by today's market participants. Indeed, as noted in the Amendment 1 of EDGX's Retail Priority filing,
                    <SU>44</SU>
                    <FTREF/>
                     customer priority has a long tradition in the options market where orders entered on behalf of non-broker dealer public customers have historically been afforded priority over orders submitted by registered broker dealers. In fact, most options exchanges, including the Exchange's equity options platform,
                    <SU>45</SU>
                    <FTREF/>
                     employ a customer priority execution algorithm where orders submitted by a subset of public customer with more limited trading activity are provided order book priority ahead of orders submitted by broker-dealers or other market professionals at the same price.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 86280 (July 2, 2019), 84 FR 32808 (July 9, 2019) (“Notice of Amendment No. 1”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         BYX Rule 21.8(d)(1).
                    </P>
                </FTNT>
                <P>
                    The Exchange further believes that the proposed rule change will increase intermarket competition by enabling the Exchange to better compete with other exchanges and off-exchange trading venues for retail order flow. The Commission has spoken about “increasing competition and enhancing the direct exposure of individual investor orders to a broader spectrum of market participants” 
                    <SU>46</SU>
                    <FTREF/>
                     and the Exchange believes its proposed amendments to the definition of Retail Order and introduction of Interpretations and Policies .01-.04 provide sufficient guidance to RMOs to encourage additional retail order flow be sent to the Exchange. In turn, retail investors will have additional opportunities to receive executions on a transparent, regulated, national securities exchange in addition to the currently available off-exchange trading venues. Additionally, a revised definition of Retail Order may encourage additional competition for retail order flow on-exchange that would be eligible to participate in the various retail liquidity programs offered by exchanges,
                    <SU>47</SU>
                    <FTREF/>
                     including the Exchange's RPI program. This, in turn, could create additional incentives for regulated exchanges to develop additional liquidity programs designed at providing additional benefits to retail investors, thus promoting additional intermarket competition.
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 96495 (December 14, 2022), 88 FR 128 (January 3, 2023) (“Order Competition Rule”) at 178.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See e.g.,</E>
                         Cboe BYX Exchange Retail Price Improvement (
                        <E T="03">https://www.cboe.com/us/equities/trading/offerings/retail_price_improvement/</E>
                        ); Nasdaq retail services (
                        <E T="03">https://www.nasdaqtrader.com/content/productsservices/Trading/EquitiesRetailOfferingOverview.pdf</E>
                        ); NYSE and NYSE National Retail Liquidity (
                        <E T="03">https://www.nyse.com/markets/liquidity-programs</E>
                        ); IEX Retail Program (
                        <E T="03">https://www.iexexchange.io/products/retail-program</E>
                        ).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    Within 45 days of the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                     or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission will:
                </P>
                <P>A. by order approve or disapprove such proposed rule change, or</P>
                <P>B. institute proceedings to determine whether the proposed rule change should be disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeBYX-2024-004 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeBYX-2024-004. 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 internet website (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-CboeBYX-2024-004 and should be submitted on or before March 5, 2024.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>48</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02860 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="10146"/>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Investment Company Act Release No. 35127; File No. 812-15502]</DEPDOC>
                <SUBJECT>BIP Ventures Evergreen BDC, et al.</SUBJECT>
                <DATE>February 8, 2024.</DATE>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Securities and Exchange Commission (“Commission” or “SEC”).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <P>Notice of application for an order (“Order”) under sections 17(d) and 57(i) of the Investment Company Act of 1940 (the “Act”) and rule 17d-1 under the Act to permit certain joint transactions otherwise prohibited by sections 17(d) and 57(a)(4) of the Act and rule 17d-1 under the Act.</P>
                <PREAMHD>
                    <HD SOURCE="HED">Summary of Application:</HD>
                    <P>Applicants request an order to permit certain business development companies and closed-end management investment companies to co-invest in portfolio companies with each other and with certain affiliated investment entities.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">Applicants:</HD>
                    <P>BIP Ventures Evergreen BDC, BIP Capital, LLC, BIP Capital Management Services, LLC, BIP Capital Mini Fund, LP, BIP Capital Mini Fund II, LP, BIP Capital Mini Fund II-QP, LP, BIP Capital Mini Fund III, LP, BIP Capital Mini Fund III-QP, LP, BIP Capital Mini Fund IIIb, LP, BIP Capital Mini Fund IIIb-QP, LP, BIP Capital Venture Fund IV, LP, BIP Capital Venture Fund IV-QP, LP, Panoramic Annex Fund 4, LP, Panoramic Annex Fund 4-QP, LP, Panoramic Venture Fund 5, LP, Panoramic Venture Fund 5-QP, LP, BIP Capital 2080 Media Equity VII, LLC, BIP Capital 2080 Media Equity X, LLC, BIP Capital AchieveIt Series E-1, LLC, BIP Capital ConnexPay Convertible Note I, LLC, BIP Capital ConnexPay Equity I, LLC, BIP Capital Huddle Convertible Note, LLC, BIP Capital Huddle Equity II, LLC, BIP Capital PAN Convertible Note, LLC, BIP Capital PAN Equity I, LLC, BIP Capital PAN Equity II, LLC, BIP Capital Wellview Senior Debt II, LLC Panoramic Trella Acquisition I, LP, Panoramic Trella Acquisition I-QP, LP, Panoramic UserIQ Equity II, LLC, Panoramic Wellview Sentry Merger I, LLC, Panoramic Annex Fund 4b, LP, Panoramic Annex Fund 4b-QP, LP, Panoramic Mediafly Equity I, LLC, Panoramic ShiftMed Equity I, LLC, Panoramic ShiftMed Equity I-QP, LLC, Panoramic Connexpay Equity II-AI, LLC, Panoramic Connexpay Equity II-QP, LLC, BIP Capital 2080 Media Investments IV, LLC, BIP Capital 2080 Media Investment V, LLC, BIP Capital 2080 Media Investment VI, LLC, BIP AchieveIt Investments, LLC, BIP VoApps Series A, LLC, BIP Early Stage Fund I, LP, BIP Early Stage Fund I-QP, LP, BIP Capital AchieveIt Series D, LLC, BIP Capital AchieveIt Series E, LLC, BIP Capital Growth Fund III, LP, BIP Capital Growth Fund III-QP, LP, BIP Capital Wellview Series A-3, LLC, BIP Capital Huddle I, LLC, BIP Capital Huddle I-QP, LLC, BIP Capital EmpowHR Convertible Note I, LLC, BIP Capital EmpowHR Convertible Note II, LLC, Panoramic EmpowHR Equity I, LLC, Panoramic ShiftMed Equity II-AI, LLC, Panoramic ShiftMed Equity II-QP, LLC, Panoramic 2080 Media Equity XI-AI, LLC, Panoramic 2080 Media Equity XI-QP, LLC, and Panoramic Joymo Equity I, LLC.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">Filing Dates:</HD>
                    <P>The application was filed on August 28, 2023 and amended on October 17, 2023, December 1, 2023, December 26, 2023, and February 6, 2024.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">Hearing or Notification of Hearing:</HD>
                    <P>
                        An order granting the requested relief will be issued unless the Commission orders a hearing. Interested persons may request a hearing on any application by emailing the SEC's Secretary at 
                        <E T="03">Secretarys-Office@sec.gov</E>
                         and serving the Applicants with a copy of the request by email, if an email address is listed for the relevant Applicant below, or personally or by mail, if a physical address is listed for the relevant Applicant below. Hearing requests should be received by the Commission by 5:30 p.m. on March 4, 2024, and should be accompanied by proof of service on applicants, in the form of an affidavit or, for lawyers, a certificate of service. Pursuant to rule 0-5 under the Act, hearing requests should state the nature of the writer's interest, any facts bearing upon the desirability of a hearing on the matter, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by emailing the Commission's Secretary at 
                        <E T="03">Secretarys-Office@sec.gov.</E>
                    </P>
                </PREAMHD>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The Commission: 
                        <E T="03">Secretarys-Office@sec.gov.</E>
                         Applicants: Todd Knudsen, 
                        <E T="03">tknudsen@bipventures.vc;</E>
                         Kara Mullins, 
                        <E T="03">kmullins@bipventures.vc;</E>
                         Blake E. Estes, 
                        <E T="03">blake.estes@alston.com.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Laura J. Riegel, Senior Counsel, or Thomas Ahmadifar, Branch Chief, at (202) 551-6825 (Division of Investment Management, Chief Counsel's Office).</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>For Applicants' representations, legal analysis, and conditions, please refer to Applicants' fourth amended and restated application, dated February 6, 2024, which may be obtained via the Commission's website by searching for the file number at the top of this document, or for an Applicant using the Company name search field, on the SEC's EDGAR system.</P>
                <P>
                    The SEC's EDGAR system may be searched at 
                    <E T="03">https://www.sec.gov/edgar/searchedgar/legacy/companysearch.html.</E>
                     You may also call the SEC's Public Reference Room at (202) 551-8090.
                </P>
                <P>For the Commission, by the Division of Investment Management, under delegated authority.</P>
                <SIG>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02936 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">SOCIAL SECURITY ADMINISTRATION</AGENCY>
                <DEPDOC>[Docket No. SSA-2023-0042]</DEPDOC>
                <SUBJECT>Public Availability of Social Security Administration Fiscal Year (FY) 2021 Service Contract Inventory</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Social Security Administration.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of public availability of FY 2021 service contract inventories.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Consolidated Appropriations Act of 2010, we are publishing this notice to advise the public of the availability of the FY 2021 Service Contract inventory.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Ronnetta Mason, Office of Budget, Social Security Administration, 6401 Security Boulevard, Baltimore, MD 21235-6401.</P>
                    <P>
                        Phone (410) 597-1955, email 
                        <E T="03">Ronnetta.Mason@ssa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    This inventory provides information on FY 2021 service contract actions over $25,000. We organized the information by function to show how we distribute contracted resources throughout the agency. We developed the inventory in accordance with guidance issued on December 19, 2011, by the Office of Management and Budget's Office of Federal Procurement Policy (OFPP). OFPP's guidance is available at 
                    <E T="03">https://obamawhitehouse.archives.gov/sites/default/files/omb/procurement/memo/service-contract-inventory-guidance.pdf.</E>
                     You can access the inventory and summary of the inventory on our 
                    <PRTPAGE P="10147"/>
                    homepage at the following link: 
                    <E T="03">https://www.ssa.gov/sci/.</E>
                </P>
                <SIG>
                    <NAME>Chad Poist,</NAME>
                    <TITLE>Deputy Commissioner for Budget, Finance, and Management.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02850 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4191-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF STATE</AGENCY>
                <DEPDOC>[Public Notice: 12328]</DEPDOC>
                <SUBJECT>Notice of Shipping Coordinating Committee Meeting in Preparation for International Maritime Organization (IMO) Marine Environmental Protection Committee (MEPC) 81 Meeting</SUBJECT>
                <P>The Department of State will conduct a public meeting at 11 a.m. on Thursday, March 7, 2024, both in-person at Coast Guard Headquarters in Washington DC, and via teleconference. The primary purpose of the meeting is to prepare for the eighty-first session of the International Maritime Organization's (IMO) Marine Environment Protection Committee (MEPC 81) to be held in London, United Kingdom, from Monday, March 18, 2024, to Friday, March 22, 2024.</P>
                <P>Members of the public may participate up to the capacity of the teleconference line, which will handle 500 participants, or up to the seating capacity of the room if attending in-person.</P>
                <P>The agenda items to be considered include:</P>
                <FP SOURCE="FP-1">—Adoption of the agenda</FP>
                <FP SOURCE="FP-1">—Decisions of other bodies</FP>
                <FP SOURCE="FP-1">—Consideration and adoption of amendments to mandatory instruments</FP>
                <FP SOURCE="FP-1">—Harmful aquatic organisms in ballast water</FP>
                <FP SOURCE="FP-1">—Air pollution prevention</FP>
                <FP SOURCE="FP-1">—Energy efficiency of ships</FP>
                <FP SOURCE="FP-1">—Reduction of GHG emissions from ships</FP>
                <FP SOURCE="FP-1">—Follow-up work emanating from the Action Plan to address marine plastic litter from ships</FP>
                <FP SOURCE="FP-1">—Pollution prevention and response</FP>
                <FP SOURCE="FP-1">—Report of other sub-committees</FP>
                <FP SOURCE="FP-1">—Identification and protection of Special Areas, ECAs and PSSAs</FP>
                <FP SOURCE="FP-1">—Technical cooperation activities for the protection of the marine environment 13</FP>
                <FP SOURCE="FP-1">—Application of the Committees' method of work</FP>
                <FP SOURCE="FP-1">—Work programme of the Committee and subsidiary bodies</FP>
                <FP SOURCE="FP-1">—Any other business</FP>
                <FP SOURCE="FP-1">—Consideration of the report of the Committee</FP>
                <P>
                    <E T="03">Please note:</E>
                     The IMO may, on short notice, adjust the MEPC 81 agenda to accommodate any constraints associated with the meeting. Although no changes to the agenda are anticipated, if any are necessary, they will be provided to those who RSVP.
                </P>
                <P>
                    Those who plan to participate should contact the meeting coordinator, LT Emily K. Rowan at 
                    <E T="03">emily.k.rowan@uscg.mil,</E>
                     by phone at (202) 372-1376, or in writing at 2703 Martin Luther King Jr. Ave. SE, Stop 7509, Washington, DC 20593-7509 no later than February 29, 2024, 7 days prior to the meeting. Requests made after February 29, 2024, might not be able to be accommodated. The meeting coordinator will provide the teleconference information, facilitate the building security process, and requests for reasonable accommodation. Please note that due to security considerations, two valid, government issued photo identifications must be presented to gain entrance to the Douglas A. Munro Coast Guard Headquarters Building at St. Elizabeth's. This building is accessible by taxi, public transportation, and privately owned conveyance (upon advanced request).
                </P>
                <P>
                    Additional information regarding this and other IMO public meetings may be found at: 
                    <E T="03">https://www.dco.uscg.mil/IMO.</E>
                </P>
                <EXTRACT>
                    <FP>(Authority: 22 U.S.C. 2656 and 5 U.S.C. 552)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Leslie W. Hunt,</NAME>
                    <TITLE>Coast Guard Liaison Officer, Office of Ocean and Polar Affairs, Department of State.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02925 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4710-09-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">SURFACE TRANSPORTATION BOARD</AGENCY>
                <DEPDOC>[Docket No. FD 36726]</DEPDOC>
                <SUBJECT>Pan Am Southern LLC—Temporary Overhead Trackage Rights—Boston and Maine Corporation and Springfield Terminal Railway Corporation</SUBJECT>
                <P>On February 2, 2024, Pan Am Southern LLC (PAS) filed a request under 49 CFR 1180.2(d)(8) for an additional extension of the temporary overhead trackage rights previously granted in this docket over a line owned by the Boston and Maine Corporation (B&amp;M) and leased and operated by Springfield Terminal Railway Company (ST). That line generally extends between PAS's existing connection to B&amp;M/ST's tracks at Engineering Station 215+89 at CPF 312 outside Ayer, Mass., and Engineering Station 225+00 outside Ayer, for a total distance of approximately 1,000 feet (the Line).</P>
                <P>
                    PAS was authorized to acquire these trackage rights over the Line by notice of exemption served and published in the 
                    <E T="04">Federal Register</E>
                     on September 28, 2023 (88 FR 66928).
                    <SU>1</SU>
                    <FTREF/>
                     By decision served in this docket on December 5, 2023, and published in the 
                    <E T="04">Federal Register</E>
                     on December 8, 2023 (88 FR 85717), the trackage rights were extended until February 5, 2024. The purpose of the trackage rights is to provide the necessary head and tail room to reposition locomotives while PAS procures and installs a “cross-over” to address a lack of space on the Line.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         On September 28, 2023, the Board granted PAS' petition to waive the requirement under 49 CFR 1180.4(g) that a verified notice be filed at least 30 days before the transaction is consummated and allowed the exemption to take effect immediately.
                    </P>
                </FTNT>
                <P>Under 49 CFR 1180.2(d)(8), the parties may, prior to the expiration of the temporary trackage rights, file a request for a renewal of the temporary rights for an additional period of up to one year, including the reasons for the extension. PAS states the initial construction schedule continues to be delayed, and the parties wish to extend the temporary overhead trackage rights until September 1, 2024, so that PAS can continue to provide service while construction is being completed. According to PAS, the parties have agreed to the extension and are working to finalize the paperwork. PAS states that it will file a copy of the amendment to the temporary trackage rights agreement with the Board once it is executed.</P>
                <P>
                    In accordance with 49 CFR 1180.2(d)(8), PAS's temporary trackage rights over the Line will be extended and will expire on September 1, 2024. The employee protective conditions imposed in the September 28, 2023 notice remain in effect. Notice of the extension will be published in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <P>
                    <E T="03">It is ordered:</E>
                </P>
                <P>1. PAS's temporary trackage rights are extended and will expire on September 1, 2024.</P>
                <P>
                    2. Notice will be published in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <P>3. This decision is effective on its service date.</P>
                <SIG>
                    <DATED>Decided: February 8, 2024.</DATED>
                    <P>By the Board, Mai T. Dinh, Director, Office of Proceedings.</P>
                    <NAME>Tammy Lowery,</NAME>
                    <TITLE>Clearance Clerk.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02927 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4915-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="10148"/>
                <AGENCY TYPE="N">TENNESSEE VALLEY AUTHORITY</AGENCY>
                <SUBJECT>Sunshine Act Meetings</SUBJECT>
                <PREAMHD>
                    <HD SOURCE="HED">TIME AND DATE: </HD>
                    <P>9 a.m. ET on February 14, 2024.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">PLACE: </HD>
                    <P>James and Nellie Brinkley Center, 2001 Millennium Place, Johnson City, Tennessee.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">STATUS: </HD>
                    <P>Open.</P>
                </PREAMHD>
                <PREAMHD>
                    <HD SOURCE="HED">MATTERS TO BE CONSIDERED:</HD>
                    <P/>
                </PREAMHD>
                <HD SOURCE="HD1">Meeting No. 24-01</HD>
                <P>The TVA Board of Directors will hold a public meeting on February 14, at the James and Nellie Brinkley Center, 2001 Millennium Place, Johnson City, Tennessee.</P>
                <P>The meeting will be called to order at 9:00 a.m. ET to consider the agenda items listed below. TVA management will answer questions from the news media following the Board meeting.</P>
                <P>On February 13, at the James and Nellie Brinkley Center, the public may comment on any agenda item or subject at a board-hosted public listening session which begins at 2:00 p.m. ET and will last until 4:00 p.m. Preregistration is required to address the Board.</P>
                <HD SOURCE="HD1">Agenda</HD>
                <FP SOURCE="FP-2">1. Approval of minutes of the November 9, 2023 Board Meeting</FP>
                <FP SOURCE="FP-2">2. Report of the People and Governance Committee</FP>
                <FP SOURCE="FP1-2">A. FY 2024 Annual Goals</FP>
                <FP SOURCE="FP-2">3. Report of the External Stakeholders and Regulation Committee</FP>
                <FP SOURCE="FP1-2">A. Federal Advisory Committee Charter Renewal</FP>
                <FP SOURCE="FP-2">4. Report of the Finance, Rates, and Portfolio Committee</FP>
                <FP SOURCE="FP-2">5. Report of the Audit, Risk, and Cybersecurity Committee</FP>
                <FP SOURCE="FP-2">6. Report of the Operations and Nuclear Oversight Committee</FP>
                <FP SOURCE="FP-2">7. Information Item</FP>
                <FP SOURCE="FP1-2">A. Committee Structure, Committee Assignments, Executive Compensation Task Force</FP>
                <FP SOURCE="FP-2">8. Report from President and CEO</FP>
                <PREAMHD>
                    <HD SOURCE="HED">CONTACT PERSON FOR MORE INFORMATION: </HD>
                    <P>For more information: Please call Ashton Davies, TVA Media Relations at (865) 632-6000, Knoxville, Tennessee. Anyone who wishes to comment on any of the agenda in writing may send their comments to: TVA Board of Directors, Board Agenda Comments, 400 West Summit Hill Drive, Knoxville, Tennessee 37902.</P>
                </PREAMHD>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Edward C. Meade,</NAME>
                    <TITLE>Agency Liaison.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-03115 Filed 2-9-24; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 8120-08-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <SUBJECT>Notice of Final Action of Waiver with Respect to Land; Pellston Regional Airport, Pellston, MI</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The FAA is providing notice of a release of Federal obligations for 0.60 acres of land at Pellston Regional Airport, Pellston, Michigan.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Alex Erskine, Program Manager, Federal Aviation Administration, Detroit Airports District Office, 11677 S Wayne Rd., Romulus, MI 48174-1412. Telephone Number: (734) 229-2900/FAX Number: (734) 229-2950.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Emmet County, Airport Sponsor of the Pellston Regional Airport has requested a release of all FAA obligations for 0.60 acres of property that was previously owned by the airport. The subject property, identified as Parcels 29 and 30, was sold without FAA authorization in 2004.</P>
                <P>Parcels 29 and 30 were acquired by the Airport Sponsor on August 10, 1972 and were funded in part under Airport Development Aid Program (ADAP) grant number 8-26-0076-01. The property was sold to the Village of Pellston and the parcels were combined with other adjacent property and a former railroad right-of-way to create a 3.14 acre parcel that was subsequently developed for a 16,960 square foot professional building. Emmet County has obtained an avigation easement over the portions of these parcels that are located in the Runway Protection Zone (RPZ). The FAA has confirmed that the Airport Sponsor has received fair market value for the sale of Parcel 29 and 30.</P>
                <P>
                    The FAA has confirmed the disposition of proceeds from the sale of the airport property were in accordance with title 49 of United States Code, section 47107(c)(2)(B) and FAA's Policy and Procedures Concerning the Use of Airport Revenue, published in the 
                    <E T="04">Federal Register</E>
                     on February 16, 1999 (64 FR 7696).
                </P>
                <P>In accordance with section 125 of The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) the FAA is providing notice that the FAA is releasing the subject airport property described below at the Pellston Regional Airport, Pellston, Michigan, from Federal obligations.</P>
                <P>The subject property is described as: Outlots 2 and 4 Bogardus' Second Addition to the Village of Pellston, according to the Plat thereof recorded in Liber 4 of Plats, Page 1, Emmet County Records.</P>
                <P>This release does not constitute a commitment by the FAA to financially assist in the disposal of the subject airport property nor a determination of eligibility for grant-in-aid funding from the FAA.</P>
                <SIG>
                    <DATED>Issued in Romulus, Michigan, on February 8, 2024.</DATED>
                    <NAME>Stephanie R. Swann,</NAME>
                    <TITLE>Deputy Manager, Detroit Airports District Office, FAA, Great Lakes Region.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02911 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <DEPDOC>[Docket No. FAA-2023-1113]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities: Requests for Comments; Clearance of Renewed Approval of Information Collection: Noise Certification Documents for International Operations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        In accordance with the Paperwork Reduction Act of 1995, FAA invites public comments about our intention to request the Office of Management and Budget (OMB) approval to renew an information collection. The 
                        <E T="04">Federal Register</E>
                         Notice with a 60-day comment period soliciting comments on the following collection of information was published on May 8, 2023. The collection aids to make the aircraft noise certification information easily accessible to the flight crew and presentable upon request to the appropriate foreign officials for international airline operation of U.S. carriers. The information to be collected upholds the U.S. obligations under the Convention on International Civil Aviation and for which FAA policy comply with International Civil Aviation Organization (ICAO) Standards and Recommended Practices to the maximum extent practicable.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written comments should be submitted by March 14, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting 
                        <PRTPAGE P="10149"/>
                        “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Sandy Liu by email at: 
                        <E T="03">sandy.liu@faa.gov;</E>
                         phone: 202-276-4748.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Public Comments Invited:</E>
                     You are asked to comment on any aspect of this information collection, including (a) Whether the proposed collection of information is necessary for FAA's performance; (b) the accuracy of the estimated burden; (c) ways for FAA to enhance the quality, utility and clarity of the information collection; and (d) ways that the burden could be minimized without reducing the quality of the collected information.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     2120-0737.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Aircraft Noise Certification Documents for International Operations.
                </P>
                <P>
                    <E T="03">Form Numbers:</E>
                     None. Reference: ICAO Annex 16, Vol. 1—Aircraft Noise, Eighth edition (July 2017) Attachment G for format.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Renewal of an information collection.
                </P>
                <P>
                    <E T="03">Background:</E>
                     The 
                    <E T="04">Federal Register</E>
                     Notice with a 60-day comment period soliciting comments on the following collection of information was published on May 8, 2023 (88 FR 29801). On March 2, 2010, the FAA published the final rule Notice No. 91-312, Aircraft Noise Certification Documents for International Operations (75 FR 9327). It requires operators that fly outside the United States, using aircraft subject to ICAO, Annex 16, Volume 1, to carry aircraft noise certification information on board the aircraft. This collection is needed to ensure consistent international compliance with the ICAO, Annex 16, Volume 1, Amendment 8 that requires certain noise information be carried on board the aircraft. This information must be easily accessible to the flight crew and presentable upon request to the appropriate foreign National Aviation Authority (NAA) officials. The collection is mandatory based on U.S. regulations and international standards.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     Operators of U.S. registered civil aircraft flying outside the United States.
                </P>
                <P>
                    <E T="03">Frequency:</E>
                     75 airplanes.
                </P>
                <P>
                    <E T="03">Estimated Average Burden per Response:</E>
                     25 minutes (0.42 hours).
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden:</E>
                     $30 per airplane × 75 airplanes affected = $2,250.
                </P>
                <SIG>
                    <DATED>Issued in Washington, DC, on February 7, 2024.</DATED>
                    <NAME>Sandy Liu,</NAME>
                    <TITLE>Engineer, Noise Division, Office of Environment and Energy, Noise Division (AEE-100).</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02879 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Railroad Administration</SUBAGY>
                <DEPDOC>[Docket Number FRA-2014-0003]</DEPDOC>
                <SUBJECT>Petition for Extension of Waiver of Compliance</SUBJECT>
                <P>Under part 211 of title 49 Code of Federal Regulations (CFR), this document provides the public notice that on January 22, 2024, Strasburg Rail Road Company (SRC) petitioned the Federal Railroad Administration (FRA) for an extension of a waiver of compliance from certain provisions of the Federal railroad safety regulations contained at 49 CFR part 240 (Qualification and Certification of Locomotive Engineers) and part 242 (Qualification and Certification of Conductors). The relevant Docket Number is FRA-2014-0003.</P>
                <P>
                    Specifically, SRC requests relief required to continue participation in FRA's Confidential Close Call Reporting System (C
                    <SU>3</SU>
                    RS) Program. SRC seeks to continue shielding reporting employees from mandatory punitive sanctions that would otherwise arise as provided in §§ 240.117(e)(1)-(4); 240.305(a)(1)-(4) and (a)(6); 240.307; 242.403(b), (c), (e)(1)-(4), (e)(6)-(11), (f)(1)-(2); and 242.407. The C
                    <SU>3</SU>
                    RS Program encourages certified operating crew members to report close calls and protects the employees and the railroad from discipline or sanctions arising from the incidents reported per the C
                    <SU>3</SU>
                    RS Implementing Memorandum of Understanding.
                </P>
                <P>
                    A copy of the petition, as well as any written communications concerning the petition, is available for review online at 
                    <E T="03">www.regulations.gov.</E>
                </P>
                <P>Interested parties are invited to participate in these proceedings by submitting written views, data, or comments. FRA does not anticipate scheduling a public hearing in connection with these proceedings since the facts do not appear to warrant a hearing. If any interested parties desire an opportunity for oral comment and a public hearing, they should notify FRA, in writing, before the end of the comment period and specify the basis for their request.</P>
                <P>
                    All communications concerning these proceedings should identify the appropriate docket number and may be submitted at 
                    <E T="03">www.regulations.gov.</E>
                     Follow the online instructions for submitting comments.
                </P>
                <P>Communications received by April 15, 2024 will be considered by FRA before final action is taken. Comments received after that date will be considered if practicable.</P>
                <P>
                    Anyone can search the electronic form of any written communications and comments received into any of our dockets by the name of the individual submitting the comment (or signing the document, if submitted on behalf of an association, business, labor union, etc.). Under 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its processes. DOT posts these comments, without edit, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov,</E>
                     as described in the system of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
                    <E T="03">https://www.transportation.gov/privacy.</E>
                     See also 
                    <E T="03">https://www.regulations.gov/privacy-notice</E>
                     for the privacy notice of 
                    <E T="03">regulations.gov.</E>
                </P>
                <SIG>
                    <P>Issued in Washington, DC.</P>
                    <NAME>John Karl Alexy,</NAME>
                    <TITLE>Associate Administrator for Railroad Safety, Chief Safety Officer.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2024-02920 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>National Highway Traffic Safety Administration</SUBAGY>
                <SUBJECT>Petition for Exemption From the Federal Motor Vehicle Theft Prevention Standard; Volkswagen Group of America, Inc.</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Grant of petition for exemption.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This document grants in full the Volkswagen Group of America, Inc.'s (Volkswagen) petition for exemption from the Federal Motor Vehicle Theft Prevention Standard (theft prevention standard) for its ID.7 vehicle line beginning in model year (MY) 2025. The petition is granted because the Agency has determined that the antitheft device to be placed on the line as standard equipment is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements of the theft prevention standard. Volkswagen 
                        <PRTPAGE P="10150"/>
                        also requested confidential treatment for specific information in its petition. Therefore, no confidential information provided for purposes of this notice has been disclosed.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The exemption granted by this notice is effective beginning with the 2025 model year.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Carlita Ballard, Office of International Policy, Fuel Economy, and Consumer Programs, NHTSA, West Building, W43-439, NRM-310, 1200 New Jersey Avenue SE, Washington, DC 20590. Ms. Ballard's phone number is (202) 366-5222. Her fax number is (202) 493-2990.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Under 49 U.S.C. chapter 331, the Secretary of Transportation (and the National Highway Traffic Safety Administration (NHTSA) by delegation) is required to promulgate a theft prevention standard to provide for the identification of certain motor vehicles and their major replacement parts to impede motor vehicle theft. NHTSA promulgated regulations at 49 CFR part 541 (theft prevention standard) to require parts-marking for specified passenger motor vehicles and light trucks. Pursuant to 49 U.S.C. 33106, manufacturers that are subject to the parts-marking requirements may petition the Secretary of Transportation for an exemption for a line of passenger motor vehicles equipped with an antitheft device as standard equipment that the Secretary decides is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements. In accordance with this statute, NHTSA promulgated 49 CFR part 543, which establishes the process through which manufacturers may seek an exemption from the theft prevention standard.</P>
                <P>
                    49 CFR 543.5 provides general submission requirements for petitions and states that each manufacturer may petition NHTSA for an exemption of one vehicle line per model year. Among other requirements, manufacturers must identify whether the exemption is sought under section 543.6 or section 543.7. Under section 543.6, a manufacturer may request an exemption by providing specific information about the antitheft device, its capabilities, and the reasons the petitioner believes the device to be as effective at reducing and deterring theft as compliance with the parts-marking requirements. Section 543.7 permits a manufacturer to request an exemption under a more streamlined process if the vehicle line is equipped with an antitheft device (an “immobilizer”) as standard equipment that complies with one of the standards specified in that section.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         49 CFR 543.7 specifies that the manufacturer must include a statement that their entire vehicle line is equipped with an immobilizer that meets one of the following standards:
                    </P>
                    <P>
                        (1) The performance criteria (subsections 8 through 21) of C.R.C, c. 1038.114, 
                        <E T="03">Theft Protection and Rollaway Prevention (in effect March 30, 2011),</E>
                         as excerpted in appendix A of [part 543];
                    </P>
                    <P>
                        (2) National Standard of Canada CAN/ULC-S338-98, 
                        <E T="03">Automobile Theft Deterrent Equipment and Systems: Electronic Immobilization</E>
                         (May 1998);
                    </P>
                    <P>
                        (3) United Nations Economic Commission for Europe (UN/ECE) Regulation No. 97 (ECE R97), 
                        <E T="03">Uniform Provisions Concerning Approval of Vehicle Alarm System (VAS) and Motor Vehicles with Regard to Their Alarm System (AS)</E>
                         in effect August 8, 2007; or
                    </P>
                    <P>
                        (4) UN/ECE Regulation No. 116 (ECE R116), 
                        <E T="03">Uniform Technical Prescriptions Concerning the Protection of Motor Vehicles Against Unauthorized Use</E>
                         in effect on February 10, 2009.
                    </P>
                </FTNT>
                <P>Section 543.8 establishes requirements for processing petitions for exemption from the theft prevention standard. As stated in section 543.8(a), NHTSA processes any complete exemption petition. If NHTSA receives an incomplete petition, NHTSA will notify the petitioner of the deficiencies. Once NHTSA receives a complete petition the Agency will process it and, in accordance with section 543.8(b), will grant the petition if it determines that, based upon substantial evidence, the standard equipment antitheft device is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements of part 541.</P>
                <P>
                    Section 543.8(c) requires NHTSA to issue its decision either to grant or to deny an exemption petition not later than 120 days after the date on which a complete petition is filed. If NHTSA does not make a decision within the 120-day period, the petition shall be deemed to be approved and the manufacturer shall be exempt from the standard for the line covered by the petition for the subsequent model year.
                    <SU>2</SU>
                    <FTREF/>
                     Exemptions granted under part 543 apply only to the vehicle line or lines that are subject to the grant and that are equipped with the antitheft device on which the line's exemption was based, and are effective for the model year beginning after the model year in which NHTSA issues the notice of exemption, unless the notice of exemption specifies a later year.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         49 U.S.C. 33106(d).
                    </P>
                </FTNT>
                <P>
                    Sections 543.8(f) and (g) apply to the manner in which NHTSA's decisions on petitions are to be made known. Under section 543.8(f), if the petition is sought under section 543.6, NHTSA publishes a notice of its decision to grant or deny the exemption petition in the 
                    <E T="04">Federal Register</E>
                     and notifies the petitioner in writing. Under section 543.8(g), if the petition is sought under section 543.7, NHTSA notifies the petitioner in writing of the Agency's decision to grant or deny the exemption petition.
                </P>
                <P>This grant of petition for exemption considers Volkswagen Group of America, Inc.'s (Volkswagen) petition for its ID.7 vehicle line beginning in MY 2025.</P>
                <HD SOURCE="HD1">I. Specific Petition Content Requirements Under 49 CFR 543.6</HD>
                <P>Pursuant to 49 CFR part 543, Exemption from Vehicle Theft Prevention, Volkswagen petitioned for an exemption for its specified vehicle line from the parts-marking requirements of the theft prevention standard, beginning in MY 2025. Volkswagen petitioned under 49 CFR 543.6, Petition: Specific content requirements, which, as described above, requires manufacturers to provide specific information about the antitheft device installed as standard equipment on all vehicles in the line for which an exemption is sought, the antitheft device's capabilities, and the reasons the petitioner believes the device to be as effective at reducing and deterring theft as compliance with the parts-marking requirements.</P>
                <P>
                    More specifically, section 543.6(a)(1) requires petitions to include a statement that an antitheft device will be installed as standard equipment on all vehicles in the line for which the exemption is sought. Under section 543.6(a)(2), each petition must list each component in the antitheft system and include a diagram showing the location of each of those components within the vehicle. As required by section 543.6(a)(3), each petition must include an explanation of the means and process by which the device is activated and functions, including any aspect of the device designed to: (1) facilitate or encourage its activation by motorists; (2) attract attention to the efforts of an unauthorized person to enter or move a vehicle by means other than a key; (3) prevent defeating or circumventing the device by an unauthorized person attempting to enter a vehicle by means other than a key; (4) prevent the operation of a vehicle which an unauthorized person has entered using means other than a key; and (5) ensure the reliability and durability of the device.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         49 CFR 543.6(a)(3).
                    </P>
                </FTNT>
                <P>
                    In addition to providing information about the antitheft device and its functionality, petitioners must also submit the reasons for their belief that the antitheft device will be effective in 
                    <PRTPAGE P="10151"/>
                    reducing and deterring motor vehicle theft, including any theft data and other data that are available to the petitioner and form a basis for that belief,
                    <SU>4</SU>
                    <FTREF/>
                     and the reasons for their belief that the Agency should determine that the antitheft device is likely to be as effective as compliance with the parts-marking requirements of part 541 in reducing and deterring motor vehicle theft. In support of this belief, the petitioners should include any statistical data that are available to the petitioner and form the basis for the petitioner's belief that a line of passenger motor vehicles equipped with the antitheft device is likely to have a theft rate equal to or less than that of passenger motor vehicles of the same, or a similar, line which have parts-marked in compliance with part 541.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         49 CFR 543.6(a)(4).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         49 CFR 543.6(a)(5).
                    </P>
                </FTNT>
                <P>
                    The following sections describe Volkswagen's petition information provided pursuant to 49 CFR part 543, Exemption from Vehicle Theft Prevention. To the extent that specific information in Volkswagen's petition is subject to a properly filed confidentiality request, that information was not disclosed as part of this notice.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         49 CFR 512.20(a).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Volkswagen's Petition for Exemption</HD>
                <P>In a petition dated May 15, 2025, Volkswagen requested an exemption from the parts-marking requirements of the theft prevention standard for its ID.7 vehicle line beginning with MY 2025.</P>
                <P>In its petition, Volkswagen provided a detailed description and diagram of the identity, design, and location of the components of the antitheft device for its ID.7 vehicle line. Volkswagen stated that its fifth-generation transponder-based electronic engine immobilizer antitheft device will be installed as standard equipment on the entire MY 2025 ID.7 vehicle line. Volkswagen also stated that its ID.7 is an electric vehicle that will be equipped with a RWD or an AWD transmission. Key components of the antitheft device will include an adapted ignition key (ID-transmitter or “key fob”), In Car Application Server 1 (ICAS1) with integrated gateway (cluster to CAN bus, only routing function) and a Power Control Unit (LSG1) in case of 4 motion (all wheel drive) (LSG1 and LSG2). Ford stated that an audible and visual alarm will be offered as optional equipment.</P>
                <P>Pursuant to Section 543.6(a)(3), Volkswagen explained that its immobilizer device actively incorporates the power control unit into the evaluation and monitoring process. Volkswagen also stated that activation of its immobilizer device occurs automatically after the engine is switched off. Deactivation of the immobilizer device occurs when the ignition is turned on or the key fob is recognized by the immobilizer control unit. Specifically, when turning on the ignition on/off switch, the key transponder sends a fixed code to the immobilizer control unit. If this is identified as the correct code, a variable code is generated in the immobilizer control unit and sent to the transponder. Volkswagen stated that a secret arithmetic process is then started according to a set of specific equations and that a new variable code is generated every time the immobilizer goes through the secret computing process. The results of the computing process are evaluated in the control unit and if verified, the vehicle key is acknowledged as correct. The engine control unit then sends a variable code to the immobilizer control unit for mutual identification. If all the data matches, the vehicle can be started.</P>
                <P>As required in section 543.6(a)(3)(v), Volkswagen provided information on the reliability and durability of its proposed device. To ensure reliability and durability of the device, Volkswagen stated that the antitheft device has been tested for compliance with its corporate requirements, including those for electrical and electronic assemblies in motor vehicles related to performance requirements including electrical system temperature stability, mechanical integrity, electrical performance, electromagnetic compatibility (EMC), environmental compatibility and service life.</P>
                <P>In accordance with 49 CFR 543.6(a)(5), Volkswagen provided data on the theft rate of similarly-sized vehicle lines that had been granted an exemption from the parts-marking requirement. Volkswagen also referenced the effectiveness of immobilizer devices installed on other vehicles for which NHTSA has granted exemptions. Specifically, Volkswagen referenced information from the Highway Loss Data Institute which showed that BMW vehicles experienced theft loss reductions resulting in a 73% decrease in relative claim frequency and a 78% lower average loss payment per claim for vehicles equipped with an immobilizer. Volkswagen also stated that the National Crime Information Center's (NCIC) theft data showed that there was a 70% reduction in theft experienced when comparing the MY 1987 Ford Mustang vehicle thefts (with immobilizers) to MY 1995 Ford Mustang vehicle thefts (without immobilizers).</P>
                <HD SOURCE="HD1">III. Decision To Grant the Petition</HD>
                <P>Pursuant to 49 U.S.C. 33106 and 49 CFR 543.8(b), the Agency grants a petition for exemption from the parts-marking requirements of part 541, either in whole or in part, if it determines that, based upon substantial evidence, the standard equipment antitheft device is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements of part 541. The Agency finds that Volkswagen has provided adequate reasons for its belief that the antitheft device for its vehicle line is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements of the theft prevention standard. This conclusion is based on the information the Volkswagen provided about its antitheft device. NHTSA believes, based on the supporting evidence submitted by Volkswagen, that the antitheft device described for its vehicle line is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements of the theft prevention standard.</P>
                <P>The Agency concludes that Volkswagen's antitheft device will provide four of the five types of performance features listed in section 543.6(a)(3): promoting activation; preventing defeat or circumvention of the device by unauthorized persons; preventing operation of the vehicle by unauthorized entrants; and ensuring the reliability and durability of the device.</P>
                <P>The Agency notes that 49 CFR part 541, appendix A-1, identifies those lines that are exempted from the theft prevention standard for a given model year. 49 CFR 543.8(f) contains publication requirements incident to the disposition of all part 543 petitions. Advanced listing, including the release of future product nameplates, the beginning model year for which the petition is granted and a general description of the antitheft device is necessary in order to notify law enforcement agencies of new vehicle lines exempted from the parts-marking requirements of the theft prevention standard.</P>
                <P>If Volkswagen decides not to use the exemption for its requested vehicle line, the manufacturer must formally notify the Agency. If such a decision is made, the line must be fully marked as required by 49 CFR 541.5 and 541.6 (marking of major component parts and replacement parts).</P>
                <P>
                    NHTSA notes that if Volkswagen wishes in the future to modify the device on which this exemption is 
                    <PRTPAGE P="10152"/>
                    based, the company may have to submit a petition to modify the exemption. Section 543.8(d) states that a part 543 exemption applies only to vehicles that belong to a line exempted under this part and equipped with the antitheft device on which the line's exemption is based. Further, section 543.10(c)(2) provides for the submission of petitions “to modify an exemption to permit the use of an antitheft device similar to but differing from the one specified in the exemption.”
                </P>
                <P>The Agency wishes to minimize the administrative burden that section 543.10(c)(2) could place on exempted vehicle manufacturers and itself. The Agency did not intend in drafting part 543 to require the submission of a modification petition for every change to the components or design of an antitheft device. The significance of many such changes could be de minimis. Therefore, NHTSA suggests that if Volkswagen contemplates making any changes, the effects of which might be characterized as de minimis, it should consult the Agency before preparing and submitting a petition to modify.</P>
                <P>For the foregoing reasons, the Agency hereby grants in full Volkswagen's petition for exemption for the ID.7 vehicle line from the parts-marking requirements of 49 CFR part 541, beginning with its MY 2025 vehicles.</P>
                <P>Issued under authority delegated in 49 CFR 1.95 and 501.8.</P>
                <SIG>
                    <NAME>Raymond R. Posten,</NAME>
                    <TITLE>Associate Administrator for Rulemaking.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02865 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-59-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>National Highway Traffic Safety Administration</SUBAGY>
                <SUBJECT>Petition for Exemption From the Federal Motor Vehicle Theft Prevention Standard; Toyota Motor North America, Inc.</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Grant of petition for exemption.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This document grants in full the Toyota Motor North America, Inc.'s (Toyota) petition for exemption from the Federal Motor Vehicle Theft Prevention Standard (theft prevention standard) for its Subaru Solterra vehicle line beginning in model year (MY) 2025. The petition is granted because the Agency has determined that the antitheft device to be placed on the line as standard equipment is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements of the theft prevention standard. Toyota also requested confidential treatment for specific information in its petition. Therefore, no confidential information provided for purposes of this notice has been disclosed.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The exemption granted by this notice is effective beginning with the 2025 model year.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Carlita Ballard, Office of International Policy, Fuel Economy, and Consumer Programs, NHTSA, West Building, W43-439, NRM-310, 1200 New Jersey Avenue SE, Washington, DC 20590. Ms. Ballard's phone number is (202) 366-5222. Her fax number is (202) 493-2990.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Under 49 U.S.C. chapter 331, the Secretary of Transportation (and the National Highway Traffic Safety Administration (NHTSA) by delegation) is required to promulgate a theft prevention standard to provide for the identification of certain motor vehicles and their major replacement parts to impede motor vehicle theft. NHTSA promulgated regulations at 49 CFR part 541 (theft prevention standard) to require parts-marking for specified passenger motor vehicles and light trucks. Pursuant to 49 U.S.C. 33106, manufacturers that are subject to the parts-marking requirements may petition the Secretary of Transportation for an exemption for a line of passenger motor vehicles equipped with an antitheft device as standard equipment that the Secretary decides is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements. In accordance with this statute, NHTSA promulgated 49 CFR part 543, which establishes the process through which manufacturers may seek an exemption from the theft prevention standard.</P>
                <P>
                    49 CFR 543.5 provides general submission requirements for petitions and states that each manufacturer may petition NHTSA for an exemption of one vehicle line per model year. Among other requirements, manufacturers must identify whether the exemption is sought under section 543.6 or section 543.7. Under section 543.6, a manufacturer may request an exemption by providing specific information about the antitheft device, its capabilities, and the reasons the petitioner believes the device to be as effective at reducing and deterring theft as compliance with the parts-marking requirements. Section 543.7 permits a manufacturer to request an exemption under a more streamlined process if the vehicle line is equipped with an antitheft device (an “immobilizer”) as standard equipment that complies with one of the standards specified in that section.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         49 CFR 543.7 specifies that the manufacturer must include a statement that their entire vehicle line is equipped with an immobilizer that meets one of the following standards: 
                    </P>
                    <P>
                        (1) The performance criteria (subsections 8 through 21) of C.R.C, c. 1038.114, 
                        <E T="03">Theft Protection and Rollaway Prevention (in effect March 30, 2011),</E>
                         as excerpted in appendix A of [part 543];
                    </P>
                    <P>
                        (2) National Standard of Canada CAN/ULC-S338-98, 
                        <E T="03">Automobile Theft Deterrent Equipment and Systems: Electronic Immobilization</E>
                         (May 1998);
                    </P>
                    <P>
                        (3) United Nations Economic Commission for Europe (UN/ECE) Regulation No. 97 (ECE R97), 
                        <E T="03">Uniform Provisions Concerning Approval of Vehicle Alarm System (VAS) and Motor Vehicles with Regard to Their Alarm System (AS)</E>
                         in effect August 8, 2007; or
                    </P>
                    <P>
                        (4) UN/ECE Regulation No. 116 (ECE R116), 
                        <E T="03">Uniform Technical Prescriptions Concerning the Protection of Motor Vehicles Against Unauthorized Use</E>
                         in effect on February 10, 2009.
                    </P>
                </FTNT>
                <P>Section 543.8 establishes requirements for processing petitions for exemption from the theft prevention standard. As stated in section 543.8(a), NHTSA processes any complete exemption petition. If NHTSA receives an incomplete petition, NHTSA will notify the petitioner of the deficiencies. Once NHTSA receives a complete petition the Agency will process it and, in accordance with section 543.8(b), will grant the petition if it determines that, based upon substantial evidence, the standard equipment antitheft device is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements of part 541.</P>
                <P>
                    Section 543.8(c) requires NHTSA to issue its decision either to grant or to deny an exemption petition not later than 120 days after the date on which a complete petition is filed. If NHTSA does not make a decision within the 120-day period, the petition shall be deemed to be approved and the manufacturer shall be exempt from the standard for the line covered by the petition for the subsequent model year.
                    <SU>2</SU>
                    <FTREF/>
                     Exemptions granted under part 543 apply only to the vehicle line or lines that are subject to the grant and that are equipped with the antitheft device on which the line's exemption was based, and are effective for the model year beginning after the model year in which NHTSA issues the notice of exemption, unless the notice of exemption specifies a later year.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         49 U.S.C. 33106(d).
                    </P>
                </FTNT>
                <P>
                    Sections 543.8(f) and (g) apply to the manner in which NHTSA's decisions on petitions are to be made known. Under section 543.8(f), if the petition is sought 
                    <PRTPAGE P="10153"/>
                    under section 543.6, NHTSA publishes a notice of its decision to grant or deny the exemption petition in the 
                    <E T="04">Federal Register</E>
                     and notifies the petitioner in writing. Under section 543.8(g), if the petition is sought under section 543.7, NHTSA notifies the petitioner in writing of the Agency's decision to grant or deny the exemption petition.
                </P>
                <P>This grant of petition for exemption considers Toyota Motor North America, Inc.'s (Toyota) petition for its Subaru Solterra vehicle line beginning in MY 2025.</P>
                <HD SOURCE="HD1">I. Specific Petition Content Requirements Under 49 CFR 543.6</HD>
                <P>Pursuant to 49 CFR part 543, Exemption from Vehicle Theft Prevention, Toyota petitioned for an exemption for its specified vehicle line from the parts-marking requirements of the theft prevention standard, beginning in MY 2025. Toyota petitioned under 49 CFR 543.6, Petition: Specific content requirements, which, as described above, requires manufacturers to provide specific information about the antitheft device installed as standard equipment on all vehicles in the line for which an exemption is sought, the antitheft device's capabilities, and the reasons the petitioner believes the device to be as effective at reducing and deterring theft as compliance with the parts-marking requirements.</P>
                <P>
                    More specifically, section 543.6(a)(1) requires petitions to include a statement that an antitheft device will be installed as standard equipment on all vehicles in the line for which the exemption is sought. Under section 543.6(a)(2), each petition must list each component in the antitheft system and include a diagram showing the location of each of those components within the vehicle. As required by section 543.6(a)(3), each petition must include an explanation of the means and process by which the device is activated and functions, including any aspect of the device designed to: (1) facilitate or encourage its activation by motorists; (2) attract attention to the efforts of an unauthorized person to enter or move a vehicle by means other than a key; (3) prevent defeating or circumventing the device by an unauthorized person attempting to enter a vehicle by means other than a key; (4) prevent the operation of a vehicle which an unauthorized person has entered using means other than a key; and (5) ensure the reliability and durability of the device.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         49 CFR 543.6(a)(3).
                    </P>
                </FTNT>
                <P>
                    In addition to providing information about the antitheft device and its functionality, petitioners must also submit the reasons for their belief that the antitheft device will be effective in reducing and deterring motor vehicle theft, including any theft data and other data that are available to the petitioner and form a basis for that belief,
                    <SU>4</SU>
                    <FTREF/>
                     and the reasons for their belief that the Agency should determine that the antitheft device is likely to be as effective as compliance with the parts-marking requirements of part 541 in reducing and deterring motor vehicle theft. In support of this belief, the petitioners should include any statistical data that are available to the petitioner and form the basis for the petitioner's belief that a line of passenger motor vehicles equipped with the antitheft device is likely to have a theft rate equal to or less than that of passenger motor vehicles of the same, or a similar, line which have parts marked in compliance with part 541.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         49 CFR 543.6(a)(4).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         49 CFR 543.6(a)(5).
                    </P>
                </FTNT>
                <P>
                    The following sections describe Toyota's petition information provided pursuant to 49 CFR part 543, Exemption from Vehicle Theft Prevention. To the extent that specific information in Toyota's petition is subject to a properly filed confidentiality request, that information was not disclosed as part of this notice.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         49 CFR 512.20(a).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Toyota's Petition for Exemption</HD>
                <P>In a petition dated November 7, 2023, Toyota requested an exemption from the parts-marking requirements of the theft prevention standard for the Subaru Solterra vehicle line beginning with MY 2025.</P>
                <P>In its petition, Toyota provided a detailed description and diagram of the identity, design, and location of the components of the antitheft device for the Subaru Solterra vehicle line. Toyota stated that its MY 2025 Subaru Solterra vehicle line will be installed with an engine immobilizer device as standard equipment, as required by 543.6(a)(1). Toyota stated that it will offer “smart entry and start” system on its Subaru Solterra vehicle line. Specifically, key components of the “smart entry and start” system will include a certification engine control unit (ECU), engine switch, security indicator, door control receiver, electrical key, ID code box, and an engine control module (ECM). Toyota stated that there will also be position switches installed on the vehicle to protect the hood and doors from unauthorized tampering/opening. Toyota further explained that locking the doors can be accomplished through use of a key, wireless switch or its smart entry system, and that unauthorized tampering with the hood or door without using one of these methods will cause the position switches to trigger its antitheft device to operate. Toyota will also incorporate an audible and visual alarm system on its vehicle line, when unauthorized access is attempted, the horn will sound and the lights will flash.</P>
                <P>Pursuant to Section 543.6(a)(3), Toyota explained that its “smart entry and start” system is activated when the engine switch is pushed from the “ON” ignition status to any other status. The certification ECU then performs the calculation for the immobilizer and the immobilizer signals the ECM to activate the device. Toyota also explained that its “smart entry and start” system is deactivated after the driver pushes the engine switch and the key is verified, the certification ECU and ID code box receives verification of a valid key, the certification ECU allows the ECM to start the engine. Toyota stated that in its system, a security indicator is installed notifying the user and others inside and outside the vehicle with the status of the immobilizer. Toyota further explained that the security indicator flashes continuously when the immobilizer is activated and turns off when it is deactivated.</P>
                <P>
                    As required in section 543.6(a)(3)(v), Toyota provided information on the reliability and durability of its proposed device. To ensure reliability and durability of the device, Toyota conducted tests based on its own specified standards. Toyota provided a detailed list of the tests conducted (
                    <E T="03">i.e.,</E>
                     high and low temperature operation, strength, impact, vibration, electro-magnetic interference, etc.). Toyota stated that it believes that its device is reliable and durable because it complied with its own specific design standards and the antitheft device is installed on other vehicle lines for which the Agency has granted a parts-marking exemption. As an additional measure of reliability and durability, Toyota stated that its vehicle key cylinders are covered with casting cases to prevent the key cylinder from easily being broken. Toyota further explained that there are approximately 20,000 combinations for the key cylinders and key plates for outer gutter keys and about 10,000 for the inner gutter keys which makes it difficult to unlock the doors without using a valid key because the key cylinders would spin out and cause the locks to not operate.
                </P>
                <P>
                    Toyota stated that its Subaru Solterra vehicle has already been equipped with an immobilizer since MY 2023 as 
                    <PRTPAGE P="10154"/>
                    standard equipment. Toyota also stated that at the time of the petition submission, theft rate data for the MY 2025 Subaru Solterra vehicle line is not available. However, Toyota compared its proposed device to other devices NHTSA has determined to be as effective in reducing and deterring motor vehicle theft as would compliance with the parts-marking requirements. Toyota also compared its proposed device to a similar type of system which has been installed on the Toyota RAV4 and RAV4 HV vehicle line, which was granted a parts-marking exemption from 49 CFR part 541 by the Agency beginning with MY 2014 vehicles. Toyota also referenced the NHTSA theft rate data published for calendar year 2014 with 1.15 per thousand vehicles produced and showing the average theft rate of 0.36 for the RAV4 and RAV4 HV. Therefore, Toyota concluded that the antitheft device proposed for its Subaru Solterra vehicle line is no less effective than those devices on the lines for which NHTSA has already granted full exemption from the parts-marking requirements. Toyota stated that it believes that installing the immobilizer device as standard equipment reduces the theft rate for the Subaru Solterra vehicle line and expects it to experience comparable effectiveness and ultimately be more effective than parts-marking labels.
                </P>
                <HD SOURCE="HD1">III. Decision To Grant the Petition</HD>
                <P>Pursuant to 49 U.S.C. 33106 and 49 CFR 543.8(b), the Agency grants a petition for exemption from the parts-marking requirements of part 541, either in whole or in part, if it determines that, based upon substantial evidence, the standard equipment antitheft device is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements of part 541. The Agency finds that Toyota has provided adequate reasons for its belief that the antitheft device for its vehicle line is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements of the theft prevention standard. This conclusion is based on the information Toyota provided about its antitheft device. NHTSA believes, based on Toyota's supporting evidence, the antitheft device described for its vehicle line is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements of the theft prevention standard.</P>
                <P>The Agency concludes that Toyota's antitheft device will provide the five types of performance features listed in section 543.6(a)(3): promoting activation; attracting attention to the efforts of unauthorized persons to enter or operate a vehicle by means other than a key; preventing defeat or circumvention of the device by unauthorized persons; preventing operation of the vehicle by unauthorized entrants; and ensuring the reliability and durability of the device.</P>
                <P>The Agency notes that 49 CFR part 541, appendix A-1, identifies those lines that are exempted from the theft prevention standard for a given model year. 49 CFR 543.8(f) contains publication requirements incident to the disposition of all part 543 petitions. Advanced listing, including the release of future product nameplates, the beginning model year for which the petition is granted and a general description of the antitheft device is necessary in order to notify law enforcement agencies of new vehicle lines exempted from the parts-marking requirements of the theft prevention standard.</P>
                <P>If Toyota decides not to use the exemption for its requested vehicle line, the manufacturer must formally notify the Agency. If such a decision is made, the line must be fully marked as required by 49 CFR 541.5 and 541.6 (marking of major component parts and replacement parts).</P>
                <P>
                    NHTSA notes that if Toyota wishes in the future to modify the device on which this exemption is based, the company may have to submit a petition to modify the exemption. Section 543.8(d) states that a part 543 exemption applies only to vehicles that belong to a line exempted under this part and equipped with the antitheft device on which the line's exemption is based. Further, section 543.10(c)(2) provides for the submission of petitions “to modify an exemption to permit the use of an antitheft device similar to but differing from the one specified in the exemption.” 
                    <SU>7</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         The Agency wishes to minimize the administrative burden that section 543.10(c)(2) could place on exempted vehicle manufacturers and itself. The Agency did not intend in drafting part 543 to require the submission of a modification petition for every change to the components or design of an antitheft device. The significance of many such changes could be de minimis. Therefore, NHTSA suggests that if a manufacturer with an exemption contemplates making any changes, the effects of which might be characterized as de minimis, it should consult the Agency before preparing and submitting a petition to modify.
                    </P>
                </FTNT>
                <P>The Agency wishes to minimize the administrative burden that section 543.10(c)(2) could place on exempted vehicle manufacturers and itself. The Agency did not intend in drafting part 543 to require the submission of a modification petition for every change to the components or design of an antitheft device. The significance of many such changes could be de minimis. Therefore, NHTSA suggests that if Toyota contemplates making any changes, the effects of which might be characterized as de minimis, it should consult the Agency before preparing and submitting a petition to modify.</P>
                <P>For the foregoing reasons, the Agency hereby grants in full Toyota's petition for exemption for the Subaru Solterra vehicle line from the parts-marking requirements of 49 CFR part 541, beginning with its MY 2025 vehicles.</P>
                <P>Issued under authority delegated in 49 CFR 1.95 and 501.8.</P>
                <SIG>
                    <NAME>Raymond R. Posten,</NAME>
                    <TITLE>Associate Administrator for Rulemaking.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02866 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-59-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Great Lakes St. Lawrence Seaway Development Corporation</SUBAGY>
                <SUBJECT>Great Lakes St. Lawrence Seaway Development Corporation Advisory Board; Notice of Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Great Lakes St. Lawrence Seaway Development Corporation, DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of public meetings.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This notice announces the public meetings of the Great Lakes St. Lawrence Seaway Development Corporation (GLS) Advisory Board.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The public meetings will be held on (all times eastern):</P>
                </DATES>
                <FP SOURCE="FP-1">• Wednesday, March 6, 2024, from 2 p.m.-4 p.m. EST</FP>
                <P>○ Requests to attend the meeting must be received by March 1, 2024.</P>
                <P>○ Requests for accommodations to a disability must be received by March 1, 2024.</P>
                <P>○ If you wish to speak during the meeting, you must submit a written copy of your remarks to GLS by March 1, 2024.</P>
                <P>○ Requests to submit written materials to be reviewed during the meeting must be received no later than March 1, 2024.</P>
                <FP SOURCE="FP-1">• Tuesday, May 14, 2024, from 8:30 a.m.-10:30 a.m. EDT</FP>
                <P>○ Requests to attend the meeting must be received by May 9, 2024.</P>
                <P>○ Requests for accommodations to a disability must be received by May 9, 2024.</P>
                <P>
                    ○ If you wish to speak during the meeting, you must submit a written 
                    <PRTPAGE P="10155"/>
                    copy of your remarks to GLS by May 9, 2024.
                </P>
                <P>○ Requests to submit written materials to be reviewed during the meeting must be received no later than May 9, 2024.</P>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The meetings will be held in-person at the following locations:</P>
                    <P>
                        • 
                        <E T="03">Wednesday, March 6, 2024:</E>
                         U.S. Department of Transportation Headquarters, 1200 New Jersey Ave SE, Suite W62-300, Washington, DC 20590.
                    </P>
                    <P>
                        • 
                        <E T="03">Tuesday, May 14, 2024:</E>
                         Seaway Visitor Center at Eisenhower Lock, 79 Barnhart Road, Massena, NY 13662.
                    </P>
                    <P>A virtual option will be made available for individuals wishing to attend remotely. Details on how to participate will be forwarded to those who RSVP.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Kevin O'Malley, Strategic Advisor for Financial and Resource Management, Great Lakes St. Lawrence Seaway Development Corporation, 1200 New Jersey Avenue SE, Suite W62-300, Washington, DC 20590; (202) 366-0091.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Pursuant to section 10(a)(2) of the Federal Advisory Committee Act (Pub. L. 92-463; 5 U.S.C. app. 2), notice is hereby given of meetings of the GLS Advisory Board. The agenda for each meeting is the same and will be as follows:</P>
                <FP SOURCE="FP-2">1. Opening Remarks</FP>
                <FP SOURCE="FP-2">2. Consideration of Minutes of Past Meeting</FP>
                <FP SOURCE="FP-2">3. Quarterly Report</FP>
                <FP SOURCE="FP-2">4. Old and New Business</FP>
                <FP SOURCE="FP-2">5. Closing Discussion</FP>
                <FP SOURCE="FP-2">6. Adjournment</FP>
                <HD SOURCE="HD1">Public Participation</HD>
                <P>
                    Attendance at the meeting is open to the interested public. With the approval of the Administrator, members of the public may present oral statements at the meeting. Persons wishing further information should contact the person listed under the heading, 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    . There will be three (3) minutes allotted for oral comments from members of the public joining the meeting. To accommodate as many speakers as possible, the time for each commenter may be limited. Individuals wishing to reserve speaking time during the meeting must submit a request at the time of registration, as well as the name, address, and organizational affiliation of the proposed speaker. If the number of registrants requesting to make statements is greater than can be reasonably accommodated during the meeting, the GLS will conduct a lottery to determine the speakers. Speakers are requested to submit a written copy of their prepared remarks for inclusion in the meeting records and for circulation to GLS Advisory Board members. All prepared remarks submitted will be accepted and considered as part of the meeting's record. Any member of the public may submit a written statement after the meeting deadline, and it will be presented to the committee.
                </P>
                <P>
                    The U.S. Department of Transportation is committed to providing equal access to this meeting for all participants. If you need alternative formats or services because of a disability, such as sign language, interpretation, or other ancillary aids, please contact the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section. Any member of the public may present a written statement to the GLS Advisory Board at any time.
                </P>
                <SIG>
                    <NAME>Carrie Lavigne,</NAME>
                    <TITLE>Chief Counsel.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02664 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-61-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION </AGENCY>
                <SUBAGY>Office of the Secretary</SUBAGY>
                <DEPDOC>[Docket No. DOT-OST-2024-0005]</DEPDOC>
                <SUBJECT>Office of the Chief Financial Officer and Assistant Secretary for Budget and Programs; U.S. Department of Transportation Learning Agenda Supplement: Fiscal Years 2024-2026</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Secretary (OST), U.S. Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Request for information.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The U.S. Department of Transportation (DOT)'s mission is to deliver the world's leading transportation system, serving the American people and economy through the safe, efficient, sustainable, and equitable movement of people and goods. Developing rigorous research and applying relevant evidence are essential components of the Department's success. On March 28, 2022, we published our first Department-wide Learning Agenda for Fiscal Years (FY) 2022-2026 (the “Learning Agenda”) in conjunction with the Department's FY 2022-2026 Strategic Plan
                        <E T="03"> (the “Strategic Plan”). The Learning Agenda</E>
                         was our first effort to identify priority evidence needs and propose research, evaluation activities, and data gathering to address those needs. As we've reached the mid-point of this Learning Agenda, the Department seeks to update it. With this Request for Information (RFI), DOT's Office of the Secretary (OST)'s Office of the Chief Financial Officer and Assistant Secretary for Budget and Programs seeks public input regarding potential updates to our published Learning Agenda. Information provided in response to this RFI will inform the development of the Learning Agenda Supplement: Fiscal Year 2024-2026 (“Learning Agenda Supplement”).
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        Comments are requested by April 09, 2024. See the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section on “Public Participation,” below for more information about written comments.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P/>
                    <P>
                        <E T="03">Written Comments:</E>
                         Responses to this RFI are voluntary and may be submitted anonymously. Comments should refer to the docket number above and be submitted by one of the following methods:
                    </P>
                    <P>
                        • 
                        <E T="03">Federal Rulemaking Portal:</E>
                         Follow the online instructions at 
                        <E T="03">https://www.regulations.gov</E>
                         for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor, Room W12-140, Washington, DC 20590-0001.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery:</E>
                         1200 New Jersey Avenue SE, West Building Ground Floor, Room W12-140, Washington, DC, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal Holidays.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         For detailed instructions on submitting comments and additional information on the rulemaking process, see the Public Participation heading of the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section of this document. Note that all comments received will be posted without change to 
                        <E T="03">https://www.regulations.gov,</E>
                         including any personal information provided.
                    </P>
                    <P>
                        <E T="03">Privacy Act:</E>
                         Except as provided below (
                        <E T="03">“confidential business information”</E>
                        ), all comments received into the docket will be made public in their entirety. The comments will be searchable by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You should not include information in your comment that you do not want to be made public.
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         For access to the docket to read background documents or comments received, visit 
                        <E T="03">https://www.regulations.gov</E>
                         or the street address listed above. Follow the online instructions for accessing the dockets.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Please email 
                        <E T="03">PEER@dot.gov</E>
                         or call John D. Giorgis at (202) 366-6513 with questions. Office hours are from 8:30 
                        <PRTPAGE P="10156"/>
                        a.m. to 5 p.m. EDT, Monday through Friday, except for Federal holidays.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    The Foundations for Evidenced-Based Policymaking Act of 2018 
                    <SU>1</SU>
                    <FTREF/>
                     requires many Federal agencies to create an evidence-building plan, referred to as a Learning Agenda, to identify and address questions relevant to the agency's programs, policies, and regulations.
                    <SU>2</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         Public Law 115-435, 132 Stat. 5529.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         5 U.S.C. 312(a); Office of Mgmt. &amp; Budget, Exec. Office of the President, OMB M-21-27: 
                        <E T="03">https://www.whitehouse.gov/omb/information-for-agencies/evidence-and-evaluation/.</E>
                    </P>
                </FTNT>
                <P>
                    The law further states that agencies “shall consult with stakeholders, including the public, agencies, State and local governments, and representatives of non-governmental researchers” when developing their Learning Agenda.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         5 U.S.C. 312(c).
                    </P>
                </FTNT>
                <P>
                    We published our FY 2022-2026 Learning Agenda in March 2022.
                    <SU>4</SU>
                    <FTREF/>
                     In compliance with the Foundations for Evidenced-Based Policymaking Act of 2018, we review our Learning Agenda annually, allowing us to adjust as needed when new evidence is generated or as priorities shift. In our most recent annual review, we decided that it would be appropriate to update the Learning Agenda to incorporate our experiences from the last two years and additional feedback from our stakeholders.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         Learning Agenda: 
                        <E T="03">https://www.transportation.gov/sites/dot.gov/files/2022-03/DOT_Learning_Agenda.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    We also publish Annual Evaluation Plans (available at 
                    <E T="03">https://www.transportation.gov/budget</E>
                    ) that describe the significant evaluation activities that we expect to launch each year as well as the major ongoing evaluation activities. To date, we have published Annual Evaluation Plans for FY 2023 and 2024.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         FY 2023 Evaluation Plan; FY 2024 Evaluation Plan: 
                        <E T="03">https://www.transportation.gov/budget.</E>
                    </P>
                </FTNT>
                <P>
                    The U.S. Department of Transportation (DOT) touches the lives of every person in the United States and its territories through its work to improve the safety and performance of our multi-modal transportation system. The Nation's transportation networks include two million miles of public roads, 110,000 miles of major railroads, 25,000 miles of commercially navigable waterways, 1.8 million miles of natural gas and oil pipelines, 5,200 public-use airports, and more than 3,000 operators of transit services.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Hu, Patricia et al. (2022), 
                        <E T="03">Transportation Statistics Annual Report 2022,</E>
                         U.S. Department of Transportation, Bureau of Transportation Statistics, 
                        <E T="03">https://doi.org/10.21949/1528354;</E>
                         Federal Transit Administration (2022), 
                        <E T="03">Single Summary of Transit Report, https://www.transit.dot.gov/sites/fta.dot.gov/files/2024-01/2022-Single-Summary-of-Transit_v1_1.pdf.</E>
                    </P>
                </FTNT>
                <P>Congress established DOT in 1967, consolidating 31 transportation-related agencies and functions. Approximately 55,000 DOT employees continue to bring innovations and integrity to the work of improving the safety and performance of our multi-modal transportation system. Leadership of the Department is provided by the Secretary of Transportation, who is the principal advisor to the President in all matters relating to Federal transportation programs. The Office of the Secretary oversees nine Operating Administrations, each with its own management and organizational structure. These nine Operating Administrations are:</P>
                <FP SOURCE="FP-1">—Federal Aviation Administration</FP>
                <FP SOURCE="FP-1">—Federal Highway Administration</FP>
                <FP SOURCE="FP-1">—Federal Motor Carrier Safety Administration</FP>
                <FP SOURCE="FP-1">—Federal Railroad Administration</FP>
                <FP SOURCE="FP-1">—Federal Transit Administration</FP>
                <FP SOURCE="FP-1">—Great Lakes St Lawrence Seaway Development Corporation</FP>
                <FP SOURCE="FP-1">—Maritime Administration</FP>
                <FP SOURCE="FP-1">—National Highway Traffic Safety Administration</FP>
                <FP SOURCE="FP-1">—Pipeline and Hazardous Material Safety Administration</FP>
                <P>
                    Our Learning Agenda draws on work from across all nine of our Operating Administrations to identify key learning questions that support our strategic goals. The current Learning Agenda is organized around three sets of priority questions: Safety, Climate, and Equity. These priority questions are aligned with our FY 2022-2026 Strategic Plan 
                    <SU>7</SU>
                    <FTREF/>
                     includes at least one area of focus:
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Strategic Plan: 
                        <E T="03">https://www.transportation.gov/dot-strategic-plan.</E>
                    </P>
                </FTNT>
                <FP SOURCE="FP-2">• Safety Priority Questions</FP>
                <FP SOURCE="FP1-2">
                    ○ 
                    <E T="03">Focus Areas:</E>
                     Drug-Impaired Driving (Excluding Alcohol), Pedestrian and Cyclist Safety, Improving Aviation Safety and Efficiency
                </FP>
                <FP SOURCE="FP-2">• Climate Priority Questions</FP>
                <FP SOURCE="FP1-2">
                    ○ 
                    <E T="03">Focus Area:</E>
                     Reducing Transportation Greenhouse Gas Emissions
                </FP>
                <FP SOURCE="FP-2">• Equity Priority Questions</FP>
                <FP SOURCE="FP1-2">
                    ○ 
                    <E T="03">Focus Area:</E>
                     Equity in the DOT Workforce
                </FP>
                <P>
                    This RFI is part of our stakeholder engagement to develop the Learning Agenda Supplement. The goal of the Supplement is to identify new research and data priorities not currently included in the Learning Agenda that, if answered, could advance DOT's mission and achieve the long-term goals in our Strategic Plan. We will publish the Learning Agenda Supplement on the DOT website.
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         U.S. Department of Transportation: 
                        <E T="03">https://www.transportation.gov/.</E>
                    </P>
                </FTNT>
                <P>
                    The Learning Agenda Supplement can help us advance the strategic goals identified in our FY 2022-2026 Strategic Plan and our FY 2024-2025 Agency Priority Goals.
                    <SU>9</SU>
                    <FTREF/>
                     Identifying evidence-building needs inherent to these plans will help guide us in developing the Learning Agenda Supplement.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         FY 2024-2025 Agency Priority Goals: 
                        <E T="03">https://www.performance.gov/agencies/DOT/apg/fy-24-25/.</E>
                    </P>
                </FTNT>
                <P>
                    The FY 2022-2026 DOT Strategic Plan provides the roadmap for advancing the Department's mission. It describes the long-term goals that we aim to achieve, the actions that we will take to realize those goals, and how we will most effectively use resources. It also identifies six Strategic Goals, which are outcome-oriented, long-term goals for our major functions and operations: Safety, Economic Strength and Global Competitiveness, Equity, Climate and Sustainability, Transformation, and Organizational Excellence. Each Strategic Goal has associated Strategic Objectives, which express more specifically the impact DOT is trying to achieve. We also established numerous performance goals that define what success looks like for each Strategic Objective, which can be found in our FY 2024 Performance Plan and FY 2023 Performance Report.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         FY 2024 Performance Plan and FY 2023 Performance Report: Budget, Performance, and Finance | US Department of Transportation.
                    </P>
                </FTNT>
                <P>
                    Our Agency Priority Goals (APG) are a performance accountability structure of the Government Performance and Results Act Modernization Act of 2010 that provides us with a mechanism to focus leadership priorities, set outcomes, and measure results. They elevate mission areas where we need to drive significant progress and change. Agency Priority Goal statements are outcome-oriented, ambitious, and measurable with specific targets set that reflect a near-term result or achievement that agency leadership wants to accomplish within approximately 24 months. The Agency Priority Goals identify officials responsible for goal achievement, and our leaders review performance on a quarterly basis to identify barriers to progress and make changes to implementation strategies to achieve goal outcomes. We set five Agency Priority Goals covering FY 2024-2025: Roadway Safety, Aviation Safety, High-Performing Core Assets, Equity, and National Electric Vehicle 
                    <PRTPAGE P="10157"/>
                    Charging Network (Joint with the Department of Energy).
                </P>
                <P>The Learning Agenda Supplement: FY 2024-2026 can also support the evidence-building needs of the DOT's National Roadway Safety Strategy, the FAA Safety Call to Action and the Independent Aviation Safety Review Team's findings, the DOT's Equity Action Plan, and the U.S. National Blueprint for Transportation Decarbonization (NBTD). Identifying evidence-building needs related to these strategies and reports will inform the development of the Learning Agenda Supplement.</P>
                <P>
                    We released the National Roadway Safety Strategy in January 2022.
                    <SU>11</SU>
                    <FTREF/>
                     It outlines our comprehensive approach to significantly reducing serious injuries and deaths on our Nation's highways, roads, and streets aligned to our ambitious long-term goal of reaching zero roadway fatalities.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         National Roadway Safety Strategy: 
                        <E T="03">https://www.transportation.gov/NRSS.</E>
                    </P>
                </FTNT>
                <P>
                    In February 2023 we launched the FAA Safety Call to Action and in April 2023 established and appointed outside experts to the Independent Aviation Safety Review Team with the goal of ensuring that our structure continues to be fit for purpose for the U.S. aerospace system for both today and the future.
                    <SU>12</SU>
                    <FTREF/>
                     Safety guides everything we do, which is why reducing aviation safety risk remains a top priority. Aviation passengers expect and deserve the same level of safety wherever they fly. Over the past two decades, commercial aviation fatalities in the U.S. have decreased significantly. As a result of recent aviation incidents, we are taking a critical look at the U.S. aerospace system's structure, culture, processes, systems, and integration of safety efforts.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         FAA Safety Call to Action: 
                        <E T="03">https://www.faa.gov/aviation-safety-call-to-action;</E>
                         Independent Aviation Safety Review Team: 
                        <E T="03">https://www.faa.gov/newsroom/faa-establishes-independent-aviation-safety-review-team</E>
                         and 
                        <E T="03">https://www.faa.gov/NAS_safety_review_team_report.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    We released our first Equity Action Plan in FY 2022, and we have updated it annually since then.
                    <SU>13</SU>
                    <FTREF/>
                     The Equity Action Plan highlights work that we are undertaking, focused on wealth creation, power of community, interventions, and expanding access. The Equity Action Plan is a major milestone for the DOT and represents a shift in how we view and deliver transportation programs.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         Equity Action Plan: 
                        <E T="03">https://www.transportation.gov/priorities/equity/equity-action-plan.</E>
                    </P>
                </FTNT>
                <P>
                    The U.S. National Blueprint for Transportation Decarbonization is a first-of-its-kind strategy for federal leadership and partnerships to decarbonize the entire U.S. transportation sector.
                    <SU>14</SU>
                    <FTREF/>
                     Released in January 2023, the plan represents coordinated efforts between the departments of Transportation, Energy, Housing and Urban Development, and the Environmental Protection Agency to create a framework of strategies and actions to remove all emissions from the transportation sector by 2050.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         U.S. National Blueprint for Transportation Decarbonization: 
                        <E T="03">https://www.energy.gov/sites/default/files/2023-01/the-us-national-blueprint-for-transportation-decarbonization.pdf.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Purpose of This Request for Information</HD>
                <P>The purpose of this RFI is to solicit information regarding new research and data priorities that should be considered for incorporation into the Learning Agenda Supplement, as well as adjustments to existing research and data priorities.</P>
                <P>
                    Through this RFI, we are asking interested persons, including stakeholders across public and private sectors who may be familiar with or interested in the work of our agency, for input on evidence-building activities that inform important priorities for our agency, including those that are also related to the President's broader priorities available at 
                    <E T="03">https://www.whitehouse.gov/priorities/.</E>
                     We also seek input on future projects that will advance our mission.
                </P>
                <P>We will analyze information collected from this RFI to inform the development of the Learning Agenda Supplement. This RFI is for information and planning purposes only and should not be construed as a solicitation or as an obligation on our part. We will not respond to comments we receive in response to this RFI but will use the input to develop the Learning Agenda Supplement.</P>
                <HD SOURCE="HD1">Specific Information Requested</HD>
                <P>We invite suggestions in various forms—as key questions to be answered, hypotheses to be tested, or problems to be investigated—that are focused on any area of our mission. The responses to this RFI will inform our ongoing updates and revisions to priorities that guide evidence-building activities.</P>
                <P>
                    We are particularly interested in receiving input from interested parties on the questions outlined below. In responding to these questions, interested parties should reference the Learning Agenda for FY 2022-2026, available at 
                    <E T="03">https://www.transportation.gov/sites/dot.gov/files/2022-03/DOT_Learning_Agenda.pdf.</E>
                </P>
                <P>
                    1. Are there new priority learning questions (
                    <E T="03">i.e.,</E>
                     not already included in the DOT Learning Agenda) that reflect emerging or unanticipated needs and knowledge gaps and that, if answered, could help advance DOT's mission?
                </P>
                <P>
                    2. Are there new priority data needs (
                    <E T="03">i.e.,</E>
                     not already included in the DOT Learning Agenda) that reflect emerging or unanticipated needs and knowledge gaps and that, if addressed, could help advance DOT's mission?
                </P>
                <P>3. Does the DOT Learning Agenda contain learning questions or data priorities that need to be adjusted either because priorities have shifted or because they have been addressed through evidence-building activities by DOT or others?</P>
                <HD SOURCE="HD1">Public Participation</HD>
                <HD SOURCE="HD2">How do I prepare and submit comments?</HD>
                <P>To ensure that your comments are filed correctly, please include the docket number of this document (DOT-OST-2024-0005) in your comments.</P>
                <P>
                    Please submit one copy (two copies if submitting by mail or hand delivery) of your comments, including any attachments, to the docket following the instructions given above under 
                    <E T="02">ADDRESSES</E>
                    . Please note, if you are submitting comments electronically as a PDF (Adobe) file, we ask that the documents submitted be scanned using an Optical Character Recognition (OCR) process, thus allowing the Agency to search and copy certain portions of your submissions.
                </P>
                <HD SOURCE="HD2">How do I submit confidential business information?</HD>
                <P>Any submissions containing Confidential Information must be delivered to DOT in the following manner:</P>
                <P>• Submitted in a sealed envelope marked “confidential treatment requested”;</P>
                <P>• Document(s) or information that the submitter would like withheld from the public docket should be marked “PROPIN”;</P>
                <P>• Accompanied by an index listing the document(s) or information that the submitter would like the Departments to withhold. The index should include information such as numbers used to identify the relevant document(s) or information, document title and description, and relevant page numbers and/or section numbers within a document; and</P>
                <P>
                    • Submitted with a statement explaining the submitter's grounds for 
                    <PRTPAGE P="10158"/>
                    objecting to disclosing the information to the public.
                </P>
                <P>DOT will treat such marked submissions as confidential under the FOIA and not include them in the public docket. DOT also requests that submitters of Confidential Information include a non-confidential version (either redacted or summarized) of those confidential submissions in the public docket. If the submitter cannot provide a non-confidential version of its submission, DOT requests that the submitter post a notice in the docket stating that it has provided DOT with Confidential Information. Should a submitter fail to docket either a non-confidential version of its submission or to post a notice that Confidential Information has been provided, we will note the receipt of the submission on the docket, with the submitter's organization or name (to the degree permitted by law) and the date of submission.</P>
                <HD SOURCE="HD2">Will the Agency consider late comments?</HD>
                <P>
                    DOT will consider all comments received before the close of business on the comment closing date indicated above under 
                    <E T="02">DATES</E>
                    . To the extent practicable, the Agency will also consider comments received after that date.
                </P>
                <HD SOURCE="HD2">How can I read the comments submitted by other people?</HD>
                <P>
                    You may read the comments received at the address given above under WRITTEN COMMENTS. The hours of the docket are indicated above in the same location. You may also see the comments on the internet, identified by the docket number at the heading of this notice, at 
                    <E T="03">http://www.regulations.gov.</E>
                </P>
                <P>Please note, this RFI is a planning document and will serve as such. The RFI should not be construed as policy, a solicitation for applications, or an obligation on the part of the government.</P>
                <SIG>
                    <DATED>Issued in Washington, DC, on February 6, 2024.</DATED>
                    <NAME>Victoria Wassmer,</NAME>
                    <TITLE>Assistant Secretary for Budget and Programs and Chief Financial Officer, U.S. Department of Transportation.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02669 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-9X-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <DEPDOC>[DOT-OST-2023-0175]</DEPDOC>
                <SUBJECT>Department of Transportation Advisory Committee on Human Trafficking: Notice of Public Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Secretary of Transportation, U.S. Department of Transportation.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of public meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P> This notice announces a virtual meeting of the Department of Transportation Advisory Committee on Human Trafficking.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The meeting will be held on March 13, 2024, from 9:30 a.m. to 5 p.m. EDT.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The meeting will be held virtually. Any person requiring accessibility accommodations should contact the Official listed in the next section.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Maha Alkhateeb, Office of International Transportation and Trade, U.S. Department of Transportation, at 
                        <E T="03">trafficking@dot.gov</E>
                         or (202) 366-4398. Also visit the ACHT website at 
                        <E T="03">https://www.transportation.gov/stophumantrafficking/acht.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Background</HD>
                <P>
                    ACHT was re-chartered on July 29, 2022, using the Department's authorities under the 
                    <E T="03">Bipartisan Infrastructure Law</E>
                     (BIL) (Pub. L. 117-58).
                    <SU>1</SU>
                    <FTREF/>
                     The ACHT was initially established as mandated by sec. 5(a) of the 2018 
                    <E T="03">Combating Human Trafficking in Commercial Vehicles Act</E>
                     (Pub. L. 115-99).
                    <SU>2</SU>
                    <FTREF/>
                     Sec. 23020 of the BIL requires the Secretary of Transportation, acting through the ACHT and in coordination with the Attorney General, to submit a triennial counter-trafficking report with recommendations for countering human trafficking, an assessment of best practices by transportation stakeholders, and human trafficking violations involving commercial motor vehicles.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">https://www.congress.gov/117/plaws/publ58/PLAW-117publ58.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">https://www.govinfo.gov/link/plaw/115/public/99.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Agenda</HD>
                <P>At the March 13, 2024, meeting, the agenda will cover the following topics:</P>
                <FP SOURCE="FP-1">• Welcome and Introductions</FP>
                <FP SOURCE="FP-1">• Subcommittees Reports and Discussion</FP>
                <FP SOURCE="FP-1">• Public Participation</FP>
                <P>
                    A final agenda that includes a virtual participation link will be posted on the ACHT internet website at 
                    <E T="03">https://www.transportation.gov/stophumantrafficking/acht,</E>
                     at least one week in advance of the meeting.
                </P>
                <HD SOURCE="HD1">III. Public Participation</HD>
                <P>
                    The virtual meeting will be open to the public. Members of the public who wish to attend are asked to register, including name and affiliation to 
                    <E T="03">trafficking@dot.gov</E>
                     by March 5, 2024. Individuals requesting accessibility accommodations, such as sign language, interpretation, or other ancillary aids, may do so via email at: 
                    <E T="03">trafficking@dot.gov</E>
                     by March 5, 2024.
                </P>
                <P>There will be 30 minutes allotted for oral comments from members of the public joining the meeting. To accommodate as many speakers as possible, the time for public comments may be limited. Individuals wishing to reserve speaking time during the meeting must submit a request at the time of registration, as well as the name, address, and organizational affiliation of the proposed speaker. If the number of registrants requesting to make statements is greater than can be reasonably accommodated during the meeting, the Office of the Secretary may conduct a lottery to determine the speakers. Speakers are requested to submit a written copy of their prepared remarks by 5 p.m. EST on March 5, 2024, for inclusion in the meeting records and for circulation to ACHT members. Written comments timely submitted from those participants not selected to speak will be accepted and considered as part of the meeting record.</P>
                <P>Persons who wish to submit written comments for consideration by ACHT during the meeting must submit them no later than 5 p.m. EST on March 5, 2024, to ensure transmission to ACHT prior to the meeting. Comments received after that date and time will be distributed to the members but may not be reviewed prior to the meeting.</P>
                <P>
                    Copies of the meeting minutes will be available on the ACHT internet website at 
                    <E T="03">https://www.transportation.gov/stophumantrafficking/acht.</E>
                </P>
                <SIG>
                    <DATED>Issued in Washington, DC, on February 7, 2024.</DATED>
                    <NAME>Carol Annette Petsonk,</NAME>
                    <TITLE>Assistant Secretary, Aviation and International Affairs, U.S. Department of Transportation.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02908 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-9X-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="10159"/>
                <AGENCY TYPE="N">DEPARTMENT OF THE TREASURY</AGENCY>
                <SUBAGY>Office of Foreign Assets Control</SUBAGY>
                <SUBJECT>Notice of OFAC Sanctions Actions</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Foreign Assets Control, Treasury.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing the names of one or more persons that have been placed on OFAC's Specially Designated Nationals and Blocked Persons List (SDN List) based on OFAC's determination that one or more applicable legal criteria were satisfied. All property and interests in property subject to U.S. jurisdiction of these persons are blocked, and U.S. persons are generally prohibited from engaging in transactions with them. Additionally, OFAC is publishing updates to the identifying information of one or more persons currently included on the SDN List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        See 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section for applicable date(s).
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>OFAC: Bradley T. Smith, Director, tel.: 202-622-2490; Associate Director for Global Targeting, tel.: 202-622-2420; Assistant Director for Licensing, tel.: 202-622-2480; Assistant Director for Regulatory Affairs, tel.: 202-622-4855; or the Assistant Director for Compliance, tel.: 202-622-2490.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Electronic Availability</HD>
                <P>
                    The SDN List and additional information concerning OFAC sanctions programs are available on OFAC's website (
                    <E T="03">https://www.treasury.gov/ofac</E>
                    ).
                </P>
                <HD SOURCE="HD1">Notice of OFAC Actions</HD>
                <P>A. On February 7, 2024, OFAC determined that the property and interests in property subject to U.S. jurisdiction of the following persons are blocked under the relevant sanctions authority listed below.</P>
                <BILCOD>BILLING CODE 4810-AL-P</BILCOD>
                <GPH SPAN="3" DEEP="477">
                    <GID>EN13FE24.312</GID>
                </GPH>
                <GPH SPAN="3" DEEP="435">
                    <PRTPAGE P="10160"/>
                    <GID>EN13FE24.313</GID>
                </GPH>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Lisa M. Palluconi,</NAME>
                    <TITLE>Deputy Director, Office of Foreign Assets Control, U.S. Department of the Treasury.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02855 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4810-AL-C</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE TREASURY</AGENCY>
                <SUBAGY>Office of Foreign Assets Control</SUBAGY>
                <SUBJECT>Notice of OFAC Sanctions Action</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Foreign Assets Control, Treasury.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing the name of a person whose property and interests in property have been unblocked and who have been removed from the Specially Designated Nationals and Blocked Persons List (SDN List).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>OFAC's actions described in this notice were effective on February 7, 2024.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>OFAC: Bradley T. Smith, Director, tel.: 202-622-2490; Associate Director for Global Targeting, tel.: 202-622-2420; Assistant Director for Licensing, tel.: 202-622-2480; Assistant Director for Regulatory Affairs, tel.: 202-622-4855; or the Assistant Director for Sanctions Compliance &amp; Evaluation, tel.: 202-622-2490.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Electronic Availability</HD>
                <P>
                    The SDN List and additional information concerning OFAC sanctions programs are available on OFAC's website (
                    <E T="03">https://www.treasury.gov/ofac</E>
                    ).
                </P>
                <HD SOURCE="HD1">Notice of OFAC Action(s)</HD>
                <P>On February 7, 2024, OFAC removed from the SDN List the person listed below, whose property and interests in property were blocked pursuant to section 1(a) of Executive Order 14024 of April 15, 2021, “Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation,” 86 FR 20249, 3 CFR, 2021 Comp., p. 542 (Apr. 15, 2021) (E.O. 14024). On February 7, 2024, OFAC determined that circumstances no longer warrant the inclusion of the following person on the SDN List under this authority. This person is no longer subject to the blocking provisions of section 1(a) of E.O. 14024.</P>
                <HD SOURCE="HD1">Entity:</HD>
                <EXTRACT>
                    <P>
                        1. SM DISTRIBUTION INC FZCO, Dubai Silicon Oasis, DDP Building A1, Unit 001, Dubai, United Arab Emirates; License 17750 
                        <PRTPAGE P="10161"/>
                        (United Arab Emirates); Economic Register Number (CBLS) 11902588 (United Arab Emirates) [RUSSIA-EO14024].
                    </P>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: February 7, 2024.</DATED>
                    <NAME>Lisa M. Palluconi,</NAME>
                    <TITLE>Deputy Director, Office of Foreign Assets Control, U.S. Department of the Treasury.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02857 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4810-AL-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF VETERANS AFFAIRS</AGENCY>
                <DEPDOC>[OMB Control No. 2900-0886]</DEPDOC>
                <SUBJECT>Agency Information Collection Activity: Decision Review Request: Supplemental Claim</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Veterans Benefits Administration, Department of Veterans Affairs.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Veterans Benefits Administration, Department of Veterans Affairs (VA), is announcing an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act (PRA) of 1995, Federal agencies are required to publish notice in the 
                        <E T="04">Federal Register</E>
                         concerning each proposed collection of information, including each proposed revision of a currently approved collection, and allow 60 days for public comment in response to the notice. 
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written comments and recommendations on the proposed collection of information should be received on or before April 15, 2024.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit written comments on the collection of information through Federal Docket Management System (FDMS) at 
                        <E T="03">www.Regulations.gov</E>
                         or to Nancy J. Kessinger, Veterans Benefits Administration (20M33), Department of Veterans Affairs, 810 Vermont Avenue NW, Washington, DC 20420 or email to 
                        <E T="03">nancy.kessinger@va.gov.</E>
                         Please refer to “OMB Control No. 2900-0886” in any correspondence. During the comment period, comments may be viewed online through FDMS.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Maribel Aponte, Office of Enterprise and Integration, Data Governance Analytics (008), 810 Vermont Ave. NW, Washington, DC 20006, (202) 266-4688 or email 
                        <E T="03">maribel.aponte@va.gov.</E>
                         Please refer to “OMB Control No. 2900-0886” in any correspondence.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Under the PRA of 1995, Federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. This request for comment is being made pursuant to section 3506(c)(2)(A) of the PRA.</P>
                <P>With respect to the following collection of information, VBA invites comments on:  (1) whether the proposed collection of information is necessary for the proper performance of VBA's functions, including whether the information will have practical utility; (2) the accuracy of VBA's estimate of the burden of the proposed collection of information; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or the use of other forms of information technology.</P>
                <P>
                    <E T="03">Authority:</E>
                     Public Law 115-55, sec. 2, 38 U.S.C. 5108, 38 CFR 3.2501.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Decision Review Request: Supplemental Claim (VA Form 20-0995).
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     2900-0886.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Revision of a currently approved collection.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     VA Form 20-0995 is used by a claimant and/or beneficiary to formally request a review of an initial VA decision, based on new and relevant evidence, in accordance with the Appeals Modernization Act. Without the information solicited by this form, VA would be unable to initiate the `Supplemental Claim' on behalf of the claimant or determine the issues for which the claimant seeks review.
                </P>
                <P>This proposed revision consists of; non-substantive edits to the `Instructions' to help clarify the content, a new question that helps identify what benefit type the claimant is requesting, a new section that separates Veteran from claimant, a new section identifying if the claimant is homeless or at risk of becoming homeless, a new section that provides an option to the claimant to check a box if they want VBA to notify the Veteran Health Administration about certain upcoming event(s) during the claim and/or appeal process, and a witness signature section, alternate signer signature section, and a power of attorney signature section has been added to help clarify who is signing the form. The respondent burden has increased due to the estimated number of receivables averaged over the past year.</P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or households.
                </P>
                <P>
                    <E T="03">Estimated Annual Burden:</E>
                     160,119.
                </P>
                <P>
                    <E T="03">Estimated Average Burden per Respondent:</E>
                     15 minutes.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     One time.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     640,477.
                </P>
                <SIG>
                    <P>By direction of the Secretary.</P>
                    <NAME>Maribel Aponte,</NAME>
                    <TITLE>VA PRA Clearance Officer, Office of Enterprise and Integration/Data Governance Analytics, Department of Veterans Affairs.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2024-02944 Filed 2-12-24; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8320-01-P</BILCOD>
        </NOTICE>
    </NOTICES>
    <VOL>89</VOL>
    <NO>30</NO>
    <DATE>Tuesday, February 13, 2024</DATE>
    <UNITNAME>Notices</UNITNAME>
    <NEWPART>
        <PTITLE>
            <PRTPAGE P="10163"/>
            <PARTNO>Part II</PARTNO>
            <AGENCY TYPE="P">Securities and Exchange Commission</AGENCY>
            <TITLE>Self-Regulatory Organizations; Notice</TITLE>
        </PTITLE>
        <NOTICES>
            <NOTICE>
                <PREAMB>
                    <PRTPAGE P="10164"/>
                    <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                    <DEPDOC>[Release No. 34-99359; File No. SR-PHLX-2024-01]</DEPDOC>
                    <SUBJECT>Self-Regulatory Organizations; Nasdaq PHLX, LLC; Notice of Filing of Proposed Rule Change To Establish Fees Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail; Suspension of and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</SUBJECT>
                    <DATE>January 17, 2024.</DATE>
                    <P>
                        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act” or the “Exchange Act”) 
                        <SU>1</SU>
                        <FTREF/>
                         and Rule 19b-4 thereunder,
                        <SU>2</SU>
                        <FTREF/>
                         notice is hereby given that, on January 2, 2024, Nasdaq PHLX, LLC (“Phlx” or “Exchange”) filed with the Securities and Exchange Commission (“SEC” or the “Commission”) the proposed rule change as described in Items I and II, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is, pursuant to Section 19(b)(3)(C) of the Act, hereby: (i) temporarily suspending the rule change; and (ii) instituting proceedings to determine whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             15 U.S.C. 78a.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             17 CFR 240.19b-4.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                    <P>The Exchange proposes to establish fees for Industry Members related to certain historical costs of the National Market System Plan Governing the Consolidated Audit Trail (the “CAT NMS Plan” or “Plan”) incurred prior to January 1, 2022, as described further below.</P>
                    <P>
                        The text of the proposed rule change is available on the Exchange's website at 
                        <E T="03">https://listingcenter.nasdaq.com/rulebook/nasdaq/rules,</E>
                         at the principal office of the Exchange, and at the Commission's Public Reference Room.
                    </P>
                    <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item V below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                    <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <HD SOURCE="HD3">1. Purpose</HD>
                    <P>
                        On July 11, 2012, the Commission adopted Rule 613 of Regulation NMS, which required the self-regulatory organizations (“SROs”) to submit a national market system (“NMS”) plan to create, implement and maintain a consolidated audit trail that would capture customer and order event information for orders in NMS securities across all markets, from the time of order inception through routing, cancellation, modification or execution.
                        <SU>3</SU>
                        <FTREF/>
                         On November 15, 2016, the Commission approved the CAT NMS Plan.
                        <SU>4</SU>
                        <FTREF/>
                         Under the CAT NMS Plan, the Operating Committee has the discretion to establish funding for the Consolidated Audit Trail, LLC (“CAT LLC” or “the Company”) 
                        <SU>5</SU>
                        <FTREF/>
                         to operate the CAT, including establishing fees for Industry Members 
                        <SU>6</SU>
                        <FTREF/>
                         to be assessed by CAT LLC that would be implemented on behalf of CAT LLC by the Participants.
                        <SU>7</SU>
                        <FTREF/>
                         The Operating Committee adopted a revised funding model to fund the CAT (“CAT Funding Model”). On September 6, 2023, the Commission approved the CAT Funding Model, after concluding that the model was reasonable and that it satisfied the requirements of Section 11A of the Exchange Act and Rule 608 thereunder.
                        <SU>8</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             Securities Exchange Act Rel. No. 67457 (July 18, 2012), 77 FR 45721 (Aug. 1, 2012).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             Securities Exchange Act Rel. No. 79318 (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016) (“CAT NMS Plan Approval Order”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             The term “CAT LLC” may be used to refer to Consolidated Audit Trail, LLC or CAT NMS, LLC, depending on the context.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             An “Industry Member” is defined as “a member of a national securities exchange or a member of a national securities association.” Nasdaq Rule General 7(u) (Phlx General 7 incorporates The Nasdaq Stock Market LLC Rule General 7 by reference) 
                            <E T="03">See also</E>
                             Section 1.1 of the CAT NMS Plan. Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth in the CAT NMS Plan and/or the CAT Compliance Rule. Nasdaq General 7 (Consolidated Audit Trail Compliance).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Securities Exchange Act Rel. No. 98290 (Sept. 6, 2023), 88 FR 62628 (Sept. 12, 2023) (“CAT Funding Model Approval Order”).
                        </P>
                    </FTNT>
                    <P>
                        The CAT Funding Model provides a framework for the recovery of the costs to create, develop and maintain the CAT, including providing a method for allocating costs to fund the CAT among Participants and Industry Members. The CAT Funding Model establishes two categories of fees: (1) CAT fees assessed by CAT LLC and payable by certain Industry Members to recover a portion of historical CAT costs previously paid by the Participants (“Historical CAT Assessment” fees); and (2) CAT fees assessed by CAT LLC and payable by Participants and Industry Members to fund prospective CAT costs (“Prospective CAT Costs” fees).
                        <SU>9</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             Under the CAT Funding Model, the Operating Committee may establish one or more Historical CAT Assessments. Section 11.3(b) of the CAT NMS Plan. This filing only establishes Historical CAT Assessment 1 related to certain Historical CAT Costs as described herein; it does not address any other potential Historical CAT Assessment related to other Historical CAT Costs. In addition, under the CAT Funding Model, the Operating Committee also may establish CAT Fees related to CAT costs going forward. Section 11.3(a) of the CAT NMS Plan. This filing does not address any potential CAT Fees related to CAT costs going forward. Any such other fee for any other Historical CAT Assessment or CAT Fee for Prospective CAT Costs will be subject to a separate fee filing.
                        </P>
                    </FTNT>
                    <P>
                        Under the CAT Funding Model, “[t]he Operating Committee will establish one or more fees (each a `Historical CAT Assessment') to be payable by Industry Members with regard to CAT costs previously paid by the Participants (`Past CAT Costs').” 
                        <SU>10</SU>
                        <FTREF/>
                         In establishing a Historical CAT Assessment, the Operating Committee will determine a “Historical Recovery Period” and calculate a “Historical Fee Rate” for that Historical Recovery Period. Then, for each month in which a Historical CAT Assessment is in effect, each CEBB and CEBS would be required to pay the fee—the Historical CAT Assessment—for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate.
                        <SU>11</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, the proposed recovery of the Past CAT Costs via the Historical CAT Assessment is reasonable.” CAT Funding Model Approval Order at 62662.
                        </P>
                    </FTNT>
                    <P>
                        Each Historical CAT Assessment to be paid by CEBBs and CEBSs is designed to contribute toward the recovery of two-thirds of the Historical CAT Costs. Because the Participants previously have paid Past CAT Costs via loans to the Company, the Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans 
                        <PRTPAGE P="10165"/>
                        made by the Participants to the Company on a pro rata basis based on the outstanding loan amounts due under the loans, instead of through the payment of a CAT fee.
                        <SU>12</SU>
                        <FTREF/>
                         In addition, Participants also will be 100% responsible for certain Excluded Costs (as discussed below).
                    </P>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             Section 11.3(b)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC proposes to charge CEBBs and CEBSs (as described in more detail below) Historical CAT Assessment 1 to recover certain historical CAT costs incurred prior to January 1, 2022, in accordance with the CAT Funding Model. To implement this fee on behalf of CAT LLC, the CAT NMS Plan requires the Participants to “file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves, and such fees shall be labeled as `Consolidated Audit Trail Funding Fees.' ” 
                        <SU>13</SU>
                        <FTREF/>
                         The Plan further states that “Participants will be required to file with the SEC pursuant to Section 19(b) of the Exchange Act a filing for each Historical CAT Assessment.” 
                        <SU>14</SU>
                        <FTREF/>
                         Accordingly, the purpose of this filing is to implement a Historical CAT Assessment on behalf of CAT LLC for Industry Members, referred to as Historical CAT Assessment 1, in accordance with the CAT NMS Plan.
                        <SU>15</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             Section 11.3(b)(iii)(B)(I) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             Note that there may be one or more Historical CAT Assessments depending on the timing of the completion of the Financial Accountability Milestones, among other things. Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(1) CAT Executing Brokers</HD>
                    <P>
                        Historical CAT Assessment 1 will be charged to each CEBB and CEBS for each applicable transaction in Eligible Securities.
                        <SU>16</SU>
                        <FTREF/>
                         The CAT NMS Plan defines a “CAT Executing Broker” to mean:
                    </P>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             In its approval of the CAT Funding Model, the Commission determined that charging CAT fees to CAT Executing Brokers was reasonable. In reaching this conclusion the Commission noted that the use of CAT Executing Brokers is appropriate because the CAT Funding Model is based upon the calculation of executed equivalent shares, and, therefore, charging CAT Executing Brokers would reflect their executing role in each transaction. Furthermore, the Commission noted that, because CAT Executing Brokers are already identified in transaction reports from the exchanges and FINRA's equity trade reporting facilities recorded in CAT Data, charging CAT Executing Brokers could streamline the billing process. CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) with respect to a transaction in an Eligible Security that is executed on an exchange, the Industry Member identified as the Industry Member responsible for the order on the buy-side of the transaction and the Industry Member responsible for the sell-side of the transaction in the equity order trade event and option trade event in the CAT Data submitted to the CAT by the relevant exchange pursuant to the Participant Technical Specifications; and (b) with respect to a transaction in an Eligible Security that is executed otherwise than on an exchange and required to be reported to an equity trade reporting facility of a registered national securities association, the Industry Member identified as the executing broker and the Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event in the CAT Data submitted to the CAT by FINRA pursuant to the Participant Technical Specifications; provided, however, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.
                            <SU>17</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>17</SU>
                                 Section 1.1 of the CAT NMS Plan. Note that CEBBs and CEBSs may, but are not required to, pass-through their CAT fees to their clients, who may, in turn, pass their fees to their clients until they are imposed ultimately on the account that executed the transaction. CAT Funding Model Approval Order at 62649.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The following fields of the Participant Technical Specifications indicate the CAT Executing Brokers for the transactions executed on an exchange.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>18</SU>
                             
                            <E T="03">See</E>
                             Table 23, Section 4.7 (Order Trade Event) of the CAT Reporting Technical Specifications for Plan Participants, Version 4.1.0-r20 (Sept. 25, 2023), 
                            <E T="03">https://www.catnmsplan.com/sites/default/files/2023-09/9.25.2023-CAT_Reporting_Technical_Specifications_for_Participants_4.1.0-r20.pdf</E>
                             (“CAT Reporting Technical Specifications for Plan Participants”).
                        </P>
                        <P>
                            <SU>19</SU>
                             
                            <E T="03">See</E>
                             Table 51, Section 5.2.5.1 (Simple Option Trade Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="133">
                        <GID>EN13FE24.036</GID>
                    </GPH>
                    <GPH SPAN="3" DEEP="69">
                        <GID>EN13FE24.037</GID>
                    </GPH>
                    <PRTPAGE P="10166"/>
                    <P>
                        In addition, the following fields of the Participant Technical Specifications would indicate the CAT Executing Brokers for the transactions executed otherwise than on an exchange.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>20</SU>
                             
                            <E T="03">See</E>
                             Table 61, Section 6.1 (TRF/ORF/ADF Transaction Data Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="90">
                        <GID>EN13FE24.038</GID>
                    </GPH>
                    <HD SOURCE="HD3">(2) Calculation of Historical Fee Rate 1</HD>
                    <P>The Operating Committee determined the Historical Fee Rate to be used in calculating Historical CAT Assessment 1 (“Historical Fee Rate 1”) by dividing the Historical CAT Costs for Historical CAT Assessment 1 (“Historical CAT Costs 1”) by the projected total executed share volume of all transactions in Eligible Securities for the Historical Recovery Period for Historical CAT Assessment 1 (“Historical Recovery Period 1”), as discussed in detail below. Based on this calculation, the Operating Committee has determined that Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. This rate is then divided by three and rounded to determine the fee rate of $0.000015 per executed equivalent share that will be assessed to CEBBs and CEBSs, as also discussed in detail below.</P>
                    <HD SOURCE="HD3">(A) Executed Equivalent Shares for Transactions in Eligible Securities</HD>
                    <P>
                        Under the CAT NMS Plan, for purposes of calculating each Historical CAT Assessment, executed equivalent shares in a transaction in Eligible Securities will be reasonably counted as follows: (1) each executed share for a transaction in NMS Stocks will be counted as one executed equivalent share; (2) each executed contract for a transaction in Listed Options will be counted based on the multiplier applicable to the specific Listed Options (
                        <E T="03">i.e.,</E>
                         100 executed equivalent shares or such other applicable multiplier); and (3) each executed share for a transaction in OTC Equity Securities shall be counted as 0.01 executed equivalent share.
                        <SU>21</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             Section 11.3(a)(i)(B) and 11.3(b)(i)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission concluded that “the use of executed equivalent share volume as the basis of the proposed cost allocation methodology is reasonable and consistent with the approach taken by the funding principles of the CAT NMS Plan.” CAT Funding Model Approval Order at 62640.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Historical CAT Costs 1</HD>
                    <P>
                        The CAT NMS Plan states that “[t]he Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee. Each Historical CAT Assessment will seek to recover from CAT Executing Brokers two-thirds of Historical CAT Costs incurred during the period covered by the Historical CAT Assessment.” 
                        <SU>22</SU>
                        <FTREF/>
                         As described in detail below, Historical CAT Costs 1 would be $337,688,610. This figure includes Past CAT Costs of $401,312,909 minus certain Excluded Costs of $63,624,299. Participants collectively will remain responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), plus the Excluded Costs of $63,624,299. CEBBs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), and CEBSs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870).
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             Section 11.3(b)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        The following describes in detail Historical CAT Costs 1 with regard to four separate historical time periods as well as Past CAT Costs excluded from Historical CAT Costs 1 (“Excluded Costs”). The following cost details are provided in accordance with the requirement in the CAT NMS Plan to provide in the fee filing “a brief description of the amount and type of Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.” 
                        <SU>23</SU>
                        <FTREF/>
                         Each of the costs described below are reasonable, appropriate and necessary for the creation, implementation and maintenance of CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             Section 11.3(b)(iii)(B)(II)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(i) Historical CAT Costs Incurred Prior to June 22, 2020 (Pre-FAM Costs)</HD>
                    <P>Historical CAT Costs 1 would include costs incurred by CAT prior to June 22, 2020 (“Pre-FAM Period”) and already funded by the Participants, excluding Excluded Costs (described further below). Historical CAT Costs 1 would include costs for the Pre-FAM Period of $143,919,521. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($47,973,174), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($47,973,174) and CEBSs paying one-third ($47,973,174). These costs do not include Excluded Costs, as discussed further below. The following table breaks down Historical CAT Costs 1 for the Pre-FAM Period into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.</P>
                    <GPH SPAN="3" DEEP="220">
                        <PRTPAGE P="10167"/>
                        <GID>EN13FE24.039</GID>
                    </GPH>
                    <P>
                        The
                        <FTREF/>
                         Pre-FAM Period includes a broad range of CAT-related activity from 2012 through June 22, 2020, including the evaluation of the requirements of SEC Rule 613, the development of the CAT NMS Plan, the evaluation and selection of the initial and successor Plan Processors, the commencement of the creation and implementation of the CAT to comply with Rule 613 and the CAT NMS Plan, including technical specifications for transaction reporting and regulatory access, and related technology and the commencement of reporting to the CAT. The following describes the costs for each of the categories for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             With respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>25</SU>
                             The costs described in this table of costs for the Pre-FAM Period were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website. In addition, in accordance with Section 6.6(a)(i) of the CAT NMS Plan, in 2018 CAT LLC provided the SEC with “an independent audit of fees, costs, and expenses incurred by the Participants on behalf of the Company prior to the Effective Date of the Plan that will be publicly available.” The audit is available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>The $10,268,840 in technology costs for cloud hosting services represent costs incurred for services provided by the cloud services provider for the CAT, Amazon Web Services, Inc. (“AWS”), during the Pre-FAM Period.</P>
                    <P>As part of its proposal for acting as the successor Plan Processor for the CAT, FCAT selected AWS as a subcontractor to provide cloud hosting services. In 2019, after reviewing the capabilities of other cloud services providers, FCAT determined that AWS was the only cloud services provider at that time sufficiently mature and capable of providing the full suite of necessary cloud services for the CAT, including, for example, the security, resiliency and complexity necessary for the CAT computing requirements. The use of cloud hosting services is standard for this type of high-volume data activity and reasonable and necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT the fees incurred by the Plan Processor for cloud hosting services provided by AWS as FCAT's subcontrator on a monthly basis for the cloud hosting services, and FCAT, in turn, pays such fees to AWS. The fees for cloud hosting services were negotiated by FCAT on an arm's length basis with the goals of managing cost and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the expected volume of data, the breadth of services provided and market rates for similar services. The fees for cloud hosting services during the Pre-FAM Period were paid to FCAT by CAT NMS LLC 
                        <SU>26</SU>
                        <FTREF/>
                         and subsequently Consolidated Audit Trail, LLC (as previously noted, both entities are referred to generally as “CAT LLC”),
                        <SU>27</SU>
                        <FTREF/>
                         and FCAT, in turn, paid AWS. CAT LLC was funded via loan contributions by the Participants.
                        <SU>28</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>26</SU>
                             CAT NMS, LLC was formed by FINRA and the U.S. national securities exchanges to implement the requirements of SEC Rule 613 under the Exchange Act. SEC Rule 613 required the SROs to jointly submit to the SEC the CAT NMS Plan to create, implement and maintain the CAT. The SEC approved the CAT NMS Plan on November 15, 2016. CAT NMS Plan Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             On August 29, 2019, the Participants formed a new Delaware limited liability company named Consolidated Audit Trail, LLC for the purpose of conducting activities related to the CAT from and after the effectiveness of the proposed amendment of the CAT NMS Plan to replace CAT NMS, LLC. 
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 87149 (Sept. 27, 2019), 84 FR 52905 (Oct. 3, 2019).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             For each of the costs paid by CAT NMS, LLC and Consolidated Audit Trail, LLC as discussed throughout this filing, CAT NMS, LLC and Consolidated Audit Trail, LLC paid these costs via loan contributions by the Participants to CAT NMS, LLC and Consolidated Audit Trail, LLC, respectively.
                        </P>
                    </FTNT>
                    <P>AWS was engaged by FCAT to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. Services provided by AWS include storage services, databases, compute services and other services (such as networking, management tools and DevOps tools). AWS also was engaged to provide various environments for CAT, such as development, performance testing, test and production environments.</P>
                    <P>
                        The cost for AWS services for the CAT is a function of the volume of CAT Data. The greater the amount of CAT Data, the greater the cost of AWS services to the CAT. During the Pre-FAM Period from the engagement of AWS in February 2019 through June 2020, AWS provided cloud hosting services for volumes of CAT Data far in 
                        <PRTPAGE P="10168"/>
                        excess of the volume predictions set forth in the CAT NMS Plan. The CAT NMS Plan states, when all CAT Reporters are submitting their data to the CAT, it “must be sized to receive[,] process and load more than 58 billion records per day,” 
                        <SU>29</SU>
                        <FTREF/>
                         and that “[i]t is expected that the Central Repository will grow to more than 29 petabytes of raw, uncompressed data.” 
                        <SU>30</SU>
                        <FTREF/>
                         However, the volume of CAT Data for the Pre-FAM Period was far in excess of these predicted levels. By the end of this period, data submitted to the CAT included options and equities Participant Data,
                        <SU>31</SU>
                        <FTREF/>
                         Phase 2a and Phase 2b Industry Member Data 
                        <SU>32</SU>
                        <FTREF/>
                         (including certain linkages), as well as SIP Data,
                        <SU>33</SU>
                        <FTREF/>
                         reference data and other types of Other Data.
                        <SU>34</SU>
                        <FTREF/>
                         The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during the Pre-FAM Period.
                        <SU>35</SU>
                        <FTREF/>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             Appendix D-5 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             
                            <E T="03">See</E>
                             Section 6.3(d) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Rel. No. 88702 (Apr. 20, 2020), 85 FR 23075 (Apr. 24, 2020) (“Phased Reporting Exemptive Relief Order”) for a description of Phase 2a and Phase 2b Industry Member Data.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See</E>
                             Appendix C-108 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             Note that, although there were compute hours during this period, data related to such compute hours are no longer available in current data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="199">
                        <GID>EN13FE24.040</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>
                        The $21,085,485 in technology costs related to operating fees represent costs incurred with regard to activities of FCAT as the Plan Processor. Operating fees are those fees paid by CAT LLC to FCAT as the Plan Processor to operate and maintain the CAT and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management as required by the CAT NMS Plan.
                    </P>
                    <P>
                        FCAT was selected to assume the role of the successor Plan Processor. Prior to this selection, the Participants engaged in discussions with two prior Bidders 
                        <SU>37</SU>
                        <FTREF/>
                         for the successor Plan Processor role. The Operating Committee formed a Selection Subcommittee in accordance with Section 4.12 of the CAT NMS Plan to evaluate and review Bids and to make a recommendation to the Operating Committee with respect to the selection of the successor Plan Processor. In an April 9, 2019 letter to the Commission, the Participants described the reasons for its selection of the successor Plan Processor:
                    </P>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             The term “Bidder” is defined in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>The Selection Subcommittee considered factors including, but not limited to, the following, in recommending FINRA to the Operating Committee as the successor Plan Processor:</P>
                    <EXTRACT>
                        <P>a. FINRA's specialized technical expertise and capabilities in the area of broker-dealer technology;</P>
                        <P>b. The need to appoint a successor Plan Processor with specialized expertise to develop, implement, and maintain the CAT System in accordance with the CAT NMS Plan and SEC Rule 613;</P>
                        <P>c. FINRA's detailed proposal in response to CATLLC's recent inquiries; and</P>
                        <P>d. FINRA's data query and analytics systems demonstration to the Participants.</P>
                        <P>
                            Based on these and other factors, the Selection Subcommittee determined that FINRA was the most appropriate Bidder to become the successor Plan Processor.
                            <SU>38</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>38</SU>
                                 Letter from Michael J. Simon, Chair, CAT NMS, LLC Operating Committee, to Brent J. Fields, Secretary, SEC (Apr. 9, 2019), 
                                <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection-040919.pdf.</E>
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        On February 26, 2019, the Operating Committee (with FINRA recusing itself) voted to select FINRA as the successor Plan Processor pursuant to Section 6.1(t) of the CAT NMS Plan.
                        <SU>39</SU>
                        <FTREF/>
                         On March 29, 2019, CAT LLC and FCAT (a wholly owned subsidiary of FINRA) entered into a Plan Processor Agreement pursuant to which FCAT would perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>39</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT a negotiated monthly fixed price for the operation of the CAT. This fixed price contract was negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity. The operating fees during the Pre-FAM Period were paid to FCAT by CAT LLC.</P>
                    <P>
                        From March 29, 2019 (the commencement of the Plan Processor Agreement with FCAT) through June 22, 2020 (the end of the Pre-FAM Period), the Plan Processor's activities with 
                        <PRTPAGE P="10169"/>
                        respect to the CAT included the following:
                    </P>
                    <P>
                        • Commenced user acceptance testing with market data provided by Exegy Incorporated (“Exegy”), a market data provider; 
                        <SU>40</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             The use of Exegy to provide market data, including the costs and market data provided, is discussed below in Section 3(a)(2)(B)(i)(i).
                        </P>
                    </FTNT>
                    <P>• Published Technical Specifications and related reporting scenarios documents for Phase 2a, 2b and 2c reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated testing for Phase 2a and 2b reporting for Industry Members;</P>
                    <P>• Began developing Technical Specifications and related reporting scenarios documents for Phase 2d reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published Central Repository Access Technical Specifications, and provided regulator access to test data from Industry Members;</P>
                    <P>• Facilitated Participant exchanges that support options market makers sending Quote Sent Time to the CAT;</P>
                    <P>• Facilitated the introduction of OPRA and Options NBBO Other Data to CAT;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing requirements under Regulation SCI;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants, SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk, which is the primary source for answers to questions about CAT, including questions regarding: clock synchronization, firm reporting responsibilities, interpretive questions, technical specifications for reporting to CAT and more;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>
                        • Administered the CAT website and all of its content; 
                        <SU>41</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             The CAT website is 
                            <E T="03">https://www.catnmsplan.com.</E>
                        </P>
                    </FTNT>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>The $2,072,908 in technology costs related to CAIS operating fees represent the fees paid for FCAT's subcontractor charged with the development and operation of CAT's Customer and Account Information System (“CAIS”). The CAT is required under the CAT NMS Plan to capture and store Customer Identifying Information and Customer Account Information in a database separate from the transactional database and to create a CAT-Customer-ID for each Customer.</P>
                    <P>During the Pre-FAM Period, the CAIS-related services were provided by the Plan Processor through the Plan Processor's subcontractor, Kingland Systems Incorporation (“Kingland”). Kingland had experience operating in the securities regulatory technology space, and as a part of its proposal for acting as the Plan Processor for the CAT, FCAT selected Kingland as a subcontractor to provide certain CAIS-related services.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay to the Plan Processor the fees incurred by the FCAT for CAIS-related services provided by FCAT through Kingland on a monthly basis. FCAT negotiated the fees for Kingland's CAIS-related services on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity. The fees for CAIS-related services during the Pre-FAM Period were paid by CAT LLC to FCAT. FCAT, in turn, paid Kingland. During the Pre-FAM Period, Kingland began development of the CAIS Technical Specifications and the building of CAIS. In addition, Kingland also worked on the build related to the CCID Alternative, an alternative approach to customer information that was not included in the CAT NMS Plan as originally adopted.
                        <SU>42</SU>
                        <FTREF/>
                         Furthermore, Kingland also worked on the acceleration of the reporting of large trader identifiers (“LTID”) earlier than originally contemplated during this period, in accordance with exemptive relief granted by the SEC.
                        <SU>43</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             For a discussion of the CCID Alternative, 
                            <E T="03">see</E>
                             Securities Exchange Act Rel. No. 88393 (Mar. 17, 2020), 85 FR 16152 (Mar. 20, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             Phased Reporting Exemptive Relief Order at 23079-80.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        The technology costs related to change request fees include costs related to certain modifications, upgrades or other changes to the CAT. Change requests are standard practice and necessary to reflect operational changes, including changes related to new market developments, such as new market participants. In general, if CAT LLC determines that a modification, upgrade or other changes to the functionality or service is necessary and appropriate, CAT LLC will submit a request for such a change to the Plan Processor. The Plan Processor will then respond to the request with a proposal for implementing the change, including the cost (if any) of such a change. CAT LLC then determines whether to approve the proposed change. The change request costs were paid by CAT LLC to FCAT. During the Pre-FAM Period, CAT LLC incurred costs of $141,346 related to change requests implemented by FCAT. Such change requests related to a development fee regarding the OPRA and SIP data feeds, and the reprocessing of certain exchange data.
                        <SU>44</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             Note that CAT LLC also has incurred costs related to specific Industry Members (
                            <E T="03">e.g.,</E>
                             reprocessing costs related to Industry Member reporting errors).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>This category of costs includes capitalizable application development costs incurred in the development of the CAT. The capitalized developed technology costs for the Pre-FAM Period of $71,475,941 relate to technology provided by the Initial Plan Processor and the successor Plan Processor.</P>
                    <P>
                        <E T="03">Initial Plan Processor: Thesys CAT, LLC.</E>
                         The capitalized developed technology costs related to the Initial Plan Processor include costs incurred with regard to testing for Participant reporting, Participant reporting to the CAT, a security assessment of the CAT, the development of the billing function for the CAT, and a Plan Processor transition fee.
                    </P>
                    <P>
                        On January 17, 2017, the Selection Committee of the CAT NMS Plan selected the Initial Plan Processor, Thesys Technologies, LLC, for the CAT NMS Plan pursuant to Article V of the 
                        <PRTPAGE P="10170"/>
                        CAT NMS Plan.
                        <SU>45</SU>
                        <FTREF/>
                         The Participants utilized a request for proposal (“RFP”) to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan, taking into consideration that the Initial Plan Processor had experience operating in the securities regulatory technology space, among other considerations. On April 6, 2017, CAT LLC entered into an agreement with Thesys CAT LLC (“Thesys CAT”), a Thesys affiliate, to perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT. Under the agreement, CAT LLC would pay Thesys CAT a negotiated, fixed price fee for its role as the Initial Plan Processor. Effective January 30, 2019, the Plan Processor Agreement with Thesys CAT was terminated, and FCAT was subsequently selected as the successor Plan Processor.
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             Letter from the Participants to Brent J. Fields, Secretary, SEC (Jan. 18, 2017), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection.pdf.</E>
                        </P>
                    </FTNT>
                    <P>From January 17, 2017 through January 30, 2019, the time in which the Thesys CAT was engaged for the CAT, but excluding the period from November 15, 2017 through November 15, 2018, the Initial Plan Processor engaged in various activities with respect to the CAT, including preparing iterative drafts of Participant Technical Specifications, Industry Member Technical Specifications and the Central Repository Access Technical Specifications. Thesys CAT initiated and maintained the Participant reporting per the Participant Technical Specifications. In addition, Thesys CAT also developed CAT technology, addressed compliance items, including drafting CAT policies and procedures, addressing Regulation SCI requirements, establishing a CAT Compliance Officer and a Chief Information Security Officer, and addressed security-related matters for the CAT. Furthermore, Thesys CAT performed transition services related to the transition from Thesys CAT to FCAT as the successor Plan Processor from January 30, 2019 through April 15, 2019.</P>
                    <P>
                        <E T="03">Successor Plan Processor: FCAT.</E>
                         The capitalized developed technology costs related to FCAT include: (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, including the completion of go-live functionality related to options ingestion and validation, equities regulatory services agreement query tool updates and unlinked options data query, options linkages release, Industry Member Phase 2a file submission and data integrity (including error corrections), and Industry Member testing, including reporting relationships, ATS order type management, basic reporting statistics, SFTP data integrity feedback and error correction; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including a one-time development fee for a secure analytics workspace, a one-time development fee of an Industry Member connectivity solution, and a one-time development fee for the acceleration of multi-factor authentication; (3) CAIS implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $19,674,463 represent the fees paid for legal services provided by two law firms, Wilmer Cutler Pickering Hale and Dorr LLP (“WilmerHale”) and Pillsbury Winthrop Shaw Pittman LLP (“Pillsbury”), during the Pre-FAM Period. The legal costs exclude those costs incurred from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         Following the adoption of Rule 613, the Participants determined it was necessary to engage external legal counsel to advise the Participants with respect to corporate and regulatory legal matters related to the CAT, including drafting and developing the CAT NMS Plan. The Participants considered a variety of factors in their analysis of prospective law firms, including (1) the firm's qualifications, resources and expertise, (2) the firm's relevant experience and understanding of the regulatory matters raised by the CAT and in advising on matters of similar scope, (3) the composition of the legal team, and (4) professional fees. Following a series of interviews, the Participants acting as a consortium determined that WilmerHale was well qualified given the balance of these considerations and engaged WilmerHale in February 2013.
                    </P>
                    <P>WilmerHale's billing rates are negotiated on an annual basis and are determined with reference to the rates charged by other leading law firms for similar work. The Participants assess WilmerHale's performance and review prospective budgets and staffing plans submitted by WilmerHale on an annual basis. WilmerHale's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading law firms for similar work.</P>
                    <P>The legal costs for WilmerHale during the Pre-FAM Period included costs incurred from 2013 until June 22, 2020 to address corporate and regulatory legal matters related to the CAT. The legal fees for this law firm during the period from February 2013 until the formation of the CAT NMS, LLC on November 15, 2016 were paid directly by the exchanges and FINRA to WilmerHale. After the formation of CAT NMS LLC, the legal fees were paid by CAT LLC to WilmerHale.</P>
                    <P>After WilmerHale was engaged in 2013 through the end of the Pre-FAM Period on June 22, 2020 (excluding the legal costs from November 15, 2017 through November 15, 2018), WilmerHale provided legal assistance to the CAT on a variety of matters, including with regard to the following:</P>
                    <P>• Analyzed various legal matters associated with the Selection Plan, and drafted an amendment to Selection Plan;</P>
                    <P>• Assisted with the RFP and bidding process for the CAT Plan Processor;</P>
                    <P>• Analyzed legal matters related to the Development Advisory Group (“DAG”);</P>
                    <P>• Drafted the CAT NMS Plan, analyzed various items related to the CAT NMS Plan, and responded to comment letters on CAT NMS Plan;</P>
                    <P>
                        • Provided legal support for the formation of the legal entity, the governance of the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan; and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan and related filings;</P>
                    <P>
                        • Negotiated and drafted the plan processor agreements with the Initial 
                        <PRTPAGE P="10171"/>
                        Plan Processor and the successor Plan Processor;
                    </P>
                    <P>• Provided assistance with compliance with Regulation SCI;</P>
                    <P>• Assisted with clock synchronization study;</P>
                    <P>• Provided assistance with respect to the establishment of CAT security;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including with regard to options market maker quotes, Customer IDs, CAT Reporter IDs, linking allocations to executions, CAT reporting timeline, FDIDs, customer and account information, timestamp granularity, small industry members, data facility reporting and linkage, allocation reports, SRO-assigned market participant identifiers and cancelled trade indicators, thereby seeking to implement changes that would be cost effective and benefit Industry Members and Participants;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided advice regarding CAT policies and procedures;</P>
                    <P>• Analyzed the SEC's amendment of the CAT NMS Plan regarding financial accountability;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues; and</P>
                    <P>• Assisted with third party vendor agreements.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         The legal costs for CAT during the Pre-FAM Period include costs related to the legal services performed by Pillsbury. The Participants interviewed this law firm as well as other potential law firms to provide legal assistance regarding certain liability matters. After considering a variety of factors in its analysis, including the relevant expertise and fees of the firm, CAT LLC determined to hire Pillsbury in April 2019. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees were paid by CAT LLC to Pillsbury. The legal costs for Pillsbury during the Pre-FAM Period included costs incurred from April 2019 until June 22, 2020 to address legal matters regarding the agreements between CAT Reporters and CAT LLC concerning certain terms associated with CAT Reporting (the “Reporter Agreement”). During that period, Pillsbury advised CAT LLC regarding applicable legal matters, participated in negotiations between the Participants and Industry Members, participated in meetings with senior SEC staff, the Chairman, and Commissioners, represented CAT LLC and the Participants in an SEC administrative proceeding, and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, litigation involving CAT LLC is an expense of operating the CAT, and, therefore, is appropriately an obligation of both Participants and Industry Members under the CAT Funding Model.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $17,013,414 represent the fees paid to the consulting firm Deloitte &amp; Touche LLP (“Deloitte”) as project manager during the Pre-FAM Period, from October 2012 until June 22, 2020. These consulting costs include costs for advisory services related to the operation of the CAT, and meeting facilitation and communications coordination, vendor support and financial analyses.</P>
                    <P>To help facilitate project management given the unprecedented complexity and scope of the CAT project, the Participants determined it was necessary to engage a consulting firm to assist with the CAT project in 2012, following the adoption of Rule 613. A variety of factors were considered in the analysis of prospective consulting firms, including (1) the firm's qualifications, resources, and expertise, (2) the firm's relevant experience and understanding of the regulatory issues raised by the CAT and in coordinating matters of similar scope, (3) the composition of the consulting team, and (4) professional fees. Following a series of interviews, the exchanges and FINRA as a consortium determined that Deloitte was well qualified given the balance of these considerations and engaged Deloitte on October 1, 2012.</P>
                    <P>Deloitte's fee rates are negotiated on an annual basis and are in line with market rates for this type of specialized consulting work. CAT LLC assesses Deloitte's performance and reviews prospective budgets and staffing plans submitted by Deloitte on an annual basis. Deloitte's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading consulting firms for similar work.</P>
                    <P>The consulting costs for CAT during the period from 2012 until the formation of the CAT NMS, LLC were paid directly by the Participants to Deloitte. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC to Deloitte. CAT LLC reviewed the consulting fees each month and approved the invoices.</P>
                    <P>After Deloitte was hired in 2012 through the end of the Pre-FAM Period on June 22, 2020 (excluding the consulting costs from November 15, 2017 through November 15, 2018), Deloitte provided a variety of consulting services, including the following:</P>
                    <P>
                        • Established and implemented program operations for the CAT project, including the program managment [
                        <E T="03">sic</E>
                        ] office and workstream design;
                    </P>
                    <P>• Assisted with the Plan Processor selection process, including but not limited to, the development of the RFP and the bidder evaluation process, and facilitation and consolidation of the Participant's independent reviews;</P>
                    <P>• Assisted with the development and drafting of the CAT NMS Plan, including conducting cost-benefit studies, analyzing OATS and CAT requirements, and drafting appendices to the Plan;</P>
                    <P>• Assisted with cost and funding-related activities for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>
                        • Provided governance support to the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with industry outreach and communications regarding the CAT, including assistance with industry outreach events, the development of the CAT website, frequently asked questions, and coordinating with the CAT LLC's public relations firm;</P>
                    <P>
                        • Provided support for updating the SEC on the progress of the development of the CAT;
                        <PRTPAGE P="10172"/>
                    </P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress;</P>
                    <P>• Coordinated efforts regarding the selection of the successor Plan Processor;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor, including support for the Operating Committee and successor Plan Processor for the new role; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $880,419 represent the cost incurred for insurance for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT insurance policies, which included engaging in discussions with different insurance companies and conducting cost comparisons of various alternative approaches to insurance. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance from USI Insurance Services LLC (“USI”). Such policies are standard for corporate entities, and cyber security liability insurance is important for the CAT System. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        In adopting the CAT NMS Plan, the Commission amended the Plan to add a requirement that CAT LLC's financial statements be prepared in compliance with GAAP, audited by an independent public accounting firm, and made publicly available.
                        <SU>46</SU>
                        <FTREF/>
                         The professional and administration costs include costs related to accounting and accounting advisory services to support the operating and financial functions of CAT, financial statement audit services by an independent accounting firm, preparation of tax returns, and various cash management and treasury functions. In addition, professional and administration costs for the Pre-FAM Period include costs related to the receipt of market data and a security assessment. The costs for these professional and administration services were $1,082,036 for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             Section 9.2 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin Accountants &amp; Advisors (“Anchin”).</E>
                         CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT in April 2018. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services were paid by CAT LLC to Anchin.
                    </P>
                    <P>After Anchin was hired in April 2018 through the end of the Pre-FAM Period on June 22, 2020 (excluding the period from April 2018 through November 15, 2018), Anchin provided a variety of services, including the following:</P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial reporting matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton LLP (“Grant Thornton”).</E>
                         In February 2020, CAT LLC determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the proposed role given the balanace [
                        <E T="03">sic</E>
                        ] of these considerations. Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services. The fees for these services were paid by CAT LLC to Grant Thornton.
                    </P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         The professional and administrative costs for the Pre-FAM Period included costs related to the receipt of certain market data for the CAT pursuant to an agreement with the CAT LLC, and then with FCAT. Exegy provided SIP Data required by the CAT NMS Plan.
                    </P>
                    <P>
                        After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy from July 2018 through March 2019. CAT LLC determined that, unlike certain other vendors, Exegy provided market data that included all data elements required by the CAT NMS Plan.
                        <SU>47</SU>
                        <FTREF/>
                         In addition, the fees were reasonable and in line with market rates for the market data received. Accordingly, the professional and administrative costs for the Pre-FAM Period include the Exegy costs from November 2018 through March 2019. The cost of the market data was reasonable for the market data received. The fees for the market data were paid directly by CAT LLC to Exegy.
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>Upon the termination of the contract between CAT LLC and Exegy, FCAT entered into a contract with Exegy to purchase the required market data from Exegy in July 2019. All costs under the contract were treated as a direct pass through cost to CAT LLC. Therefore, the fees for the market data were paid by CAT LLC to FCAT, who, in turn, paid Exegy for the market data.</P>
                    <P>
                        <E T="03">Security Assessment: RSM US LLP (“RSM”).</E>
                         The operating costs for the Pre-FAM Period include costs related to a third party security assessment of the 
                        <PRTPAGE P="10173"/>
                        CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation, and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment. RSM performed the assessment from October 2018 through December 2018. Accordingly, the costs for the Pre-FAM Period include the costs incurred in November and December 2018. The cost for the security assessment were paid directly to RSM by CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $224,669 represent the fees paid to public relations firms during the Pre-FAM Period for professional communications services to CAT, including media relations consulting, strategy and execution. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants. Specifically, the public relations firms provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                    </P>
                    <P>The services performed by each of the public relations firms were comparable. The fees for such services were reasonable and in line with market rates. Only one public relations firm was engaged at a time; the three firms were engaged sequentially as the primary public relations contact moved among the three firms during this time period.</P>
                    <P>
                        <E T="03">Public Relations Firm: Peppercomm, Inc. (“Peppercomm”).</E>
                         The national securities exchanges and FINRA, acting as a consortium, determined to hire the public relations firm Peppercomm in October 2014 and continued to engage this firm through September 2017. The exchanges and FINRA made this engagement decision after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fee rates for this public relations firm were negotiated on an arm's length basis and were in line with market rates for these types of services. The public relations costs during the period from October 2014 until the formation of the CAT NMS LLC were paid directly by the exchanges and FINRA to the public relations firm. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Sloane &amp; Company (“Sloane”).</E>
                         CAT LLC determined to hire a new public relations firm, Sloane, in March 2018, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Sloane. CAT LLC continued the engagement with Sloane until February 2020.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Peak Strategies.</E>
                         CAT LLC determined to hire a new public relations firm, Peak Strategies, in March 2020, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Peak Strategies.
                    </P>
                    <HD SOURCE="HD3">(ii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 1</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 1 of the Financial Accountability Milestones (“FAM Period 1”),
                        <SU>48</SU>
                        <FTREF/>
                         which covers the period from June 22, 2020-July 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 1 of $6,377,343. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($2,125,781), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781). The following table breaks down Historical CAT Costs 1 for FAM Period 1 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             Section 11.6(a)(i)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="199">
                        <PRTPAGE P="10174"/>
                        <GID>EN13FE24.041</GID>
                    </GPH>
                    <P>
                        By the completion of FAM Period 1, CAT LLC was required to implement the reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of equities transaction data and options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.
                        <SU>51</SU>
                        <FTREF/>
                         CAT LLC completed the requirements of FAM Period 1 by July 31, 2020. The following describes the costs for each of the categories for FAM Period 1.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>50</SU>
                             The costs described in this table of costs for FAM Period 1 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             
                            <E T="03">See</E>
                             definition of “Initial Industry Member Core Equity and Options Reporting” in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 1 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 1 Period. Accordingly, the $2,642,122 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 1. The fee arrangement for AWS described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. Moreover, CAT LLC continued to believe that AWS's maturity in the cloud services space as well as the significant cost and time necessary to move the CAT to a different cloud services provider supported the continued engagement of AWS.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 1 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, reference data and other types of Other Data. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 1.
                        <SU>52</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="222">
                        <PRTPAGE P="10175"/>
                        <GID>EN13FE24.042</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 1. Accordingly, the $1,099,680 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 1. The fee arrangement for FCAT described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Published iterative drafts of draft Technical Specifications for Phase 2d, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published iterative drafts of CAIS Technical Specifications, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated Industry Member reporting of Quote Sent Time on Options Market Maker quotes;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 1. Accordingly, the $254,998 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 1. The fee arrangement for Kingland described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>CAT LLC did not incur costs related to change requests during FAM Period 1.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 1 of $1,684,870 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include: (1) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including separate production and industry test entitlements, and reprocessing of exchange event timestamps; (2) implementation fees; and (3) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $481,687 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 1.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 1 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to WilmerHale. During FAM Period 1, WilmerHale provided legal assistance to the CAT including with regard to the following:
                        <PRTPAGE P="10176"/>
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments and fee filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, verbal activity, options market maker quote sent time, TRF linkages, and allocations;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including the Financial Accountability Milestone amendment;</P>
                    <P>• Assisted with compliance with Regulation SCI;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the drafting of the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Assisted with communications and presentations for the industry regarding CAIS;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding CAT technical specifications;</P>
                    <P>• Assisted with third party vendor agreements; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to Pillsbury. During FAM Period 1, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $137,209 represent the fees paid to Deloitte as project manager during FAM Period 1. CAT LLC continued to employ Deloitte during FAM Period 1 based on, among other things, their expertise and cumulative experience with the CAT. The fee rates for Deloitte during FAM Period 1 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 1 were paid by CAT LLC to the consulting firm. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 1, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>Although insurance was in effect during FAM Period 1, CAT LLC did not incur costs related to insurance during FAM Period 1.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         The professional and administration costs of $69,077 represent the fees paid to Anchin during FAM Period 1. CAT LLC continued to employ Anchin during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these type of financial advisory services. The fees for these services during FAM Period 1 were paid by CAT LLC to Anchin. During FAM Period 1, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups; and</P>
                    <P>• Prepared monthly and quarterly financial statements.</P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $7,700 represent the fees paid to Peak Strategies during FAM Period 1. CAT LLC continued to employ Peak Strategies during FAM Period 1 based on, among other things, their expertise and history with the project. The fee rates for this firm were reasonable and in line with market rates for these types of services. The fees for these services during FAM Period 1 were paid by CAT LLC to Peak Strategies. During FAM Period 1, Peak Strategies continued to provide professional communications services to CAT LLC, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 2</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT LLC and already funded by Participants during Period 2 of the Financial Accountability 
                        <PRTPAGE P="10177"/>
                        Milestones (“FAM Period 2”),
                        <SU>53</SU>
                        <FTREF/>
                         which covers the period from August 1, 2020-December 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 2 of $42,976,478. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($14,325,493), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($14,325,493) and CEBSs paying one-third ($14,325,493). The following table breaks down Historical CAT Costs 1 for FAM Period 2 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             Section 11.6(a)(i)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>55</SU>
                             The costs described in this table of costs for FAM Period 2 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="199">
                        <GID>EN13FE24.043</GID>
                    </GPH>
                    <P>By the completion of FAM Period 2, CAT LLC was required to implement the following with regard to the CAT:</P>
                    <EXTRACT>
                        <P>
                            (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, CustomerID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission.
                            <SU>56</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>56</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Implementation of Core Equity Reporting Requirements” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>CAT LLC completed the requirements of FAM Period 2 by December 31, 2020. The following describes the costs for each of the categories for FAM Period 2.</FP>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 2 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 2 Period. Accordingly, the $20,709,212 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 2. The fee arrangement for AWS described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 2 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, and Other Data, including reference data. In addition, Industry Members began reporting LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 2.
                        <SU>57</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>57</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="233">
                        <PRTPAGE P="10178"/>
                        <GID>EN13FE24.044</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 2. Accordingly, the $9,108,700 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 2. The fee arrangement for FCAT described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, FCAT's activities with respect to the CAT included publishing the Technical Specifications for Phase 2d and overseeing the reporting of firm to firm and intrafirm linkages by Industry Members. In addition, FCAT also continued to engage in the following activities during FAM Period 2:</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the development and implementation of the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 2. Accordingly, the $1,590,298 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 2. The fee arrangement for Kingland described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 2, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 2, CAT incurred costs of $51,823 related to a change request regarding the addition of functionality for exchange Participants to report rejected messages to the CAT.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 2 of $6,761,094 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to separate production and industry test entitlements, market maker reference data, and back-processing of exchange exception logic; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>
                        The legal costs of $2,766,644 represent the fees paid for legal services 
                        <PRTPAGE P="10179"/>
                        provided by two law firms, WilmerHale and Pillsbury during FAM Period 2.
                    </P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 2 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to WilmerHale. During FAM Period 1 [
                        <E T="03">sic</E>
                        ], the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, allocations, exchange activity, OTQT, initial data validation, error corrections and recordkeeping;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittees, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6 of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for the Compliance Subcommittee, including with regard to responses to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding the SEC's proposed security amendments to the CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>
                        • Assisted with third party vendor agreements (
                        <E T="03">e.g.,</E>
                         with regard to Anchin, Grant Thornton and insurance policies);
                    </P>
                    <P>• Assisted with change requests; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to Pillsbury. During FAM Period 2, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted and filed a proposed amendment to the CAT NMS plan regarding liability matters. As discussed above, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $532,146 represent the fees paid to Deloitte as project manager during FAM Period 2. CAT LLC continued to employ Deloitte during FAM Period 2 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 2 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 2 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 2, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $976,098 represent the fees paid for insurance during FAM Period 2. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $438,523 represent the fees paid to Anchin and Grant Thornton for financial services provided during FAM Period 2.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to engage Anchin during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these types of financial advisory services. The fees for these services during FAM Period 2 were paid by CAT LLC to Anchin. During FAM Period 2, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from the Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audit by an independent auditor; and</P>
                    <P>• Reviewed historical costs from inception.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 2 based on, among other things, its expertise and cumulative knowledge of CAT LLC. CAT LLC continued to believe that Grant Thornton was well qualified for its role and its fee rates were in line with with market rates for these accounting services. The fees for these services during FAM Period 2 were paid by CAT 
                        <PRTPAGE P="10180"/>
                        LLC to Grant Thornton. During FAM Period 2, Grant Thornton performed a financial statement audit for CAT LLC as an independent accounting firm.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $41,940 represent the fees paid to Peak Strategies during FAM Period 2. CAT LLC continued to employ Peak Strategies during FAM Period 2 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 2 were paid by CAT LLC to Peak Strategies. During FAM Period 2, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iv) Historical CAT Costs Incurred in Financial Accountability Milestone Period 3</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 3 of the Financial Accountability Milestones (“FAM Period 3”),
                        <SU>58</SU>
                        <FTREF/>
                         which covers the period from January 1, 2021-December 31, 2021. Historical CAT Costs 1 would include costs for FAM Period 3 of $144,415,268. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($48,138,423), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($48,138,423) and CEBSs paying one-third ($48,138,423). The following table breaks down Historical CAT Costs 1 for FAM Period 3 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             Section 11.6(a)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>60</SU>
                             The costs described in this table of costs for FAM Period 3 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="199">
                        <GID>EN13FE24.045</GID>
                    </GPH>
                    <P>By the completion of FAM Period 3, CAT LLC was required to implement the following requirements with regard the CAT:</P>
                    <EXTRACT>
                        <P>
                            (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met.
                            <SU>61</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>61</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Availability and Regulatory Utilization of Transactional Database Functionality” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>
                        CAT LLC completed the requirements of FAM Period 3 by December 31, 2021. 
                        <PRTPAGE P="10181"/>
                        The following describes the costs for each of the categories for FAM Period 3.
                    </FP>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 3 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 3 Period. Accordingly, the $94,574,759 in technology costs for cloud hosting services represents costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 3. The fee arrangement for AWS described above for the earlier periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During FAM Period 3, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a, Phase 2b, Phase 2c and Phase 2d Industry Member Data (including certain linkages), SIP Data, Other Data, including reference data, and LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 3.
                        <SU>62</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>62</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <BILCOD>BILLING CODE 8011-01-P</BILCOD>
                    <GPH SPAN="3" DEEP="475">
                        <GID>EN13FE24.046</GID>
                    </GPH>
                    <PRTPAGE P="10182"/>
                    <BILCOD>BILLING CODE 8011-01-C</BILCOD>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 3. Accordingly, the $23,106,091 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 3. The fee arrangement for FCAT described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Facilitated Phase 2c and Phase 2d testing for Industry Members;</P>
                    <P>• Oversaw creation of linkages of the lifecycle of order events based on the received data through Phase 2d;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement with FCAT discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 3. Accordingly, the $5,562,383 in technology costs for CAIS operating fees represents costs incurred for services provided by Kingland during FAM Period 3. The fee arrangement for Kingland described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs. The full CAIS Technical Specifications were published during FAM Period 3.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 3, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 3, CAT incurred costs of $396,169 related to change requests, including the following: (1) the addition of functionality for exchange Participants to report rejected messages to the CAT; (2) the migration of MIRS query engine to AWS to reduce operational costs and increase resiliency; and (3) updating the Participant Technical Specifications to allow for two-sided Participant option quote reporting.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 3 of $10,763,372 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor, including the transition from equity data received by FINRA pursuant to various regulatory services agreements between FINRA and Participant exchanges to the equity CAT Data, and the completion of the Industry Member Phase 2d options manual and complex orders go-live requirements; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to off-exchange volume concentration, Participant 24-hour trading and an external metastore; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $6,333,248 represent the fees paid for legal services provided by three law firms, WilmerHale, Pillsbury and Covington &amp; Burling LLP (“Covington”) during FAM Period 3.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 3 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to WilmerHale. During FAM Period 3, the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including, for example, verbal activity regarding Phase 2c cutover, error reports, error corrections, Phase 2d Reporting, unique Order-ID on internal route events, reporting addresses, recordkeeping, and unique CCID for foreign customers;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs, CAIS requirements, ADF, and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6(c) of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding SEC's proposed security amendments to CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>• Provided assistance with change requests;</P>
                    <P>• Provided guidance and regulatory support for litigation regarding the response to SEC's exemptive orders;</P>
                    <P>
                        • Assisted with communications with the industry, includng CAT Alerts and presentations;
                        <PRTPAGE P="10183"/>
                    </P>
                    <P>• Provided guidance regarding the confidentiality of CAT Data, including third-party information requests;</P>
                    <P>• Assisted with cost management analysis and proposals; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to Pillsbury. During FAM Period 3, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During this period, Pillsbury advised CAT LLC regarding applicable legal matters, reviewed and responded to comment letters regarding the proposed Plan amendment, participated in meetings with senior SEC staff, responded to comments submitted following the SEC's April 6, 2021 order instituting proceedings,
                        <SU>63</SU>
                        <FTREF/>
                         and assessed legal matters regarding the SEC's October 29, 2021 order denying the proposed Plan amendment.
                        <SU>64</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             Securities Exchange Act Rel. No. 91487 (Apr. 6, 2021), 86 FR 19054 (Apr. 12, 2021).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             Securities Exchange Act Rel. No. 93484 (Oct. 29, 2021), 86 FR 60933 (Nov. 4, 2021).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Law Firm: Covington.</E>
                         CAT LLC hired Covington for litigation with the SEC regarding certain exemptive orders related to the CAT, including orders issued in December 2020.
                        <SU>65</SU>
                        <FTREF/>
                         CAT LLC interviewed this law firm as well as other potential law firms, considering a variety of factors in its analysis for choosing legal assistance, including the relevant expertise and fees of the potential lawyers. CAT LLC approved the engagement of Covington in January 2021. The fee rates for this law firm, which were calculated based on hourly rates, were in line with market rates for specialized services. The legal fees for FAM Period 3 for this firm were paid by CAT LLC to Covington.
                    </P>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 90688 (Dec. 16, 2020), 85 FR 83634 (Dec. 22, 2020); and Securities Exchange Act Rel. No. 90689 (Dec. 16, 2020), 85 FR 83667 (Dec. 22, 2020) (collectively, the “2020 Orders”).
                        </P>
                    </FTNT>
                    <P>After Covington was hired in 2021 through the end of 2021, the firm provided legal assistance regarding the litigation with the SEC regarding the 2020 Orders. These services included researching, drafting, and filing motions to stay the 2020 orders and related materials in proceedings before the SEC, as well as researching, drafting, and filing petitions for judicial review of the 2020 Orders in proceedings before the U.S. Court of Appeals for the D.C. Circuit. Covington oversaw ongoing litigation proceedings on these matters, and also supported WilmerHale with respect to settlement negotiations with the SEC staff regarding the 2020 Orders.</P>
                    <P>
                        In addition to these services, CAT LLC engaged Covington in November 2021 to provide assistance with respect to the SEC's disapproval of CAT NMS Plan amendments concerning a proposed limitation on liability in the event of a data breach or similar event. Covington provided advice concerning CAT's response to the SEC's disapproval order. This work accounted for a minority of Covington's fees in 2021.
                        <SU>66</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             As discussed above with regard to Pillsbury's work on liability matters, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, such activity is a necessary part of the operation of the CAT.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $1,408,209 represent the fees paid to Deloitte as project manager during FAM Period 3. CAT LLC continued to employ Deloitte during FAM Period 3 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 3 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 3 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 3, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $1,582,714 represent the fees paid for insurance FAM Period 3. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $595,923 represent the fees paid to Anchin and Grant Thornton for financial services during FAM Period 3.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to employ Anchin during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services during FAM Period 3 were paid by CAT LLC to Anchin. During FAM Period 3, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the 
                        <PRTPAGE P="10184"/>
                        accounting firm Grant Thornton during FAM Period 3 based on, among other things, their expertise and cumulative knowledge of CAT LLC. CAT LLC determined that Grant Thornton was well qualified for its role and that its fixed fee rates were in line with market rates for these accountant services. The fees for these services during FAM Period 3 were paid by CAT LLC to Grant Thornton. During FAM Period 3, Grant Thornton provided audited financial statements for CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $92,400 represent the fees paid to Peak Strategies during FAM Period 3. CAT LLC continued to employ Peak Strategies during FAM Period 3 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 3 were paid by CAT LLC to Peak Strategies. During FAM Period 3, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(v) Excluded Costs</HD>
                    <P>
                        Historical CAT Costs 1 would not include two categories of CAT costs (“Excluded Costs”): (1) $48,874,937, which are all CAT costs incurred from November 15, 2017 through November 15, 2018; and (2) $14,749,362 of costs related to the termination of the relationship with the Initial Plan Processor. The Participants would remain responsible for 100% of these costs, which total $63,624,299. CAT LLC determined that it was reasonable to exclude these Excluded Costs from Historical CAT Costs 1 because the excluded costs relate to the delay in the start of reporting to the CAT and the conclusion of the relationship with the Initial Plan Processor.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             In approving the CAT Funding Model, the Commission states that “the proposed exclusion of the `Excluded Costs' from Past CAT Costs is reasonable in the Commission's view because it would not require all costs incurred by the Participants to be recovered from Industry Members through the Historical CAT Assessment, specifically excluding those costs related to the delay in the start of reporting to the CAT and costs related to the conclusion of the relationship with the Initial Plan Processor.” CAT Funding Model Approval Order at 62663.
                        </P>
                    </FTNT>
                    <P>First, Historical CAT Costs 1 would not include $14,749,362 of costs related to the conclusion of the relationship with the Initial Plan Processor. Such costs include costs related to the American Arbitration Association, the legal assistance of Pillsbury with regard to the arbitration with Thesys CAT, and the settlement costs related to the arbitration with Thesys CAT. The Participants would remain responsible for 100% of these $14,749,362 in costs.</P>
                    <P>
                        Second, the Historical CAT Costs would exclude all CAT costs incurred from November 15, 2017 through November 15, 2018. CAT LLC determined to exclude all costs during this one-year period of $48,874,937 from fees charged to Industry Members due to the delay in the start of reporting to the CAT. The Participants would remain responsible for 100% of these $48,874,937 in costs. The following table breaks down these costs into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <SU>68</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             The costs described in this table of Excluded Costs were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="179">
                        <GID>EN13FE24.047</GID>
                    </GPH>
                    <P>The following provides additional detail regarding the Excluded Costs.</P>
                    <FP>(a) Technology Costs—Cloud Hosting Services, Operating Fees, CAIS Operating Fees and Change Request Fees</FP>
                    <P>CAT LLC did not incur technology costs related to the categories of cloud hosting services, operating fees, CAIS operating fees or change requests during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(b) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>
                        Capitalized developed technology costs for the period from November 15, 2017 through November 15, 2018 include capitalizable application 
                        <PRTPAGE P="10185"/>
                        development costs of $37,852,083 incurred in the development of the CAT by the Initial Plan Processor. Such costs include development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Initial Plan Processor. Such costs include costs related to Industry Member technical specifications for orders and transactions, the system security plan, testing and production for Participant CAT reporting, third-party security assessment and response, query portal, onboarding of the Chief Information Security Officer, and ingestion of FINRA TRF data and FINRA data related to halts and corporate actions.
                    </P>
                    <HD SOURCE="HD3">(c) Legal Costs</HD>
                    <P>The legal costs of $6,143,278 represent the fees paid to WilmerHale for legal services from November 15, 2017 through November 15, 2018. During this period, WilmerHale provided legal assistance to the CAT including with regard to the following:</P>
                    <P>• Provided legal support for the governance of the CAT, including governance support for the Operating Committee, Advisory Committee, Compliance Subcommittee, and CAT working groups;</P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan;</P>
                    <P>• Provided assistance related to CAT security;</P>
                    <P>• Drafted exemptive requests, including requests related to PII;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided advice with regard to regulator access to the CAT;</P>
                    <P>• Assisted with the Plan Processor transition;</P>
                    <P>• Provided assistance regarding communications with the industry regarding the CAT;</P>
                    <P>• Provided advice regarding Customer Account Information and PII;</P>
                    <P>• Provided support for litigation related to SEC exemptive orders; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretative and implementation issues.</P>
                    <HD SOURCE="HD3">(d) Consulting Costs</HD>
                    <P>The consulting costs of $4,452,106 represent the fees paid to Deloitte for their role as project manager for the CAT from November 15, 2017 through November 15, 2018. During this period, Deloitte engaged in the following activities with respect to the CAT:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>
                        • Provided governance support to the Operating Committee, including support for Subcommittees and working groups of the Operating Committee (
                        <E T="03">e.g.,</E>
                         Compliance Subcommittee, Cost and Funding Working Group, Technical Working Group, Industry Outreach Working Group, Security Working Group and Steering Committee);
                    </P>
                    <P>• Assisted with cost and funding issue for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress.</P>
                    <HD SOURCE="HD3">(e) Insurance</HD>
                    <P>CAT LLC did not incur costs related to insurance during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(f) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $340,145 represent the fees paid to Anchin, Exegy and RSM from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in April 2018 through November 15, 2018, Anchin engaged in the following activities with respect to the CAT:
                    </P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         From July 2018 through November 15, 2018, CAT LLC purchased market data from Exegy (as described in more detail above).
                    </P>
                    <P>
                        <E T="03">Security Assessment: RSM.</E>
                         From October 2018 through November 15, 2018, CAT LLC incurred costs for RSM's performance of a security assessment (as described in more detail above).
                    </P>
                    <HD SOURCE="HD3">(g) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $87,325 represent the fees paid to Sloane from November 15, 2017 through November 15, 2018. From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in March 2018 through November 15, 2018, Sloane provided professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, Sloane provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan).
                    </P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        Under the CAT NMS Plan, the Operating Committee is required to reasonably establish the length of the Historical Recovery Period used in calculating each Historical Fee Rate based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment, and to describe the reasons for its length.
                        <SU>69</SU>
                        <FTREF/>
                         The 
                        <PRTPAGE P="10186"/>
                        Historical Recovery Period used in calculating the Historical Fee Rate may not be less than 24 months or more than five years.
                        <SU>70</SU>
                        <FTREF/>
                         The Operating Committee has determined to establish a Historical Recovery Period 1 of 24 months for Historical CAT Assessment 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             Section 11.3(b)(i)(D)(I) and Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             Section 11.3(b)(i)(D)(I) of the CAT NMS Plan. In the CAT Funding Model Approval Order, the SEC stated that “[i]n the Commission's view, it is reasonable for the Operating Committee to establish the length of the Historical Recovery Period to be no less than 24 months and no more than five years.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The Operating Committee determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans to the Participants in a timely fashion. The Operating Committee determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>71</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, the Operating Committee recognized that the total costs for Historical CAT Assessment 1 were less than the total costs for 2022 and 2023,
                        <SU>72</SU>
                        <FTREF/>
                         and therefore it would be reasonable and appropriate to recover costs subject to this filing over an approximate two-year period. Furthermore, the Operating Committee notes that 24 months is appropriate because it is not currently proposing that Industry Members be required to pay additional CAT fees with regard to another Historical CAT Assessment or CAT Fees with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model at 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             The total CAT costs for 2022 were approximately $186 million and the total CAT costs for 2023 are estimated to be approximately $233 million.
                        </P>
                    </FTNT>
                    <P>
                        The length of the Historical Recovery Period 1 and the reasons for its length are provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>73</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             Section 11.3(b)(iii)(B)(II)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Total Executed Equivalent Share Volume</HD>
                    <P>
                        The calculation of Historical Fee Rate 1 also requires the determination of the projected total executed equivalent share volume of transactions in Eligible Securities for Historical Recovery Period 1. Under the CAT NMS Plan, the Operating Committee is required to “reasonably determine the projected total executed equivalent share volume of all transactions in Eligible Securities for each Historical Recovery Period based on the executed equivalent share volume of all transactions in Eligible Securities for the prior twelve months.” 
                        <SU>74</SU>
                        <FTREF/>
                         The Operating Committee is required to base its projection on the prior twelve months, but it may use its discretion to analyze the likely volume for the upcoming year. Such discretion would allow the Operating Committee to use its judgment when estimating projected total executed equivalent share volume if the volume over the prior twelve months was unusual or otherwise unfit to serve as the basis of a future volume estimate.
                        <SU>75</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             Section 11.3(b)(i)(E) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. The Operating Committee has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. The Operating Committee determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is projected to be 7,685,722,694,558.88 executed equivalent shares.
                        <SU>76</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <P>
                        The projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1 and a description of the calculation of the projection is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             Section 11.3(b)(iii)(B)(II)(D) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Historical Fee Rate 1</HD>
                    <P>
                        Historical Fee Rate 1 would be calculated by dividing Historical CAT Costs 1 by the reasonably projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1, as described in detail above.
                        <SU>78</SU>
                        <FTREF/>
                         Specifically, Historical Fee Rate 1 would be calculated by dividing $337,688,610 by 7,685,722,694,558.88. As a result, the Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. Historical Fee Rate 1 is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide the Historical Fee Rate in a fee filing for a Historical CAT Assessment.
                        <SU>79</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             In approving the CAT Funding Model, the Commission stated that “[t]he calculation of the Historical Fee Rate by dividing the Historical CAT Costs by the projected total executed equivalent share volume of all transactions in Eligible Securities for the Historical Recovery Period is reasonable.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             Section 11.3(b)(iii)(B)(II)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Past CAT Costs and Participants</HD>
                    <P>Participants would not be required to pay any fees associated with Historical CAT Assessment 1 as the Participants previously have paid all Past CAT Costs. The CAT NMS Plan explains that:</P>
                    <EXTRACT>
                        <P>
                            Because Participants previously have paid Past CAT Costs via loans to the Company, Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs and such other additional Past CAT Costs as reasonably determined by the Operating Committee will be paid by the cancellation of loans made to the Company on a pro rata basis based on the outstanding loan amounts due under the loans.
                            <SU>80</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>80</SU>
                                 Section 11.3(b)(ii) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The CAT NMS Plan further states that “Historical CAT Assessments are designed to recover two-thirds of the Historical CAT Costs.” 
                        <SU>81</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>81</SU>
                             
                            <E T="03">Id.</E>
                             In approving the CAT Funding Model, the Commission stated that “[t]he proposed allocation of the Historical CAT Assessment solely to CEBs and CEBBs, and ultimately Industry Members, is reasonable. The Historical CAT Assessment will still be divided into thirds,” as the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made to the Company. CAT Funding Model Approval Order at 62666.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(4) Monthly Fees</HD>
                    <P>
                        CEBBs and CEBSs would be required to pay fees for Historical CAT Assessment 1 on a monthly basis for the period in which Historical CAT Assessment 1 is in effect.
                        <SU>82</SU>
                        <FTREF/>
                         A CEBB or CEBS's fee for each month would be calculated based on the transactions in Eligible Securities executed by the 
                        <PRTPAGE P="10187"/>
                        CEBB or CEBS from the prior month.
                        <SU>83</SU>
                        <FTREF/>
                         Proposed paragraph (a)(1)(A) of the fee schedule would state that each CAT Executing Broker would receive its first invoice in April 2024, and “would receive an invoice each month thereafter in which Historical CAT Assessment 1 is in effect.” Proposed paragraph (a)(1)(B) of the fee schedule would state that “Consolidated Audited Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” In addition, proposed paragraph (b)(1) of the fee schedule states that each CEBB and CEBS is required to pay its CAT fees “each month.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             
                            <E T="03">See</E>
                             proposed paragraph (a)(1)(B) of the fee schedule.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(5) Actual Recovery Period for Historical CAT Assessment 1</HD>
                    <P>
                        The CAT NMS Plan states that, “[n]otwithstanding the length of the Historical Recovery Period used in calculating the Historical Fee Rate, each Historical CAT Assessment calculated using the Historical Fee Rate will remain in effect until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                        <SU>84</SU>
                        <FTREF/>
                         Accordingly, Historical CAT Assessment 1 will remain in effect until all Historical CAT Costs 1 have been collected. The actual recovery period for Historical CAT Assessment 1 may be shorter or longer than Historical Recovery Period 1 depending on the actual executed equivalent share volumes during the time that Historical CAT Assessment 1 is in effect.
                        <SU>85</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             Section 11.3(b)(i)(D)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             In approving the CAT Funding Model, the Commission stated that “[i]n the Commission's view, it is reasonable for Industry Members to be charged a Historical CAT Assessment until all Historical CAT Costs for the Historical CAT Assessment are collected.” CAT Funding Model Approval Order at 62665.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(6) Consolidated Audit Trail Funding Fees</HD>
                    <P>To implement Historical CAT Assessment 1, a “Consolidated Audit Trail Funding Fees” section would be added to the Exchange's fee schedule, to include the proposed paragraphs described below.</P>
                    <HD SOURCE="HD3">(A) Fee Schedule for Historical CAT Assessment 1</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Each month in which a Historical CAT Assessment is in effect, each CEBB and each CEBS shall pay a fee for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate reasonably determined pursuant to paragraph (b)(i) of this Section 11.3.
                            <SU>86</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>86</SU>
                                 Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, based on the factors discussed above, the Exchange proposes to add paragraph (a)(1) to the Consolidated Audit Trail Funding Fees section of its fee schedule. Proposed paragraph (a)(1) would state the following:</P>
                    <EXTRACT>
                        <P>(A) Each CAT Executing Broker shall receive its first invoice for Historical CAT Assessment 1 in April 2024, which shall set forth the Historical CAT Assessment 1 fees calculated based on transactions in March 2024, and shall receive an invoice for Historical CAT Assessment 1 for each month thereafter in which Historical CAT Assessment 1 is in effect.</P>
                        <P>(B) Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis. Each month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.</P>
                        <P>(C) Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time. Consolidated Audit Trail, LLC will provide notice when Historical CAT Assessment 1 will no longer be in effect.</P>
                        <P>(D) Each CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).</P>
                    </EXTRACT>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, “as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>87</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of the fee schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 of $0.0000439371316687066 by one-third, and rounding the result to 6 decimal places.
                        <SU>88</SU>
                        <FTREF/>
                         The Operating Committee determined to use six decimal places to balance the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>87</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             Dividing $0.0000439371316687066 by three equals $0.00001464571055623553. Rounding $$0.00001464571055623553 to six decimal places equals $0.000015.
                        </P>
                    </FTNT>
                    <P>The proposed language in paragraph (a)(1)(A) of the fee schedule would describe when CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1. Specifically, CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 and the fees set forth in that invoice would be calculated based on transactions executed in the prior month, that is, transactions executed in March 2024. The payment for the first invoice would be required within 30 days after the receipt of the first invoice (unless a longer period is indicated), as described in proposed paragraph (b)(2) of the fee schedule.</P>
                    <P>Proposed paragraph (a)(1)(A) of the fee schedule also would describe the monthly cadence of the invoices for Historical CAT Assessment 1. Specifically, after the first invoices are provided to CAT Executing Brokers in April 2024, invoices will be sent to CAT Executing Brokers each month thereafter while Historical CAT Assessment 1 is in effect.</P>
                    <P>Proposed paragraph (a)(1)(B) of the fee schedule would describe the invoices for Historical CAT Assessment 1. Proposed paragraph (a)(1)(B) of the fee schedule would state that “Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” Proposed paragraph (a)(1)(B) of the fee schedule also would describe the fees to be set forth in the invoices for Historical CAT Assessment 1. Specifically, it would state that “[e]ach month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.”</P>
                    <P>
                        Furthermore, proposed paragraph (a)(1)(C) of the fee schedule would 
                        <PRTPAGE P="10188"/>
                        describe how long Historical CAT Assessment 1 would remain in effect. It would state that “Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time.” This proposed paragraph would further state that “Consolidated Audit Trail, LLC will be [
                        <E T="03">sic</E>
                        ] provide notice when Historical CAT Assessment 1 will no longer be in effect.”
                    </P>
                    <P>Historical CAT Assessment 1 will be assessed for all transactions executed in each month through the end of the month in which two-thirds of Historical CAT Costs 1 are assessed, and then CAT LLC will provide notice that Historical CAT Assessment 1 is no longer in effect. Since Historical CAT Assessment 1 is a monthly fee based on transaction volume from the prior month, Historical CAT Assessment 1 may collect more than two-thirds of Historical CAT Costs 1. To the extent that occurs, any excess money collected during the final month in which Historical CAT Assessment 1 is in effect will be used to offset future fees and/or to fund the reserve for the CAT.</P>
                    <P>Finally, proposed paragraph (a)(1)(D) of the fee schedule sets forth the requirement for the CAT Executing Brokers to pay the invoices for Historical CAT Assessment 1. It would state that “[e]ach CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).”</P>
                    <HD SOURCE="HD3">(B) Manner of Payment</HD>
                    <P>
                        The Exchange proposes to add paragraph (b)(1) to the “Consolidated Audit Trail Funding Fees” section of its fee schedule to describe the manner of payment of Industry Member CAT fees. The CAT NMS Plan requires the Operating Committee to establish a system for the collection of CAT fees.
                        <SU>89</SU>
                        <FTREF/>
                         The Plan Processor has established a billing system for CAT fees.
                        <SU>90</SU>
                        <FTREF/>
                         Therefore, the Exchange proposes to require CAT Executing Brokers to pay Historical CAT Assessment 1 in accordance with such system. Accordingly, proposed paragraph (b)(1) would state that “[e]ach CAT Executing Broker shall pay its CAT fees as required pursuant to paragraph (a) each month to the Consolidated Audit Trail, LLC in the manner prescribed by the Consolidated Audit Trail, LLC.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             Section 11.4 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             The billing process and system are described in CAT Alert 2023-02 as well as the CAT FAQs related to the billing of CAT fees, the Industry Member CAT Reporter Portal User Guide, the FCAT Industry Member Onboarding Guide, the FCAT Connectivity Supplement for Industry Members and the CAT Billing Webinars (dated September 28, 2023 and November 7, 2023), each available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(C) Failure To Pay CAT Fees</HD>
                    <P>The CAT NMS Plan further states that:</P>
                    <EXTRACT>
                        <P>
                            Participants shall require each Industry Member to pay all applicable fees authorized under this Article XI within thirty (30) days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due (as determined in accordance with the preceding sentence), such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of: (a) the Prime Rate plus 300 basis points; or (b) the maximum rate permitted by applicable law.
                            <SU>91</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>91</SU>
                                 Section 11.4 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, the Exchange proposes to add this requirement to the Exchange's fee schedule. Proposed paragraph (b)(2) of the fee schedule would state:</P>
                    <EXTRACT>
                        <P>Each CAT Executing Broker shall pay the CAT fees required pursuant to paragraph (a) within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If a CAT Executing Broker fails to pay any such CAT fee when due, such CAT Executing Broker shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of (i) the Prime Rate plus 300 basis points, or (ii) the maximum rate permitted by applicable law.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(7) Historical CAT Assessment Details</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Details regarding the calculation of a CAT Executing Broker's Historical CAT Assessment will be provided upon request to such CAT Executing Broker. At a minimum, such details would include each CAT Executing Broker's executed equivalent share volume and corresponding fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise than on an exchange, and (3) by buy-side transactions and sell-side transactions.
                            <SU>92</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>92</SU>
                                 Section 11.3(a)(iv)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        Such information would provide CEBBs and CEBSs with the ability to understand the details regarding the calculation of their Historical CAT Assessment.
                        <SU>93</SU>
                        <FTREF/>
                         CAT LLC will provide CAT Executing Brokers with these details regarding the calculation of their Historical CAT Assessments on their monthly invoice for the Historical CAT Assessment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>93</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, providing CAT Execut[ing] Brokers information regarding the calculation of their CAT Fees will aid in transparency and permit CAT Execut[ing] Brokers to confirm the accuracy of their invoices for CAT Fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>
                        In addition, CAT LLC will make certain aggregate statistics regarding Historical CAT Assessments publicly available. Specifically, the CAT NMS Plan states that, “[f]or each Historical CAT Assessment, at a minimum, CAT LLC will make publicly available the aggregate executed equivalent share volume and corresponding aggregate fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise on an exchange, and (3) by buy-side transactions and sell-side transactions.” 
                        <SU>94</SU>
                        <FTREF/>
                         Such aggregate statistics will be available on the CAT website.
                    </P>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             Section 11.3(a)(iv)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission stated that “[t]he publication of the aggregate executed equivalent share volume and aggregate fee is appropriate because it would allow Participants and CAT Executing Brokers a high-level validation of executed volume and fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>Furthermore, CAT LLC will make publicly available on the CAT website the total amount invoiced each month that Historical CAT Assessment 1 is in effect as well as the total amount invoiced for Historical CAT Assessment 1 for all months since its commencement. CAT LLC also will make publicly available on the CAT website the total costs to be collected from Industry Members for Historical CAT Assessment 1. By reviewing statistics regarding how much has been invoiced and how much remains to be invoiced for Historical CAT Assessment 1, Industry Members would have sufficient information to reasonably track how much longer Historical CAT Assessment 1 is likely to be in place.</P>
                    <HD SOURCE="HD3">(8) Implementation Assistance</HD>
                    <P>
                        To assist Industry Members with compliance with the commencement of Historical CAT Assessment 1, CAT LLC will make available to CAT Executing Brokers four months of mock invoices prior to the commencement of Historical CAT Assessment 1. Specifically, CAT Executing Brokers will receive mock invoices based on transaction data from November 2023, December 2023, January 2024 and February 2024. The mock invoices will be in the same form as the actual, payable invoices, including both the relevant transaction data and the corresponding fee. However, no payments will be required 
                        <PRTPAGE P="10189"/>
                        in response to such mock invoices; they are to be used solely to assist CAT Executing Brokers with the development of their processes for paying the CAT fees. Such data will provide CAT Executing Brokers with a preview of the transaction data used in creating the invoices for Historical CAT Assessment 1 fees, as the data will be the same as data provided in actual invoices. Such data preview is intended to facilitate the payment of Historical CAT Assessment 1.
                    </P>
                    <HD SOURCE="HD3">(9) Financial Accountability Milestones</HD>
                    <P>
                        The CAT NMS Plan states that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.” 
                        <SU>95</SU>
                        <FTREF/>
                         The CAT NMS Plan further states that “in all filings submitted by the Participants to the Commission under Section 19(b) of the Exchange Act, to establish or implement Post-Amendment Industry Member Fees pursuant to this Article, . . . the Participants shall clearly indicate whether such fees are related to Post-Amendment Expenses incurred during Period 1, Period 2, Period 3, or Period 4.” 
                        <SU>96</SU>
                        <FTREF/>
                         As discussed in detail below, all applicable Financial Accountability Milestones for Historical CAT Assessment 1—that is, Period 1, Period 2 and Period 3 of the Financial Accountability Milestones—have been satisfied. Furthermore, as discussed below, this filing clearly indicates that Historical CAT Assessment 1 relates to Post-Amendment Expenses incurred during Periods 1, 2 and 3 of the Financial Accountability Milestones.
                    </P>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             Section 11.6(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Period 1 of the Financial Accountability Milestones</HD>
                    <P>
                        In accordance with Section 11.6(b) of the CAT NMS Plan, Historical CAT Assessment 1 seeks to recover costs that are related to “all fees, costs, and expenses (including legal and consulting fees, costs, and expenses) incurred by or for the Company in connection with the development, implementation and operation of the CAT from the effective date of [Section 11.6 of the CAT NMS Plan] until such time as Full Implementation of CAT NMS Plan Requirements has been achieved” 
                        <SU>97</SU>
                        <FTREF/>
                         (“Post-Amendment Expenses”) incurred during FAM Period 1. FAM Period 1 began on June 22, 2020, the effective date of Section 11.6 of the CAT NMS Plan, and concluded on July 31, 2020, the date of Initial Industry Member Core Equity and Options Reporting. Section 1.1 of the CAT NMS Plan defines “Initial Industry Member Core Equity and Options Reporting” as:
                    </P>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             Section 11.6 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <FP>The reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of both: (a) equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information; and (b) options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports.
                        <SU>98</SU>
                        <FTREF/>
                         As indicated by the Participants' Quarterly Progress Report for the third quarter of 2020,
                        <SU>99</SU>
                        <FTREF/>
                         Initial Industry Member Core Equity and Option Reporting was completed on schedule on July 22, 2020, which is prior to the July 31, 2020 deadline.
                    </P>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             The Quarterly Progress Reports are available at 
                            <E T="03">https://www.catnmsplan.com/implementation-plan.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020) and Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Under the FAM Period 1 requirement of Initial Industry Member Core Equity and Options Reporting, Industry Members—excluding Small Industry Members that are not OATS reporters—were required to report two categories of data to the CAT: equites transaction data and options transaction data (both excluding Customer Account Information, Customer-ID, and Customer Identifying Information) by July 31, 2020. Pursuant to exemptive relief provided by the Commission, the Commission authorized the Participants' Compliance Rules to allow core equity reporting for Industry Members (Phase 2a) to begin on June 22, 2020 and core options reporting for Industry Members (Phase 2b) to begin on July 20, 2020.
                        <SU>100</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order. Under the CAT NMS Plan as adopted, the Participants were required, through their Compliance Rules, to require their Large Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2018, and to require their Small Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2019. Sections 6.7(a)(v) and (vi) of the CAT NMS Plan. The SEC granted exemptive relief from these provisions of the CAT NMS Plan to allow for the phased implementation of Industry Member reporting via five phases addressing the reporting requirements for Phase 2a Industry Member Data, Phase 2b Industry Member Data, Phase 2c Industry Member Data, Phase 2d Industry Member Data and Phase 2e Industry Member Data.
                        </P>
                    </FTNT>
                    <P>
                        In adopting the FAMs, the Commission stated that the equities transaction reporting required for FAM Period 1 “is consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Equities 2a file submission and data integrity validations.' ” 
                        <SU>101</SU>
                        <FTREF/>
                         The Phase 2a Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the following data related to Eligible Securities that are equities:
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             Securities Exchange Act Rel. No. 88890, 85 FR 31322, 31330 n.97 (“FAM Adopting Release”).
                        </P>
                    </FTNT>
                    <P>• All events and scenarios covered by OATS, which includes information related to the receipt or origination of orders, order transmittal, and order modifications, cancellations and executions;</P>
                    <P>
                        • Reportable Events for: (1) proprietary orders, including market maker orders, for Eligible Securities that are equities; (2) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) sent to a national securities exchange or FINRA's Alternative Display Facility (“ADF”); (3) electronic quotes in unlisted Eligible Securities (
                        <E T="03">i.e.,</E>
                         OTC Equity Securities) received by an Industry Member operating an interdealer quotation system (“IDQS”); and (4) electronic quotes in unlisted Eligible Securities sent to an IDQS or other quotation system not operated by a Participant or Industry Member;
                    </P>
                    <P>• Firm Designated IDs (“FDIDs”), which Industry Members must report to the CAT as required by Sections 6.3(d)(i)(A) and 6.4(d)(ii)(C) of the CAT NMS Plan.</P>
                    <P>• Industry Members would be required to report all street side representative orders, including both agency and proprietary orders and mark such orders as representative orders, except in certain limited exceptions as described in the Industry Member Technical Specifications;</P>
                    <P>• The link between the street side representative order and the order being represented when: (1) the representative order was originated specifically to represent a single order received either from a customer or another broker-dealer; and (2) there is (a) an existing direct electronic link in the Industry Member's system between the order being represented and the representative order and (b) any resulting executions are immediately and automatically applied to the represented order in the Industry Member's system;</P>
                    <P>
                        • Manual and Electronic Capture Time for Manual Order Events;
                        <PRTPAGE P="10190"/>
                    </P>
                    <P>• Special handling instructions for the original receipt or origination of an order during Phase 2a; and</P>
                    <P>• When routing an order, whether the order was routed as an intermarket sweep order (“ISO”).</P>
                    <P>
                        In Phase 2a, Industry Members were not required to report modifications of a previously routed order in certain limited instances, nor were they required to report a cancellation of an order received from a Customer after the order has been executed.
                        <SU>102</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             Phased Reporting Exemptive Relief Order at 23076-78.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Equities 2a file submission and data integrity validation (Large Industry Members and Small OATS Reporters)” was completed on June 22, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information” was completed on June 22, 2020.</P>
                    <P>
                        In adopting the FAMs, the Commission stated that the options transaction reporting required for FAM Period 1 is “consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Options 2b file submission and data integrity validations.' ” 
                        <SU>103</SU>
                        <FTREF/>
                         The Phase 2b Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the Industry Member Data related to Eligible Securities that are options and related to simple electronic option orders, excluding electronic paired option orders. A simple electronic option order is an order to buy or sell a single option that is not related to or dependent on any other transaction for pricing and timing of execution that is either received or routed electronically by an Industry Member. Electronic receipt of an order is defined as the initial receipt of an order by an Industry Member in electronic form in standard format directly into an order handling or execution system. Electronic routing of an order is the routing of an order via electronic medium in standard format from one Industry Member's order handling or execution system to an exchange or another Industry Member. An electronic paired option order is an electronic option order that contains both the buy and sell side that is routed to another Industry Member or exchange for crossing and/or price improvement as a single transaction on an exchange. Responses to auctions of simple orders and paired simple orders would be reportable in Phase 2b. Furthermore, combined orders in options would be treated in Phase 2b in the same way as equity representative orders are treated in Phase 2a. A combined order would mean, as permitted by SRO rules, a single, simple order in Listed Options created by combining individual, simple orders in Listed Options from a customer with the same exchange origin code before routing to an exchange. During Phase 2b, the single combined order sent to an exchange must be reported and marked as a combined order, but the linkage to the underlying orders is not required to be reported until Phase 2d.
                        <SU>104</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             FAM Adopting Release at 31330, n.98.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             Phased Reporting Exemptive Relief Order at 23078.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Options 2b file submission and data integrity validations” was completed on July 20, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information” was completed on July 20, 2020.</P>
                    <P>As discussed above, the Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from June 22, 2020 through July 31, 2020. The total costs for this period, as discussed above, are $6,377,343. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781).</P>
                    <HD SOURCE="HD3">(B) Period 2 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 2. FAM Period 2 began on August 1, 2020, and concluded on December 31, 2020, the date of the Full Implementation of Core Equity Reporting. Section 1.1 of the CAT NMS Plan defines “Full Implementation of Core Equity Reporting” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2020,
                        <SU>105</SU>
                        <FTREF/>
                         Full Implementation of Core Equity Reporting was completed on schedule by December 31, 2020.
                    </P>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the Full Implementation of Core Equity Reporting requires the satisfaction of two prongs. The first prong requires Participants to have fully implemented the first phase of equities transaction reporting for Industry Members (excluding Small Industry Members that are not OATS reporters) at an Error Rate of less than 5%. In addition, equities transaction data produced by the CAT at this stage must also be sufficiently interlinked so as to permit full analysis of an order's lifecycle across the national market, excluding full linkage of representative orders. As CAT LLC reported on its Quarterly Progress Reports, Phase 2a was fully implemented as of October 26, 2020, including intra-firm, inter-firm, national securities exchange, and trade reporting facilities linkages.
                        <SU>106</SU>
                        <FTREF/>
                         In addition to the reporting of Phase 2a Industry Member Data as described above with regard to FAM Period 1, the following linkage data was added to the CAT as described in the Quarterly Progress Reports for the third and fourth quarter of 2020:
                    </P>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             For a description of the requirements of Phases 2a, 
                            <E T="03">see</E>
                             Phased Reporting Exemptive Relief Order.
                        </P>
                    </FTNT>
                    <PRTPAGE P="10191"/>
                    <P>
                        • “Production Go-Live for Equities 2a Intrafirm Linkage validations” was completed on 7/27/2020; 
                        <SU>107</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             Q3 2020 Quarterly Progress Report (Oct. 20, 2021).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Firm to Firm Linkage validations for Equities 2a (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020; and</P>
                    <P>• “Production Go-Live for Equities 2a Exchange and TRF Linkage validations (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020.</P>
                    <P>Furthermore, as CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2020, the average overall error rate for Phase 2a Industry Member Data was less than 5% as of December 31, 2020. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The second prong of this FAM requires that the equities transaction data collected by the CAT at this stage be made available to regulators through two basic query tools required by the CAT NMS Plan—a targeted query tool that will enable regulators to retrieve data via an online query screen with a variety of predefined selection criteria, and a user-defined direct query tool that will provide regulators with the ability to query data using all available attributes and data sources.
                        <SU>108</SU>
                        <FTREF/>
                         As CAT LLC reported on its Quarterly Progress Reports, the query tool functionality incorporating the data from Phase 2a was available to the Participants and the Commission as of December 31, 2020.
                        <SU>109</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>108</SU>
                             Section 6.10(c)(i)(A) of the CAT NMS Plan requires the Plan Processor to “provide Participants and the SEC with access to all CAT Data stored in the Central Repository” via an “online targeted query tool.” Appendix D, Sections 8.1.1-8.1.3 of the CAT NMS Plan describes the required functionality associated with this regulatory tool. Appendix D, Section 8.2.1 describes the required functionality associated with a user-defined direct query tool that will “deliver large sets of data that can then be used in internal surveillance or market analysis applications.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020); Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021); and Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>110</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             Securities Exchange Act Rel. No. 98848 (Nov. 2, 2023), 88 FR 77128, 77129 n.13 (Nov. 8, 2023) (“Settlement Exemptive Order”).
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from August 1, 2020 through December 31, 2020. The total costs for this period, as discussed above, are $42,976,478. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($14,325,492.70) and CEBSs paying one-third ($14,325,492.70).
                    </P>
                    <HD SOURCE="HD3">(C) Period 3 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 3. FAM Period 3 began on January 1, 2021, and concluded on December 31, 2021, the date of the Full Availability and Regulatory Utilization of Transactional Database Functionality. Section 1.1 of the CAT NMS Plan defines “Full Availability and Regulatory Utilization of Transactional Database Functionality” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>111</SU>
                        <FTREF/>
                         Full Availability and Regulatory Utilization of Transactional Database Functionality was completed on schedule by December 31, 2021.
                    </P>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires the satisfaction of five prongs. The first prong requires that reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>112</SU>
                        <FTREF/>
                         FINRA retired OATS effective September 1, 2021.
                        <SU>113</SU>
                        <FTREF/>
                         Accordingly, after the retirement of OATS, reporting to OATS was no longer required.
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             Securities Exchange Act Rel. No. 92239 (June 23, 2021), 86 FR 34293 (June 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        In addition to Phase 2a and Phase 2b Industry Member Data, the second and third prongs of “Full Availability and Regulatory Utilization of Transactional Database Functionality” require Industry Member reporting of Phase 2c Industry Member Data and Phase 2d Industry Member Data. The Phase 2c Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. That Order states that “Phase 2c Industry Member Data” is Industry Member Data related to Eligible Securities that are equities other than Phase 2a Industry Member Data, Phase 2d Industry Member Data, or Phase 2e Industry Member Data. Specifically, the Phase 2c Industry Member Data includes Industry Member Data that is related to Eligible Securities that are equities and that is related to: (1) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (2) quotes in unlisted Eligible Securities sent to an IDQS operated by a CAT Reporter (reportable by the Industry Member sending the quotes) (except for quotes reportable in Phase 2d, as discussed below); (3) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) that are not sent to a national securities exchange or FINRA's Alternative Display Facility; (4) reporting changes to client instructions regarding modifications to algorithms; 
                        <PRTPAGE P="10192"/>
                        (5) marking as a representative order any order originated to work a customer order in price guarantee scenarios, such as a guaranteed VWAP; (6) flagging rejected external routes to indicate a route was not accepted by the receiving destination; (7) linkage of duplicate electronic messages related to a Manual Order Event between the electronic event and the original manual route; (8) special handling instructions on order route reports (other than the ISO, which is required to be reported in Phase 2a); (9) quote identifier on trade events; (10) reporting of LTIDs (if applicable) for accounts with Reportable Events that are reportable to CAT as of and including Phase 2c; (11) reporting of date account opened or Account Effective Date71 (as applicable) for accounts and reporting of a flag indicating the Firm Designated ID type as account or relationship; (12) order effective time for orders that are received by an Industry Member and do not become effective until a later time; (13) the modification or cancellation of an internal route of an order; and (14) linkages to the customer orders(s) being represented for representative order scenarios, including agency average price trades, net trades, aggregated orders, and disconnected Order Management System (“OMS”)—Execution Management System (“EMS”) scenarios, as required in the Industry Member Technical Specifications.
                        <SU>114</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             Phase Reporting Exemptive Relief Order at 23078-79.
                        </P>
                    </FTNT>
                    <P>
                        Phase 2c Industry Member Data also includes electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are equities and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: (1) an equity bid or offer is displayed publicly or has been communicated (a) for listed securities to the Alternative Display Facility (ADF) operated by FINRA; or (b) for unlisted equity securities to an “interdealer quotation system,” as defined in FINRA Rule 6420(c); or (2) an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing; 
                        <E T="03">i.e.,</E>
                         no further manual or electronic action is required by the responder providing the quote in order to execute or cause a trade to be executed). With respect to OTC Equity Securities, OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter (other than such an IDQS that does not match and execute orders) are reportable by the Industry Member sending them in Phase 2c. Accordingly, any response to a request for quote or other form of solicitation response provided in a standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this quote definition (
                        <E T="03">i.e.,</E>
                         an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing) would be reportable in Phase 2c.
                        <SU>115</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>115</SU>
                             
                            <E T="03">Id.</E>
                             at 23079.
                        </P>
                    </FTNT>
                    <P>
                        The Phase 2d Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. “Phase 2d Industry Member Data” is Industry Member Data that is related to Eligible Securities that are options other than Phase 2b Industry Member Data, Industry Member Data that is related to Eligible Securities that are equities other than Phase 2a Industry Member Data or Phase 2c Industry Member Data, and Industry Member Data other than Phase 2e Industry Member Data. Phase 2d Industry Member Data includes with respect to the Eligible Securities that are options: (1) simple manual orders; (2) electronic and manual paired orders; (3) all complex orders with linkages to all CAT-reportable legs; (4) LTIDs (if applicable) for accounts with Reportable Events for Phase 2d; (5) date account opened or Account Effective Date (as applicable) for accounts with an LTID and flag indicating the Firm Designated ID type as account or relationship for such accounts; (6) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (7) the modification or cancellation of an internal route of an order; and (8) linkage between a combined order and the original customer orders. Phase 2d Industry Member Data also would include electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are options and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: a listed option bid or offer which is accessible electronically by customers or other market participants and is immediately actionable (
                        <E T="03">i.e.,</E>
                         no further action is required by the responder providing the quote in order to execute or cause a trade to be executed). Accordingly, any response to a request for quote or other form of solicitation response provided in standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this definition is reportable in Phase 2d for options.
                        <SU>116</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Phase 2d Industry Member Data also includes with respect to Eligible Securities that are options or equities (1) receipt time of cancellation and modification instructions through Order Cancel Request and Order Modification Request events; (2) modifications of previously routed orders in certain instances; and (3) OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter that does not match and execute orders. In addition, subject to any exemptive or other relief, Phase 2d Industry Member Data will include verbal or manual quotes on an exchange floor or in the over-the-counter market, where verbal quotes and manual quotes are defined as bids or offers in Eligible Securities provided verbally or that are provided or received other than via a CAT Reporter's order handling and execution system (
                        <E T="03">e.g.,</E>
                         quotations provided via email or instant messaging).
                        <SU>117</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             
                            <E T="03">Id.</E>
                             at 23079-80.
                        </P>
                    </FTNT>
                    <P>
                        The Quarterly Progress Report for the fourth quarter of 2021 states that “Phase 2a was fully implemented as of October 26, 2020;” “Phase 2b was fully implemented as of January 4, 2021;” “Phase 2c was implemented as of April 26, 2021;” and “Phase 2d was fully implemented as of December 13, 2021.” 
                        <SU>118</SU>
                        <FTREF/>
                         The Quarterly Progress Reports for 2021 provide additional detail regarding the implementation of these steps including the following:
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2a, 2b and 2c (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “FCAT Plan Processor creates linkages of the lifecycle of order events based on the received data through Phase 2d Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2b reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>
                        • “Production Go-Live for Equities 2c reporting requirements (Small OATS 
                        <PRTPAGE P="10193"/>
                        Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;
                    </P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2d (Large Industry Members)” was completed on December 13, 2021; and</P>
                    <P>
                        • “LTID Account Information Reporting Go-Live for Phases 2a, 2b, 2c and 2d (Small Industry Members)” was completed on December 13, 2021.
                        <SU>119</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             
                            <E T="03">See</E>
                             Q2 2021 Quarterly Progress Report (July 27, 2021); and Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>The third prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” also imposes an Error Rate requirement of 5% or less. The Quarterly Progress Report for the fourth quarter of 2021 states the average overall error rate was less than 5% as of December 31, 2021. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The fourth prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires that the data collected by the CAT at this stage be made available to regulators through an online targeted query tool and a user-defined direct query tool. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021, the query tool functionality incorporating the data from Phases 2a, 2b, 2c and 2d was available to the Participants and to the Commission as of December 31, 2021.
                        <SU>120</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>120</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The fifth prong requires the requirements of Section 6.10(a) of the CAT NMS Plan to have been met. Section 6.10(a) of the CAT NMS Plan requires the Participants to use the tools described in Appendix D to “develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository.” The Exchange implemented a surveillance system, or enhanced existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository as of December 31, 2021 in accordance with Section 6.10(a) of the CAT NMS Plan.
                        <SU>121</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             
                            <E T="03">See</E>
                             Q1 2021 Quarterly Progress Report (April 30, 2021); Q2 2021 Quarterly Progress Report (July 27, 2021); Q3 2021 Quarterly Progress Report (Nov. 1, 2021); Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>122</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             Settlement Exemptive Order at 77129 n.13.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from January 1, 2021 through December 31, 2021. The total costs for this period, as discussed above, are $144,415,268. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($48,138,422.70) and CBSs paying one-third ($48,138,422.70).
                    </P>
                    <P>
                        The Exchange believes the proposed rule change is consistent with the requirements of the Exchange Act. The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,
                        <SU>123</SU>
                        <FTREF/>
                         which requires, among other things, that the Exchange's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act,
                        <SU>124</SU>
                        <FTREF/>
                         because it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. The Exchange further believes that the proposed rule change is consistent with Section 6(b)(8) of the Act,
                        <SU>125</SU>
                        <FTREF/>
                         which requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. These provisions also require that the Exchange be “so organized and [have] the capacity to be able to carry out the purposes” of the Act and “to comply, and . . . to enforce compliance by its members and persons associated with its members,” with the provisions of the Exchange Act.
                        <SU>126</SU>
                        <FTREF/>
                         Accordingly, a reasonable reading of the Act indicates that it intended that regulatory funding be sufficient to permit an exchange to fulfill its statutory responsibility under the Act, and contemplated that such funding would be achieved through equitable assessments on the members, issuers, and other users of an exchange's facilities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             15 U.S.C. 78f(b)(6).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             
                            <E T="03">See</E>
                             Section 6(b)(1) of the Exchange Act.
                        </P>
                    </FTNT>
                    <P>
                        The Exchange believes that this proposal is consistent with the Act because it implements provisions of the Plan and is designed to assist the Exchange in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>127</SU>
                        <FTREF/>
                         To the extent that this proposal implements the Plan and applies specific requirements to Industry Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             CAT NMS Plan Approval Order at 84697.
                        </P>
                    </FTNT>
                    <P>The Exchange believes that the proposed fees paid by the CEBBs and CEBSs are reasonable, equitably allocated and not unfairly discriminatory. First, the Historical CAT Assessment 1 fees to be collected are directly associated with the costs of establishing and maintaining the CAT, where such costs include Plan Processor costs and costs related to technology, legal, consulting, insurance, professional and administration, and public relations costs. The Exchange has already incurred such development and implementation costs and the proposed Historical CAT Assessment 1 fees, therefore, would allow the Exchange to collect certain of such costs in a fair and reasonable manner from Industry Members, as contemplated by the CAT NMS Plan.</P>
                    <P>
                        The proposed Historical CAT Assessment 1 fees would be charged to Industry Members in support of the maintenance of a consolidated audit trail for regulatory purposes. The proposed fees, therefore, are consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business operations. The proposed fees would not cover 
                        <PRTPAGE P="10194"/>
                        Exchange services unrelated to the CAT. In addition, any surplus would be used as a reserve to offset future fees. Given the direct relationship between CAT fees and CAT costs, the Exchange believes that the proposed fees are reasonable, equitable and not unfairly discriminatory.
                    </P>
                    <P>As further discussed below, the SEC approved the CAT Funding Model, finding it was reasonable and that it equitably allocates fees among Participants and Industry Members. The Exchange believes that the proposed fees adopted pursuant to the CAT Funding Model approved by the SEC are reasonable, equitably allocated and not unfairly discriminatory.</P>
                    <HD SOURCE="HD3">(1) Implementation of CAT Funding Model in CAT NMS Plan</HD>
                    <P>
                        Section 11.1(b) of the CAT NMS Plan states that “[t]he Participants shall file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves.” Per Section 11.1(b) of the CAT NMS Plan, the Exchange has filed this fee filing to implement the Industry Member CAT fees included in the CAT Funding Model. The Exchange believes that this proposal is consistent with the Exchange Act because it is consistent with, and implements, the CAT Funding Model in the CAT NMS Plan, and is designed to assist the Exchange and its Industry Members in meeting regulatory obligations pursuant to the CAT NMS Plan. In approving the CAT NMS Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>128</SU>
                        <FTREF/>
                         Similarly, in approving the CAT Funding Model, the SEC concluded that the CAT Funding Model met this standard.
                        <SU>129</SU>
                        <FTREF/>
                         As this proposal implements the Plan and the CAT Funding Model described therein, and applies specific requirements to Industry Members in compliance with the Plan, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Exchange Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             CAT NMS Plan Approval Order at 84696.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             CAT Funding Model Approval Order at 62686.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(2) Calculation of Fee Rate for Historical CAT Assessment 1 Is Reasonable</HD>
                    <P>
                        The SEC has determined that the CAT Funding Model is reasonable and satisfies the requirements of the Exchange Act. Specifically, the SEC has concluded that the method for determining Historical CAT Assessments as set forth in Section 11.3 of the CAT NMS Plan, including the formula for calculating the Historical Fee Rate, the identification of the parties responsible for payment and the transactions subject to the fee rate for the Historical CAT Assessment, is reasonable and satisfies the Exchange Act.
                        <SU>130</SU>
                        <FTREF/>
                         In each respect, as discussed above, Historical CAT Assessment 1 is calculated, and would be applied, in accordance with the requirements applicable to Historical CAT Assessments as set forth in the CAT NMS Plan. Furthermore, as discussed below, the Exchange believes that each of the figures for the variables in the SEC-approved formula for calculating the fee rate for Historical CAT Assessment 1 is reasonable and consistent with the Exchange Act. Calculation of the Historical Fee Rate for Historical CAT Assessment 1 requires the figures for the Historical CAT Costs 1, the executed equivalent share volume for the prior twelve months, the determination of Historical Recovery Period 1, and the projection of the executed equivalent share volume for Historical Recovery Period 1. Each of these variables is reasonable and satisfies the Exchange Act, as discussed throughout this filing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             
                            <E T="03">Id.</E>
                             at 62662-63.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Historical CAT Costs 1</HD>
                    <P>The formula for calculating a Historical Fee Rate requires the amount of Historical CAT Costs to be recovered. Specifically, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires a fee filing to provide:</P>
                    <EXTRACT>
                        <FP>a brief description of the amount and type of the Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.</FP>
                    </EXTRACT>
                    <P>In accordance with this requirement, the Exchange has set forth the amount and type of Historical CAT Costs 1 for each of these categories of costs above.</P>
                    <P>Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan also requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” As discussed below, the Exchange believes that the amounts set forth in this filing for each of these cost categories is “reasonable and appropriate.” Each of the costs included in Historical CAT Costs 1 are reasonable and appropriate because the costs are consistent with standard industry practice, based on the need to comply with the requirements of the CAT NMS Plan, incurred subject to negotiations performed on an arm's length basis, and/or are consistent with the needs of any legal entity, particularly one with no employees.</P>
                    <HD SOURCE="HD3">(i) Technology: Cloud Hosting Services</HD>
                    <P>
                        In approving the CAT Funding Model, the Commission recognized that it is appropriate to recover costs related to cloud hosting services as a part of Historical CAT Assessments.
                        <SU>131</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to cloud hosting services described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. As described above, the cloud hosting services costs reflect, among other things, the breadth of the CAT cloud activities, data volume far in excess of the original volume estimates, the need for specialized cloud services given the volume and unique nature of the CAT, the processing time requirements of the Plan, and regular efforts to seek to minimize costs where permissible under the Plan. CAT LLC determined that use of cloud hosting services is necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT, and that the fees for cloud hosting services negotiated by FCAT were reasonable, taking into consideration a variety of factors, including the expected volume of data and the breadth of services provided and market rates for similar services.
                        <SU>132</SU>
                        <FTREF/>
                         Indeed, the actual costs of the CAT are far in excess of the original estimated costs of the CAT due to various factors, including the higher volumes and greater complexity of the CAT than anticipated when Rule 613 was originally adopted.
                    </P>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             For a discussion of the amount and type of cloud hosting services fees, 
                            <E T="03">see</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>
                        To comply with the requirements of the Plan, the breadth of the cloud activities related to the CAT is substantial. The cloud services not only include the production environment for the CAT, but they also include two industry testing environments, support environments for quality assurance and stress testing and disaster recovery capabilities. Moreover, the cloud storage costs are driven by the requirements of the Plan, which requires the storage of multiple versions of the data, from the 
                        <PRTPAGE P="10195"/>
                        original submitted version of the data through various processing steps, to the final version of the data.
                    </P>
                    <P>
                        Data volume is a significant driver of costs for cloud hosting services. When the Commission adopted the CAT NMS Plan in 2016, it estimated that the CAT would need to receive 58 billion records per day 
                        <SU>133</SU>
                        <FTREF/>
                         and that annual operating costs for the CAT would range from $36.5 million to $55 million.
                        <SU>134</SU>
                        <FTREF/>
                         Through 2021, the actual data volumes have been five times that original estimate. The data volumes for each period are set forth in detail above.
                        <SU>135</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             CAT NMS Plan Approval Order at 84801.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>
                        In addition to the effect of the data volume on the cloud hosting costs, the processing timelines set forth in the Plan contribute to the cloud hosting costs. Although CAT LLC has proactively sought to manage cloud hosting costs while complying with the Plan, including through requests to the Commission for exemptive relief and an amendment to the CAT NMS Plan, stringent CAT NMS Plan requirements do not allow for any material flexibility in cloud architecture design choices, processing timelines (
                        <E T="03">e.g.,</E>
                         the use of non-peak processing windows), or lower-cost storage tiers. As a result, the required CAT processing timelines contribute to the cloud hosting costs of the CAT.
                    </P>
                    <P>The costs for cloud hosting services also reflect the need for specialized cloud hosting services given the data volume and unique processing needs of the CAT. The data volume as well as the data processing needs of the CAT necessitate the use of cloud hosting services. The equipment, power and services required for an on-premises data model, the alternative to cloud hosting services, would be cost prohibitive. Moreover, as CAT was being developed, there were limited cloud hosting providers that could satisfy all the necessary CAT requirements, including the operational and security criteria. Over time more providers offering cloud hosting services that would satisfy these criteria have entered the market. CAT LLC will continue to evaluate alternative cloud hosting services, recognizing that the time and cost to move to an alternative cloud provider would be substantial.</P>
                    <P>
                        The reasonableness of the cloud hosting services costs is further supported by key cost discipline mechanisms for the CAT—a cost-based funding structure, cost transparency, cost management efforts (including regular efforts to lower compute and storage costs where permitted by the Plan) and oversight. Together, these mechanisms help ensure the ongoing reasonableness of the CAT's costs and the level of fees assessed to support those costs.
                        <SU>136</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 97151 (Mar. 15, 2023), 88 FR 17086, 17117 (Mar. 21, 2023) (describing key cost discipline mechanisms for the CAT).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Technology: Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to operating fees as a part of Historical CAT Assessments.
                        <SU>137</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The operating fees include the negotiated fees paid by CAT LLC to the Plan Processor to operate and maintain the system for order-related information and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the selection of FCAT as the Plan Processor was reasonable and appropriate given its expertise with securities regulatory reporting, after a process of considering other potential candidates.
                        <SU>138</SU>
                        <FTREF/>
                         CAT LLC also determined that the fixed price contract, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, was reasonable and appropriate, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity.
                        <SU>139</SU>
                        <FTREF/>
                         The services performed by FCAT for each period and the costs related to such services are described above.
                        <SU>140</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(b), 3(a)(2)(B)(ii)(b), 3(a)(2)(B)(iii)(b) and 3(a)(2)(B)(iv)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iii) Technology: CAIS Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to CAIS operating fees as a part of Historical CAT Assessments. 
                        <SU>141</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to CAIS operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The CAIS operating fees include the fees paid to the Plan Processor to operate and maintain CAIS and to perform the business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the FCAT-negotiated fees for Kingland's CAIS-related services, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity, were reasonable and appropriate.
                        <SU>142</SU>
                        <FTREF/>
                         The services performed by Kingland for each period and the costs for each period are described above.
                        <SU>143</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(c), 3(a)(2)(B)(ii)(c), 3(a)(2)(B)(iii)(c) and 3(a)(2)(B)(iv)(c) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iv) Technology: Change Request Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to change request fees as a part of Historical CAT Assessments.
                        <SU>144</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to change request fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. It is common practice to utilize a change request process to address evolving needs in technology projects. This is particularly true for a project like CAT that is the first of its kind, both in substance and in scale. The substance and costs of each of the change requests are evaluated by the Operating Committee, and approved in accordance with the requirements for Operating Committee meetings. In each case, CAT LLC determined that the change requests were necessary to implement the CAT. As described above, the change requests cover various technology changes, including, for example, changes related to CAT reporting, data feeds and exchange functionality. CAT LLC also determined that the costs for each change request were appropriate for the relevant technology change. A description of the change requests for each FAM Period and their total costs are set described above.
                        <SU>145</SU>
                        <FTREF/>
                         As noted above, the total costs 
                        <PRTPAGE P="10196"/>
                        for change requests through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.25% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(d), 3(a)(2)(B)(ii)(d), 3(a)(2)(B)(iii)(d) and 3(a)(2)(B)(iv)(d) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(v) Capitalized Developed Technology Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to capitalized developed technology costs as a part of Historical CAT Assessments.
                        <SU>146</SU>
                        <FTREF/>
                         Capitalized developed technology costs include costs related to certain development costs, costs related to certain modifications, upgrades and other changes to the CAT, CAIS implementation fees and license fees. The amount and type of costs for each period are described in more detail above.
                        <SU>147</SU>
                        <FTREF/>
                         CAT LLC determined that these costs are reasonable and should be included as a part of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(e), 3(a)(2)(B)(ii)(e), 3(a)(2)(B)(iii)(e) and 3(a)(2)(B)(iv)(e) above.
                        </P>
                    </FTNT>
                    <P>
                        These costs involve the activity of both the Initial Plan Processor and FCAT, as the successor Plan Processor.
                        <SU>148</SU>
                        <FTREF/>
                         With regard to the Initial Plan Processor, the Participants utilized an RFP to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan. CAT LLC entered into an agreement with the Initial Plan Processor in which CAT LLC would pay the Initial Plan Processor a negotiated, fixed price fee.
                        <SU>149</SU>
                        <FTREF/>
                         In addition, as described above, CAT LLC determined that is [
                        <E T="03">sic</E>
                        ] was appropriate to enter into an agreement with FCAT as the successor Plan Processor.
                        <SU>150</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(e) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vi) Legal</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to legal fees as a part of Historical CAT Assessments.
                        <SU>151</SU>
                        <FTREF/>
                         CAT LLC determined that the legal costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Given the unique nature of the CAT, the number of parties involved with the CAT (including, for example, the SEC, Participants, Industry Members, and vendors) and the many regulatory issues associated with the CAT, the scope of the necessary legal services are substantial. CAT LLC determined that the scope of the legal services is necessary to implement and maintain the CAT and that the legal rates reflect the specialized services necessary for such a project. When hiring each law firm for a CAT project, CAT LLC interviewed multiple firms, and determined to hire each firm based on a variety of factors, including the relevant expertise and fees. In each case, CAT LLC determined that the hourly fee rates were in line with market rates for the specialized legal expertise. In addition, CAT LLC determined that the total costs incurred for each CAT project were appropriate given the breadth of services provided. The services performed by each law firm for each period and the costs related to such services are described above.
                        <SU>152</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(2) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(f), 3(a)(2)(B)(ii)(f), 3(a)(2)(B)(iii)(f) and 3(a)(2)(B)(iv)(f) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vii) Consulting</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover consulting costs as a part of Historical CAT Assessments.
                        <SU>153</SU>
                        <FTREF/>
                         CAT LLC determined that the consulting costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees 
                        <SU>154</SU>
                        <FTREF/>
                         and because of the significant number of issues associated with the CAT, the consultants provided assistance in the management of various CAT matters and the processes related to such matters.
                        <SU>155</SU>
                        <FTREF/>
                         CAT LLC considered a variety of factors in choosing a consulting firm and determined to select Deloitte after an interview process.
                        <SU>156</SU>
                        <FTREF/>
                         CAT LLC also determined that the consulting services were provided at reasonable market rates, as the fees were negotiated annually and comparable to the rates charged by other consulting firms for similar work.
                        <SU>157</SU>
                        <FTREF/>
                         Moreover, the total costs for such consulting services were appropriate in light of the breadth of services provided by Deloitte. The services performed by Deloitte and the costs related to such services are described above.
                        <SU>158</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(3) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             As stated in the filing of the proposed CAT NMS Plan, “[i]t is the intent of the Participants that the Company have no employees.” Securities Exchange Act Rel. No. 77724 (Apr. 27, 2016), 81 FR 30614, 30621 (May 17, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             CAT LLC uses certain third parties to perform tasks that may be performed by administrators for other NMS Plans. 
                            <E T="03">See, e.g.,</E>
                             CTA Plan and CQ Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(g), 3(a)(2)(B)(ii)(g), 3(a)(2)(B)(iii)(g) and 3(a)(2)(B)(iv)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(viii) Insurance</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover insurance costs as a part of Historical CAT Assessments.
                        <SU>159</SU>
                        <FTREF/>
                         CAT LLC determined that the insurance costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that it is common practice to have directors' and officers' liability insurance, and errors and omissions liability insurance. CAT LLC further determined that it was important to have cyber security insurance given the nature of the CAT, and such a decision is consistent with the CAT NMS Plan, which states that the cyber incident response plan may include “[i]nsurance against security breaches.” 
                        <SU>160</SU>
                        <FTREF/>
                         In selecting the insurance providers for these policies, CAT LLC engaged in an evaluation of alternative insurers, including a comparison of the pricing offered by the alternative insurers.
                        <SU>161</SU>
                        <FTREF/>
                         Based on this analysis, CAT LLC determined that the selected insurance policies provided appropriate coverage at reasonable market rates.
                        <SU>162</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(4) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             Section 4.1.5 of Appendix D of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(h), 3(a)(2)(B)(ii)(h), 3(a)(2)(B)(iii)(h) and 3(a)(2)(B)(iv)(h) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ix) Professional and Administration</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover professional and administration costs as a part of Historical CAT Assessments.
                        <SU>163</SU>
                        <FTREF/>
                         CAT LLC determined that the professional and administration costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees, all required accounting, financial, tax, cash management and treasury functions for CAT LLC have been outsourced at market rates. In addition, the required annual financial statement audit of CAT LLC is included in professional and administration costs, which costs are also at market rates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(5) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT. CAT LLC interviewed Anchin as well as other potential financial 
                        <PRTPAGE P="10197"/>
                        advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees.
                        <SU>164</SU>
                        <FTREF/>
                         The hourly fee rates for this firm were in line with market rates for the financial advisory services provided.
                        <SU>165</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Anchin. The services performed by Anchin and the costs related to such services are described above.
                        <SU>166</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC also determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the role given the balance of these considerations.
                        <SU>167</SU>
                        <FTREF/>
                         Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services.
                        <SU>168</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Grant Thornton. The services performed by Grant Thornton and the costs related to such services are described above.
                        <SU>169</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to the receipt of certain market data from Exegy. After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy. Exegy provided the data elements required by the CAT NMS Plan, and the fees were reasonable and in line with market rates for the market data received.
                        <SU>170</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment.
                        <SU>171</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(x) Public Relations Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover public relations costs as a part of Historical CAT Assessments.
                        <SU>172</SU>
                        <FTREF/>
                         CAT LLC determined that the public relations costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that the types of public relations services utilized were beneficial to the CAT and market participants more generally. Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                        <SU>173</SU>
                        <FTREF/>
                         By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT issues to the benefit of all market participants.
                        <SU>174</SU>
                        <FTREF/>
                         Moreover, CAT LLC determined that the rates charged for such services were in line with market rates.
                        <SU>175</SU>
                        <FTREF/>
                         As noted above, the total public relations costs through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.1% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(6) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(j), 3(a)(2)(B)(ii)(j), 3(a)(2)(B)(iii)(j) and 3(a)(2)(B)(iv)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Total Executed Equivalent Share Volume for the Prior 12 Months</HD>
                    <P>The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. CAT LLC determined the total executed equivalent share volume for the prior twelve months by counting executed equivalent shares in the same manner as it will count executed equivalent shares for CAT billing purposes.</P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to establish a Historical Recovery Period of 24 months for Historical CAT Assessment 1 and that such length is reasonable. CAT LLC determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans notes to the Participants in a timely fashion. CAT LLC determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>176</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, CAT LLC recognized that the total costs for Historical CAT Assessment 1 was less than the total costs for 2022 and 2023, and therefore it would be appropriate to recover those costs in two years. Furthermore, CAT LLC notes 24 months is appropriate because it is not currently proposing that Industry Members be required to pay another Historical CAT Assessment or CAT Fee with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model Approval Order at 62682.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Executed Equivalent Share Volume for Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. CAT LLC determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant in recent years. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is 7,685,722,694,558.88 executed equivalent shares.
                        <SU>177</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Actual Fee Rate for Historical CAT Assessment 1</HD>
                    <HD SOURCE="HD3">(i) Decimal Places</HD>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, as a practical 
                        <PRTPAGE P="10198"/>
                        matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>178</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of the fee schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 by one-third, and rounding the result to 6 decimal places. CAT LLC determined that the use of six decimal places is reasonable as it balances the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Reasonable Fee Level</HD>
                    <P>
                        The Exchange believes that imposing Historical CAT Assessment 1 with a fee rate of $0.000015 per executed equivalent share is reasonable because it provides for a revenue stream for the Company that is aligned with Historical CAT Costs 1 and such costs would be spread out over an appropriate recovery period, as discussed above. Moreover, the Exchange believes that the level of the fee rate is reasonable, as it is comparable to other transaction-based fees. Indeed, Historical CAT Assessment 1 is significantly lower than fees assessed pursuant to Section 31 (
                        <E T="03">e.g.,</E>
                         $0.0009 per share to 0.0004 per share),
                        <SU>179</SU>
                        <FTREF/>
                         and, as a result, the magnitude of Historical CAT Assessment 1 is small, and therefore will mitigate any potential adverse economic effects or inefficiencies.
                        <SU>180</SU>
                        <FTREF/>
                         Furthermore, the reasonable fee rate for Historical CAT Assessment 1 further supports CAT LLC's decision to seek to recover all Historical CAT Costs prior to 2022, rather than establishing separate Historical CAT Assessments for pre-FAM, FAM 1, FAM 2 and FAM 3 costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             CAT Funding Model Approval Order at 62663, 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Historical CAT Assessment 1 Provides for an Equitable Allocation of Fees</HD>
                    <P>
                        Historical CAT Assessment 1 provides for an equitable allocation of fees, as it equitably allocates CAT costs between and among the Participants and Industry Members. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act, including the formula for calculating Historical CAT Assessments as well as the Industry Members to be charged the Historical CAT Assessments.
                        <SU>181</SU>
                        <FTREF/>
                         In approving the CAT Funding Model, the SEC stated that “[t]he Participants have sufficiently demonstrated that the proposed allocation of fees is reasonable.” 
                        <SU>182</SU>
                        <FTREF/>
                         Accordingly, the CAT Funding Model sets forth the requirements for allocating fees related to Historical CAT Costs among Participants and Industry Members, and the fee filings for Historical CAT Assessments must comply with those requirements.
                    </P>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <P>Historical CAT Assessment 1 provides for an equitable allocation of fees as it complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. For example, as described above, the calculation of Historical CAT Assessment 1 complies with the formula set forth in Section 11.3(b) of the CAT NMS Plan. In addition, Historical CAT Assessment 1 would be charged to CEBBs and CEBSs in accordance with Section 11.3(b) of the CAT NMS Plan. Furthermore, the Participants would continue to remain responsible for their designated share of Past CAT Costs through the cancellation of loans made by the Participants to CAT LLC.</P>
                    <P>In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1—Historical CAT Costs 1 (including Excluded Costs), the count for the executed equivalent share volume for the prior 12 months, the length of the Historical Recovery Period, and the projected executed equivalent share volume for the Historical Recovery Period—are reasonable. Moreover, these inputs lead to a reasonable fee rate for Historical CAT Assessment 1 that is lower than other fee rates for transaction-based fees. A reasonable fee rate allocated in accordance with the requirements of the CAT Funding Model provides for an equitable allocation of fees.</P>
                    <HD SOURCE="HD3">(4) Historical CAT Assessment 1 Is Not Unfairly Discriminatory</HD>
                    <P>Historical CAT Assessment 1 is not an unfairly discriminatory fee. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act. In reaching this conclusion, the SEC analyzed the potential effect of Historical CAT Assessments calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Historical CAT Assessment 1 complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 and the resulting fee rate for Historical CAT Assessment 1 is reasonable. Therefore, Historical CAT Assessment 1 does not impose an unfairly discriminatory fee on Industry Members.</P>
                    <P>Finally, the Exchange believes the proposed fees established pursuant to the CAT Funding Model promote just and equitable principles of trade, and, in general, protect investors and the public interest, and are provided in a transparent manner and specificity in the fee schedule. The Exchange also believes that the proposed fees are reasonable because they would provide ease of calculation, ease of billing and other administrative functions, and predictability of a fee based on fixed rate per executed equivalent share. Such factors are crucial to estimating a reliable revenue stream for CAT LLC and for permitting Exchange members to reasonably predict their payment obligations for budgeting purposes.</P>
                    <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                    <P>
                        Section 6(b)(8) of the Act 
                        <SU>183</SU>
                        <FTREF/>
                         requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that Historical CAT Assessment 1 implements provisions of the CAT NMS Plan that were approved by the Commission and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>
                        In addition, all Participants (including exchanges and FINRA) are proposing to introduce Historical CAT Assessment 1 on behalf of CAT LLC to implement the requirements of the CAT NMS Plan. Therefore, this is not a competitive fee 
                        <PRTPAGE P="10199"/>
                        filing, and, therefore, it does not raise competition issues between and among the Participants.
                    </P>
                    <P>
                        Furthermore, in approving the CAT Funding Model, the SEC analyzed the potential competitive impact of the CAT Funding Model, including competitive issues related to market services, trading services and regulatory services, efficiency concerns, and capital formation.
                        <SU>184</SU>
                        <FTREF/>
                         The SEC also analyzed the potential effect of CAT fees calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Based on this analysis, the SEC approved the CAT Funding Model as compliant with the Exchange Act. Historical CAT Assessment 1 is calculated and implemented in accordance with the CAT Funding Model as approved by the SEC.
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             CAT Funding Model Approval Order at 62676-86.
                        </P>
                    </FTNT>
                    <P>As discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 is reasonable and the resulting fee rate for Historical CAT Assessment 1 calculated in accordance with the CAT Funding Model is reasonable. Therefore, Historical CAT Assessment 1 would not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act.</P>
                    <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                    <P>No written comments were either solicited or received.</P>
                    <HD SOURCE="HD1">III. Suspension of the Proposed Rule Change</HD>
                    <P>
                        Pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>185</SU>
                        <FTREF/>
                         at any time within 60 days of the date of filing of a proposed rule change pursuant to Section 19(b)(1) of the Act,
                        <SU>186</SU>
                        <FTREF/>
                         the Commission summarily may temporarily suspend the change in the rules of an SRO if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. As discussed below, a temporary suspension of the proposed rule change is necessary or appropriate to allow for additional analysis of the proposed rule change's consistency with the Act and the rules thereunder.
                    </P>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <P>
                        When exchanges file their proposed rule changes with the Commission, including fee filings like the Exchange's present proposed rule change, they are required to provide a statement supporting the proposed rule change's basis under the Act and the rules and regulations thereunder applicable to the exchange.
                        <SU>187</SU>
                        <FTREF/>
                         The instructions to Form 19b-4, on which exchanges file their proposed rule changes, specify that such statement “should be sufficiently detailed and specific to support a finding that the proposed rule change is consistent with [those] requirements.” 
                        <SU>188</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.19b-4 (Item 3 entitled “Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>188</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Among other things, the Exchange's proposed rule change is subject to Section 6 of the Act, including Sections 6(b)(4), (5), and (8), which require the rules of an exchange to: (1) provide for the equitable allocation of reasonable fees among members, issuers, and other persons using the exchange's facilities; 
                        <SU>189</SU>
                        <FTREF/>
                         (2) be designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers; 
                        <SU>190</SU>
                        <FTREF/>
                         and (3) not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
                        <SU>191</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>190</SU>
                             15 U.S.C. 78f(b)(5).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>The proposed rule change is also subject to the CAT Funding Model set forth in the CAT NMS Plan. For example, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” In addition, Section 11.3(b)(i)(C) of the CAT NMS Plan provides that the “Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and Section 11.3(b)(i)(D) of the CAT NMS Plan provides that “[t]he length of the Historical Recovery Period used in calculating each Historical Fee Rate will be reasonably established by the Operating Committee based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment . . .” Further, Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan provides that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.”</P>
                    <P>
                        In temporarily suspending the Exchange's fee change, the Commission intends to further consider whether the proposed fees are consistent with the statutory requirements applicable to a national securities exchange under the Act and with the requirements set forth in the CAT Funding Model. Among other things, the Commission will consider whether the proposed rule change provides for reasonable fees that satisfy the standards under the Act and the rules thereunder.
                        <SU>192</SU>
                        <FTREF/>
                         Further, and among other things, the Commission will consider whether the proposed rule change, as required by the CAT Funding Model, provides “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including, but not limited to, whether the Operating Committee has “reasonably determine[d] the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and whether the “length of the Historical Recovery Period used in calculating each Historical Fee Rate [was] reasonably established by the Operating Committee.” 
                        <SU>193</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>192</SU>
                             
                            <E T="03">See</E>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>193</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <P>
                        Therefore, the Commission finds that it is necessary or appropriate in the public interest, for the protection of investors, and otherwise in furtherance of the purposes of the Act, to temporarily suspend the proposed rule change.
                        <SU>194</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>194</SU>
                             For purposes of temporarily suspending the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                            <E T="03">See</E>
                             15 U.S.C. 78c(f).
                        </P>
                    </FTNT>
                    <PRTPAGE P="10200"/>
                    <HD SOURCE="HD1">IV. Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</HD>
                    <P>
                        In addition to temporarily suspending the proposed rule change, the Commission is instituting proceedings pursuant to Sections 19(b)(3)(C) 
                        <SU>195</SU>
                        <FTREF/>
                         and 19(b)(2)(B) 
                        <SU>196</SU>
                        <FTREF/>
                         of the Act to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change to inform the Commission's analysis of whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>195</SU>
                             15 U.S.C. 78s(b)(3)(C). Once the Commission temporarily suspends a proposed rule change, Section 19(b)(3)(C) of the Act requires that the Commission institute proceedings under Section 19(b)(2)(B) to determine whether a proposed rule change should be approved or disapproved.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>196</SU>
                             15 U.S.C. 78s(b)(2)(B).
                        </P>
                    </FTNT>
                    <P>
                        Pursuant to Section 19(b)(2)(B) of the Act,
                        <SU>197</SU>
                        <FTREF/>
                         the Commission is providing notice of the grounds for possible disapproval under consideration. The Commission is instituting proceedings to allow for additional consideration and comment on whether the Exchange has sufficiently demonstrated that the proposed rule change is consistent with Section 6(b)(4) 
                        <SU>198</SU>
                        <FTREF/>
                         of the Act, and consistent with the CAT Funding Model. Section 6(b)(4) of the Act, among other things, provides that the dues, fees, and other charges for an exchange's members be reasonable. And the CAT Funding Model, as noted above, requires, among other things, that the proposed rule change provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including whether the Operating Committee has reasonably determined the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee and whether the length of the Historical Recovery Period used in calculating each Historical Fee Rate was reasonably established by the Operating Committee.
                        <SU>199</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>197</SU>
                             15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the Act also provides that proceedings to determine whether to disapprove a proposed rule change must be concluded within 180 days of the date of publication of notice of the filing of the proposed rule change. 
                            <E T="03">See id.</E>
                             The time for conclusion of the proceedings may be extended for up to 60 days if the Commission finds good cause for such extension and publishes its reasons for so finding, or if the exchange consents to the longer period. 
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>198</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>199</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">V. Commission's Solicitation of Comments</HD>
                    <P>
                        The Commission requests that interested persons provide written submission of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they have with the proposed rule change. In particular, the Commission invites the written views of interested persons concerning whether the proposed rule change is consistent with Section 6(b)(4), or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.
                        <SU>200</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>200</SU>
                             15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act grants the Commission flexibility to determine what type of proceeding—either oral or notice and opportunity for written comments—is appropriate for consideration of a particular proposed rule change by an exchange. 
                            <E T="03">See</E>
                             Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975).
                        </P>
                    </FTNT>
                    <P>Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule changes should be approved or disapproved by March 5, 2024. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by March 19, 2024.</P>
                    <P>Comments may be submitted by any of the following methods:</P>
                    <HD SOURCE="HD2">Electronic Comments</HD>
                    <P>
                        • Use the Commission's internet comment form (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ); or
                    </P>
                    <P>
                        • Send an email to 
                        <E T="03">rule-comments@sec.gov.</E>
                         Please include file number SR-PHLX-2024-01 on the subject line.
                    </P>
                    <HD SOURCE="HD2">Paper Comments</HD>
                    <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                    <FP>
                        All submissions should refer to file number SR-PHLX-2024-01. 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 internet website (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-PHLX-2024-01 and should be submitted on or before March 5, 2024. Rebuttal comments should be submitted by March 19, 2024.
                    </FP>
                    <HD SOURCE="HD1">VI. Conclusion</HD>
                    <P>
                        <E T="03">It is therefore ordered,</E>
                         pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>201</SU>
                        <FTREF/>
                         that File No. SR-PHLX-2024-01 be, and hereby is, temporarily suspended. In addition, the Commission is instituting proceedings to determine whether the proposed rule change should be approved or disapproved.
                    </P>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <SIG>
                        <P>
                            For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                            <SU>202</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>202</SU>
                                 17 CFR 200.30-3(a)(12), (57) and (58).
                            </P>
                        </FTNT>
                        <NAME>Sherry R. Haywood,</NAME>
                        <TITLE>Assistant Secretary.</TITLE>
                    </SIG>
                </PREAMB>
                <FRDOC>[FR Doc. 2024-01171 Filed 2-12-24; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 8011-01-P</BILCOD>
            </NOTICE>
            <NOTICE>
                <PREAMB>
                    <PRTPAGE P="10201"/>
                    <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                    <DEPDOC>[Release No. 34-99361; File No. SR-MRX-2024-01]</DEPDOC>
                    <SUBJECT>Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing of Proposed Rule Change To Establish Fees Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail; Suspension of and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</SUBJECT>
                    <DATE>January 17, 2024.</DATE>
                    <P>
                        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act” or the “Exchange Act”) 
                        <SU>1</SU>
                        <FTREF/>
                         and Rule 19b-4 thereunder,
                        <SU>2</SU>
                        <FTREF/>
                         notice is hereby given that, on January 2, 2024, Nasdaq MRX, LLC (“MRX” or “Exchange”) filed with the Securities and Exchange Commission (“SEC” or the “Commission”) the proposed rule change as described in Items I and II, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is, pursuant to Section 19(b)(3)(C) of the Act, hereby: (i) temporarily suspending the rule change; and (ii) instituting proceedings to determine whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             15 U.S.C. 78a.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             17 CFR 240.19b-4.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                    <P>The Exchange proposes to establish fees for Industry Members related to certain historical costs of the National Market System Plan Governing the Consolidated Audit Trail (the “CAT NMS Plan” or “Plan”) incurred prior to January 1, 2022, as described further below.</P>
                    <P>
                        The text of the proposed rule change is available on the Exchange's website at 
                        <E T="03">https://listingcenter.nasdaq.com/rulebook/nasdaq/rules,</E>
                         at the principal office of the Exchange, and at the Commission's Public Reference Room.
                    </P>
                    <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item V below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                    <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <HD SOURCE="HD3">1. Purpose</HD>
                    <P>
                        On July 11, 2012, the Commission adopted Rule 613 of Regulation NMS, which required the self-regulatory organizations (“SROs”) to submit a national market system (“NMS”) plan to create, implement and maintain a consolidated audit trail that would capture customer and order event information for orders in NMS securities across all markets, from the time of order inception through routing, cancellation, modification or execution.
                        <SU>3</SU>
                        <FTREF/>
                         On November 15, 2016, the Commission approved the CAT NMS Plan.
                        <SU>4</SU>
                        <FTREF/>
                         Under the CAT NMS Plan, the Operating Committee has the discretion to establish funding for the Consolidated Audit Trail, LLC (“CAT LLC” or “the Company”) 
                        <SU>5</SU>
                        <FTREF/>
                         to operate the CAT, including establishing fees for Industry Members 
                        <SU>6</SU>
                        <FTREF/>
                         to be assessed by CAT LLC that would be implemented on behalf of CAT LLC by the Participants.
                        <SU>7</SU>
                        <FTREF/>
                         The Operating Committee adopted a revised funding model to fund the CAT (“CAT Funding Model”). On September 6, 2023, the Commission approved the CAT Funding Model, after concluding that the model was reasonable and that it satisfied the requirements of Section 11A of the Exchange Act and Rule 608 thereunder.
                        <SU>8</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             Securities Exchange Act Rel. No. 67457 (July 18, 2012), 77 FR 45721 (Aug. 1, 2012).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             Securities Exchange Act Rel. No. 79318 (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016) (“CAT NMS Plan Approval Order”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             The term “CAT LLC” may be used to refer to Consolidated Audit Trail, LLC or CAT NMS, LLC, depending on the context.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             An “Industry Member” is defined as “a member of a national securities exchange or a member of a national securities association.” Nasdaq Rule General 7(u) (MRX General 7 incorporates The Nasdaq Stock Market LLC Rule General 7 by reference) 
                            <E T="03">See also</E>
                             Section 1.1 of the CAT NMS Plan. Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth in the CAT NMS Plan and/or the CAT Compliance Rule. Nasdaq General 7 (Consolidated Audit Trail Compliance).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Securities Exchange Act Rel. No. 98290 (Sept. 6, 2023), 88 FR 62628 (Sept. 12, 2023) (“CAT Funding Model Approval Order”).
                        </P>
                    </FTNT>
                    <P>
                        The CAT Funding Model provides a framework for the recovery of the costs to create, develop and maintain the CAT, including providing a method for allocating costs to fund the CAT among Participants and Industry Members. The CAT Funding Model establishes two categories of fees: (1) CAT fees assessed by CAT LLC and payable by certain Industry Members to recover a portion of historical CAT costs previously paid by the Participants (“Historical CAT Assessment” fees); and (2) CAT fees assessed by CAT LLC and payable by Participants and Industry Members to fund prospective CAT costs (“Prospective CAT Costs” fees).
                        <SU>9</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             Under the CAT Funding Model, the Operating Committee may establish one or more Historical CAT Assessments. Section 11.3(b) of the CAT NMS Plan. This filing only establishes Historical CAT Assessment 1 related to certain Historical CAT Costs as described herein; it does not address any other potential Historical CAT Assessment related to other Historical CAT Costs. In addition, under the CAT Funding Model, the Operating Committee also may establish CAT Fees related to CAT costs going forward. Section 11.3(a) of the CAT NMS Plan. This filing does not address any potential CAT Fees related to CAT costs going forward. Any such other fee for any other Historical CAT Assessment or CAT Fee for Prospective CAT Costs will be subject to a separate fee filing.
                        </P>
                    </FTNT>
                    <P>
                        Under the CAT Funding Model, “[t]he Operating Committee will establish one or more fees (each a `Historical CAT Assessment') to be payable by Industry Members with regard to CAT costs previously paid by the Participants (`Past CAT Costs').” 
                        <SU>10</SU>
                        <FTREF/>
                         In establishing a Historical CAT Assessment, the Operating Committee will determine a “Historical Recovery Period” and calculate a “Historical Fee Rate” for that Historical Recovery Period. Then, for each month in which a Historical CAT Assessment is in effect, each CEBB and CEBS would be required to pay the fee—the Historical CAT Assessment—for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate.
                        <SU>11</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, the proposed recovery of the Past CAT Costs via the Historical CAT Assessment is reasonable.” CAT Funding Model Approval Order at 62662.
                        </P>
                    </FTNT>
                    <P>
                        Each Historical CAT Assessment to be paid by CEBBs and CEBSs is designed to contribute toward the recovery of two-thirds of the Historical CAT Costs. Because the Participants previously have paid Past CAT Costs via loans to the Company, the Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans 
                        <PRTPAGE P="10202"/>
                        made by the Participants to the Company on a pro rata basis based on the outstanding loan amounts due under the loans, instead of through the payment of a CAT fee.
                        <SU>12</SU>
                        <FTREF/>
                         In addition, Participants also will be 100% responsible for certain Excluded Costs (as discussed below).
                    </P>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             Section 11.3(b)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC proposes to charge CEBBs and CEBSs (as described in more detail below) Historical CAT Assessment 1 to recover certain historical CAT costs incurred prior to January 1, 2022, in accordance with the CAT Funding Model. To implement this fee on behalf of CAT LLC, the CAT NMS Plan requires the Participants to “file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves, and such fees shall be labeled as `Consolidated Audit Trail Funding Fees.' ” 
                        <SU>13</SU>
                        <FTREF/>
                         The Plan further states that “Participants will be required to file with the SEC pursuant to Section 19(b) of the Exchange Act a filing for each Historical CAT Assessment.” 
                        <SU>14</SU>
                        <FTREF/>
                         Accordingly, the purpose of this filing is to implement a Historical CAT Assessment on behalf of CAT LLC for Industry Members, referred to as Historical CAT Assessment 1, in accordance with the CAT NMS Plan.
                        <SU>15</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             Section 11.3(b)(iii)(B)(I) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             Note that there may be one or more Historical CAT Assessments depending on the timing of the completion of the Financial Accountability Milestones, among other things. Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(1) CAT Executing Brokers</HD>
                    <P>
                        Historical CAT Assessment 1 will be charged to each CEBB and CEBS for each applicable transaction in Eligible Securities.
                        <SU>16</SU>
                        <FTREF/>
                         The CAT NMS Plan defines a “CAT Executing Broker” to mean:
                    </P>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             In its approval of the CAT Funding Model, the Commission determined that charging CAT fees to CAT Executing Brokers was reasonable. In reaching this conclusion the Commission noted that the use of CAT Executing Brokers is appropriate because the CAT Funding Model is based upon the calculation of executed equivalent shares, and, therefore, charging CAT Executing Brokers would reflect their executing role in each transaction. Furthermore, the Commission noted that, because CAT Executing Brokers are already identified in transaction reports from the exchanges and FINRA's equity trade reporting facilities recorded in CAT Data, charging CAT Executing Brokers could streamline the billing process. CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) with respect to a transaction in an Eligible Security that is executed on an exchange, the Industry Member identified as the Industry Member responsible for the order on the buy-side of the transaction and the Industry Member responsible for the sell-side of the transaction in the equity order trade event and option trade event in the CAT Data submitted to the CAT by the relevant exchange pursuant to the Participant Technical Specifications; and (b) with respect to a transaction in an Eligible Security that is executed otherwise than on an exchange and required to be reported to an equity trade reporting facility of a registered national securities association, the Industry Member identified as the executing broker and the Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event in the CAT Data submitted to the CAT by FINRA pursuant to the Participant Technical Specifications; provided, however, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.
                            <SU>17</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>17</SU>
                                 Section 1.1 of the CAT NMS Plan. Note that CEBBs and CEBSs may, but are not required to, pass-through their CAT fees to their clients, who may, in turn, pass their fees to their clients until they are imposed ultimately on the account that executed the transaction. CAT Funding Model Approval Order at 62649.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The following fields of the Participant Technical Specifications indicate the CAT Executing Brokers for the transactions executed on an exchange.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>18</SU>
                             
                            <E T="03">See</E>
                             Table 23, Section 4.7 (Order Trade Event) of the CAT Reporting Technical Specifications for Plan Participants, Version 4.1.0-r20 (Sept. 25, 2023), 
                            <E T="03">https://www.catnmsplan.com/sites/default/files/2023-09/9.25.2023-CAT_Reporting_Technical_Specifications_for_Participants_4.1.0-r20.pdf</E>
                             (“CAT Reporting Technical Specifications for Plan Participants”).
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="205">
                        <GID>EN13FE24.000</GID>
                    </GPH>
                    <GPH SPAN="3" DEEP="93">
                        <PRTPAGE P="10203"/>
                        <GID>EN13FE24.001</GID>
                    </GPH>
                    <P>
                        In addition,
                        <FTREF/>
                         the following fields of the Participant Technical Specifications would indicate the CAT Executing Brokers for the transactions executed otherwise than on an exchange.
                    </P>
                    <FTNT>
                        <P>
                            <SU>19</SU>
                             
                            <E T="03">See</E>
                             Table 51, Section 5.2.5.1 (Simple Option Trade Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                        <P>
                            <SU>20</SU>
                             
                            <E T="03">See</E>
                             Table 61, Section 6.1 (TRF/ORF/ADF Transaction Data Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="121">
                        <GID>EN13FE24.002</GID>
                    </GPH>
                    <HD SOURCE="HD3">(2) Calculation of Historical Fee Rate 1</HD>
                    <P>The Operating Committee determined the Historical Fee Rate to be used in calculating Historical CAT Assessment 1 (“Historical Fee Rate 1”) by dividing the Historical CAT Costs for Historical CAT Assessment 1 (“Historical CAT Costs 1”) by the projected total executed share volume of all transactions in Eligible Securities for the Historical Recovery Period for Historical CAT Assessment 1 (“Historical Recovery Period 1”), as discussed in detail below. Based on this calculation, the Operating Committee has determined that Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. This rate is then divided by three and rounded to determine the fee rate of $0.000015 per executed equivalent share that will be assessed to CEBBs and CEBSs, as also discussed in detail below.</P>
                    <HD SOURCE="HD3">(A) Executed Equivalent Shares for Transactions in Eligible Securities</HD>
                    <P>
                        Under the CAT NMS Plan, for purposes of calculating each Historical CAT Assessment, executed equivalent shares in a transaction in Eligible Securities will be reasonably counted as follows: (1) each executed share for a transaction in NMS Stocks will be counted as one executed equivalent share; (2) each executed contract for a transaction in Listed Options will be counted based on the multiplier applicable to the specific Listed Options (
                        <E T="03">i.e.,</E>
                         100 executed equivalent shares or such other applicable multiplier); and (3) each executed share for a transaction in OTC Equity Securities shall be counted as 0.01 executed equivalent share.
                        <SU>21</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             Section 11.3(a)(i)(B) and 11.3(b)(i)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission concluded that “the use of executed equivalent share volume as the basis of the proposed cost allocation methodology is reasonable and consistent with the approach taken by the funding principles of the CAT NMS Plan.” CAT Funding Model Approval Order at 62640.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Historical CAT Costs 1</HD>
                    <P>
                        The CAT NMS Plan states that “[t]he Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee. Each Historical CAT Assessment will seek to recover from CAT Executing Brokers two-thirds of Historical CAT Costs incurred during the period covered by the Historical CAT Assessment.” 
                        <SU>22</SU>
                        <FTREF/>
                         As described in detail below, Historical CAT Costs 1 would be $337,688,610. This figure includes Past CAT Costs of $401,312,909 minus certain Excluded Costs of $63,624,299. Participants collectively will remain responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), plus the Excluded Costs of $63,624,299. CEBBs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), and CEBSs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870).
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             Section 11.3(b)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        The following describes in detail Historical CAT Costs 1 with regard to four separate historical time periods as well as Past CAT Costs excluded from Historical CAT Costs 1 (“Excluded Costs”). The following cost details are provided in accordance with the requirement in the CAT NMS Plan to provide in the fee filing “a brief description of the amount and type of Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.” 
                        <SU>23</SU>
                        <FTREF/>
                         Each of the costs described below are reasonable, appropriate and necessary for the 
                        <PRTPAGE P="10204"/>
                        creation, implementation and maintenance of CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             Section 11.3(b)(iii)(B)(II)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(i) Historical CAT Costs Incurred Prior to June 22, 2020 (Pre-FAM Costs)</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT prior to June 22, 2020 (“Pre-FAM Period”) and already funded by the Participants, excluding Excluded Costs (described further below). Historical CAT Costs 1 would include costs for the Pre-FAM Period of $143,919,521. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($47,973,174), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($47,973,174) and CEBSs paying one-third ($47,973,174). These costs do not include Excluded Costs, as discussed further below. The following table breaks down Historical CAT Costs 1 for the Pre-FAM Period into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             With respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>25</SU>
                             The costs described in this table of costs for the Pre-FAM Period were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website. In addition, in accordance with Section 6.6(a)(i) of the CAT NMS Plan, in 2018 CAT LLC provided the SEC with “an independent audit of fees, costs, and expenses incurred by the Participants on behalf of the Company prior to the Effective Date of the Plan that will be publicly available.” The audit is available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="295">
                        <GID>EN13FE24.003</GID>
                    </GPH>
                    <P>The Pre-FAM Period includes a broad range of CAT-related activity from 2012 through June 22, 2020, including the evaluation of the requirements of SEC Rule 613, the development of the CAT NMS Plan, the evaluation and selection of the initial and successor Plan Processors, the commencement of the creation and implementation of the CAT to comply with Rule 613 and the CAT NMS Plan, including technical specifications for transaction reporting and regulatory access, and related technology and the commencement of reporting to the CAT. The following describes the costs for each of the categories for the Pre-FAM Period.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>The $10,268,840 in technology costs for cloud hosting services represent costs incurred for services provided by the cloud services provider for the CAT, Amazon Web Services, Inc. (“AWS”), during the Pre-FAM Period.</P>
                    <P>As part of its proposal for acting as the successor Plan Processor for the CAT, FCAT selected AWS as a subcontractor to provide cloud hosting services. In 2019, after reviewing the capabilities of other cloud services providers, FCAT determined that AWS was the only cloud services provider at that time sufficiently mature and capable of providing the full suite of necessary cloud services for the CAT, including, for example, the security, resiliency and complexity necessary for the CAT computing requirements. The use of cloud hosting services is standard for this type of high-volume data activity and reasonable and necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT the fees incurred by the Plan Processor for cloud hosting services provided by AWS as FCAT's subcontrator on a monthly basis for the cloud hosting services, and FCAT, in turn, pays such fees to AWS. The fees for cloud hosting services were negotiated by FCAT on an arm's length 
                        <PRTPAGE P="10205"/>
                        basis with the goals of managing cost and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the expected volume of data, the breadth of services provided and market rates for similar services. The fees for cloud hosting services during the Pre-FAM Period were paid to FCAT by CAT NMS LLC 
                        <SU>26</SU>
                        <FTREF/>
                         and subsequently Consolidated Audit Trail, LLC (as previously noted, both entities are referred to generally as “CAT LLC”),
                        <SU>27</SU>
                        <FTREF/>
                         and FCAT, in turn, paid AWS. CAT LLC was funded via loan contributions by the Participants.
                        <SU>28</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>26</SU>
                             CAT NMS, LLC was formed by FINRA and the U.S. national securities exchanges to implement the requirements of SEC Rule 613 under the Exchange Act. SEC Rule 613 required the SROs to jointly submit to the SEC the CAT NMS Plan to create, implement and maintain the CAT. The SEC approved the CAT NMS Plan on November 15, 2016. CAT NMS Plan Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             On August 29, 2019, the Participants formed a new Delaware limited liability company named Consolidated Audit Trail, LLC for the purpose of conducting activities related to the CAT from and after the effectiveness of the proposed amendment of the CAT NMS Plan to replace CAT NMS, LLC. 
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 87149 (Sept. 27, 2019), 84 FR 52905 (Oct. 3, 2019).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             For each of the costs paid by CAT NMS, LLC and Consolidated Audit Trail, LLC as discussed throughout this filing, CAT NMS, LLC and Consolidated Audit Trail, LLC paid these costs via loan contributions by the Participants to CAT NMS, LLC and Consolidated Audit Trail, LLC, respectively.
                        </P>
                    </FTNT>
                    <P>AWS was engaged by FCAT to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. Services provided by AWS include storage services, databases, compute services and other services (such as networking, management tools and DevOps tools). AWS also was engaged to provide various environments for CAT, such as development, performance testing, test and production environments.</P>
                    <P>
                        The cost for AWS services for the CAT is a function of the volume of CAT Data. The greater the amount of CAT Data, the greater the cost of AWS services to the CAT. During the Pre-FAM Period from the engagement of AWS in February 2019 through June 2020, AWS provided cloud hosting services for volumes of CAT Data far in excess of the volume predictions set forth in the CAT NMS Plan. The CAT NMS Plan states, when all CAT Reporters are submitting their data to the CAT, it “must be sized to receive[,] process and load more than 58 billion records per day,” 
                        <SU>29</SU>
                        <FTREF/>
                         and that “[i]t is expected that the Central Repository will grow to more than 29 petabytes of raw, uncompressed data.” 
                        <SU>30</SU>
                        <FTREF/>
                         However, the volume of CAT Data for the Pre-FAM Period was far in excess of these predicted levels. By the end of this period, data submitted to the CAT included options and equities Participant Data,
                        <SU>31</SU>
                        <FTREF/>
                         Phase 2a and Phase 2b Industry Member Data 
                        <SU>32</SU>
                        <FTREF/>
                         (including certain linkages), as well as SIP Data,
                        <SU>33</SU>
                        <FTREF/>
                         reference data and other types of Other Data.
                        <SU>34</SU>
                        <FTREF/>
                         The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during the Pre-FAM Period.
                        <SU>35</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             Appendix D-5 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             
                            <E T="03">See</E>
                             Section 6.3(d) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Rel. No. 88702 (Apr. 20, 2020), 85 FR 23075 (Apr. 24, 2020) (“Phased Reporting Exemptive Relief Order”) for a description of Phase 2a and Phase 2b Industry Member Data.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See</E>
                             Appendix C-108 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="249">
                        <GID>EN13FE24.004</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>
                        The $21,085,485 in technology costs related to operating fees represent costs incurred with regard to activities of FCAT as the Plan Processor. Operating fees are those fees paid by CAT LLC to FCAT as the Plan Processor to operate and maintain the CAT and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management as required by the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             Note that, although there were compute hours during this period, data related to such compute hours are no longer available in current data.
                        </P>
                    </FTNT>
                    <P>
                        FCAT was selected to assume the role of the successor Plan Processor. Prior to this selection, the Participants engaged 
                        <PRTPAGE P="10206"/>
                        in discussions with two prior Bidders 
                        <SU>37</SU>
                        <FTREF/>
                         for the successor Plan Processor role. The Operating Committee formed a Selection Subcommittee in accordance with Section 4.12 of the CAT NMS Plan to evaluate and review Bids and to make a recommendation to the Operating Committee with respect to the selection of the successor Plan Processor. In an April 9, 2019 letter to the Commission, the Participants described the reasons for its selection of the successor Plan Processor:
                    </P>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             The term “Bidder” is defined in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>The Selection Subcommittee considered factors including, but not limited to, the following, in recommending FINRA to the Operating Committee as the successor Plan Processor:</P>
                    <EXTRACT>
                        <P>a. FINRA's specialized technical expertise and capabilities in the area of broker-dealer technology;</P>
                        <P>b. The need to appoint a successor Plan Processor with specialized expertise to develop, implement, and maintain the CAT System in accordance with the CAT NMS Plan and SEC Rule 613;</P>
                        <P>c. FINRA's detailed proposal in response to CATLLC's recent inquiries; and</P>
                        <P>d. FINRA's data query and analytics systems demonstration to the Participants.</P>
                        <P>
                            Based on these and other factors, the Selection Subcommittee determined that FINRA was the most appropriate Bidder to become the successor Plan Processor.
                            <SU>38</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>38</SU>
                                 Letter from Michael J. Simon, Chair, CAT NMS, LLC Operating Committee, to Brent J. Fields, Secretary, SEC (Apr. 9, 2019), 
                                <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection-040919.pdf.</E>
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        On February 26, 2019, the Operating Committee (with FINRA recusing itself) voted to select FINRA as the successor Plan Processor pursuant to Section 6.1(t) of the CAT NMS Plan.
                        <SU>39</SU>
                        <FTREF/>
                         On March 29, 2019, CAT LLC and FCAT (a wholly owned subsidiary of FINRA) entered into a Plan Processor Agreement pursuant to which FCAT would perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>39</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT a negotiated monthly fixed price for the operation of the CAT. This fixed price contract was negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity. The operating fees during the Pre-FAM Period were paid to FCAT by CAT LLC.</P>
                    <P>From March 29, 2019 (the commencement of the Plan Processor Agreement with FCAT) through June 22, 2020 (the end of the Pre-FAM Period), the Plan Processor's activities with respect to the CAT included the following:</P>
                    <P>
                        • Commenced user acceptance testing with market data provided by Exegy Incorporated (“Exegy”), a market data provider; 
                        <SU>40</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             The use of Exegy to provide market data, including the costs and market data provided, is discussed below in Section 3(a)(2)(B)(i)(i).
                        </P>
                    </FTNT>
                    <P>• Published Technical Specifications and related reporting scenarios documents for Phase 2a, 2b and 2c reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated testing for Phase 2a and 2b reporting for Industry Members;</P>
                    <P>• Began developing Technical Specifications and related reporting scenarios documents for Phase 2d reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published Central Repository Access Technical Specifications, and provided regulator access to test data from Industry Members;</P>
                    <P>• Facilitated Participant exchanges that support options market makers sending Quote Sent Time to the CAT;</P>
                    <P>• Facilitated the introduction of OPRA and Options NBBO Other Data to CAT;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing requirements under Regulation SCI;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants, SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk, which is the primary source for answers to questions about CAT, including questions regarding: clock synchronization, firm reporting responsibilities, interpretive questions, technical specifications for reporting to CAT and more;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>
                        • Administered the CAT website and all of its content; 
                        <SU>41</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             The CAT website is 
                            <E T="03">https://www.catnmsplan.com.</E>
                        </P>
                    </FTNT>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>The $2,072,908 in technology costs related to CAIS operating fees represent the fees paid for FCAT's subcontractor charged with the development and operation of CAT's Customer and Account Information System (“CAIS”). The CAT is required under the CAT NMS Plan to capture and store Customer Identifying Information and Customer Account Information in a database separate from the transactional database and to create a CAT-Customer-ID for each Customer.</P>
                    <P>During the Pre-FAM Period, the CAIS-related services were provided by the Plan Processor through the Plan Processor's subcontractor, Kingland Systems Incorporation (“Kingland”). Kingland had experience operating in the securities regulatory technology space, and as a part of its proposal for acting as the Plan Processor for the CAT, FCAT selected Kingland as a subcontractor to provide certain CAIS-related services.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay to the Plan Processor the fees incurred by the FCAT for CAIS-related services provided by FCAT through Kingland on a monthly basis. FCAT negotiated the fees for Kingland's CAIS-related services on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity. The fees for CAIS-related services during the Pre-FAM Period were paid by CAT LLC to FCAT. FCAT, in turn, paid Kingland. During the Pre-FAM Period, Kingland began development of the CAIS Technical Specifications and the building of CAIS. In addition, Kingland also worked on the build related to the CCID Alternative, an alternative approach to customer information that was not included in the CAT NMS Plan as 
                        <PRTPAGE P="10207"/>
                        originally adopted.
                        <SU>42</SU>
                        <FTREF/>
                         Furthermore, Kingland also worked on the acceleration of the reporting of large trader identifiers (“LTID”) earlier than originally contemplated during this period, in accordance with exemptive relief granted by the SEC.
                        <SU>43</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             For a discussion of the CCID Alternative, 
                            <E T="03">see</E>
                             Securities Exchange Act Rel. No. 88393 (Mar. 17, 2020), 85 FR 16152 (Mar. 20, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             Phased Reporting Exemptive Relief Order at 23079-80.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        The technology costs related to change request fees include costs related to certain modifications, upgrades or other changes to the CAT. Change requests are standard practice and necessary to reflect operational changes, including changes related to new market developments, such as new market participants. In general, if CAT LLC determines that a modification, upgrade or other changes to the functionality or service is necessary and appropriate, CAT LLC will submit a request for such a change to the Plan Processor. The Plan Processor will then respond to the request with a proposal for implementing the change, including the cost (if any) of such a change. CAT LLC then determines whether to approve the proposed change. The change request costs were paid by CAT LLC to FCAT. During the Pre-FAM Period, CAT LLC incurred costs of $141,346 related to change requests implemented by FCAT. Such change requests related to a development fee regarding the OPRA and SIP data feeds, and the reprocessing of certain exchange data.
                        <SU>44</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             Note that CAT LLC also has incurred costs related to specific Industry Members (
                            <E T="03">e.g.,</E>
                             reprocessing costs related to Industry Member reporting errors).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>This category of costs includes capitalizable application development costs incurred in the development of the CAT. The capitalized developed technology costs for the Pre-FAM Period of $71,475,941 relate to technology provided by the Initial Plan Processor and the successor Plan Processor.</P>
                    <P>
                        <E T="03">Initial Plan Processor: Thesys CAT, LLC.</E>
                         The capitalized developed technology costs related to the Initial Plan Processor include costs incurred with regard to testing for Participant reporting, Participant reporting to the CAT, a security assessment of the CAT, the development of the billing function for the CAT, and a Plan Processor transition fee.
                    </P>
                    <P>
                        On January 17, 2017, the Selection Committee of the CAT NMS Plan selected the Initial Plan Processor, Thesys Technologies, LLC, for the CAT NMS Plan pursuant to Article V of the CAT NMS Plan.
                        <SU>45</SU>
                        <FTREF/>
                         The Participants utilized a request for proposal (“RFP”) to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan, taking into consideration that the Initial Plan Processor had experience operating in the securities regulatory technology space, among other considerations. On April 6, 2017, CAT LLC entered into an agreement with Thesys CAT LLC (“Thesys CAT”), a Thesys affiliate, to perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT. Under the agreement, CAT LLC would pay Thesys CAT a negotiated, fixed price fee for its role as the Initial Plan Processor. Effective January 30, 2019, the Plan Processor Agreement with Thesys CAT was terminated, and FCAT was subsequently selected as the successor Plan Processor.
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             Letter from the Participants to Brent J. Fields, Secretary, SEC (Jan. 18, 2017), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection.pdf.</E>
                        </P>
                    </FTNT>
                    <P>From January 17, 2017 through January 30, 2019, the time in which the Thesys CAT was engaged for the CAT, but excluding the period from November 15, 2017 through November 15, 2018, the Initial Plan Processor engaged in various activities with respect to the CAT, including preparing iterative drafts of Participant Technical Specifications, Industry Member Technical Specifications and the Central Repository Access Technical Specifications. Thesys CAT initiated and maintained the Participant reporting per the Participant Technical Specifications. In addition, Thesys CAT also developed CAT technology, addressed compliance items, including drafting CAT policies and procedures, addressing Regulation SCI requirements, establishing a CAT Compliance Officer and a Chief Information Security Officer, and addressed security-related matters for the CAT. Furthermore, Thesys CAT performed transition services related to the transition from Thesys CAT to FCAT as the successor Plan Processor from January 30, 2019 through April 15, 2019.</P>
                    <P>
                        <E T="03">Successor Plan Processor: FCAT.</E>
                         The capitalized developed technology costs related to FCAT include: (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, including the completion of go-live functionality related to options ingestion and validation, equities regulatory services agreement query tool updates and unlinked options data query, options linkages release, Industry Member Phase 2a file submission and data integrity (including error corrections), and Industry Member testing, including reporting relationships, ATS order type management, basic reporting statistics, SFTP data integrity feedback and error correction; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including a one-time development fee for a secure analytics workspace, a one-time development fee of an Industry Member connectivity solution, and a one-time development fee for the acceleration of multi-factor authentication; (3) CAIS implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $19,674,463 represent the fees paid for legal services provided by two law firms, Wilmer Cutler Pickering Hale and Dorr LLP (“WilmerHale”) and Pillsbury Winthrop Shaw Pittman LLP (“Pillsbury”), during the Pre-FAM Period. The legal costs exclude those costs incurred from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         Following the adoption of Rule 613, the Participants determined it was necessary to engage external legal counsel to advise the Participants with respect to corporate and regulatory legal matters related to the CAT, including drafting and developing the CAT NMS Plan. The Participants considered a variety of factors in their analysis of prospective law firms, including (1) the firm's qualifications, resources and expertise, (2) the firm's relevant experience and understanding of the regulatory matters raised by the CAT and in advising on matters of similar scope, (3) the composition of the legal team, and (4) professional fees. Following a series of interviews, the Participants acting as a consortium determined that WilmerHale was well qualified given the balance of 
                        <PRTPAGE P="10208"/>
                        these considerations and engaged WilmerHale in February 2013.
                    </P>
                    <P>WilmerHale's billing rates are negotiated on an annual basis and are determined with reference to the rates charged by other leading law firms for similar work. The Participants assess WilmerHale's performance and review prospective budgets and staffing plans submitted by WilmerHale on an annual basis. WilmerHale's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading law firms for similar work.</P>
                    <P>The legal costs for WilmerHale during the Pre-FAM Period included costs incurred from 2013 until June 22, 2020 to address corporate and regulatory legal matters related to the CAT. The legal fees for this law firm during the period from February 2013 until the formation of the CAT NMS, LLC on November 15, 2016 were paid directly by the exchanges and FINRA to WilmerHale. After the formation of CAT NMS LLC, the legal fees were paid by CAT LLC to WilmerHale.</P>
                    <P>After WilmerHale was engaged in 2013 through the end of the Pre-FAM Period on June 22, 2020 (excluding the legal costs from November 15, 2017 through November 15, 2018), WilmerHale provided legal assistance to the CAT on a variety of matters, including with regard to the following:</P>
                    <P>• Analyzed various legal matters associated with the Selection Plan, and drafted an amendment to Selection Plan;</P>
                    <P>• Assisted with the RFP and bidding process for the CAT Plan Processor;</P>
                    <P>• Analyzed legal matters related to the Development Advisory Group (“DAG”);</P>
                    <P>• Drafted the CAT NMS Plan, analyzed various items related to the CAT NMS Plan, and responded to comment letters on CAT NMS Plan;</P>
                    <P>
                        • Provided legal support for the formation of the legal entity, the governance of the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan; and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan and related filings;</P>
                    <P>• Negotiated and drafted the plan processor agreements with the Initial Plan Processor and the successor Plan Processor;</P>
                    <P>• Provided assistance with compliance with Regulation SCI;</P>
                    <P>• Assisted with clock synchronization study;</P>
                    <P>• Provided assistance with respect to the establishment of CAT security;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including with regard to options market maker quotes, Customer IDs, CAT Reporter IDs, linking allocations to executions, CAT reporting timeline, FDIDs, customer and account information, timestamp granularity, small industry members, data facility reporting and linkage, allocation reports, SRO-assigned market participant identifiers and cancelled trade indicators, thereby seeking to implement changes that would be cost effective and benefit Industry Members and Participants;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided advice regarding CAT policies and procedures;</P>
                    <P>• Analyzed the SEC's amendment of the CAT NMS Plan regarding financial accountability;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues; and</P>
                    <P>• Assisted with third party vendor agreements.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         The legal costs for CAT during the Pre-FAM Period include costs related to the legal services performed by Pillsbury. The Participants interviewed this law firm as well as other potential law firms to provide legal assistance regarding certain liability matters. After considering a variety of factors in its analysis, including the relevant expertise and fees of the firm, CAT LLC determined to hire Pillsbury in April 2019. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees were paid by CAT LLC to Pillsbury. The legal costs for Pillsbury during the Pre-FAM Period included costs incurred from April 2019 until June 22, 2020 to address legal matters regarding the agreements between CAT Reporters and CAT LLC concerning certain terms associated with CAT Reporting (the “Reporter Agreement”). During that period, Pillsbury advised CAT LLC regarding applicable legal matters, participated in negotiations between the Participants and Industry Members, participated in meetings with senior SEC staff, the Chairman, and Commissioners, represented CAT LLC and the Participants in an SEC administrative proceeding, and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, litigation involving CAT LLC is an expense of operating the CAT, and, therefore, is appropriately an obligation of both Participants and Industry Members under the CAT Funding Model.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $17,013,414 represent the fees paid to the consulting firm Deloitte &amp; Touche LLP (“Deloitte”) as project manager during the Pre-FAM Period, from October 2012 until June 22, 2020. These consulting costs include costs for advisory services related to the operation of the CAT, and meeting facilitation and communications coordination, vendor support and financial analyses.</P>
                    <P>To help facilitate project management given the unprecedented complexity and scope of the CAT project, the Participants determined it was necessary to engage a consulting firm to assist with the CAT project in 2012, following the adoption of Rule 613. A variety of factors were considered in the analysis of prospective consulting firms, including (1) the firm's qualifications, resources, and expertise, (2) the firm's relevant experience and understanding of the regulatory issues raised by the CAT and in coordinating matters of similar scope, (3) the composition of the consulting team, and (4) professional fees. Following a series of interviews, the exchanges and FINRA as a consortium determined that Deloitte was well qualified given the balance of these considerations and engaged Deloitte on October 1, 2012.</P>
                    <P>
                        Deloitte's fee rates are negotiated on an annual basis and are in line with market rates for this type of specialized consulting work. CAT LLC assesses Deloitte's performance and reviews prospective budgets and staffing plans submitted by Deloitte on an annual basis. Deloitte's compensation arrangements are reasonable and appropriate, and in line with the rates 
                        <PRTPAGE P="10209"/>
                        charged by other leading consulting firms for similar work.
                    </P>
                    <P>The consulting costs for CAT during the period from 2012 until the formation of the CAT NMS, LLC were paid directly by the Participants to Deloitte. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC to Deloitte. CAT LLC reviewed the consulting fees each month and approved the invoices.</P>
                    <P>After Deloitte was hired in 2012 through the end of the Pre-FAM Period on June 22, 2020 (excluding the consulting costs from November 15, 2017 through November 15, 2018), Deloitte provided a variety of consulting services, including the following:</P>
                    <P>
                        • Established and implemented program operations for the CAT project, including the program managment [
                        <E T="03">sic</E>
                        ] office and workstream design;
                    </P>
                    <P>• Assisted with the Plan Processor selection process, including but not limited to, the development of the RFP and the bidder evaluation process, and facilitation and consolidation of the Participant's independent reviews;</P>
                    <P>• Assisted with the development and drafting of the CAT NMS Plan, including conducting cost-benefit studies, analyzing OATS and CAT requirements, and drafting appendices to the Plan;</P>
                    <P>• Assisted with cost and funding-related activities for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>
                        • Provided governance support to the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with industry outreach and communications regarding the CAT, including assistance with industry outreach events, the development of the CAT website, frequently asked questions, and coordinating with the CAT LLC's public relations firm;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress;</P>
                    <P>• Coordinated efforts regarding the selection of the successor Plan Processor;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor, including support for the Operating Committee and successor Plan Processor for the new role; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $880,419 represent the cost incurred for insurance for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT insurance policies, which included engaging in discussions with different insurance companies and conducting cost comparisons of various alternative approaches to insurance. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance from USI Insurance Services LLC (“USI”). Such policies are standard for corporate entities, and cyber security liability insurance is important for the CAT System. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        In adopting the CAT NMS Plan, the Commission amended the Plan to add a requirement that CAT LLC's financial statements be prepared in compliance with GAAP, audited by an independent public accounting firm, and made publicly available.
                        <SU>46</SU>
                        <FTREF/>
                         The professional and administration costs include costs related to accounting and accounting advisory services to support the operating and financial functions of CAT, financial statement audit services by an independent accounting firm, preparation of tax returns, and various cash management and treasury functions. In addition, professional and administration costs for the Pre-FAM Period include costs related to the receipt of market data and a security assessment. The costs for these professional and administration services were $1,082,036 for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             Section 9.2 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin Accountants &amp; Advisors (“Anchin”).</E>
                         CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT in April 2018. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services were paid by CAT LLC to Anchin.
                    </P>
                    <P>After Anchin was hired in April 2018 through the end of the Pre-FAM Period on June 22, 2020 (excluding the period from April 2018 through November 15, 2018), Anchin provided a variety of services, including the following:</P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial reporting matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>
                        • Supported the annual financial statement audits by an independent auditor;
                        <PRTPAGE P="10210"/>
                    </P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton LLP (“Grant Thornton”).</E>
                         In February 2020, CAT LLC determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the proposed role given the balanace [sic] of these considerations. Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services. The fees for these services were paid by CAT LLC to Grant Thornton.
                    </P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         The professional and administrative costs for the Pre-FAM Period included costs related to the receipt of certain market data for the CAT pursuant to an agreement with the CAT LLC, and then with FCAT. Exegy provided SIP Data required by the CAT NMS Plan.
                    </P>
                    <P>
                        After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy from July 2018 through March 2019. CAT LLC determined that, unlike certain other vendors, Exegy provided market data that included all data elements required by the CAT NMS Plan.
                        <SU>47</SU>
                        <FTREF/>
                         In addition, the fees were reasonable and in line with market rates for the market data received. Accordingly, the professional and administrative costs for the Pre-FAM Period include the Exegy costs from November 2018 through March 2019. The cost of the market data was reasonable for the market data received. The fees for the market data were paid directly by CAT LLC to Exegy.
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>Upon the termination of the contract between CAT LLC and Exegy, FCAT entered into a contract with Exegy to purchase the required market data from Exegy in July 2019. All costs under the contract were treated as a direct pass through cost to CAT LLC. Therefore, the fees for the market data were paid by CAT LLC to FCAT, who, in turn, paid Exegy for the market data.</P>
                    <P>
                        <E T="03">Security Assessment: RSM US LLP (“RSM”).</E>
                         The operating costs for the Pre-FAM Period include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation, and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment. RSM performed the assessment from October 2018 through December 2018. Accordingly, the costs for the Pre-FAM Period include the costs incurred in November and December 2018. The cost for the security assessment were paid directly to RSM by CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $224,669 represent the fees paid to public relations firms during the Pre-FAM Period for professional communications services to CAT, including media relations consulting, strategy and execution. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants. Specifically, the public relations firms provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                    </P>
                    <P>The services performed by each of the public relations firms were comparable. The fees for such services were reasonable and in line with market rates. Only one public relations firm was engaged at a time; the three firms were engaged sequentially as the primary public relations contact moved among the three firms during this time period.</P>
                    <P>
                        <E T="03">Public Relations Firm: Peppercomm, Inc. (“Peppercomm”).</E>
                         The national securities exchanges and FINRA, acting as a consortium, determined to hire the public relations firm Peppercomm in October 2014 and continued to engage this firm through September 2017. The exchanges and FINRA made this engagement decision after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fee rates for this public relations firm were negotiated on an arm's length basis and were in line with market rates for these types of services. The public relations costs during the period from October 2014 until the formation of the CAT NMS LLC were paid directly by the exchanges and FINRA to the public relations firm. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Sloane &amp; Company (“Sloane”).</E>
                         CAT LLC determined to hire a new public relations firm, Sloane, in March 2018, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Sloane. CAT LLC continued the engagement with Sloane until February 2020.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Peak Strategies.</E>
                         CAT LLC determined to hire a new public relations firm, Peak Strategies, in March 2020, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Peak Strategies.
                    </P>
                    <HD SOURCE="HD3">(ii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 1</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 1 of the Financial Accountability Milestones (“FAM Period 1”),
                        <SU>48</SU>
                        <FTREF/>
                         which covers the period from June 22, 2020-July 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 1 of $6,377,343. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($2,125,781), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-
                        <PRTPAGE P="10211"/>
                        third ($2,125,781) and CEBSs paying one-third ($2,125,781). The following table breaks down Historical CAT Costs 1 for FAM Period 1 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             Section 11.6(a)(i)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <GID>EN13FE24.005</GID>
                    </GPH>
                    <P>
                        By the completion of FAM Period 1, CAT LLC was required to implement the reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of equities transaction data and options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.
                        <SU>51</SU>
                        <FTREF/>
                         CAT LLC completed the requirements of FAM Period 1 by July 31, 2020. The following describes the costs for each of the categories for FAM Period 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>50</SU>
                             The costs described in this table of costs for FAM Period 1 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                        <P>
                            <SU>51</SU>
                             
                            <E T="03">See</E>
                             definition of “Initial Industry Member Core Equity and Options Reporting” in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 1 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 1 Period. Accordingly, the $2,642,122 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 1. The fee arrangement for AWS described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. Moreover, CAT LLC continued to believe that AWS's maturity in the cloud services space as well as the significant cost and time necessary to move the CAT to a different cloud services provider supported the continued engagement of AWS.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 1 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, reference data and other types of Other Data. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 1.
                        <SU>52</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="298">
                        <PRTPAGE P="10212"/>
                        <GID>EN13FE24.006</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 1. Accordingly, the $1,099,680 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 1. The fee arrangement for FCAT described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Published iterative drafts of draft Technical Specifications for Phase 2d, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published iterative drafts of CAIS Technical Specifications, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated Industry Member reporting of Quote Sent Time on Options Market Maker quotes;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 1. Accordingly, the $254,998 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 1. The fee arrangement for Kingland described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>CAT LLC did not incur costs related to change requests during FAM Period 1.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>
                        Capitalized developed technology costs for FAM Period 1 of $1,684,870 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include: (1) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including separate production and industry test entitlements, and reprocessing of exchange event 
                        <PRTPAGE P="10213"/>
                        timestamps; (2) implementation fees; and (3) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $481,687 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 1.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 1 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to WilmerHale. During FAM Period 1, WilmerHale provided legal assistance to the CAT including with regard to the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments and fee filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, verbal activity, options market maker quote sent time, TRF linkages, and allocations;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including the Financial Accountability Milestone amendment;</P>
                    <P>• Assisted with compliance with Regulation SCI;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the drafting of the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Assisted with communications and presentations for the industry regarding CAIS;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding CAT technical specifications;</P>
                    <P>• Assisted with third party vendor agreements; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to Pillsbury. During FAM Period 1, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $137,209 represent the fees paid to Deloitte as project manager during FAM Period 1. CAT LLC continued to employ Deloitte during FAM Period 1 based on, among other things, their expertise and cumulative experience with the CAT. The fee rates for Deloitte during FAM Period 1 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 1 were paid by CAT LLC to the consulting firm. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 1, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>Although insurance was in effect during FAM Period 1, CAT LLC did not incur costs related to insurance during FAM Period 1.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         The professional and administration costs of $69,077 represent the fees paid to Anchin during FAM Period 1. CAT LLC continued to employ Anchin during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these type of financial advisory services. The fees for these services during FAM Period 1 were paid by CAT LLC to Anchin. During FAM Period 1, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups; and</P>
                    <P>• Prepared monthly and quarterly financial statements.</P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $7,700 represent the fees paid to Peak Strategies during FAM Period 1. CAT LLC continued to employ Peak Strategies during FAM Period 1 based on, among other things, their expertise and history with the project. The fee rates for this firm were reasonable and in line with market rates for these types of services. The fees for these services during FAM Period 1 were paid by CAT LLC to Peak Strategies. During FAM Period 1, Peak Strategies continued to provide professional communications services to CAT LLC, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT 
                        <PRTPAGE P="10214"/>
                        (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 2</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT LLC and already funded by Participants during Period 2 of the Financial Accountability Milestones (“FAM Period 2”),
                        <SU>53</SU>
                        <FTREF/>
                         which covers the period from August 1, 2020-December 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 2 of $42,976,478. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($14,325,493), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($14,325,493) and CEBSs paying one-third ($14,325,493). The following table breaks down Historical CAT Costs 1 for FAM Period 2 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             Section 11.6(a)(i)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="286">
                        <GID>EN13FE24.007</GID>
                    </GPH>
                    <P>
                        By the completion of FAM Period 2, CAT LLC was required to implement the following with regard to the 
                        <FTREF/>
                         CAT:
                    </P>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>55</SU>
                             The costs described in this table of costs for FAM Period 2 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, CustomerID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission.
                            <SU>56</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>56</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Implementation of Core Equity Reporting Requirements” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 2 by December 31, 2020. The following describes the costs for each of the categories for FAM Period 2.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>
                        CAT LLC continued to utilize AWS in FAM Period 2 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 2 Period. Accordingly, the $20,709,212 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 2. The fee arrangement for AWS described above with regard to the Pre-FAM Period and FAM Period 1 continued in 
                        <PRTPAGE P="10215"/>
                        place during FAM Period 2 pursuant to the Plan Processor Agreement.
                    </P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 2 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, and Other Data, including reference data. In addition, Industry Members began reporting LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 2.
                        <SU>57</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>57</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="311">
                        <GID>EN13FE24.008</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 2. Accordingly, the $9,108,700 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 2. The fee arrangement for FCAT described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, FCAT's activities with respect to the CAT included publishing the Technical Specifications for Phase 2d and overseeing the reporting of firm to firm and intrafirm linkages by Industry Members. In addition, FCAT also continued to engage in the following activities during FAM Period 2:</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the development and implementation of the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>
                        Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM 
                        <PRTPAGE P="10216"/>
                        Period 2. Accordingly, the $1,590,298 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 2. The fee arrangement for Kingland described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs.
                    </P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 2, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 2, CAT incurred costs of $51,823 related to a change request regarding the addition of functionality for exchange Participants to report rejected messages to the CAT.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 2 of $6,761,094 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to separate production and industry test entitlements, market maker reference data, and back-processing of exchange exception logic; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $2,766,644 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 2.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 2 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to WilmerHale. During FAM Period 1 [
                        <E T="03">sic</E>
                        ], the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, allocations, exchange activity, OTQT, initial data validation, error corrections and recordkeeping;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittees, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6 of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for the Compliance Subcommittee, including with regard to responses to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding the SEC's proposed security amendments to the CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>
                        • Assisted with third party vendor agreements (
                        <E T="03">e.g.,</E>
                         with regard to Anchin, Grant Thornton and insurance policies);
                    </P>
                    <P>• Assisted with change requests; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to Pillsbury. During FAM Period 2, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted and filed a proposed amendment to the CAT NMS plan regarding liability matters. As discussed above, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $532,146 represent the fees paid to Deloitte as project manager during FAM Period 2. CAT LLC continued to employ Deloitte during FAM Period 2 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 2 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 2 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 2, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $976,098 represent the fees paid for insurance during FAM Period 2. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        The professional and administration costs of $438,523 represent the fees paid 
                        <PRTPAGE P="10217"/>
                        to Anchin and Grant Thornton for financial services provided during FAM Period 2.
                    </P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to engage Anchin during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these types of financial advisory services. The fees for these services during FAM Period 2 were paid by CAT LLC to Anchin. During FAM Period 2, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from the Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audit by an independent auditor; and</P>
                    <P>• Reviewed historical costs from inception.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 2 based on, among other things, its expertise and cumulative knowledge of CAT LLC. CAT LLC continued to believe that Grant Thornton was well qualified for its role and its fee rates were in line with with market rates for these accounting services. The fees for these services during FAM Period 2 were paid by CAT LLC to Grant Thornton. During FAM Period 2, Grant Thornton performed a financial statement audit for CAT LLC as an independent accounting firm.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $41,940 represent the fees paid to Peak Strategies during FAM Period 2. CAT LLC continued to employ Peak Strategies during FAM Period 2 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 2 were paid by CAT LLC to Peak Strategies. During FAM Period 2, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iv) Historical CAT Costs Incurred in Financial Accountability Milestone Period 3</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 3 of the Financial Accountability Milestones (“FAM Period 3”),
                        <SU>58</SU>
                        <FTREF/>
                         which covers the period from January 1, 2021-December 31, 2021. Historical CAT Costs 1 would include costs for FAM Period 3 of $144,415,268. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($48,138,423), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($48,138,423) and CEBSs paying one-third ($48,138,423). The following table breaks down Historical CAT Costs 1 for FAM Period 3 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             Section 11.6(a)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10218"/>
                        <GID>EN13FE24.009</GID>
                    </GPH>
                    <P>
                        By the completion of FAM Period 3, CAT LLC was required to implement the following requirements with
                        <FTREF/>
                         regard the CAT:
                    </P>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>60</SU>
                             The costs described in this table of costs for FAM Period 3 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met.
                            <SU>61</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>61</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Availability and Regulatory Utilization of Transactional Database Functionality” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 3 by December 31, 2021. The following describes the costs for each of the categories for FAM Period 3.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 3 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 3 Period. Accordingly, the $94,574,759 in technology costs for cloud hosting services represents costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 3. The fee arrangement for AWS described above for the earlier periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During FAM Period 3, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a, Phase 2b, Phase 2c and Phase 2d Industry Member Data (including certain linkages), SIP Data, Other Data, including reference data, and LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 3.
                        <SU>62</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>62</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="638">
                        <PRTPAGE P="10219"/>
                        <GID>EN13FE24.010</GID>
                    </GPH>
                    <PRTPAGE P="10220"/>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 3. Accordingly, the $23,106,091 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 3. The fee arrangement for FCAT described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Facilitated Phase 2c and Phase 2d testing for Industry Members;</P>
                    <P>• Oversaw creation of linkages of the lifecycle of order events based on the received data through Phase 2d;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement with FCAT discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 3. Accordingly, the $5,562,383 in technology costs for CAIS operating fees represents costs incurred for services provided by Kingland during FAM Period 3. The fee arrangement for Kingland described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs. The full CAIS Technical Specifications were published during FAM Period 3.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 3, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 3, CAT incurred costs of $396,169 related to change requests, including the following: (1) the addition of functionality for exchange Participants to report rejected messages to the CAT; (2) the migration of MIRS query engine to AWS to reduce operational costs and increase resiliency; and (3) updating the Participant Technical Specifications to allow for two-sided Participant option quote reporting.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 3 of $10,763,372 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor, including the transition from equity data received by FINRA pursuant to various regulatory services agreements between FINRA and Participant exchanges to the equity CAT Data, and the completion of the Industry Member Phase 2d options manual and complex orders go-live requirements; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to off-exchange volume concentration, Participant 24-hour trading and an external metastore; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $6,333,248 represent the fees paid for legal services provided by three law firms, WilmerHale, Pillsbury and Covington &amp; Burling LLP (“Covington”) during FAM Period 3.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 3 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to WilmerHale. During FAM Period 3, the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including, for example, verbal activity regarding Phase 2c cutover, error reports, error corrections, Phase 2d Reporting, unique Order-ID on internal route events, reporting addresses, recordkeeping, and unique CCID for foreign customers;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs, CAIS requirements, ADF, and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6(c) of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding SEC's proposed security amendments to CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>• Provided assistance with change requests;</P>
                    <P>• Provided guidance and regulatory support for litigation regarding the response to SEC's exemptive orders;</P>
                    <P>• Assisted with communications with the industry, includng CAT Alerts and presentations;</P>
                    <P>
                        • Provided guidance regarding the confidentiality of CAT Data, including third-party information requests;
                        <PRTPAGE P="10221"/>
                    </P>
                    <P>• Assisted with cost management analysis and proposals; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to Pillsbury. During FAM Period 3, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During this period, Pillsbury advised CAT LLC regarding applicable legal matters, reviewed and responded to comment letters regarding the proposed Plan amendment, participated in meetings with senior SEC staff, responded to comments submitted following the SEC's April 6, 2021 order instituting proceedings,
                        <SU>63</SU>
                        <FTREF/>
                         and assessed legal matters regarding the SEC's October 29, 2021 order denying the proposed Plan amendment.
                        <SU>64</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             Securities Exchange Act Rel. No. 91487 (Apr. 6, 2021), 86 FR 19054 (Apr. 12, 2021).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             Securities Exchange Act Rel. No. 93484 (Oct. 29, 2021), 86 FR 60933 (Nov. 4, 2021).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Law Firm: Covington.</E>
                         CAT LLC hired Covington for litigation with the SEC regarding certain exemptive orders related to the CAT, including orders issued in December 2020.
                        <SU>65</SU>
                        <FTREF/>
                         CAT LLC interviewed this law firm as well as other potential law firms, considering a variety of factors in its analysis for choosing legal assistance, including the relevant expertise and fees of the potential lawyers. CAT LLC approved the engagement of Covington in January 2021. The fee rates for this law firm, which were calculated based on hourly rates, were in line with market rates for specialized services. The legal fees for FAM Period 3 for this firm were paid by CAT LLC to Covington.
                    </P>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 90688 (Dec. 16, 2020), 85 FR 83634 (Dec. 22, 2020); and Securities Exchange Act Rel. No. 90689 (Dec. 16, 2020), 85 FR 83667 (Dec. 22, 2020) (collectively, the “2020 Orders”).
                        </P>
                    </FTNT>
                    <P>After Covington was hired in 2021 through the end of 2021, the firm provided legal assistance regarding the litigation with the SEC regarding the 2020 Orders. These services included researching, drafting, and filing motions to stay the 2020 orders and related materials in proceedings before the SEC, as well as researching, drafting, and filing petitions for judicial review of the 2020 Orders in proceedings before the U.S. Court of Appeals for the D.C. Circuit. Covington oversaw ongoing litigation proceedings on these matters, and also supported WilmerHale with respect to settlement negotiations with the SEC staff regarding the 2020 Orders.</P>
                    <P>
                        In addition to these services, CAT LLC engaged Covington in November 2021 to provide assistance with respect to the SEC's disapproval of CAT NMS Plan amendments concerning a proposed limitation on liability in the event of a data breach or similar event. Covington provided advice concerning CAT's response to the SEC's disapproval order. This work accounted for a minority of Covington's fees in 2021.
                        <SU>66</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             As discussed above with regard to Pillsbury's work on liability matters, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, such activity is a necessary part of the operation of the CAT.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $1,408,209 represent the fees paid to Deloitte as project manager during FAM Period 3. CAT LLC continued to employ Deloitte during FAM Period 3 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 3 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 3 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 3, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $1,582,714 represent the fees paid for insurance FAM Period 3. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $595,923 represent the fees paid to Anchin and Grant Thornton for financial services during FAM Period 3.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to employ Anchin during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services during FAM Period 3 were paid by CAT LLC to Anchin. During FAM Period 3, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <PRTPAGE P="10222"/>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 3 based on, among other things, their expertise and cumulative knowledge of CAT LLC. CAT LLC determined that Grant Thornton was well qualified for its role and that its fixed fee rates were in line with market rates for these accountant services. The fees for these services during FAM Period 3 were paid by CAT LLC to Grant Thornton. During FAM Period 3, Grant Thornton provided audited financial statements for CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $92,400 represent the fees paid to Peak Strategies during FAM Period 3. CAT LLC continued to employ Peak Strategies during FAM Period 3 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 3 were paid by CAT LLC to Peak Strategies. During FAM Period 3, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(v) Excluded Costs</HD>
                    <P>
                        Historical CAT Costs 1 would not include two categories of CAT costs (“Excluded Costs”): (1) $48,874,937, which are all CAT costs incurred from November 15, 2017 through November 15, 2018; and (2) $14,749,362 of costs related to the termination of the relationship with the Initial Plan Processor. The Participants would remain responsible for 100% of these costs, which total $63,624,299. CAT LLC determined that it was reasonable to exclude these Excluded Costs from Historical CAT Costs 1 because the excluded costs relate to the delay in the start of reporting to the CAT and the conclusion of the relationship with the Initial Plan Processor.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             In approving the CAT Funding Model, the Commission states that “the proposed exclusion of the `Excluded Costs' from Past CAT Costs is reasonable in the Commission's view because it would not require all costs incurred by the Participants to be recovered from Industry Members through the Historical CAT Assessment, specifically excluding those costs related to the delay in the start of reporting to the CAT and costs related to the conclusion of the relationship with the Initial Plan Processor.” CAT Funding Model Approval Order at 62663.
                        </P>
                    </FTNT>
                    <P>First, Historical CAT Costs 1 would not include $14,749,362 of costs related to the conclusion of the relationship with the Initial Plan Processor. Such costs include costs related to the American Arbitration Association, the legal assistance of Pillsbury with regard to the arbitration with Thesys CAT, and the settlement costs related to the arbitration with Thesys CAT. The Participants would remain responsible for 100% of these $14,749,362 in costs.</P>
                    <P>Second, the Historical CAT Costs would exclude all CAT costs incurred from November 15, 2017 through November 15, 2018. CAT LLC determined to exclude all costs during this one-year period of $48,874,937 from fees charged to Industry Members due to the delay in the start of reporting to the CAT. The Participants would remain responsible for 100% of these $48,874,937 in costs. The following table breaks down these costs into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.</P>
                    <GPH SPAN="3" DEEP="239">
                        <PRTPAGE P="10223"/>
                        <GID>EN13FE24.011</GID>
                    </GPH>
                    <P>
                        The following provides additional detail regarding the Excluded Costs.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             The costs described in this table of Excluded Costs were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services, Operating Fees, CAIS Operating Fees and Change Request Fees</HD>
                    <P>CAT LLC did not incur technology costs related to the categories of cloud hosting services, operating fees, CAIS operating fees or change requests during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(b) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for the period from November 15, 2017 through November 15, 2018 include capitalizable application development costs of $37,852,083 incurred in the development of the CAT by the Initial Plan Processor. Such costs include development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Initial Plan Processor. Such costs include costs related to Industry Member technical specifications for orders and transactions, the system security plan, testing and production for Participant CAT reporting, third-party security assessment and response, query portal, onboarding of the Chief Information Security Officer, and ingestion of FINRA TRF data and FINRA data related to halts and corporate actions.</P>
                    <HD SOURCE="HD3">(c) Legal Costs</HD>
                    <P>The legal costs of $6,143,278 represent the fees paid to WilmerHale for legal services from November 15, 2017 through November 15, 2018. During this period, WilmerHale provided legal assistance to the CAT including with regard to the following:</P>
                    <P>• Provided legal support for the governance of the CAT, including governance support for the Operating Committee, Advisory Committee, Compliance Subcommittee, and CAT working groups;</P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan;</P>
                    <P>• Provided assistance related to CAT security;</P>
                    <P>• Drafted exemptive requests, including requests related to PII;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided advice with regard to regulator access to the CAT;</P>
                    <P>• Assisted with the Plan Processor transition;</P>
                    <P>• Provided assistance regarding communications with the industry regarding the CAT;</P>
                    <P>• Provided advice regarding Customer Account Information and PII;</P>
                    <P>• Provided support for litigation related to SEC exemptive orders; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretative and implementation issues.</P>
                    <HD SOURCE="HD3">(d) Consulting Costs</HD>
                    <P>The consulting costs of $4,452,106 represent the fees paid to Deloitte for their role as project manager for the CAT from November 15, 2017 through November 15, 2018. During this period, Deloitte engaged in the following activities with respect to the CAT:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>
                        • Provided governance support to the Operating Committee, including support for Subcommittees and working groups of the Operating Committee (
                        <E T="03">e.g.,</E>
                         Compliance Subcommittee, Cost and Funding Working Group, Technical Working Group, Industry Outreach Working Group, Security Working Group and Steering Committee);
                    </P>
                    <P>• Assisted with cost and funding issue for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress.</P>
                    <HD SOURCE="HD3">(e) Insurance</HD>
                    <P>
                        CAT LLC did not incur costs related to insurance during the period from November 15, 2017 through November 15, 2018.
                        <PRTPAGE P="10224"/>
                    </P>
                    <HD SOURCE="HD3">(f) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $340,145 represent the fees paid to Anchin, Exegy and RSM from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in April 2018 through November 15, 2018, Anchin engaged in the following activities with respect to the CAT:
                    </P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         From July 2018 through November 15, 2018, CAT LLC purchased market data from Exegy (as described in more detail above).
                    </P>
                    <P>
                        <E T="03">Security Assessment: RSM.</E>
                         From October 2018 through November 15, 2018, CAT LLC incurred costs for RSM's performance of a security assessment (as described in more detail above).
                    </P>
                    <HD SOURCE="HD3">(g) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $87,325 represent the fees paid to Sloane from November 15, 2017 through November 15, 2018. From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in March 2018 through November 15, 2018, Sloane provided professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, Sloane provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan).
                    </P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        Under the CAT NMS Plan, the Operating Committee is required to reasonably establish the length of the Historical Recovery Period used in calculating each Historical Fee Rate based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment, and to describe the reasons for its length.
                        <SU>69</SU>
                        <FTREF/>
                         The Historical Recovery Period used in calculating the Historical Fee Rate may not be less than 24 months or more than five years.
                        <SU>70</SU>
                        <FTREF/>
                         The Operating Committee has determined to establish a Historical Recovery Period 1 of 24 months for Historical CAT Assessment 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             Section 11.3(b)(i)(D)(I) and Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             Section 11.3(b)(i)(D)(I) of the CAT NMS Plan. In the CAT Funding Model Approval Order, the SEC stated that “[i]n the Commission's view, it is reasonable for the Operating Committee to establish the length of the Historical Recovery Period to be no less than 24 months and no more than five years.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The Operating Committee determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans to the Participants in a timely fashion. The Operating Committee determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>71</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, the Operating Committee recognized that the total costs for Historical CAT Assessment 1 were less than the total costs for 2022 and 2023,
                        <SU>72</SU>
                        <FTREF/>
                         and therefore it would be reasonable and appropriate to recover costs subject to this filing over an approximate two-year period. Furthermore, the Operating Committee notes that 24 months is appropriate because it is not currently proposing that Industry Members be required to pay additional CAT fees with regard to another Historical CAT Assessment or CAT Fees with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model at 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             The total CAT costs for 2022 were approximately $186 million and the total CAT costs for 2023 are estimated to be approximately $233 million.
                        </P>
                    </FTNT>
                    <P>
                        The length of the Historical Recovery Period 1 and the reasons for its length are provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>73</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             Section 11.3(b)(iii)(B)(II)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Total Executed Equivalent Share Volume</HD>
                    <P>
                        The calculation of Historical Fee Rate 1 also requires the determination of the projected total executed equivalent share volume of transactions in Eligible Securities for Historical Recovery Period 1. Under the CAT NMS Plan, the Operating Committee is required to “reasonably determine the projected total executed equivalent share volume of all transactions in Eligible Securities for each Historical Recovery Period based on the executed equivalent share volume of all transactions in Eligible Securities for the prior twelve months.” 
                        <SU>74</SU>
                        <FTREF/>
                         The Operating Committee is required to base its projection on the prior twelve months, but it may use its discretion to analyze the likely volume for the upcoming year. Such discretion would allow the Operating Committee to use its judgment when estimating projected total executed equivalent share volume if the volume over the prior twelve months was unusual or otherwise unfit to serve as the basis of a future volume estimate.
                        <SU>75</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             Section 11.3(b)(i)(E) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. The Operating Committee has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. The 
                        <PRTPAGE P="10225"/>
                        Operating Committee determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is projected to be 7,685,722,694,558.88 executed equivalent shares.
                        <SU>76</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <P>
                        The projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1 and a description of the calculation of the projection is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             Section 11.3(b)(iii)(B)(II)(D) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Historical Fee Rate 1</HD>
                    <P>
                        Historical Fee Rate 1 would be calculated by dividing Historical CAT Costs 1 by the reasonably projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1, as described in detail above.
                        <SU>78</SU>
                        <FTREF/>
                         Specifically, Historical Fee Rate 1 would be calculated by dividing $337,688,610 by 7,685,722,694,558.88. As a result, the Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. Historical Fee Rate 1 is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide the Historical Fee Rate in a fee filing for a Historical CAT Assessment.
                        <SU>79</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             In approving the CAT Funding Model, the Commission stated that “[t]he calculation of the Historical Fee Rate by dividing the Historical CAT Costs by the projected total executed equivalent share volume of all transactions in Eligible Securities for the Historical Recovery Period is reasonable.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             Section 11.3(b)(iii)(B)(II)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Past CAT Costs and Participants</HD>
                    <P>Participants would not be required to pay any fees associated with Historical CAT Assessment 1 as the Participants previously have paid all Past CAT Costs. The CAT NMS Plan explains that:</P>
                    <EXTRACT>
                        <P>
                            Because Participants previously have paid Past CAT Costs via loans to the Company, Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs and such other additional Past CAT Costs as reasonably determined by the Operating Committee will be paid by the cancellation of loans made to the Company on a pro rata basis based on the outstanding loan amounts due under the loans.
                            <SU>80</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>80</SU>
                                 Section 11.3(b)(ii) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The CAT NMS Plan further states that “Historical CAT Assessments are designed to recover two-thirds of the Historical CAT Costs.” 
                        <SU>81</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>81</SU>
                             
                            <E T="03">Id.</E>
                             In approving the CAT Funding Model, the Commission stated that “[t]he proposed allocation of the Historical CAT Assessment solely to CEBs and CEBBs, and ultimately Industry Members, is reasonable. The Historical CAT Assessment will still be divided into thirds,” as the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made to the Company. CAT Funding Model Approval Order at 62666.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(4) Monthly Fees</HD>
                    <P>
                        CEBBs and CEBSs would be required to pay fees for Historical CAT Assessment 1 on a monthly basis for the period in which Historical CAT Assessment 1 is in effect.
                        <SU>82</SU>
                        <FTREF/>
                         A CEBB or CEBS's fee for each month would be calculated based on the transactions in Eligible Securities executed by the CEBB or CEBS from the prior month.
                        <SU>83</SU>
                        <FTREF/>
                         Proposed paragraph (a)(1)(A) of the fee schedule would state that each CAT Executing Broker would receive its first invoice in April 2024, and “would receive an invoice each month thereafter in which Historical CAT Assessment 1 is in effect.” Proposed paragraph (a)(1)(B) of the fee schedule would state that “Consolidated Audited Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” In addition, proposed paragraph (b)(1) of the fee schedule states that each CEBB and CEBS is required to pay its CAT fees “each month.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             
                            <E T="03">See</E>
                             proposed paragraph (a)(1)(B) of the fee schedule.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(5) Actual Recovery Period for Historical CAT Assessment 1</HD>
                    <P>
                        The CAT NMS Plan states that, “[n]otwithstanding the length of the Historical Recovery Period used in calculating the Historical Fee Rate, each Historical CAT Assessment calculated using the Historical Fee Rate will remain in effect until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                        <SU>84</SU>
                        <FTREF/>
                         Accordingly, Historical CAT Assessment 1 will remain in effect until all Historical CAT Costs 1 have been collected. The actual recovery period for Historical CAT Assessment 1 may be shorter or longer than Historical Recovery Period 1 depending on the actual executed equivalent share volumes during the time that Historical CAT Assessment 1 is in effect.
                        <SU>85</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             Section 11.3(b)(i)(D)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             In approving the CAT Funding Model, the Commission stated that “[i]n the Commission's view, it is reasonable for Industry Members to be charged a Historical CAT Assessment until all Historical CAT Costs for the Historical CAT Assessment are collected.” CAT Funding Model Approval Order at 62665.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(6) Consolidated Audit Trail Funding Fees</HD>
                    <P>To implement Historical CAT Assessment 1, a “Consolidated Audit Trail Funding Fees” section would be added to the Exchange's fee schedule, to include the proposed paragraphs described below.</P>
                    <HD SOURCE="HD3">(A) Fee Schedule for Historical CAT Assessment 1</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Each month in which a Historical CAT Assessment is in effect, each CEBB and each CEBS shall pay a fee for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate reasonably determined pursuant to paragraph (b)(i) of this Section 11.3.
                            <SU>86</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>86</SU>
                                 Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, based on the factors discussed above, the Exchange proposes to add paragraph (a)(1) to the Consolidated Audit Trail Funding Fees section of its fee schedule. Proposed paragraph (a)(1) would state the following:</P>
                    <EXTRACT>
                        <P>(A) Each CAT Executing Broker shall receive its first invoice for Historical CAT Assessment 1 in April 2024, which shall set forth the Historical CAT Assessment 1 fees calculated based on transactions in March 2024, and shall receive an invoice for Historical CAT Assessment 1 for each month thereafter in which Historical CAT Assessment 1 is in effect.</P>
                        <P>
                            (B) Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis. Each month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.
                            <PRTPAGE P="10226"/>
                        </P>
                        <P>(C) Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time. Consolidated Audit Trail, LLC will provide notice when Historical CAT Assessment 1 will no longer be in effect.</P>
                        <P>(D) Each CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).</P>
                    </EXTRACT>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, “as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>87</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of the fee schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 of $0.0000439371316687066 by one-third, and rounding the result to 6 decimal places.
                        <SU>88</SU>
                        <FTREF/>
                         The Operating Committee determined to use six decimal places to balance the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>87</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             Dividing $0.0000439371316687066 by three equals $0.00001464571055623553. Rounding $$0.00001464571055623553 to six decimal places equals $0.000015.
                        </P>
                    </FTNT>
                    <P>The proposed language in paragraph (a)(1)(A) of the fee schedule would describe when CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1. Specifically, CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 and the fees set forth in that invoice would be calculated based on transactions executed in the prior month, that is, transactions executed in March 2024. The payment for the first invoice would be required within 30 days after the receipt of the first invoice (unless a longer period is indicated), as described in proposed paragraph (b)(2) of the fee schedule.</P>
                    <P>Proposed paragraph (a)(1)(A) of the fee schedule also would describe the monthly cadence of the invoices for Historical CAT Assessment 1. Specifically, after the first invoices are provided to CAT Executing Brokers in April 2024, invoices will be sent to CAT Executing Brokers each month thereafter while Historical CAT Assessment 1 is in effect.</P>
                    <P>Proposed paragraph (a)(1)(B) of the fee schedule would describe the invoices for Historical CAT Assessment 1. Proposed paragraph (a)(1)(B) of the fee schedule would state that “Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” Proposed paragraph (a)(1)(B) of the fee schedule also would describe the fees to be set forth in the invoices for Historical CAT Assessment 1. Specifically, it would state that “[e]ach month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.”</P>
                    <P>
                        Furthermore, proposed paragraph (a)(1)(C) of the fee schedule would describe how long Historical CAT Assessment 1 would remain in effect. It would state that “Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time.” This proposed paragraph would further state that “Consolidated Audit Trail, LLC will be [
                        <E T="03">sic</E>
                        ] provide notice when Historical CAT Assessment 1 will no longer be in effect.”
                    </P>
                    <P>Historical CAT Assessment 1 will be assessed for all transactions executed in each month through the end of the month in which two-thirds of Historical CAT Costs 1 are assessed, and then CAT LLC will provide notice that Historical CAT Assessment 1 is no longer in effect. Since Historical CAT Assessment 1 is a monthly fee based on transaction volume from the prior month, Historical CAT Assessment 1 may collect more than two-thirds of Historical CAT Costs 1. To the extent that occurs, any excess money collected during the final month in which Historical CAT Assessment 1 is in effect will be used to offset future fees and/or to fund the reserve for the CAT.</P>
                    <P>Finally, proposed paragraph (a)(1)(D) of the fee schedule sets forth the requirement for the CAT Executing Brokers to pay the invoices for Historical CAT Assessment 1. It would state that “[e]ach CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).”</P>
                    <HD SOURCE="HD3">(B) Manner of Payment</HD>
                    <P>
                        The Exchange proposes to add paragraph (b)(1) to the “Consolidated Audit Trail Funding Fees” section of its fee schedule to describe the manner of payment of Industry Member CAT fees. The CAT NMS Plan requires the Operating Committee to establish a system for the collection of CAT fees.
                        <SU>89</SU>
                        <FTREF/>
                         The Plan Processor has established a billing system for CAT fees.
                        <SU>90</SU>
                        <FTREF/>
                         Therefore, the Exchange proposes to require CAT Executing Brokers to pay Historical CAT Assessment 1 in accordance with such system. Accordingly, proposed paragraph (b)(1) would state that “[e]ach CAT Executing Broker shall pay its CAT fees as required pursuant to paragraph (a) each month to the Consolidated Audit Trail, LLC in the manner prescribed by the Consolidated Audit Trail, LLC.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             Section 11.4 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             The billing process and system are described in CAT Alert 2023-02 as well as the CAT FAQs related to the billing of CAT fees, the Industry Member CAT Reporter Portal User Guide, the FCAT Industry Member Onboarding Guide, the FCAT Connectivity Supplement for Industry Members and the CAT Billing Webinars (dated September 28, 2023 and November 7, 2023), each available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(C) Failure to Pay CAT Fees</HD>
                    <P>The CAT NMS Plan further states that:</P>
                    <EXTRACT>
                        <P>
                            Participants shall require each Industry Member to pay all applicable fees authorized under this Article XI within thirty (30) days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due (as determined in accordance with the preceding sentence), such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of: (a) the Prime Rate plus 300 basis points; or (b) the maximum rate permitted by applicable law.
                            <SU>91</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>91</SU>
                                 Section 11.4 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, the Exchange proposes to add this requirement to the Exchange's fee schedule. Proposed paragraph (b)(2) of the fee schedule would state:</P>
                    <EXTRACT>
                        <P>
                            Each CAT Executing Broker shall pay the CAT fees required pursuant to paragraph (a) within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If a CAT Executing Broker fails to pay any such CAT fee when due, such CAT Executing Broker shall pay interest on the outstanding balance from such due date until 
                            <PRTPAGE P="10227"/>
                            such fee is paid at a per annum rate equal to the lesser of (i) the Prime Rate plus 300 basis points, or (ii) the maximum rate permitted by applicable law.
                        </P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(7) Historical CAT Assessment Details</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Details regarding the calculation of a CAT Executing Broker's Historical CAT Assessment will be provided upon request to such CAT Executing Broker. At a minimum, such details would include each CAT Executing Broker's executed equivalent share volume and corresponding fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise than on an exchange, and (3) by buy-side transactions and sell-side transactions.
                            <SU>92</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>92</SU>
                                 Section 11.3(a)(iv)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        Such information would provide CEBBs and CEBSs with the ability to understand the details regarding the calculation of their Historical CAT Assessment.
                        <SU>93</SU>
                        <FTREF/>
                         CAT LLC will provide CAT Executing Brokers with these details regarding the calculation of their Historical CAT Assessments on their monthly invoice for the Historical CAT Assessment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>93</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, providing CAT Execut[ing] Brokers information regarding the calculation of their CAT Fees will aid in transparency and permit CAT Execut[ing] Brokers to confirm the accuracy of their invoices for CAT Fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>
                        In addition, CAT LLC will make certain aggregate statistics regarding Historical CAT Assessments publicly available. Specifically, the CAT NMS Plan states that, “[f]or each Historical CAT Assessment, at a minimum, CAT LLC will make publicly available the aggregate executed equivalent share volume and corresponding aggregate fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise on an exchange, and (3) by buy-side transactions and sell-side transactions.” 
                        <SU>94</SU>
                        <FTREF/>
                         Such aggregate statistics will be available on the CAT website.
                    </P>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             Section 11.3(a)(iv)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission stated that “[t]he publication of the aggregate executed equivalent share volume and aggregate fee is appropriate because it would allow Participants and CAT Executing Brokers a high-level validation of executed volume and fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>Furthermore, CAT LLC will make publicly available on the CAT website the total amount invoiced each month that Historical CAT Assessment 1 is in effect as well as the total amount invoiced for Historical CAT Assessment 1 for all months since its commencement. CAT LLC also will make publicly available on the CAT website the total costs to be collected from Industry Members for Historical CAT Assessment 1. By reviewing statistics regarding how much has been invoiced and how much remains to be invoiced for Historical CAT Assessment 1, Industry Members would have sufficient information to reasonably track how much longer Historical CAT Assessment 1 is likely to be in place.</P>
                    <HD SOURCE="HD3">(8) Implementation Assistance</HD>
                    <P>To assist Industry Members with compliance with the commencement of Historical CAT Assessment 1, CAT LLC will make available to CAT Executing Brokers four months of mock invoices prior to the commencement of Historical CAT Assessment 1. Specifically, CAT Executing Brokers will receive mock invoices based on transaction data from November 2023, December 2023, January 2024 and February 2024. The mock invoices will be in the same form as the actual, payable invoices, including both the relevant transaction data and the corresponding fee. However, no payments will be required in response to such mock invoices; they are to be used solely to assist CAT Executing Brokers with the development of their processes for paying the CAT fees. Such data will provide CAT Executing Brokers with a preview of the transaction data used in creating the invoices for Historical CAT Assessment 1 fees, as the data will be the same as data provided in actual invoices. Such data preview is intended to facilitate the payment of Historical CAT Assessment 1.</P>
                    <HD SOURCE="HD3">(9) Financial Accountability Milestones</HD>
                    <P>
                        The CAT NMS Plan states that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.” 
                        <SU>95</SU>
                        <FTREF/>
                         The CAT NMS Plan further states that “in all filings submitted by the Participants to the Commission under Section 19(b) of the Exchange Act, to establish or implement Post-Amendment Industry Member Fees pursuant to this Article, . . . the Participants shall clearly indicate whether such fees are related to Post-Amendment Expenses incurred during Period 1, Period 2, Period 3, or Period 4.” 
                        <SU>96</SU>
                        <FTREF/>
                         As discussed in detail below, all applicable Financial Accountability Milestones for Historical CAT Assessment 1—that is, Period 1, Period 2 and Period 3 of the Financial Accountability Milestones—have been satisfied. Furthermore, as discussed below, this filing clearly indicates that Historical CAT Assessment 1 relates to Post-Amendment Expenses incurred during Periods 1, 2 and 3 of the Financial Accountability Milestones.
                    </P>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             Section 11.6(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Period 1 of the Financial Accountability Milestones</HD>
                    <P>
                        In accordance with Section 11.6(b) of the CAT NMS Plan, Historical CAT Assessment 1 seeks to recover costs that are related to “all fees, costs, and expenses (including legal and consulting fees, costs, and expenses) incurred by or for the Company in connection with the development, implementation and operation of the CAT from the effective date of [Section 11.6 of the CAT NMS Plan] until such time as Full Implementation of CAT NMS Plan Requirements has been achieved” 
                        <SU>97</SU>
                        <FTREF/>
                         (“Post-Amendment Expenses”) incurred during FAM Period 1. FAM Period 1 began on June 22, 2020, the effective date of Section 11.6 of the CAT NMS Plan, and concluded on July 31, 2020, the date of Initial Industry Member Core Equity and Options Reporting. Section 1.1 of the CAT NMS Plan defines “Initial Industry Member Core Equity and Options Reporting” as:
                    </P>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             Section 11.6 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>The reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of both: (a) equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information; and (b) options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.</P>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports.
                        <SU>98</SU>
                        <FTREF/>
                         As indicated by the Participants' Quarterly Progress Report for the third quarter of 2020,
                        <SU>99</SU>
                        <FTREF/>
                         Initial Industry Member Core Equity and Option Reporting was completed on schedule on July 22, 2020, which is prior to the July 31, 2020 deadline.
                    </P>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             The Quarterly Progress Reports are available at 
                            <E T="03">https://www.catnmsplan.com/implementation-plan.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020) and Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Under the FAM Period 1 requirement of Initial Industry Member Core Equity and Options Reporting, Industry Members—excluding Small Industry 
                        <PRTPAGE P="10228"/>
                        Members that are not OATS reporters—were required to report two categories of data to the CAT: equites transaction data and options transaction data (both excluding Customer Account Information, Customer-ID, and Customer Identifying Information) by July 31, 2020. Pursuant to exemptive relief provided by the Commission, the Commission authorized the Participants' Compliance Rules to allow core equity reporting for Industry Members (Phase 2a) to begin on June 22, 2020 and core options reporting for Industry Members (Phase 2b) to begin on July 20, 2020.
                        <SU>100</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order. Under the CAT NMS Plan as adopted, the Participants were required, through their Compliance Rules, to require their Large Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2018, and to require their Small Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2019. Sections 6.7(a)(v) and (vi) of the CAT NMS Plan. The SEC granted exemptive relief from these provisions of the CAT NMS Plan to allow for the phased implementation of Industry Member reporting via five phases addressing the reporting requirements for Phase 2a Industry Member Data, Phase 2b Industry Member Data, Phase 2c Industry Member Data, Phase 2d Industry Member Data and Phase 2e Industry Member Data.
                        </P>
                    </FTNT>
                    <P>
                        In adopting the FAMs, the Commission stated that the equities transaction reporting required for FAM Period 1 “is consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Equities 2a file submission and data integrity validations.' ” 
                        <SU>101</SU>
                        <FTREF/>
                         The Phase 2a Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the following data related to Eligible Securities that are equities:
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             Securities Exchange Act Rel. No. 88890, 85 FR 31322, 31330 n.97 (“FAM Adopting Release”).
                        </P>
                    </FTNT>
                    <P>• All events and scenarios covered by OATS, which includes information related to the receipt or origination of orders, order transmittal, and order modifications, cancellations and executions;</P>
                    <P>
                        • Reportable Events for: (1) proprietary orders, including market maker orders, for Eligible Securities that are equities; (2) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) sent to a national securities exchange or FINRA's Alternative Display Facility (“ADF”); (3) electronic quotes in unlisted Eligible Securities (
                        <E T="03">i.e.,</E>
                         OTC Equity Securities) received by an Industry Member operating an interdealer quotation system (“IDQS”); and (4) electronic quotes in unlisted Eligible Securities sent to an IDQS or other quotation system not operated by a Participant or Industry Member;
                    </P>
                    <P>• Firm Designated IDs (“FDIDs”), which Industry Members must report to the CAT as required by Sections 6.3(d)(i)(A) and 6.4(d)(ii)(C) of the CAT NMS Plan.</P>
                    <P>• Industry Members would be required to report all street side representative orders, including both agency and proprietary orders and mark such orders as representative orders, except in certain limited exceptions as described in the Industry Member Technical Specifications;</P>
                    <P>• The link between the street side representative order and the order being represented when: (1) the representative order was originated specifically to represent a single order received either from a customer or another broker-dealer; and (2) there is (a) an existing direct electronic link in the Industry Member's system between the order being represented and the representative order and (b) any resulting executions are immediately and automatically applied to the represented order in the Industry Member's system;</P>
                    <P>• Manual and Electronic Capture Time for Manual Order Events;</P>
                    <P>• Special handling instructions for the original receipt or origination of an order during Phase 2a; and</P>
                    <P>• When routing an order, whether the order was routed as an intermarket sweep order (“ISO”).</P>
                    <P>
                        In Phase 2a, Industry Members were not required to report modifications of a previously routed order in certain limited instances, nor were they required to report a cancellation of an order received from a Customer after the order has been executed.
                        <SU>102</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             Phased Reporting Exemptive Relief Order at 23076-78.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Equities 2a file submission and data integrity validation (Large Industry Members and Small OATS Reporters)” was completed on June 22, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information” was completed on June 22, 2020.</P>
                    <P>
                        In adopting the FAMs, the Commission stated that the options transaction reporting required for FAM Period 1 is “consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Options 2b file submission and data integrity validations.' ” 
                        <SU>103</SU>
                        <FTREF/>
                         The Phase 2b Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the Industry Member Data related to Eligible Securities that are options and related to simple electronic option orders, excluding electronic paired option orders. A simple electronic option order is an order to buy or sell a single option that is not related to or dependent on any other transaction for pricing and timing of execution that is either received or routed electronically by an Industry Member. Electronic receipt of an order is defined as the initial receipt of an order by an Industry Member in electronic form in standard format directly into an order handling or execution system. Electronic routing of an order is the routing of an order via electronic medium in standard format from one Industry Member's order handling or execution system to an exchange or another Industry Member. An electronic paired option order is an electronic option order that contains both the buy and sell side that is routed to another Industry Member or exchange for crossing and/or price improvement as a single transaction on an exchange. Responses to auctions of simple orders and paired simple orders would be reportable in Phase 2b. Furthermore, combined orders in options would be treated in Phase 2b in the same way as equity representative orders are treated in Phase 2a. A combined order would mean, as permitted by SRO rules, a single, simple order in Listed Options created by combining individual, simple orders in Listed Options from a customer with the same exchange origin code before routing to an exchange. During Phase 2b, the single combined order sent to an exchange must be reported and marked as a combined order, but the linkage to the underlying orders is not required to be reported until Phase 2d.
                        <SU>104</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             FAM Adopting Release at 31330, n.98.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             Phased Reporting Exemptive Relief Order at 23078.
                        </P>
                    </FTNT>
                    <P>
                        The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Options 2b file submission and data integrity validations” was completed on July 20, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information” was completed on July 20, 2020.
                        <PRTPAGE P="10229"/>
                    </P>
                    <P>As discussed above, the Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from June 22, 2020 through July 31, 2020. The total costs for this period, as discussed above, are $6,377,343. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781).</P>
                    <HD SOURCE="HD3">(B) Period 2 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 2. FAM Period 2 began on August 1, 2020, and concluded on December 31, 2020, the date of the Full Implementation of Core Equity Reporting. Section 1.1 of the CAT NMS Plan defines “Full Implementation of Core Equity Reporting” as:</P>
                    <EXTRACT>
                        <P>the point at which: (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</P>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2020,
                        <SU>105</SU>
                        <FTREF/>
                         Full Implementation of Core Equity Reporting was completed on schedule by December 31, 2020.
                    </P>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the Full Implementation of Core Equity Reporting requires the satisfaction of two prongs. The first prong requires Participants to have fully implemented the first phase of equities transaction reporting for Industry Members (excluding Small Industry Members that are not OATS reporters) at an Error Rate of less than 5%. In addition, equities transaction data produced by the CAT at this stage must also be sufficiently interlinked so as to permit full analysis of an order's lifecycle across the national market, excluding full linkage of representative orders. As CAT LLC reported on its Quarterly Progress Reports, Phase 2a was fully implemented as of October 26, 2020, including intra-firm, inter-firm, national securities exchange, and trade reporting facilities linkages.
                        <SU>106</SU>
                        <FTREF/>
                         In addition to the reporting of Phase 2a Industry Member Data as described above with regard to FAM Period 1, the following linkage data was added to the CAT as described in the Quarterly Progress Reports for the third and fourth quarter of 2020:
                    </P>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             For a description of the requirements of Phases 2a, 
                            <E T="03">see</E>
                             Phased Reporting Exemptive Relief Order.
                        </P>
                    </FTNT>
                    <P>
                        • “Production Go-Live for Equities 2a Intrafirm Linkage validations” was completed on 7/27/2020; 
                        <SU>107</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             Q3 2020 Quarterly Progress Report (Oct. 20, 2021).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Firm to Firm Linkage validations for Equities 2a (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020; and</P>
                    <P>• “Production Go-Live for Equities 2a Exchange and TRF Linkage validations (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020.</P>
                    <P>Furthermore, as CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2020, the average overall error rate for Phase 2a Industry Member Data was less than 5% as of December 31, 2020. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The second prong of this FAM requires that the equities transaction data collected by the CAT at this stage be made available to regulators through two basic query tools required by the CAT NMS Plan—a targeted query tool that will enable regulators to retrieve data via an online query screen with a variety of predefined selection criteria, and a user-defined direct query tool that will provide regulators with the ability to query data using all available attributes and data sources.
                        <SU>108</SU>
                        <FTREF/>
                         As CAT LLC reported on its Quarterly Progress Reports, the query tool functionality incorporating the data from Phase 2a was available to the Participants and the Commission as of December 31, 2020.
                        <SU>109</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>108</SU>
                             Section 6.10(c)(i)(A) of the CAT NMS Plan requires the Plan Processor to “provide Participants and the SEC with access to all CAT Data stored in the Central Repository” via an “online targeted query tool.” Appendix D, Sections 8.1.1-8.1.3 of the CAT NMS Plan describes the required functionality associated with this regulatory tool. Appendix D, Section 8.2.1 describes the required functionality associated with a user-defined direct query tool that will “deliver large sets of data that can then be used in internal surveillance or market analysis applications.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020); Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021); and Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>110</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             Securities Exchange Act Rel. No. 98848 (Nov. 2, 2023), 88 FR 77128, 77129 n.13 (Nov. 8, 2023) (“Settlement Exemptive Order”).
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from August 1, 2020 through December 31, 2020. The total costs for this period, as discussed above, are $42,976,478. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($14,325,492.70) and CEBSs paying one-third ($14,325,492.70).
                    </P>
                    <HD SOURCE="HD3">(C) Period 3 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 3. FAM Period 3 began on January 1, 2021, and concluded on December 31, 2021, the date of the Full Availability and Regulatory Utilization of Transactional Database Functionality. Section 1.1 of the CAT NMS Plan defines “Full Availability and Regulatory Utilization of Transactional Database Functionality” as:</P>
                    <EXTRACT>
                        <FP>
                            the point at which: (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple 
                            <PRTPAGE P="10230"/>
                            electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).
                        </FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>111</SU>
                        <FTREF/>
                         Full Availability and Regulatory Utilization of Transactional Database Functionality was completed on schedule by December 31, 2021.
                    </P>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires the satisfaction of five prongs. The first prong requires that reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>112</SU>
                        <FTREF/>
                         FINRA retired OATS effective September 1, 2021.
                        <SU>113</SU>
                        <FTREF/>
                         Accordingly, after the retirement of OATS, reporting to OATS was no longer required.
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             Securities Exchange Act Rel. No. 92239 (June 23, 2021), 86 FR 34293 (June 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        In addition to Phase 2a and Phase 2b Industry Member Data, the second and third prongs of “Full Availability and Regulatory Utilization of Transactional Database Functionality” require Industry Member reporting of Phase 2c Industry Member Data and Phase 2d Industry Member Data. The Phase 2c Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. That Order states that “Phase 2c Industry Member Data” is Industry Member Data related to Eligible Securities that are equities other than Phase 2a Industry Member Data, Phase 2d Industry Member Data, or Phase 2e Industry Member Data. Specifically, the Phase 2c Industry Member Data includes Industry Member Data that is related to Eligible Securities that are equities and that is related to: (1) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (2) quotes in unlisted Eligible Securities sent to an IDQS operated by a CAT Reporter (reportable by the Industry Member sending the quotes) (except for quotes reportable in Phase 2d, as discussed below); (3) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) that are not sent to a national securities exchange or FINRA's Alternative Display Facility; (4) reporting changes to client instructions regarding modifications to algorithms; (5) marking as a representative order any order originated to work a customer order in price guarantee scenarios, such as a guaranteed VWAP; (6) flagging rejected external routes to indicate a route was not accepted by the receiving destination; (7) linkage of duplicate electronic messages related to a Manual Order Event between the electronic event and the original manual route; (8) special handling instructions on order route reports (other than the ISO, which is required to be reported in Phase 2a); (9) quote identifier on trade events; (10) reporting of LTIDs (if applicable) for accounts with Reportable Events that are reportable to CAT as of and including Phase 2c; (11) reporting of date account opened or Account Effective Date71 (as applicable) for accounts and reporting of a flag indicating the Firm Designated ID type as account or relationship; (12) order effective time for orders that are received by an Industry Member and do not become effective until a later time; (13) the modification or cancellation of an internal route of an order; and (14) linkages to the customer orders(s) being represented for representative order scenarios, including agency average price trades, net trades, aggregated orders, and disconnected Order Management System (“OMS”)—Execution Management System (“EMS”) scenarios, as required in the Industry Member Technical Specifications.
                        <SU>114</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             Phase Reporting Exemptive Relief Order at 23078-79.
                        </P>
                    </FTNT>
                    <P>
                        Phase 2c Industry Member Data also includes electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are equities and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: (1) an equity bid or offer is displayed publicly or has been communicated (a) for listed securities to the Alternative Display Facility (ADF) operated by FINRA; or (b) for unlisted equity securities to an “interdealer quotation system,” as defined in FINRA Rule 6420(c); or (2) an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing; 
                        <E T="03">i.e.,</E>
                         no further manual or electronic action is required by the responder providing the quote in order to execute or cause a trade to be executed). With respect to OTC Equity Securities, OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter (other than such an IDQS that does not match and execute orders) are reportable by the Industry Member sending them in Phase 2c. Accordingly, any response to a request for quote or other form of solicitation response provided in a standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this quote definition (
                        <E T="03">i.e.,</E>
                         an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing) would be reportable in Phase 2c.
                        <SU>115</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>115</SU>
                             
                            <E T="03">Id.</E>
                             at 23079.
                        </P>
                    </FTNT>
                    <P>
                        The Phase 2d Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. “Phase 2d Industry Member Data” is Industry Member Data that is related to Eligible Securities that are options other than Phase 2b Industry Member Data, Industry Member Data that is related to Eligible Securities that are equities other than Phase 2a Industry Member Data or Phase 2c Industry Member Data, and Industry Member Data other than Phase 2e Industry Member Data. Phase 2d Industry Member Data includes with respect to the Eligible Securities that are options: (1) simple manual orders; (2) electronic and manual paired orders; (3) all complex orders with linkages to all CAT-reportable legs; (4) LTIDs (if applicable) for accounts with Reportable 
                        <PRTPAGE P="10231"/>
                        Events for Phase 2d; (5) date account opened or Account Effective Date (as applicable) for accounts with an LTID and flag indicating the Firm Designated ID type as account or relationship for such accounts; (6) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (7) the modification or cancellation of an internal route of an order; and (8) linkage between a combined order and the original customer orders. Phase 2d Industry Member Data also would include electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are options and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: a listed option bid or offer which is accessible electronically by customers or other market participants and is immediately actionable (
                        <E T="03">i.e.,</E>
                         no further action is required by the responder providing the quote in order to execute or cause a trade to be executed). Accordingly, any response to a request for quote or other form of solicitation response provided in standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this definition is reportable in Phase 2d for options.
                        <SU>116</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Phase 2d Industry Member Data also includes with respect to Eligible Securities that are options or equities (1) receipt time of cancellation and modification instructions through Order Cancel Request and Order Modification Request events; (2) modifications of previously routed orders in certain instances; and (3) OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter that does not match and execute orders. In addition, subject to any exemptive or other relief, Phase 2d Industry Member Data will include verbal or manual quotes on an exchange floor or in the over-the-counter market, where verbal quotes and manual quotes are defined as bids or offers in Eligible Securities provided verbally or that are provided or received other than via a CAT Reporter's order handling and execution system (
                        <E T="03">e.g.,</E>
                         quotations provided via email or instant messaging).
                        <SU>117</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             
                            <E T="03">Id.</E>
                             at 23079-80.
                        </P>
                    </FTNT>
                    <P>
                        The Quarterly Progress Report for the fourth quarter of 2021 states that “Phase 2a was fully implemented as of October 26, 2020;” “Phase 2b was fully implemented as of January 4, 2021;” “Phase 2c was implemented as of April 26, 2021;” and “Phase 2d was fully implemented as of December 13, 2021.” 
                        <SU>118</SU>
                        <FTREF/>
                         The Quarterly Progress Reports for 2021 provide additional detail regarding the implementation of these steps including the following:
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2a, 2b and 2c (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “FCAT Plan Processor creates linkages of the lifecycle of order events based on the received data through Phase 2d Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2b reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2d (Large Industry Members)” was completed on December 13, 2021; and</P>
                    <P>
                        • “LTID Account Information Reporting Go-Live for Phases 2a, 2b, 2c and 2d (Small Industry Members)” was completed on December 13, 2021.
                        <SU>119</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             
                            <E T="03">See</E>
                             Q2 2021 Quarterly Progress Report (July 27, 2021); and Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>The third prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” also imposes an Error Rate requirement of 5% or less. The Quarterly Progress Report for the fourth quarter of 2021 states the average overall error rate was less than 5% as of December 31, 2021. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The fourth prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires that the data collected by the CAT at this stage be made available to regulators through an online targeted query tool and a user-defined direct query tool. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021, the query tool functionality incorporating the data from Phases 2a, 2b, 2c and 2d was available to the Participants and to the Commission as of December 31, 2021.
                        <SU>120</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>120</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The fifth prong requires the requirements of Section 6.10(a) of the CAT NMS Plan to have been met. Section 6.10(a) of the CAT NMS Plan requires the Participants to use the tools described in Appendix D to “develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository.” The Exchange implemented a surveillance system, or enhanced existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository as of December 31, 2021 in accordance with Section 6.10(a) of the CAT NMS Plan.
                        <SU>121</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             
                            <E T="03">See</E>
                             Q1 2021 Quarterly Progress Report (April 30, 2021); Q2 2021 Quarterly Progress Report (July 27, 2021); Q3 2021 Quarterly Progress Report (Nov. 1, 2021); Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>122</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             Settlement Exemptive Order at 77129 n.13.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from January 1, 2021 through December 31, 2021. The total costs for this period, as discussed above, are $144,415,268. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($48,138,422.70) and CBSs paying one-third ($48,138,422.70).
                    </P>
                    <P>
                        The Exchange believes the proposed rule change is consistent with the requirements of the Exchange Act. The Exchange believes that the proposed rule change is consistent with Section 
                        <PRTPAGE P="10232"/>
                        6(b)(5) of the Act,
                        <SU>123</SU>
                        <FTREF/>
                         which requires, among other things, that the Exchange's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act,
                        <SU>124</SU>
                        <FTREF/>
                         because it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. The Exchange further believes that the proposed rule change is consistent with Section 6(b)(8) of the Act,
                        <SU>125</SU>
                        <FTREF/>
                         which requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. These provisions also require that the Exchange be “so organized and [have] the capacity to be able to carry out the purposes” of the Act and “to comply, and . . . to enforce compliance by its members and persons associated with its members,” with the provisions of the Exchange Act.
                        <SU>126</SU>
                        <FTREF/>
                         Accordingly, a reasonable reading of the Act indicates that it intended that regulatory funding be sufficient to permit an exchange to fulfill its statutory responsibility under the Act, and contemplated that such funding would be achieved through equitable assessments on the members, issuers, and other users of an exchange's facilities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             15 U.S.C. 78f(b)(6).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             
                            <E T="03">See</E>
                             Section 6(b)(1) of the Exchange Act.
                        </P>
                    </FTNT>
                    <P>
                        The Exchange believes that this proposal is consistent with the Act because it implements provisions of the Plan and is designed to assist the Exchange in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>127</SU>
                        <FTREF/>
                         To the extent that this proposal implements the Plan and applies specific requirements to Industry Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             CAT NMS Plan Approval Order at 84697.
                        </P>
                    </FTNT>
                    <P>The Exchange believes that the proposed fees paid by the CEBBs and CEBSs are reasonable, equitably allocated and not unfairly discriminatory. First, the Historical CAT Assessment 1 fees to be collected are directly associated with the costs of establishing and maintaining the CAT, where such costs include Plan Processor costs and costs related to technology, legal, consulting, insurance, professional and administration, and public relations costs. The Exchange has already incurred such development and implementation costs and the proposed Historical CAT Assessment 1 fees, therefore, would allow the Exchange to collect certain of such costs in a fair and reasonable manner from Industry Members, as contemplated by the CAT NMS Plan.</P>
                    <P>The proposed Historical CAT Assessment 1 fees would be charged to Industry Members in support of the maintenance of a consolidated audit trail for regulatory purposes. The proposed fees, therefore, are consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business operations. The proposed fees would not cover Exchange services unrelated to the CAT. In addition, any surplus would be used as a reserve to offset future fees. Given the direct relationship between CAT fees and CAT costs, the Exchange believes that the proposed fees are reasonable, equitable and not unfairly discriminatory.</P>
                    <P>As further discussed below, the SEC approved the CAT Funding Model, finding it was reasonable and that it equitably allocates fees among Participants and Industry Members. The Exchange believes that the proposed fees adopted pursuant to the CAT Funding Model approved by the SEC are reasonable, equitably allocated and not unfairly discriminatory.</P>
                    <HD SOURCE="HD3">(1) Implementation of CAT Funding Model in CAT NMS Plan</HD>
                    <P>
                        Section 11.1(b) of the CAT NMS Plan states that “[t]he Participants shall file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves.” Per Section 11.1(b) of the CAT NMS Plan, the Exchange has filed this fee filing to implement the Industry Member CAT fees included in the CAT Funding Model. The Exchange believes that this proposal is consistent with the Exchange Act because it is consistent with, and implements, the CAT Funding Model in the CAT NMS Plan, and is designed to assist the Exchange and its Industry Members in meeting regulatory obligations pursuant to the CAT NMS Plan. In approving the CAT NMS Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>128</SU>
                        <FTREF/>
                         Similarly, in approving the CAT Funding Model, the SEC concluded that the CAT Funding Model met this standard.
                        <SU>129</SU>
                        <FTREF/>
                         As this proposal implements the Plan and the CAT Funding Model described therein, and applies specific requirements to Industry Members in compliance with the Plan, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Exchange Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             CAT NMS Plan Approval Order at 84696.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             CAT Funding Model Approval Order at 62686.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(2) Calculation of Fee Rate for Historical CAT Assessment 1 Is Reasonable</HD>
                    <P>
                        The SEC has determined that the CAT Funding Model is reasonable and satisfies the requirements of the Exchange Act. Specifically, the SEC has concluded that the method for determining Historical CAT Assessments as set forth in Section 11.3 of the CAT NMS Plan, including the formula for calculating the Historical Fee Rate, the identification of the parties responsible for payment and the transactions subject to the fee rate for the Historical CAT Assessment, is reasonable and satisfies the Exchange Act.
                        <SU>130</SU>
                        <FTREF/>
                         In each respect, as discussed above, Historical CAT Assessment 1 is calculated, and would be applied, in accordance with the requirements applicable to Historical CAT Assessments as set forth in the CAT NMS Plan. Furthermore, as discussed below, the Exchange believes that each of the figures for the variables in the SEC-approved formula for calculating the fee rate for Historical CAT Assessment 1 is reasonable and consistent with the Exchange Act. Calculation of the Historical Fee Rate for Historical CAT Assessment 1 requires the figures for the Historical CAT Costs 1, the executed equivalent share volume for the prior twelve months, the determination of Historical Recovery Period 1, and the projection of the executed equivalent share volume for 
                        <PRTPAGE P="10233"/>
                        Historical Recovery Period 1. Each of these variables is reasonable and satisfies the Exchange Act, as discussed throughout this filing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             
                            <E T="03">Id.</E>
                             at 62662-63.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Historical CAT Costs 1</HD>
                    <P>The formula for calculating a Historical Fee Rate requires the amount of Historical CAT Costs to be recovered. Specifically, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires a fee filing to provide:</P>
                    <EXTRACT>
                        <FP>a brief description of the amount and type of the Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.</FP>
                    </EXTRACT>
                    <P>In accordance with this requirement, the Exchange has set forth the amount and type of Historical CAT Costs 1 for each of these categories of costs above.</P>
                    <P>Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan also requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” As discussed below, the Exchange believes that the amounts set forth in this filing for each of these cost categories is “reasonable and appropriate.” Each of the costs included in Historical CAT Costs 1 are reasonable and appropriate because the costs are consistent with standard industry practice, based on the need to comply with the requirements of the CAT NMS Plan, incurred subject to negotiations performed on an arm's length basis, and/or are consistent with the needs of any legal entity, particularly one with no employees.</P>
                    <HD SOURCE="HD3">(i) Technology: Cloud Hosting Services</HD>
                    <P>
                        In approving the CAT Funding Model, the Commission recognized that it is appropriate to recover costs related to cloud hosting services as a part of Historical CAT Assessments.
                        <SU>131</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to cloud hosting services described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. As described above, the cloud hosting services costs reflect, among other things, the breadth of the CAT cloud activities, data volume far in excess of the original volume estimates, the need for specialized cloud services given the volume and unique nature of the CAT, the processing time requirements of the Plan, and regular efforts to seek to minimize costs where permissible under the Plan. CAT LLC determined that use of cloud hosting services is necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT, and that the fees for cloud hosting services negotiated by FCAT were reasonable, taking into consideration a variety of factors, including the expected volume of data and the breadth of services provided and market rates for similar services.
                        <FTREF/>
                        <SU>132</SU>
                         Indeed, the actual costs of the CAT are far in excess of the original estimated costs of the CAT due to various factors, including the higher volumes and greater complexity of the CAT than anticipated when Rule 613 was originally adopted.
                    </P>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             For a discussion of the amount and type of cloud hosting services fees, 
                            <E T="03">see</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>To comply with the requirements of the Plan, the breadth of the cloud activities related to the CAT is substantial. The cloud services not only include the production environment for the CAT, but they also include two industry testing environments, support environments for quality assurance and stress testing and disaster recovery capabilities. Moreover, the cloud storage costs are driven by the requirements of the Plan, which requires the storage of multiple versions of the data, from the original submitted version of the data through various processing steps, to the final version of the data.</P>
                    <P>
                        Data volume is a significant driver of costs for cloud hosting services. When the Commission adopted the CAT NMS Plan in 2016, it estimated that the CAT would need to receive 58 billion records per day 
                        <SU>133</SU>
                        <FTREF/>
                         and that annual operating costs for the CAT would range from $36.5 million to $55 million.
                        <SU>134</SU>
                        <FTREF/>
                         Through 2021, the actual data volumes have been five times that original estimate. The data volumes for each period are set forth in detail above.
                        <SU>135</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             CAT NMS Plan Approval Order at 84801.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>
                        In addition to the effect of the data volume on the cloud hosting costs, the processing timelines set forth in the Plan contribute to the cloud hosting costs. Although CAT LLC has proactively sought to manage cloud hosting costs while complying with the Plan, including through requests to the Commission for exemptive relief and an amendment to the CAT NMS Plan, stringent CAT NMS Plan requirements do not allow for any material flexibility in cloud architecture design choices, processing timelines (
                        <E T="03">e.g.,</E>
                         the use of non-peak processing windows), or lower-cost storage tiers. As a result, the required CAT processing timelines contribute to the cloud hosting costs of the CAT.
                    </P>
                    <P>The costs for cloud hosting services also reflect the need for specialized cloud hosting services given the data volume and unique processing needs of the CAT. The data volume as well as the data processing needs of the CAT necessitate the use of cloud hosting services. The equipment, power and services required for an on-premises data model, the alternative to cloud hosting services, would be cost prohibitive. Moreover, as CAT was being developed, there were limited cloud hosting providers that could satisfy all the necessary CAT requirements, including the operational and security criteria. Over time more providers offering cloud hosting services that would satisfy these criteria have entered the market. CAT LLC will continue to evaluate alternative cloud hosting services, recognizing that the time and cost to move to an alternative cloud provider would be substantial.</P>
                    <P>
                        The reasonableness of the cloud hosting services costs is further supported by key cost discipline mechanisms for the CAT—a cost-based funding structure, cost transparency, cost management efforts (including regular efforts to lower compute and storage costs where permitted by the Plan) and oversight. Together, these mechanisms help ensure the ongoing reasonableness of the CAT's costs and the level of fees assessed to support those costs.
                        <SU>136</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 97151 (Mar. 15, 2023), 88 FR 17086, 17117 (Mar. 21, 2023) (describing key cost discipline mechanisms for the CAT).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Technology: Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to operating fees as a part of Historical CAT Assessments.
                        <SU>137</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The operating fees include the negotiated fees paid by CAT LLC to the Plan Processor to operate and maintain the system for order-related information and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) 
                        <PRTPAGE P="10234"/>
                        and program management. CAT LLC determined that the selection of FCAT as the Plan Processor was reasonable and appropriate given its expertise with securities regulatory reporting, after a process of considering other potential candidates.
                        <SU>138</SU>
                        <FTREF/>
                         CAT LLC also determined that the fixed price contract, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, was reasonable and appropriate, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity.
                        <SU>139</SU>
                        <FTREF/>
                         The services performed by FCAT for each period and the costs related to such services are described above.
                        <SU>140</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(b), 3(a)(2)(B)(ii)(b), 3(a)(2)(B)(iii)(b) and 3(a)(2)(B)(iv)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iii) Technology: CAIS Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to CAIS operating fees as a part of Historical CAT Assessments.
                        <SU>141</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to CAIS operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The CAIS operating fees include the fees paid to the Plan Processor to operate and maintain CAIS and to perform the business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the FCAT-negotiated fees for Kingland's CAIS-related services, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity, were reasonable and appropriate.
                        <SU>142</SU>
                        <FTREF/>
                         The services performed by Kingland for each period and the costs for each period are described above.
                        <SU>143</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(c), 3(a)(2)(B)(ii)(c), 3(a)(2)(B)(iii)(c) and 3(a)(2)(B)(iv)(c) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iv) Technology: Change Request Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to change request fees as a part of Historical CAT Assessments.
                        <SU>144</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to change request fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. It is common practice to utilize a change request process to address evolving needs in technology projects. This is particularly true for a project like CAT that is the first of its kind, both in substance and in scale. The substance and costs of each of the change requests are evaluated by the Operating Committee, and approved in accordance with the requirements for Operating Committee meetings. In each case, CAT LLC determined that the change requests were necessary to implement the CAT. As described above, the change requests cover various technology changes, including, for example, changes related to CAT reporting, data feeds and exchange functionality. CAT LLC also determined that the costs for each change request were appropriate for the relevant technology change. A description of the change requests for each FAM Period and their total costs are set described above.
                        <SU>145</SU>
                        <FTREF/>
                         As noted above, the total costs for change requests through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.25% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(d), 3(a)(2)(B)(ii)(d), 3(a)(2)(B)(iii)(d) and 3(a)(2)(B)(iv)(d) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(v) Capitalized Developed Technology Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to capitalized developed technology costs as a part of Historical CAT Assessments.
                        <SU>146</SU>
                        <FTREF/>
                         Capitalized developed technology costs include costs related to certain development costs, costs related to certain modifications, upgrades and other changes to the CAT, CAIS implementation fees and license fees. The amount and type of costs for each period are described in more detail above.
                        <SU>147</SU>
                        <FTREF/>
                         CAT LLC determined that these costs are reasonable and should be included as a part of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(e), 3(a)(2)(B)(ii)(e), 3(a)(2)(B)(iii)(e) and 3(a)(2)(B)(iv)(e) above.
                        </P>
                    </FTNT>
                    <P>
                        These costs involve the activity of both the Initial Plan Processor and FCAT, as the successor Plan Processor.
                        <SU>148</SU>
                        <FTREF/>
                         With regard to the Initial Plan Processor, the Participants utilized an RFP to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan. CAT LLC entered into an agreement with the Initial Plan Processor in which CAT LLC would pay the Initial Plan Processor a negotiated, fixed price fee.
                        <SU>149</SU>
                        <FTREF/>
                         In addition, as described above, CAT LLC determined that is [
                        <E T="03">sic</E>
                        ] was appropriate to enter into an agreement with FCAT as the successor Plan Processor.
                        <SU>150</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(e) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vi) Legal</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to legal fees as a part of Historical CAT Assessments.
                        <SU>151</SU>
                        <FTREF/>
                         CAT LLC determined that the legal costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Given the unique nature of the CAT, the number of parties involved with the CAT (including, for example, the SEC, Participants, Industry Members, and vendors) and the many regulatory issues associated with the CAT, the scope of the necessary legal services are substantial. CAT LLC determined that the scope of the legal services is necessary to implement and maintain the CAT and that the legal rates reflect the specialized services necessary for such a project. When hiring each law firm for a CAT project, CAT LLC interviewed multiple firms, and determined to hire each firm based on a variety of factors, including the relevant expertise and fees. In each case, CAT LLC determined that the hourly fee rates were in line with market rates for the specialized legal expertise. In addition, CAT LLC determined that the total costs incurred for each CAT project were appropriate given the breadth of services provided. The services performed by each law firm for each period and the costs related to such services are described above.
                        <SU>152</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(2) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(f), 3(a)(2)(B)(ii)(f), 3(a)(2)(B)(iii)(f) and 3(a)(2)(B)(iv)(f) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vii) Consulting</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover consulting costs as a part of 
                        <PRTPAGE P="10235"/>
                        Historical CAT Assessments.
                        <SU>153</SU>
                        <FTREF/>
                         CAT LLC determined that the consulting costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees 
                        <SU>154</SU>
                        <FTREF/>
                         and because of the significant number of issues associated with the CAT, the consultants provided assistance in the management of various CAT matters and the processes related to such matters.
                        <SU>155</SU>
                        <FTREF/>
                         CAT LLC considered a variety of factors in choosing a consulting firm and determined to select Deloitte after an interview process.
                        <SU>156</SU>
                        <FTREF/>
                         CAT LLC also determined that the consulting services were provided at reasonable market rates, as the fees were negotiated annually and comparable to the rates charged by other consulting firms for similar work.
                        <SU>157</SU>
                        <FTREF/>
                         Moreover, the total costs for such consulting services were appropriate in light of the breadth of services provided by Deloitte. The services performed by Deloitte and the costs related to such services are described above.
                        <SU>158</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(3) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             As stated in the filing of the proposed CAT NMS Plan, “[i]t is the intent of the Participants that the Company have no employees.” Securities Exchange Act Rel. No. 77724 (Apr. 27, 2016), 81 FR 30614, 30621 (May 17, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             CAT LLC uses certain third parties to perform tasks that may be performed by administrators for other NMS Plans. 
                            <E T="03">See, e.g.,</E>
                             CTA Plan and CQ Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(g), 3(a)(2)(B)(ii)(g), 3(a)(2)(B)(iii)(g) and 3(a)(2)(B)(iv)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(viii) Insurance</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover insurance costs as a part of Historical CAT Assessments.
                        <SU>159</SU>
                        <FTREF/>
                         CAT LLC determined that the insurance costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that it is common practice to have directors' and officers' liability insurance, and errors and omissions liability insurance. CAT LLC further determined that it was important to have cyber security insurance given the nature of the CAT, and such a decision is consistent with the CAT NMS Plan, which states that the cyber incident response plan may include “[i]nsurance against security breaches.” 
                        <SU>160</SU>
                        <FTREF/>
                         In selecting the insurance providers for these policies, CAT LLC engaged in an evaluation of alternative insurers, including a comparison of the pricing offered by the alternative insurers.
                        <SU>161</SU>
                        <FTREF/>
                         Based on this analysis, CAT LLC determined that the selected insurance policies provided appropriate coverage at reasonable market rates.
                        <SU>162</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(4) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             Section 4.1.5 of Appendix D of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(h), 3(a)(2)(B)(ii)(h), 3(a)(2)(B)(iii)(h) and 3(a)(2)(B)(iv)(h) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ix) Professional and Administration</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover professional and administration costs as a part of Historical CAT Assessments.
                        <SU>163</SU>
                        <FTREF/>
                         CAT LLC determined that the professional and administration costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees, all required accounting, financial, tax, cash management and treasury functions for CAT LLC have been outsourced at market rates. In addition, the required annual financial statement audit of CAT LLC is included in professional and administration costs, which costs are also at market rates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(5) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees.
                        <SU>164</SU>
                        <FTREF/>
                         The hourly fee rates for this firm were in line with market rates for the financial advisory services provided.
                        <SU>165</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Anchin. The services performed by Anchin and the costs related to such services are described above.
                        <SU>166</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC also determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the role given the balance of these considerations.
                        <SU>167</SU>
                        <FTREF/>
                         Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services.
                        <SU>168</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Grant Thornton. The services performed by Grant Thornton and the costs related to such services are described above.
                        <SU>169</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to the receipt of certain market data from Exegy. After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy. Exegy provided the data elements required by the CAT NMS Plan, and the fees were reasonable and in line with market rates for the market data received.
                        <SU>170</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment.
                        <SU>171</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(x) Public Relations Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover public relations costs as a part of Historical CAT Assessments.
                        <SU>172</SU>
                        <FTREF/>
                         CAT LLC determined that the public relations costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that the types of public relations services utilized were beneficial to the CAT and market participants more generally. Public 
                        <PRTPAGE P="10236"/>
                        relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                        <SU>173</SU>
                        <FTREF/>
                         By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT issues to the benefit of all market participants.
                        <SU>174</SU>
                        <FTREF/>
                         Moreover, CAT LLC determined that the rates charged for such services were in line with market rates.
                        <SU>175</SU>
                        <FTREF/>
                         As noted above, the total public relations costs through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.1% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(6) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(j), 3(a)(2)(B)(ii)(j), 3(a)(2)(B)(iii)(j) and 3(a)(2)(B)(iv)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Total Executed Equivalent Share Volume for the Prior 12 Months</HD>
                    <P>The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. CAT LLC determined the total executed equivalent share volume for the prior twelve months by counting executed equivalent shares in the same manner as it will count executed equivalent shares for CAT billing purposes.</P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to establish a Historical Recovery Period of 24 months for Historical CAT Assessment 1 and that such length is reasonable. CAT LLC determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans notes to the Participants in a timely fashion. CAT LLC determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>176</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, CAT LLC recognized that the total costs for Historical CAT Assessment 1 was less than the total costs for 2022 and 2023, and therefore it would be appropriate to recover those costs in two years. Furthermore, CAT LLC notes 24 months is appropriate because it is not currently proposing that Industry Members be required to pay another Historical CAT Assessment or CAT Fee with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model Approval Order at 62682.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Executed Equivalent Share Volume for Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. CAT LLC determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant in recent years. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is 7,685,722,694,558.88 executed equivalent shares.
                        <SU>177</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Actual Fee Rate for Historical CAT Assessment 1</HD>
                    <HD SOURCE="HD3">(i) Decimal Places</HD>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>178</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of the fee schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 by one-third, and rounding the result to 6 decimal places. CAT LLC determined that the use of six decimal places is reasonable as it balances the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Reasonable Fee Level</HD>
                    <P>
                        The Exchange believes that imposing Historical CAT Assessment 1 with a fee rate of $0.000015 per executed equivalent share is reasonable because it provides for a revenue stream for the Company that is aligned with Historical CAT Costs 1 and such costs would be spread out over an appropriate recovery period, as discussed above. Moreover, the Exchange believes that the level of the fee rate is reasonable, as it is comparable to other transaction-based fees. Indeed, Historical CAT Assessment 1 is significantly lower than fees assessed pursuant to Section 31 (
                        <E T="03">e.g.,</E>
                         $0.0009 per share to 0.0004 per share),
                        <SU>179</SU>
                        <FTREF/>
                         and, as a result, the magnitude of Historical CAT Assessment 1 is small, and therefore will mitigate any potential adverse economic effects or inefficiencies.
                        <SU>180</SU>
                        <FTREF/>
                         Furthermore, the reasonable fee rate for Historical CAT Assessment 1 further supports CAT LLC's decision to seek to recover all Historical CAT Costs prior to 2022, rather than establishing separate Historical CAT Assessments for pre-FAM, FAM 1, FAM 2 and FAM 3 costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             CAT Funding Model Approval Order at 62663, 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Historical CAT Assessment 1 Provides for an Equitable Allocation of Fees</HD>
                    <P>
                        Historical CAT Assessment 1 provides for an equitable allocation of fees, as it equitably allocates CAT costs between and among the Participants and Industry Members. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act, including the formula for calculating Historical CAT Assessments as well as the Industry Members to be charged the Historical CAT Assessments.
                        <SU>181</SU>
                        <FTREF/>
                         In approving the CAT Funding Model, the SEC stated that “[t]he Participants have sufficiently demonstrated that the proposed allocation of fees is reasonable.” 
                        <SU>182</SU>
                        <FTREF/>
                         Accordingly, the CAT Funding Model sets forth the requirements for allocating fees related to Historical CAT Costs among Participants and Industry Members, and the fee filings for Historical CAT Assessments must comply with those requirements.
                    </P>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <P>
                        Historical CAT Assessment 1 provides for an equitable allocation of fees as it complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. For example, as described above, the calculation of Historical CAT Assessment 1 complies with the formula set forth in Section 11.3(b) of the CAT NMS Plan. In addition, Historical CAT Assessment 1 would be charged to CEBBs and CEBSs in accordance with Section 11.3(b) of the CAT NMS Plan. Furthermore, the 
                        <PRTPAGE P="10237"/>
                        Participants would continue to remain responsible for their designated share of Past CAT Costs through the cancellation of loans made by the Participants to CAT LLC.
                    </P>
                    <P>In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1—Historical CAT Costs 1 (including Excluded Costs), the count for the executed equivalent share volume for the prior 12 months, the length of the Historical Recovery Period, and the projected executed equivalent share volume for the Historical Recovery Period—are reasonable. Moreover, these inputs lead to a reasonable fee rate for Historical CAT Assessment 1 that is lower than other fee rates for transaction-based fees. A reasonable fee rate allocated in accordance with the requirements of the CAT Funding Model provides for an equitable allocation of fees.</P>
                    <HD SOURCE="HD3">(4) Historical CAT Assessment 1 Is Not Unfairly Discriminatory</HD>
                    <P>Historical CAT Assessment 1 is not an unfairly discriminatory fee. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act. In reaching this conclusion, the SEC analyzed the potential effect of Historical CAT Assessments calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Historical CAT Assessment 1 complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 and the resulting fee rate for Historical CAT Assessment 1 is reasonable. Therefore, Historical CAT Assessment 1 does not impose an unfairly discriminatory fee on Industry Members.</P>
                    <P>Finally, the Exchange believes the proposed fees established pursuant to the CAT Funding Model promote just and equitable principles of trade, and, in general, protect investors and the public interest, and are provided in a transparent manner and specificity in the fee schedule. The Exchange also believes that the proposed fees are reasonable because they would provide ease of calculation, ease of billing and other administrative functions, and predictability of a fee based on fixed rate per executed equivalent share. Such factors are crucial to estimating a reliable revenue stream for CAT LLC and for permitting Exchange members to reasonably predict their payment obligations for budgeting purposes.</P>
                    <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                    <P>
                        Section 6(b)(8) of the Act 
                        <SU>183</SU>
                        <FTREF/>
                         requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that Historical CAT Assessment 1 implements provisions of the CAT NMS Plan that were approved by the Commission and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>In addition, all Participants (including exchanges and FINRA) are proposing to introduce Historical CAT Assessment 1 on behalf of CAT LLC to implement the requirements of the CAT NMS Plan. Therefore, this is not a competitive fee filing, and, therefore, it does not raise competition issues between and among the Participants.</P>
                    <P>
                        Furthermore, in approving the CAT Funding Model, the SEC analyzed the potential competitive impact of the CAT Funding Model, including competitive issues related to market services, trading services and regulatory services, efficiency concerns, and capital formation.
                        <SU>184</SU>
                        <FTREF/>
                         The SEC also analyzed the potential effect of CAT fees calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Based on this analysis, the SEC approved the CAT Funding Model as compliant with the Exchange Act. Historical CAT Assessment 1 is calculated and implemented in accordance with the CAT Funding Model as approved by the SEC.
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             CAT Funding Model Approval Order at 62676-86.
                        </P>
                    </FTNT>
                    <P>As discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 is reasonable and the resulting fee rate for Historical CAT Assessment 1 calculated in accordance with the CAT Funding Model is reasonable. Therefore, Historical CAT Assessment 1 would not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act.</P>
                    <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                    <P>No written comments were either solicited or received.</P>
                    <HD SOURCE="HD1">III. Suspension of the Proposed Rule Change</HD>
                    <P>
                        Pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>185</SU>
                        <FTREF/>
                         at any time within 60 days of the date of filing of a proposed rule change pursuant to Section 19(b)(1) of the Act,
                        <SU>186</SU>
                        <FTREF/>
                         the Commission summarily may temporarily suspend the change in the rules of an SRO if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. As discussed below, a temporary suspension of the proposed rule change is necessary or appropriate to allow for additional analysis of the proposed rule change's consistency with the Act and the rules thereunder.
                    </P>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <P>
                        When exchanges file their proposed rule changes with the Commission, including fee filings like the Exchange's present proposed rule change, they are required to provide a statement supporting the proposed rule change's basis under the Act and the rules and regulations thereunder applicable to the exchange.
                        <SU>187</SU>
                        <FTREF/>
                         The instructions to Form 19b-4, on which exchanges file their proposed rule changes, specify that such statement “should be sufficiently detailed and specific to support a finding that the proposed rule change is consistent with [those] requirements.” 
                        <SU>188</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.19b-4 (Item 3 entitled “Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>188</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Among other things, the Exchange's proposed rule change is subject to Section 6 of the Act, including Sections 6(b)(4), (5), and (8), which require the rules of an exchange to: (1) provide for 
                        <PRTPAGE P="10238"/>
                        the equitable allocation of reasonable fees among members, issuers, and other persons using the exchange's facilities; 
                        <SU>189</SU>
                        <FTREF/>
                         (2) be designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers; 
                        <SU>190</SU>
                        <FTREF/>
                         and (3) not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
                        <SU>191</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>190</SU>
                             15 U.S.C. 78f(b)(5).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>The proposed rule change is also subject to the CAT Funding Model set forth in the CAT NMS Plan. For example, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” In addition, Section 11.3(b)(i)(C) of the CAT NMS Plan provides that the “Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and Section 11.3(b)(i)(D) of the CAT NMS Plan provides that “[t]he length of the Historical Recovery Period used in calculating each Historical Fee Rate will be reasonably established by the Operating Committee based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment. . .” Further, Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan provides that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.”</P>
                    <P>
                        In temporarily suspending the Exchange's fee change, the Commission intends to further consider whether the proposed fees are consistent with the statutory requirements applicable to a national securities exchange under the Act and with the requirements set forth in the CAT Funding Model. Among other things, the Commission will consider whether the proposed rule change provides for reasonable fees that satisfy the standards under the Act and the rules thereunder.
                        <SU>192</SU>
                        <FTREF/>
                         Further, and among other things, the Commission will consider whether the proposed rule change, as required by the CAT Funding Model, provides “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including, but not limited to, whether the Operating Committee has “reasonably determine[d] the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and whether the “length of the Historical Recovery Period used in calculating each Historical Fee Rate [was] reasonably established by the Operating Committee.” 
                        <SU>193</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>192</SU>
                             
                            <E T="03">See</E>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>193</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <P>
                        Therefore, the Commission finds that it is necessary or appropriate in the public interest, for the protection of investors, and otherwise in furtherance of the purposes of the Act, to temporarily suspend the proposed rule change.
                        <SU>194</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>194</SU>
                             For purposes of temporarily suspending the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                            <E T="03">See</E>
                             15 U.S.C. 78c(f).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">IV. Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</HD>
                    <P>
                        In addition to temporarily suspending the proposed rule change, the Commission is instituting proceedings pursuant to Sections 19(b)(3)(C) 
                        <SU>195</SU>
                        <FTREF/>
                         and 19(b)(2)(B) 
                        <SU>196</SU>
                        <FTREF/>
                         of the Act to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change to inform the Commission's analysis of whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>195</SU>
                             15 U.S.C. 78s(b)(3)(C). Once the Commission temporarily suspends a proposed rule change, Section 19(b)(3)(C) of the Act requires that the Commission institute proceedings under Section 19(b)(2)(B) to determine whether a proposed rule change should be approved or disapproved.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>196</SU>
                             15 U.S.C. 78s(b)(2)(B).
                        </P>
                    </FTNT>
                    <P>
                        Pursuant to Section 19(b)(2)(B) of the Act,
                        <SU>197</SU>
                        <FTREF/>
                         the Commission is providing notice of the grounds for possible disapproval under consideration. The Commission is instituting proceedings to allow for additional consideration and comment on whether the Exchange has sufficiently demonstrated that the proposed rule change is consistent with Section 6(b)(4) 
                        <SU>198</SU>
                        <FTREF/>
                         of the Act, and consistent with the CAT Funding Model. Section 6(b)(4) of the Act, among other things, provides that the dues, fees, and other charges for an exchange's members be reasonable. And the CAT Funding Model, as noted above, requires, among other things, that the proposed rule change provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including whether the Operating Committee has reasonably determined the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee and whether the length of the Historical Recovery Period used in calculating each Historical Fee Rate was reasonably established by the Operating Committee.
                        <SU>199</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>197</SU>
                             15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the Act also provides that proceedings to determine whether to disapprove a proposed rule change must be concluded within 180 days of the date of publication of notice of the filing of the proposed rule change. 
                            <E T="03">See id.</E>
                             The time for conclusion of the proceedings may be extended for up to 60 days if the Commission finds good cause for such extension and publishes its reasons for so finding, or if the exchange consents to the longer period. 
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>198</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>199</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">V. Commission's Solicitation of Comments</HD>
                    <P>
                        The Commission requests that interested persons provide written submission of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they have with the proposed rule change. In particular, the Commission invites the written views of interested persons concerning whether the proposed rule change is consistent with Section 6(b)(4), or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.
                        <SU>200</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>200</SU>
                             15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act grants the Commission flexibility to determine what type of proceeding—either oral or notice and 
                            <PRTPAGE/>
                            opportunity for written comments—is appropriate for consideration of a particular proposed rule change by an exchange. 
                            <E T="03">See</E>
                             Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975).
                        </P>
                    </FTNT>
                    <PRTPAGE P="10239"/>
                    <P>Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule changes should be approved or disapproved by March 5, 2024. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by March 19, 2024.</P>
                    <P>Comments may be submitted by any of the following methods:</P>
                    <HD SOURCE="HD2">Electronic Comments</HD>
                    <P>
                        • Use the Commission's internet comment form (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ); or
                    </P>
                    <P>
                        • Send an email to 
                        <E T="03">rule-comments@sec.gov.</E>
                         Please include file number SR-MRX-2024-01 on the subject line.
                    </P>
                    <HD SOURCE="HD2">Paper Comments</HD>
                    <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                    <FP>
                        All submissions should refer to file number SR-MRX-2024-01. 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 internet website (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-MRX-2024-01 and should be submitted on or before March 5, 2024. Rebuttal comments should be submitted by March 19, 2024.
                    </FP>
                    <HD SOURCE="HD1">VI. Conclusion</HD>
                    <P>
                        <E T="03">It is therefore ordered,</E>
                         pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>201</SU>
                        <FTREF/>
                         that File No. SR-MRX-2024-01 be, and hereby is, temporarily suspended. In addition, the Commission is instituting proceedings to determine whether the proposed rule change should be approved or disapproved.
                    </P>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <SIG>
                        <P>
                            For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                            <SU>202</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>202</SU>
                                 17 CFR 200.30-3(a)(12), (57) and (58).
                            </P>
                        </FTNT>
                        <NAME>Sherry R. Haywood,</NAME>
                        <TITLE>Assistant Secretary.</TITLE>
                    </SIG>
                </PREAMB>
                <FRDOC>[FR Doc. 2024-01172 Filed 2-12-24; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 8011-01-P</BILCOD>
            </NOTICE>
            <NOTICE>
                <PREAMB>
                    <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                    <DEPDOC>[Release No. 34-99362; File No. SR-ISE-2024-02]</DEPDOC>
                    <SUBJECT>Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing of Proposed Rule Change To Establish Fees Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail; Suspension of and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</SUBJECT>
                    <DATE>January 17, 2024.</DATE>
                    <P>
                        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act” or the “Exchange Act”) 
                        <SU>1</SU>
                        <FTREF/>
                         and Rule 19b-4 thereunder,
                        <SU>2</SU>
                        <FTREF/>
                         notice is hereby given that, on January 2, 2024, Nasdaq ISE, LLC (“ISE” or “Exchange”) filed with the Securities and Exchange Commission (“SEC” or the “Commission”) the proposed rule change as described in Items I and II, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is, pursuant to Section 19(b)(3)(C) of the Act, hereby: (i) temporarily suspending the rule change; and (ii) instituting proceedings to determine whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             15 U.S.C. 78a.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             17 CFR 240.19b-4.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                    <P>The Exchange proposes to establish fees for Industry Members related to certain historical costs of the National Market System Plan Governing the Consolidated Audit Trail (the “CAT NMS Plan” or “Plan”) incurred prior to January 1, 2022, as described further below.</P>
                    <P>
                        The text of the proposed rule change is available on the Exchange's website at 
                        <E T="03">https://listingcenter.nasdaq.com/rulebook/nasdaq/rules,</E>
                         at the principal office of the Exchange, and at the Commission's Public Reference Room.
                    </P>
                    <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item V below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                    <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <HD SOURCE="HD3">1. Purpose</HD>
                    <P>
                        On July 11, 2012, the Commission adopted Rule 613 of Regulation NMS, which required the self-regulatory organizations (“SROs”) to submit a national market system (“NMS”) plan to create, implement and maintain a consolidated audit trail that would capture customer and order event information for orders in NMS securities across all markets, from the time of order inception through routing, cancellation, modification or execution.
                        <SU>3</SU>
                        <FTREF/>
                         On November 15, 2016, the Commission approved the CAT NMS Plan.
                        <SU>4</SU>
                        <FTREF/>
                         Under the CAT NMS Plan, the Operating Committee has the discretion to establish funding for the Consolidated Audit Trail, LLC (“CAT LLC” or “the Company”) 
                        <SU>5</SU>
                        <FTREF/>
                         to operate the CAT, including establishing fees for 
                        <PRTPAGE P="10240"/>
                        Industry Members 
                        <SU>6</SU>
                        <FTREF/>
                         to be assessed by CAT LLC that would be implemented on behalf of CAT LLC by the Participants.
                        <SU>7</SU>
                        <FTREF/>
                         The Operating Committee adopted a revised funding model to fund the CAT (“CAT Funding Model”). On September 6, 2023, the Commission approved the CAT Funding Model, after concluding that the model was reasonable and that it satisfied the requirements of Section 11A of the Exchange Act and Rule 608 thereunder.
                        <SU>8</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             Securities Exchange Act Rel. No. 67457 (July 18, 2012), 77 FR 45721 (Aug. 1, 2012).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             Securities Exchange Act Rel. No. 79318 (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016) (“CAT NMS Plan Approval Order”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             The term “CAT LLC” may be used to refer to Consolidated Audit Trail, LLC or CAT NMS, LLC, depending on the context.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             An “Industry Member” is defined as “a member of a national securities exchange or a member of a national securities association.” Nasdaq Rule General 7(u) (ISE General 7 incorporates The Nasdaq Stock Market LLC Rule General 7 by reference) 
                            <E T="03">See also</E>
                             Section 1.1 of the CAT NMS Plan. Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth in the CAT NMS Plan and/or the CAT Compliance Rule. Nasdaq General 7 (Consolidated Audit Trail Compliance).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Securities Exchange Act Rel. No. 98290 (Sept. 6, 2023), 88 FR 62628 (Sept. 12, 2023) (“CAT Funding Model Approval Order”).
                        </P>
                    </FTNT>
                    <P>
                        The CAT Funding Model provides a framework for the recovery of the costs to create, develop and maintain the CAT, including providing a method for allocating costs to fund the CAT among Participants and Industry Members. The CAT Funding Model establishes two categories of fees: (1) CAT fees assessed by CAT LLC and payable by certain Industry Members to recover a portion of historical CAT costs previously paid by the Participants (“Historical CAT Assessment” fees); and (2) CAT fees assessed by CAT LLC and payable by Participants and Industry Members to fund prospective CAT costs (“Prospective CAT Costs” fees).
                        <SU>9</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             Under the CAT Funding Model, the Operating Committee may establish one or more Historical CAT Assessments. Section 11.3(b) of the CAT NMS Plan. This filing only establishes Historical CAT Assessment 1 related to certain Historical CAT Costs as described herein; it does not address any other potential Historical CAT Assessment related to other Historical CAT Costs. In addition, under the CAT Funding Model, the Operating Committee also may establish CAT Fees related to CAT costs going forward. Section 11.3(a) of the CAT NMS Plan. This filing does not address any potential CAT Fees related to CAT costs going forward. Any such other fee for any other Historical CAT Assessment or CAT Fee for Prospective CAT Costs will be subject to a separate fee filing.
                        </P>
                    </FTNT>
                    <P>
                        Under the CAT Funding Model, “[t]he Operating Committee will establish one or more fees (each a `Historical CAT Assessment') to be payable by Industry Members with regard to CAT costs previously paid by the Participants (`Past CAT Costs').” 
                        <SU>10</SU>
                        <FTREF/>
                         In establishing a Historical CAT Assessment, the Operating Committee will determine a “Historical Recovery Period” and calculate a “Historical Fee Rate” for that Historical Recovery Period. Then, for each month in which a Historical CAT Assessment is in effect, each CEBB and CEBS would be required to pay the fee—the Historical CAT Assessment—for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate.
                        <SU>11</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, the proposed recovery of the Past CAT Costs via the Historical CAT Assessment is reasonable.” CAT Funding Model Approval Order at 62662.
                        </P>
                    </FTNT>
                    <P>
                        Each Historical CAT Assessment to be paid by CEBBs and CEBSs is designed to contribute toward the recovery of two-thirds of the Historical CAT Costs. Because the Participants previously have paid Past CAT Costs via loans to the Company, the Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made by the Participants to the Company on a pro rata basis based on the outstanding loan amounts due under the loans, instead of through the payment of a CAT fee.
                        <SU>12</SU>
                        <FTREF/>
                         In addition, Participants also will be 100% responsible for certain Excluded Costs (as discussed below).
                    </P>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             Section 11.3(b)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC proposes to charge CEBBs and CEBSs (as described in more detail below) Historical CAT Assessment 1 to recover certain historical CAT costs incurred prior to January 1, 2022, in accordance with the CAT Funding Model. To implement this fee on behalf of CAT LLC, the CAT NMS Plan requires the Participants to “file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves, and such fees shall be labeled as `Consolidated Audit Trail Funding Fees.' ” 
                        <SU>13</SU>
                        <FTREF/>
                         The Plan further states that “Participants will be required to file with the SEC pursuant to Section 19(b) of the Exchange Act a filing for each Historical CAT Assessment.” 
                        <SU>14</SU>
                        <FTREF/>
                         Accordingly, the purpose of this filing is to implement a Historical CAT Assessment on behalf of CAT LLC for Industry Members, referred to as Historical CAT Assessment 1, in accordance with the CAT NMS Plan.
                        <SU>15</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             Section 11.3(b)(iii)(B)(I) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             Note that there may be one or more Historical CAT Assessments depending on the timing of the completion of the Financial Accountability Milestones, among other things. Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(1) CAT Executing Brokers</HD>
                    <P>
                        Historical CAT Assessment 1 will be charged to each CEBB and CEBS for each applicable transaction in Eligible Securities.
                        <SU>16</SU>
                        <FTREF/>
                         The CAT NMS Plan defines a “CAT Executing Broker” to mean:
                    </P>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             In its approval of the CAT Funding Model, the Commission determined that charging CAT fees to CAT Executing Brokers was reasonable. In reaching this conclusion the Commission noted that the use of CAT Executing Brokers is appropriate because the CAT Funding Model is based upon the calculation of executed equivalent shares, and, therefore, charging CAT Executing Brokers would reflect their executing role in each transaction. Furthermore, the Commission noted that, because CAT Executing Brokers are already identified in transaction reports from the exchanges and FINRA's equity trade reporting facilities recorded in CAT Data, charging CAT Executing Brokers could streamline the billing process. CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) with respect to a transaction in an Eligible Security that is executed on an exchange, the Industry Member identified as the Industry Member responsible for the order on the buy-side of the transaction and the Industry Member responsible for the sell-side of the transaction in the equity order trade event and option trade event in the CAT Data submitted to the CAT by the relevant exchange pursuant to the Participant Technical Specifications; and (b) with respect to a transaction in an Eligible Security that is executed otherwise than on an exchange and required to be reported to an equity trade reporting facility of a registered national securities association, the Industry Member identified as the executing broker and the Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event in the CAT Data submitted to the CAT by FINRA pursuant to the Participant Technical Specifications; provided, however, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.
                            <SU>17</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>17</SU>
                                 Section 1.1 of the CAT NMS Plan. Note that CEBBs and CEBSs may, but are not required to, pass-through their CAT fees to their clients, who may, in turn, pass their fees to their clients until they are imposed ultimately on the account that executed the transaction. CAT Funding Model Approval Order at 62649.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>The following fields of the Participant Technical Specifications indicate the CAT Executing Brokers for the transactions executed on an exchange.</P>
                    <GPH SPAN="3" DEEP="204">
                        <PRTPAGE P="10241"/>
                        <GID>EN13FE24.048</GID>
                    </GPH>
                    <GPH SPAN="3" DEEP="93">
                        <GID>EN13FE24.049</GID>
                    </GPH>
                    <P>
                        In addition, the following fields of the Participant Technical Specifications would indicate the CAT Executing Brokers for the transactions executed otherwise than on an exchange.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>18</SU>
                             
                            <E T="03">See</E>
                             Table 23, Section 4.7 (Order Trade Event) of the CAT Reporting Technical Specifications for Plan Participants, Version 4.1.0-r20 (Sept. 25, 2023), 
                            <E T="03">https://www.catnmsplan.com/sites/default/files/2023-09/9.25.2023-CAT_Reporting_Technical_Specifications_for_Participants_4.1.0-r20.pdf</E>
                             (“CAT Reporting Technical Specifications for Plan Participants”).
                        </P>
                        <P>
                            <SU>19</SU>
                             
                            <E T="03">See</E>
                             Table 51, Section 5.2.5.1 (Simple Option Trade Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                        <P>
                            <SU>20</SU>
                             
                            <E T="03">See</E>
                             Table 61, Section 6.1 (TRF/ORF/ADF Transaction Data Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="121">
                        <GID>EN13FE24.050</GID>
                    </GPH>
                    <HD SOURCE="HD3">(2) Calculation of Historical Fee Rate 1</HD>
                    <P>The Operating Committee determined the Historical Fee Rate to be used in calculating Historical CAT Assessment 1 (“Historical Fee Rate 1”) by dividing the Historical CAT Costs for Historical CAT Assessment 1 (“Historical CAT Costs 1”) by the projected total executed share volume of all transactions in Eligible Securities for the Historical Recovery Period for Historical CAT Assessment 1 (“Historical Recovery Period 1”), as discussed in detail below. Based on this calculation, the Operating Committee has determined that Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. This rate is then divided by three and rounded to determine the fee rate of $0.000015 per executed equivalent share that will be assessed to CEBBs and CEBSs, as also discussed in detail below.</P>
                    <HD SOURCE="HD3">(A) Executed Equivalent Shares for Transactions in Eligible Securities</HD>
                    <P>
                        Under the CAT NMS Plan, for purposes of calculating each Historical CAT Assessment, executed equivalent 
                        <PRTPAGE P="10242"/>
                        shares in a transaction in Eligible Securities will be reasonably counted as follows: (1) each executed share for a transaction in NMS Stocks will be counted as one executed equivalent share; (2) each executed contract for a transaction in Listed Options will be counted based on the multiplier applicable to the specific Listed Options (
                        <E T="03">i.e.,</E>
                         100 executed equivalent shares or such other applicable multiplier); and (3) each executed share for a transaction in OTC Equity Securities shall be counted as 0.01 executed equivalent share.
                        <SU>21</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             Section 11.3(a)(i)(B) and 11.3(b)(i)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission concluded that “the use of executed equivalent share volume as the basis of the proposed cost allocation methodology is reasonable and consistent with the approach taken by the funding principles of the CAT NMS Plan.” CAT Funding Model Approval Order at 62640.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Historical CAT Costs 1</HD>
                    <P>
                        The CAT NMS Plan states that “[t]he Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee. Each Historical CAT Assessment will seek to recover from CAT Executing Brokers two-thirds of Historical CAT Costs incurred during the period covered by the Historical CAT Assessment.” 
                        <SU>22</SU>
                        <FTREF/>
                         As described in detail below, Historical CAT Costs 1 would be $337,688,610. This figure includes Past CAT Costs of $401,312,909 minus certain Excluded Costs of $63,624,299. Participants collectively will remain responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), plus the Excluded Costs of $63,624,299. CEBBs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), and CEBSs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870).
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             Section 11.3(b)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        The following describes in detail Historical CAT Costs 1 with regard to four separate historical time periods as well as Past CAT Costs excluded from Historical CAT Costs 1 (“Excluded Costs”). The following cost details are provided in accordance with the requirement in the CAT NMS Plan to provide in the fee filing “a brief description of the amount and type of Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.” 
                        <SU>23</SU>
                        <FTREF/>
                         Each of the costs described below are reasonable, appropriate and necessary for the creation, implementation and maintenance of CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             Section 11.3(b)(iii)(B)(II)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(i) Historical CAT Costs Incurred Prior to June 22, 2020 (Pre-FAM Costs)</HD>
                    <P>Historical CAT Costs 1 would include costs incurred by CAT prior to June 22, 2020 (“Pre-FAM Period”) and already funded by the Participants, excluding Excluded Costs (described further below). Historical CAT Costs 1 would include costs for the Pre-FAM Period of $143,919,521. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($47,973,174), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($47,973,174) and CEBSs paying one-third ($47,973,174). These costs do not include Excluded Costs, as discussed further below. The following table breaks down Historical CAT Costs 1 for the Pre-FAM Period into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.</P>
                    <GPH SPAN="3" DEEP="294">
                        <GID>EN13FE24.051</GID>
                    </GPH>
                    <PRTPAGE P="10243"/>
                    <P>
                        The Pre-FAM Period includes a broad range of CAT-related activity from 2012 through June 22, 2020, including the evaluation of the requirements of SEC Rule 613, the development of the CAT NMS Plan, the evaluation and selection of the initial and successor Plan Processors, the commencement of the creation and implementation of the CAT to comply with Rule 613 and the CAT NMS Plan, including technical specifications for transaction reporting and regulatory access, and related technology and the commencement of reporting to the CAT. The following describes the costs for each of the categories for the Pre-FAM Period.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             With respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>25</SU>
                             The costs described in this table of costs for the Pre-FAM Period were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website. In addition, in accordance with Section 6.6(a)(i) of the CAT NMS Plan, in 2018 CAT LLC provided the SEC with “an independent audit of fees, costs, and expenses incurred by the Participants on behalf of the Company prior to the Effective Date of the Plan that will be publicly available.” The audit is available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>The $10,268,840 in technology costs for cloud hosting services represent costs incurred for services provided by the cloud services provider for the CAT, Amazon Web Services, Inc. (“AWS”), during the Pre-FAM Period.</P>
                    <P>As part of its proposal for acting as the successor Plan Processor for the CAT, FCAT selected AWS as a subcontractor to provide cloud hosting services. In 2019, after reviewing the capabilities of other cloud services providers, FCAT determined that AWS was the only cloud services provider at that time sufficiently mature and capable of providing the full suite of necessary cloud services for the CAT, including, for example, the security, resiliency and complexity necessary for the CAT computing requirements. The use of cloud hosting services is standard for this type of high-volume data activity and reasonable and necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT the fees incurred by the Plan Processor for cloud hosting services provided by AWS as FCAT's subcontrator on a monthly basis for the cloud hosting services, and FCAT, in turn, pays such fees to AWS. The fees for cloud hosting services were negotiated by FCAT on an arm's length basis with the goals of managing cost and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the expected volume of data, the breadth of services provided and market rates for similar services. The fees for cloud hosting services during the Pre-FAM Period were paid to FCAT by CAT NMS LLC 
                        <SU>26</SU>
                        <FTREF/>
                         and subsequently Consolidated Audit Trail, LLC (as previously noted, both entities are referred to generally as “CAT LLC”),
                        <SU>27</SU>
                        <FTREF/>
                         and FCAT, in turn, paid AWS. CAT LLC was funded via loan contributions by the Participants.
                        <SU>28</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>26</SU>
                             CAT NMS, LLC was formed by FINRA and the U.S. national securities exchanges to implement the requirements of SEC Rule 613 under the Exchange Act. SEC Rule 613 required the SROs to jointly submit to the SEC the CAT NMS Plan to create, implement and maintain the CAT. The SEC approved the CAT NMS Plan on November 15, 2016. CAT NMS Plan Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             On August 29, 2019, the Participants formed a new Delaware limited liability company named Consolidated Audit Trail, LLC for the purpose of conducting activities related to the CAT from and after the effectiveness of the proposed amendment of the CAT NMS Plan to replace CAT NMS, LLC. 
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 87149 (Sept. 27, 2019), 84 FR 52905 (Oct. 3, 2019).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             For each of the costs paid by CAT NMS, LLC and Consolidated Audit Trail, LLC as discussed throughout this filing, CAT NMS, LLC and Consolidated Audit Trail, LLC paid these costs via loan contributions by the Participants to CAT NMS, LLC and Consolidated Audit Trail, LLC, respectively.
                        </P>
                    </FTNT>
                    <P>AWS was engaged by FCAT to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. Services provided by AWS include storage services, databases, compute services and other services (such as networking, management tools and DevOps tools). AWS also was engaged to provide various environments for CAT, such as development, performance testing, test and production environments.</P>
                    <P>
                        The cost for AWS services for the CAT is a function of the volume of CAT Data. The greater the amount of CAT Data, the greater the cost of AWS services to the CAT. During the Pre-FAM Period from the engagement of AWS in February 2019 through June 2020, AWS provided cloud hosting services for volumes of CAT Data far in excess of the volume predictions set forth in the CAT NMS Plan. The CAT NMS Plan states, when all CAT Reporters are submitting their data to the CAT, it “must be sized to receive[,] process and load more than 58 billion records per day,” 
                        <SU>29</SU>
                        <FTREF/>
                         and that “[i]t is expected that the Central Repository will grow to more than 29 petabytes of raw, uncompressed data.” 
                        <SU>30</SU>
                        <FTREF/>
                         However, the volume of CAT Data for the Pre-FAM Period was far in excess of these predicted levels. By the end of this period, data submitted to the CAT included options and equities Participant Data,
                        <SU>31</SU>
                        <FTREF/>
                         Phase 2a and Phase 2b Industry Member Data 
                        <SU>32</SU>
                        <FTREF/>
                         (including certain linkages), as well as SIP Data,
                        <SU>33</SU>
                        <FTREF/>
                         reference data and other types of Other Data.
                        <SU>34</SU>
                        <FTREF/>
                         The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during the Pre-FAM Period.
                        <SU>35</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             Appendix D-5 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             
                            <E T="03">See</E>
                             Section 6.3(d) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Rel. No. 88702 (Apr. 20, 2020), 85 FR 23075 (Apr. 24, 2020) (“Phased Reporting Exemptive Relief Order”) for a description of Phase 2a and Phase 2b Industry Member Data.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See</E>
                             Appendix C-108 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                        <P>
                            <SU>36</SU>
                             Note that, although there were compute hours during this period, data related to such compute hours are no longer available in current data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="295">
                        <PRTPAGE P="10244"/>
                        <GID>EN13FE24.052</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>
                        The $21,085,485 in technology costs related to operating fees represent costs incurred with regard to activities of FCAT as the Plan Processor. Operating fees are those fees paid by CAT LLC to FCAT as the Plan Processor to operate and maintain the CAT and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management as required by the CAT NMS Plan.
                    </P>
                    <P>
                        FCAT was selected to assume the role of the successor Plan Processor. Prior to this selection, the Participants engaged in discussions with two prior Bidders 
                        <SU>37</SU>
                        <FTREF/>
                         for the successor Plan Processor role. The Operating Committee formed a Selection Subcommittee in accordance with Section 4.12 of the CAT NMS Plan to evaluate and review Bids and to make a recommendation to the Operating Committee with respect to the selection of the successor Plan Processor. In an April 9, 2019 letter to the Commission, the Participants described the reasons for its selection of the successor Plan Processor:
                    </P>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             The term “Bidder” is defined in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>The Selection Subcommittee considered factors including, but not limited to, the following, in recommending FINRA to the Operating Committee as the successor Plan Processor:</P>
                    <EXTRACT>
                        <P>a. FINRA's specialized technical expertise and capabilities in the area of broker-dealer technology;</P>
                        <P>b. The need to appoint a successor Plan Processor with specialized expertise to develop, implement, and maintain the CAT System in accordance with the CAT NMS Plan and SEC Rule 613;</P>
                        <P>c. FINRA's detailed proposal in response to CATLLC's recent inquiries; and</P>
                        <P>d. FINRA's data query and analytics systems demonstration to the Participants.</P>
                    </EXTRACT>
                    <P>
                        Based on these and other factors, the Selection Subcommittee determined that FINRA was the most appropriate Bidder to become the successor Plan Processor.
                        <SU>38</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             Letter from Michael J. Simon, Chair, CAT NMS, LLC Operating Committee, to Brent J. Fields, Secretary, SEC (Apr. 9, 2019), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection-040919.pdf.</E>
                        </P>
                    </FTNT>
                    <P>
                        On February 26, 2019, the Operating Committee (with FINRA recusing itself) voted to select FINRA as the successor Plan Processor pursuant to Section 6.1(t) of the CAT NMS Plan.
                        <SU>39</SU>
                        <FTREF/>
                         On March 29, 2019, CAT LLC and FCAT (a wholly owned subsidiary of FINRA) entered into a Plan Processor Agreement pursuant to which FCAT would perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>39</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT a negotiated monthly fixed price for the operation of the CAT. This fixed price contract was negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity. The operating fees during the Pre-FAM Period were paid to FCAT by CAT LLC.</P>
                    <P>From March 29, 2019 (the commencement of the Plan Processor Agreement with FCAT) through June 22, 2020 (the end of the Pre-FAM Period), the Plan Processor's activities with respect to the CAT included the following:</P>
                    <P>
                        • Commenced user acceptance testing with market data provided by Exegy Incorporated (“Exegy”), a market data provider; 
                        <SU>40</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             The use of Exegy to provide market data, including the costs and market data provided, is discussed below in Section 3(a)(2)(B)(i)(i).
                        </P>
                    </FTNT>
                    <P>
                        • Published Technical Specifications and related reporting scenarios documents for Phase 2a, 2b and 2c reporting for Industry Members, after substantial engagement with SEC staff, 
                        <PRTPAGE P="10245"/>
                        Industry Members and Participants on the Technical Specifications;
                    </P>
                    <P>• Facilitated testing for Phase 2a and 2b reporting for Industry Members;</P>
                    <P>• Began developing Technical Specifications and related reporting scenarios documents for Phase 2d reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published Central Repository Access Technical Specifications, and provided regulator access to test data from Industry Members;</P>
                    <P>• Facilitated Participant exchanges that support options market makers sending Quote Sent Time to the CAT;</P>
                    <P>• Facilitated the introduction of OPRA and Options NBBO Other Data to CAT;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing requirements under Regulation SCI;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants, SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk, which is the primary source for answers to questions about CAT, including questions regarding: clock synchronization, firm reporting responsibilities, interpretive questions, technical specifications for reporting to CAT and more;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>
                        • Administered the CAT website and all of its content; 
                        <SU>41</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             The CAT website is 
                            <E T="03">https://www.catnmsplan.com.</E>
                        </P>
                    </FTNT>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>The $2,072,908 in technology costs related to CAIS operating fees represent the fees paid for FCAT's subcontractor charged with the development and operation of CAT's Customer and Account Information System (“CAIS”). The CAT is required under the CAT NMS Plan to capture and store Customer Identifying Information and Customer Account Information in a database separate from the transactional database and to create a CAT-Customer-ID for each Customer.</P>
                    <P>During the Pre-FAM Period, the CAIS-related services were provided by the Plan Processor through the Plan Processor's subcontractor, Kingland Systems Incorporation (“Kingland”). Kingland had experience operating in the securities regulatory technology space, and as a part of its proposal for acting as the Plan Processor for the CAT, FCAT selected Kingland as a subcontractor to provide certain CAIS-related services.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay to the Plan Processor the fees incurred by the FCAT for CAIS-related services provided by FCAT through Kingland on a monthly basis. FCAT negotiated the fees for Kingland's CAIS-related services on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity. The fees for CAIS-related services during the Pre-FAM Period were paid by CAT LLC to FCAT. FCAT, in turn, paid Kingland. During the Pre-FAM Period, Kingland began development of the CAIS Technical Specifications and the building of CAIS. In addition, Kingland also worked on the build related to the CCID Alternative, an alternative approach to customer information that was not included in the CAT NMS Plan as originally adopted.
                        <SU>42</SU>
                        <FTREF/>
                         Furthermore, Kingland also worked on the acceleration of the reporting of large trader identifiers (“LTID”) earlier than originally contemplated during this period, in accordance with exemptive relief granted by the SEC.
                        <SU>43</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             For a discussion of the CCID Alternative, 
                            <E T="03">see</E>
                             Securities Exchange Act Rel. No. 88393 (Mar. 17, 2020), 85 FR 16152 (Mar. 20, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             Phased Reporting Exemptive Relief Order at 23079-80.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        The technology costs related to change request fees include costs related to certain modifications, upgrades or other changes to the CAT. Change requests are standard practice and necessary to reflect operational changes, including changes related to new market developments, such as new market participants. In general, if CAT LLC determines that a modification, upgrade or other changes to the functionality or service is necessary and appropriate, CAT LLC will submit a request for such a change to the Plan Processor. The Plan Processor will then respond to the request with a proposal for implementing the change, including the cost (if any) of such a change. CAT LLC then determines whether to approve the proposed change. The change request costs were paid by CAT LLC to FCAT. During the Pre-FAM Period, CAT LLC incurred costs of $141,346 related to change requests implemented by FCAT. Such change requests related to a development fee regarding the OPRA and SIP data feeds, and the reprocessing of certain exchange data.
                        <SU>44</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             Note that CAT LLC also has incurred costs related to specific Industry Members (
                            <E T="03">e.g.,</E>
                             reprocessing costs related to Industry Member reporting errors).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>This category of costs includes capitalizable application development costs incurred in the development of the CAT. The capitalized developed technology costs for the Pre-FAM Period of $71,475,941 relate to technology provided by the Initial Plan Processor and the successor Plan Processor.</P>
                    <P>
                        <E T="03">Initial Plan Processor: Thesys CAT, LLC.</E>
                         The capitalized developed technology costs related to the Initial Plan Processor include costs incurred with regard to testing for Participant reporting, Participant reporting to the CAT, a security assessment of the CAT, the development of the billing function for the CAT, and a Plan Processor transition fee.
                    </P>
                    <P>
                        On January 17, 2017, the Selection Committee of the CAT NMS Plan selected the Initial Plan Processor, Thesys Technologies, LLC, for the CAT NMS Plan pursuant to Article V of the CAT NMS Plan.
                        <SU>45</SU>
                        <FTREF/>
                         The Participants utilized a request for proposal (“RFP”) to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan, taking into consideration that the Initial Plan Processor had experience operating 
                        <PRTPAGE P="10246"/>
                        in the securities regulatory technology space, among other considerations. On April 6, 2017, CAT LLC entered into an agreement with Thesys CAT LLC (“Thesys CAT”), a Thesys affiliate, to perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT. Under the agreement, CAT LLC would pay Thesys CAT a negotiated, fixed price fee for its role as the Initial Plan Processor. Effective January 30, 2019, the Plan Processor Agreement with Thesys CAT was terminated, and FCAT was subsequently selected as the successor Plan Processor.
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             Letter from the Participants to Brent J. Fields, Secretary, SEC (Jan. 18, 2017), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection.pdf.</E>
                        </P>
                    </FTNT>
                    <P>From January 17, 2017 through January 30, 2019, the time in which the Thesys CAT was engaged for the CAT, but excluding the period from November 15, 2017 through November 15, 2018, the Initial Plan Processor engaged in various activities with respect to the CAT, including preparing iterative drafts of Participant Technical Specifications, Industry Member Technical Specifications and the Central Repository Access Technical Specifications. Thesys CAT initiated and maintained the Participant reporting per the Participant Technical Specifications. In addition, Thesys CAT also developed CAT technology, addressed compliance items, including drafting CAT policies and procedures, addressing Regulation SCI requirements, establishing a CAT Compliance Officer and a Chief Information Security Officer, and addressed security-related matters for the CAT. Furthermore, Thesys CAT performed transition services related to the transition from Thesys CAT to FCAT as the successor Plan Processor from January 30, 2019 through April 15, 2019.</P>
                    <P>
                        <E T="03">Successor Plan Processor: FCAT.</E>
                         The capitalized developed technology costs related to FCAT include: (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, including the completion of go-live functionality related to options ingestion and validation, equities regulatory services agreement query tool updates and unlinked options data query, options linkages release, Industry Member Phase 2a file submission and data integrity (including error corrections), and Industry Member testing, including reporting relationships, ATS order type management, basic reporting statistics, SFTP data integrity feedback and error correction; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including a one-time development fee for a secure analytics workspace, a one-time development fee of an Industry Member connectivity solution, and a one-time development fee for the acceleration of multi-factor authentication; (3) CAIS implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $19,674,463 represent the fees paid for legal services provided by two law firms, Wilmer Cutler Pickering Hale and Dorr LLP (“WilmerHale”) and Pillsbury Winthrop Shaw Pittman LLP (“Pillsbury”), during the Pre-FAM Period. The legal costs exclude those costs incurred from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         Following the adoption of Rule 613, the Participants determined it was necessary to engage external legal counsel to advise the Participants with respect to corporate and regulatory legal matters related to the CAT, including drafting and developing the CAT NMS Plan. The Participants considered a variety of factors in their analysis of prospective law firms, including (1) the firm's qualifications, resources and expertise, (2) the firm's relevant experience and understanding of the regulatory matters raised by the CAT and in advising on matters of similar scope, (3) the composition of the legal team, and (4) professional fees. Following a series of interviews, the Participants acting as a consortium determined that WilmerHale was well qualified given the balance of these considerations and engaged WilmerHale in February 2013.
                    </P>
                    <P>WilmerHale's billing rates are negotiated on an annual basis and are determined with reference to the rates charged by other leading law firms for similar work. The Participants assess WilmerHale's performance and review prospective budgets and staffing plans submitted by WilmerHale on an annual basis. WilmerHale's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading law firms for similar work.</P>
                    <P>The legal costs for WilmerHale during the Pre-FAM Period included costs incurred from 2013 until June 22, 2020 to address corporate and regulatory legal matters related to the CAT. The legal fees for this law firm during the period from February 2013 until the formation of the CAT NMS, LLC on November 15, 2016 were paid directly by the exchanges and FINRA to WilmerHale. After the formation of CAT NMS LLC, the legal fees were paid by CAT LLC to WilmerHale.</P>
                    <P>After WilmerHale was engaged in 2013 through the end of the Pre-FAM Period on June 22, 2020 (excluding the legal costs from November 15, 2017 through November 15, 2018), WilmerHale provided legal assistance to the CAT on a variety of matters, including with regard to the following:</P>
                    <P>• Analyzed various legal matters associated with the Selection Plan, and drafted an amendment to Selection Plan;</P>
                    <P>• Assisted with the RFP and bidding process for the CAT Plan Processor;</P>
                    <P>• Analyzed legal matters related to the Development Advisory Group (“DAG”);</P>
                    <P>• Drafted the CAT NMS Plan, analyzed various items related to the CAT NMS Plan, and responded to comment letters on CAT NMS Plan;</P>
                    <P>
                        • Provided legal support for the formation of the legal entity, the governance of the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan; and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan and related filings;</P>
                    <P>• Negotiated and drafted the plan processor agreements with the Initial Plan Processor and the successor Plan Processor;</P>
                    <P>• Provided assistance with compliance with Regulation SCI;</P>
                    <P>• Assisted with clock synchronization study;</P>
                    <P>• Provided assistance with respect to the establishment of CAT security;</P>
                    <P>
                        • Drafted exemptive requests from CAT NMS Plan requirements, including with regard to options market maker quotes, Customer IDs, CAT Reporter IDs, linking allocations to executions, CAT reporting timeline, FDIDs, customer and account information, timestamp granularity, small industry members, data facility reporting and linkage, allocation reports, SRO-assigned market participant identifiers and cancelled trade indicators, thereby seeking to 
                        <PRTPAGE P="10247"/>
                        implement changes that would be cost effective and benefit Industry Members and Participants;
                    </P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided advice regarding CAT policies and procedures;</P>
                    <P>• Analyzed the SEC's amendment of the CAT NMS Plan regarding financial accountability;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues; and</P>
                    <P>• Assisted with third party vendor agreements.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         The legal costs for CAT during the Pre-FAM Period include costs related to the legal services performed by Pillsbury. The Participants interviewed this law firm as well as other potential law firms to provide legal assistance regarding certain liability matters. After considering a variety of factors in its analysis, including the relevant expertise and fees of the firm, CAT LLC determined to hire Pillsbury in April 2019. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees were paid by CAT LLC to Pillsbury. The legal costs for Pillsbury during the Pre-FAM Period included costs incurred from April 2019 until June 22, 2020 to address legal matters regarding the agreements between CAT Reporters and CAT LLC concerning certain terms associated with CAT Reporting (the “Reporter Agreement”). During that period, Pillsbury advised CAT LLC regarding applicable legal matters, participated in negotiations between the Participants and Industry Members, participated in meetings with senior SEC staff, the Chairman, and Commissioners, represented CAT LLC and the Participants in an SEC administrative proceeding, and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, litigation involving CAT LLC is an expense of operating the CAT, and, therefore, is appropriately an obligation of both Participants and Industry Members under the CAT Funding Model.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $17,013,414 represent the fees paid to the consulting firm Deloitte &amp; Touche LLP (“Deloitte”) as project manager during the Pre-FAM Period, from October 2012 until June 22, 2020. These consulting costs include costs for advisory services related to the operation of the CAT, and meeting facilitation and communications coordination, vendor support and financial analyses.</P>
                    <P>To help facilitate project management given the unprecedented complexity and scope of the CAT project, the Participants determined it was necessary to engage a consulting firm to assist with the CAT project in 2012, following the adoption of Rule 613. A variety of factors were considered in the analysis of prospective consulting firms, including (1) the firm's qualifications, resources, and expertise, (2) the firm's relevant experience and understanding of the regulatory issues raised by the CAT and in coordinating matters of similar scope, (3) the composition of the consulting team, and (4) professional fees. Following a series of interviews, the exchanges and FINRA as a consortium determined that Deloitte was well qualified given the balance of these considerations and engaged Deloitte on October 1, 2012.</P>
                    <P>Deloitte's fee rates are negotiated on an annual basis and are in line with market rates for this type of specialized consulting work. CAT LLC assesses Deloitte's performance and reviews prospective budgets and staffing plans submitted by Deloitte on an annual basis. Deloitte's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading consulting firms for similar work.</P>
                    <P>The consulting costs for CAT during the period from 2012 until the formation of the CAT NMS, LLC were paid directly by the Participants to Deloitte. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC to Deloitte. CAT LLC reviewed the consulting fees each month and approved the invoices.</P>
                    <P>After Deloitte was hired in 2012 through the end of the Pre-FAM Period on June 22, 2020 (excluding the consulting costs from November 15, 2017 through November 15, 2018), Deloitte provided a variety of consulting services, including the following:</P>
                    <P>
                        • Established and implemented program operations for the CAT project, including the program managment [
                        <E T="03">sic</E>
                        ] office and workstream design;
                    </P>
                    <P>• Assisted with the Plan Processor selection process, including but not limited to, the development of the RFP and the bidder evaluation process, and facilitation and consolidation of the Participant's independent reviews;</P>
                    <P>• Assisted with the development and drafting of the CAT NMS Plan, including conducting cost-benefit studies, analyzing OATS and CAT requirements, and drafting appendices to the Plan;</P>
                    <P>• Assisted with cost and funding-related activities for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>
                        • Provided governance support to the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with industry outreach and communications regarding the CAT, including assistance with industry outreach events, the development of the CAT website, frequently asked questions, and coordinating with the CAT LLC's public relations firm;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress;</P>
                    <P>• Coordinated efforts regarding the selection of the successor Plan Processor;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor, including support for the Operating Committee and successor Plan Processor for the new role; and</P>
                    <P>
                        • Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.
                        <PRTPAGE P="10248"/>
                    </P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $880,419 represent the cost incurred for insurance for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT insurance policies, which included engaging in discussions with different insurance companies and conducting cost comparisons of various alternative approaches to insurance. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance from USI Insurance Services LLC (“USI”). Such policies are standard for corporate entities, and cyber security liability insurance is important for the CAT System. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        In adopting the CAT NMS Plan, the Commission amended the Plan to add a requirement that CAT LLC's financial statements be prepared in compliance with GAAP, audited by an independent public accounting firm, and made publicly available.
                        <SU>46</SU>
                        <FTREF/>
                         The professional and administration costs include costs related to accounting and accounting advisory services to support the operating and financial functions of CAT, financial statement audit services by an independent accounting firm, preparation of tax returns, and various cash management and treasury functions. In addition, professional and administration costs for the Pre-FAM Period include costs related to the receipt of market data and a security assessment. The costs for these professional and administration services were $1,082,036 for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             Section 9.2 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin Accountants &amp; Advisors (“Anchin”).</E>
                         CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT in April 2018. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services were paid by CAT LLC to Anchin.
                    </P>
                    <P>After Anchin was hired in April 2018 through the end of the Pre-FAM Period on June 22, 2020 (excluding the period from April 2018 through November 15, 2018), Anchin provided a variety of services, including the following:</P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial reporting matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton LLP (“Grant Thornton”).</E>
                         In February 2020, CAT LLC determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the proposed role given the balanace [
                        <E T="03">sic</E>
                        ] of these considerations. Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services. The fees for these services were paid by CAT LLC to Grant Thornton.
                    </P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         The professional and administrative costs for the Pre-FAM Period included costs related to the receipt of certain market data for the CAT pursuant to an agreement with the CAT LLC, and then with FCAT. Exegy provided SIP Data required by the CAT NMS Plan.
                    </P>
                    <P>
                        After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy from July 2018 through March 2019. CAT LLC determined that, unlike certain other vendors, Exegy provided market data that included all data elements required by the CAT NMS Plan.
                        <SU>47</SU>
                        <FTREF/>
                         In addition, the fees were reasonable and in line with market rates for the market data received. Accordingly, the professional and administrative costs for the Pre-FAM Period include the Exegy costs from November 2018 through March 2019. The cost of the market data was reasonable for the market data received. The fees for the market data were paid directly by CAT LLC to Exegy.
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>Upon the termination of the contract between CAT LLC and Exegy, FCAT entered into a contract with Exegy to purchase the required market data from Exegy in July 2019. All costs under the contract were treated as a direct pass through cost to CAT LLC. Therefore, the fees for the market data were paid by CAT LLC to FCAT, who, in turn, paid Exegy for the market data.</P>
                    <P>
                        <E T="03">Security Assessment: RSM US LLP (“RSM”).</E>
                         The operating costs for the Pre-FAM Period include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation, and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment. RSM performed 
                        <PRTPAGE P="10249"/>
                        the assessment from October 2018 through December 2018. Accordingly, the costs for the Pre-FAM Period include the costs incurred in November and December 2018. The cost for the security assessment were paid directly to RSM by CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $224,669 represent the fees paid to public relations firms during the Pre-FAM Period for professional communications services to CAT, including media relations consulting, strategy and execution. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants. Specifically, the public relations firms provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                    </P>
                    <P>The services performed by each of the public relations firms were comparable. The fees for such services were reasonable and in line with market rates. Only one public relations firm was engaged at a time; the three firms were engaged sequentially as the primary public relations contact moved among the three firms during this time period.</P>
                    <P>
                        <E T="03">Public Relations Firm: Peppercomm, Inc. (“Peppercomm”).</E>
                         The national securities exchanges and FINRA, acting as a consortium, determined to hire the public relations firm Peppercomm in October 2014 and continued to engage this firm through September 2017. The exchanges and FINRA made this engagement decision after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fee rates for this public relations firm were negotiated on an arm's length basis and were in line with market rates for these types of services. The public relations costs during the period from October 2014 until the formation of the CAT NMS LLC were paid directly by the exchanges and FINRA to the public relations firm. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Sloane &amp; Company (“Sloane”).</E>
                         CAT LLC determined to hire a new public relations firm, Sloane, in March 2018, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Sloane. CAT LLC continued the engagement with Sloane until February 2020.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Peak Strategies.</E>
                         CAT LLC determined to hire a new public relations firm, Peak Strategies, in March 2020, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Peak Strategies.
                    </P>
                    <HD SOURCE="HD3">(ii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 1</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 1 of the Financial Accountability Milestones (“FAM Period 1”),
                        <SU>48</SU>
                        <FTREF/>
                         which covers the period from June 22, 2020-July 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 1 of $6,377,343. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($2,125,781), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781). The following table breaks down Historical CAT Costs 1 for FAM Period 1 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             Section 11.6(a)(i)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10250"/>
                        <GID>EN13FE24.053</GID>
                    </GPH>
                    <P>
                        By
                        <FTREF/>
                         the completion of FAM Period 1, CAT LLC was required to implement the reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of equities transaction data and options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.
                        <SU>51</SU>
                        <FTREF/>
                         CAT LLC completed the requirements of FAM Period 1 by July 31, 2020. The following describes the costs for each of the categories for FAM Period 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>50</SU>
                             The costs described in this table of costs for FAM Period 1 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             
                            <E T="03">See</E>
                             definition of “Initial Industry Member Core Equity and Options Reporting” in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 1 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 1 Period. Accordingly, the $2,642,122 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 1. The fee arrangement for AWS described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. Moreover, CAT LLC continued to believe that AWS's maturity in the cloud services space as well as the significant cost and time necessary to move the CAT to a different cloud services provider supported the continued engagement of AWS.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 1 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, reference data and other types of Other Data. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 1.
                        <SU>52</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="298">
                        <PRTPAGE P="10251"/>
                        <GID>EN13FE24.054</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 1. Accordingly, the $1,099,680 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 1. The fee arrangement for FCAT described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Published iterative drafts of draft Technical Specifications for Phase 2d, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published iterative drafts of CAIS Technical Specifications, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated Industry Member reporting of Quote Sent Time on Options Market Maker quotes;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 1. Accordingly, the $254,998 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 1. The fee arrangement for Kingland described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>CAT LLC did not incur costs related to change requests during FAM Period 1.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>
                        Capitalized developed technology costs for FAM Period 1 of $1,684,870 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include: (1) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including separate production and industry test entitlements, and reprocessing of exchange event 
                        <PRTPAGE P="10252"/>
                        timestamps; (2) implementation fees; and (3) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $481,687 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 1.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 1 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to WilmerHale. During FAM Period 1, WilmerHale provided legal assistance to the CAT including with regard to the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments and fee filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, verbal activity, options market maker quote sent time, TRF linkages, and allocations;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including the Financial Accountability Milestone amendment;</P>
                    <P>• Assisted with compliance with Regulation SCI;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the drafting of the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Assisted with communications and presentations for the industry regarding CAIS;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding CAT technical specifications;</P>
                    <P>• Assisted with third party vendor agreements; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to Pillsbury. During FAM Period 1, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $137,209 represent the fees paid to Deloitte as project manager during FAM Period 1. CAT LLC continued to employ Deloitte during FAM Period 1 based on, among other things, their expertise and cumulative experience with the CAT. The fee rates for Deloitte during FAM Period 1 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 1 were paid by CAT LLC to the consulting firm. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 1, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>Although insurance was in effect during FAM Period 1, CAT LLC did not incur costs related to insurance during FAM Period 1.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         The professional and administration costs of $69,077 represent the fees paid to Anchin during FAM Period 1. CAT LLC continued to employ Anchin during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these type of financial advisory services. The fees for these services during FAM Period 1 were paid by CAT LLC to Anchin. During FAM Period 1, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups; and</P>
                    <P>• Prepared monthly and quarterly financial statements.</P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $7,700 represent the fees paid to Peak Strategies during FAM Period 1. CAT LLC continued to employ Peak Strategies during FAM Period 1 based on, among other things, their expertise and history with the project. The fee rates for this firm were reasonable and in line with market rates for these types of services. The fees for these services during FAM Period 1 were paid by CAT LLC to Peak Strategies. During FAM Period 1, Peak Strategies continued to provide professional communications services to CAT LLC, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT 
                        <PRTPAGE P="10253"/>
                        (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 2</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT LLC and already funded by Participants during Period 2 of the Financial Accountability Milestones (“FAM Period 2”),
                        <SU>53</SU>
                        <FTREF/>
                         which covers the period from August 1, 2020-December 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 2 of $42,976,478. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($14,325,493), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($14,325,493) and CEBSs paying one-third ($14,325,493). The following table breaks down Historical CAT Costs 1 for FAM Period 2 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             Section 11.6(a)(i)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>55</SU>
                             The costs described in this table of costs for FAM Period 2 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <GID>EN13FE24.055</GID>
                    </GPH>
                    <P>By the completion of FAM Period 2, CAT LLC was required to implement the following with regard to the CAT:</P>
                    <EXTRACT>
                        <P>
                            (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, CustomerID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission.
                            <SU>56</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>56</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Implementation of Core Equity Reporting Requirements” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>CAT LLC completed the requirements of FAM Period 2 by December 31, 2020. The following describes the costs for each of the categories for FAM Period 2.</FP>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 2 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 2 Period. Accordingly, the $20,709,212 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 2. The fee arrangement for AWS described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 2 Period, the volume of CAT Data 
                        <PRTPAGE P="10254"/>
                        continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, and Other Data, including reference data. In addition, Industry Members began reporting LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 2.
                        <SU>57</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>57</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="311">
                        <GID>EN13FE24.056</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 2. Accordingly, the $9,108,700 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 2. The fee arrangement for FCAT described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, FCAT's activities with respect to the CAT included publishing the Technical Specifications for Phase 2d and overseeing the reporting of firm to firm and intrafirm linkages by Industry Members. In addition, FCAT also continued to engage in the following activities during FAM Period 2:</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the development and implementation of the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>
                        Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 2. Accordingly, the $1,590,298 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 2. The fee arrangement for Kingland described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 
                        <PRTPAGE P="10255"/>
                        2 pursuant to the Plan Processor Agreement. During FAM Period 2, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs.
                    </P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 2, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 2, CAT incurred costs of $51,823 related to a change request regarding the addition of functionality for exchange Participants to report rejected messages to the CAT.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 2 of $6,761,094 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to separate production and industry test entitlements, market maker reference data, and back-processing of exchange exception logic; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $2,766,644 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 2.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 2 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to WilmerHale. During FAM Period 1 [
                        <E T="03">sic</E>
                        ], the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, allocations, exchange activity, OTQT, initial data validation, error corrections and recordkeeping;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittees, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6 of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for the Compliance Subcommittee, including with regard to responses to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding the SEC's proposed security amendments to the CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>
                        • Assisted with third party vendor agreements (
                        <E T="03">e.g.,</E>
                         with regard to Anchin, Grant Thornton and insurance policies);
                    </P>
                    <P>• Assisted with change requests; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to Pillsbury. During FAM Period 2, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted and filed a proposed amendment to the CAT NMS plan regarding liability matters. As discussed above, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $532,146 represent the fees paid to Deloitte as project manager during FAM Period 2. CAT LLC continued to employ Deloitte during FAM Period 2 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 2 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 2 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 2, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $976,098 represent the fees paid for insurance during FAM Period 2. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $438,523 represent the fees paid to Anchin and Grant Thornton for financial services provided during FAM Period 2.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to engage Anchin during FAM Period 2 based on, among other things, their expertise and history 
                        <PRTPAGE P="10256"/>
                        with the project. The hourly fee rates for this firm were in line with market rates for these types of financial advisory services. The fees for these services during FAM Period 2 were paid by CAT LLC to Anchin. During FAM Period 2, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from the Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audit by an independent auditor; and</P>
                    <P>• Reviewed historical costs from inception.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 2 based on, among other things, its expertise and cumulative knowledge of CAT LLC. CAT LLC continued to believe that Grant Thornton was well qualified for its role and its fee rates were in line with with market rates for these accounting services. The fees for these services during FAM Period 2 were paid by CAT LLC to Grant Thornton. During FAM Period 2, Grant Thornton performed a financial statement audit for CAT LLC as an independent accounting firm.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $41,940 represent the fees paid to Peak Strategies during FAM Period 2. CAT LLC continued to employ Peak Strategies during FAM Period 2 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 2 were paid by CAT LLC to Peak Strategies. During FAM Period 2, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iv) Historical CAT Costs Incurred in Financial Accountability Milestone Period 3</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 3 of the Financial Accountability Milestones (“FAM Period 3”),
                        <SU>58</SU>
                        <FTREF/>
                         which covers the period from January 1, 2021-December 31, 2021. Historical CAT Costs 1 would include costs for FAM Period 3 of $144,415,268. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($48,138,423), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($48,138,423) and CEBSs paying one-third ($48,138,423). The following table breaks down Historical CAT Costs 1 for FAM Period 3 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             Section 11.6(a)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10257"/>
                        <GID>EN13FE24.057</GID>
                    </GPH>
                    <P>
                        By the completion of FAM Period 3, CAT LLC was required to implement the following requirements with regard the CAT:
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>60</SU>
                             The costs described in this table of costs for FAM Period 3 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b) (c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met.
                            <SU>61</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>61</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Availability and Regulatory Utilization of Transactional Database Functionality” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>CAT LLC completed the requirements of FAM Period 3 by December 31, 2021. The following describes the costs for each of the categories for FAM Period 3.</FP>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 3 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 3 Period. Accordingly, the $94,574,759 in technology costs for cloud hosting services represents costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 3. The fee arrangement for AWS described above for the earlier periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During FAM Period 3, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a, Phase 2b, Phase 2c and Phase 2d Industry Member Data (including certain linkages), SIP Data, Other Data, including reference data, and LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 3.
                        <SU>62</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>62</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="629">
                        <PRTPAGE P="10258"/>
                        <GID>EN13FE24.058</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>
                        Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 3. Accordingly, the $23,106,091 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan 
                        <PRTPAGE P="10259"/>
                        Processor Agreement during FAM Period 3. The fee arrangement for FCAT described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, FCAT's activities with respect to the CAT included the following:
                    </P>
                    <P>• Facilitated Phase 2c and Phase 2d testing for Industry Members;</P>
                    <P>• Oversaw creation of linkages of the lifecycle of order events based on the received data through Phase 2d;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement with FCAT discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 3. Accordingly, the $5,562,383 in technology costs for CAIS operating fees represents costs incurred for services provided by Kingland during FAM Period 3. The fee arrangement for Kingland described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs. The full CAIS Technical Specifications were published during FAM Period 3.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 3, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 3, CAT incurred costs of $396,169 related to change requests, including the following: (1) the addition of functionality for exchange Participants to report rejected messages to the CAT; (2) the migration of MIRS query engine to AWS to reduce operational costs and increase resiliency; and (3) updating the Participant Technical Specifications to allow for two-sided Participant option quote reporting.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 3 of $10,763,372 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor, including the transition from equity data received by FINRA pursuant to various regulatory services agreements between FINRA and Participant exchanges to the equity CAT Data, and the completion of the Industry Member Phase 2d options manual and complex orders go-live requirements; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to off-exchange volume concentration, Participant 24-hour trading and an external metastore; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $6,333,248 represent the fees paid for legal services provided by three law firms, WilmerHale, Pillsbury and Covington &amp; Burling LLP (“Covington”) during FAM Period 3.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 3 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to WilmerHale. During FAM Period 3, the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including, for example, verbal activity regarding Phase 2c cutover, error reports, error corrections, Phase 2d Reporting, unique Order-ID on internal route events, reporting addresses, recordkeeping, and unique CCID for foreign customers;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs, CAIS requirements, ADF, and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6(c) of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding SEC's proposed security amendments to CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>• Provided assistance with change requests;</P>
                    <P>• Provided guidance and regulatory support for litigation regarding the response to SEC's exemptive orders;</P>
                    <P>• Assisted with communications with the industry, includng CAT Alerts and presentations;</P>
                    <P>• Provided guidance regarding the confidentiality of CAT Data, including third-party information requests;</P>
                    <P>• Assisted with cost management analysis and proposals; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 3 based on, among other things, their expertise and history with 
                        <PRTPAGE P="10260"/>
                        the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to Pillsbury. During FAM Period 3, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During this period, Pillsbury advised CAT LLC regarding applicable legal matters, reviewed and responded to comment letters regarding the proposed Plan amendment, participated in meetings with senior SEC staff, responded to comments submitted following the SEC's April 6, 2021 order instituting proceedings,
                        <SU>63</SU>
                        <FTREF/>
                         and assessed legal matters regarding the SEC's October 29, 2021 order denying the proposed Plan amendment.
                        <SU>64</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             Securities Exchange Act Rel. No. 91487 (Apr. 6, 2021), 86 FR 19054 (Apr. 12, 2021).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             Securities Exchange Act Rel. No. 93484 (Oct. 29, 2021), 86 FR 60933 (Nov. 4, 2021).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Law Firm: Covington.</E>
                         CAT LLC hired Covington for litigation with the SEC regarding certain exemptive orders related to the CAT, including orders issued in December 2020.
                        <SU>65</SU>
                        <FTREF/>
                         CAT LLC interviewed this law firm as well as other potential law firms, considering a variety of factors in its analysis for choosing legal assistance, including the relevant expertise and fees of the potential lawyers. CAT LLC approved the engagement of Covington in January 2021. The fee rates for this law firm, which were calculated based on hourly rates, were in line with market rates for specialized services. The legal fees for FAM Period 3 for this firm were paid by CAT LLC to Covington.
                    </P>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 90688 (Dec. 16, 2020), 85 FR 83634 (Dec. 22, 2020); and Securities Exchange Act Rel. No. 90689 (Dec. 16, 2020), 85 FR 83667 (Dec. 22, 2020) (collectively, the “2020 Orders”).
                        </P>
                    </FTNT>
                    <P>After Covington was hired in 2021 through the end of 2021, the firm provided legal assistance regarding the litigation with the SEC regarding the 2020 Orders. These services included researching, drafting, and filing motions to stay the 2020 orders and related materials in proceedings before the SEC, as well as researching, drafting, and filing petitions for judicial review of the 2020 Orders in proceedings before the U.S. Court of Appeals for the D.C. Circuit. Covington oversaw ongoing litigation proceedings on these matters, and also supported WilmerHale with respect to settlement negotiations with the SEC staff regarding the 2020 Orders.</P>
                    <P>
                        In addition to these services, CAT LLC engaged Covington in November 2021 to provide assistance with respect to the SEC's disapproval of CAT NMS Plan amendments concerning a proposed limitation on liability in the event of a data breach or similar event. Covington provided advice concerning CAT's response to the SEC's disapproval order. This work accounted for a minority of Covington's fees in 2021.
                        <SU>66</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             As discussed above with regard to Pillsbury's work on liability matters, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, such activity is a necessary part of the operation of the CAT.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $1,408,209 represent the fees paid to Deloitte as project manager during FAM Period 3. CAT LLC continued to employ Deloitte during FAM Period 3 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 3 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 3 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 3, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $1,582,714 represent the fees paid for insurance FAM Period 3. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $595,923 represent the fees paid to Anchin and Grant Thornton for financial services during FAM Period 3.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to employ Anchin during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services during FAM Period 3 were paid by CAT LLC to Anchin. During FAM Period 3, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 3 based on, among other things, their expertise and cumulative knowledge of CAT LLC. CAT LLC determined that Grant Thornton was well qualified for its role and that its fixed fee rates were in line with market rates for these accountant services. The fees for these services during FAM Period 3 were paid by CAT LLC to Grant Thornton. During FAM Period 3, Grant Thornton provided audited financial statements for CAT LLC.
                        <PRTPAGE P="10261"/>
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $92,400 represent the fees paid to Peak Strategies during FAM Period 3. CAT LLC continued to employ Peak Strategies during FAM Period 3 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 3 were paid by CAT LLC to Peak Strategies. During FAM Period 3, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(v) Excluded Costs</HD>
                    <P>
                        Historical CAT Costs 1 would not include two categories of CAT costs (“Excluded Costs”): (1) $48,874,937, which are all CAT costs incurred from November 15, 2017 through November 15, 2018; and (2) $14,749,362 of costs related to the termination of the relationship with the Initial Plan Processor. The Participants would remain responsible for 100% of these costs, which total $63,624,299. CAT LLC determined that it was reasonable to exclude these Excluded Costs from Historical CAT Costs 1 because the excluded costs relate to the delay in the start of reporting to the CAT and the conclusion of the relationship with the Initial Plan Processor.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             In approving the CAT Funding Model, the Commission states that “the proposed exclusion of the `Excluded Costs' from Past CAT Costs is reasonable in the Commission's view because it would not require all costs incurred by the Participants to be recovered from Industry Members through the Historical CAT Assessment, specifically excluding those costs related to the delay in the start of reporting to the CAT and costs related to the conclusion of the relationship with the Initial Plan Processor.” CAT Funding Model Approval Order at 62663.
                        </P>
                    </FTNT>
                    <P>First, Historical CAT Costs 1 would not include $14,749,362 of costs related to the conclusion of the relationship with the Initial Plan Processor. Such costs include costs related to the American Arbitration Association, the legal assistance of Pillsbury with regard to the arbitration with Thesys CAT, and the settlement costs related to the arbitration with Thesys CAT. The Participants would remain responsible for 100% of these $14,749,362 in costs.</P>
                    <P>
                        Second, the Historical CAT Costs would exclude all CAT costs incurred from November 15, 2017 through November 15, 2018. CAT LLC determined to exclude all costs during this one-year period of $48,874,937 from fees charged to Industry Members due to the delay in the start of reporting to the CAT. The Participants would remain responsible for 100% of these $48,874,937 in costs. The following table breaks down these costs into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             The costs described in this table of Excluded Costs were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="239">
                        <GID>EN13FE24.059</GID>
                    </GPH>
                    <PRTPAGE P="10262"/>
                    <P>The following provides additional detail regarding the Excluded Costs.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services, Operating Fees, CAIS Operating Fees and Change Request Fees</HD>
                    <P>CAT LLC did not incur technology costs related to the categories of cloud hosting services, operating fees, CAIS operating fees or change requests during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(b) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for the period from November 15, 2017 through November 15, 2018 include capitalizable application development costs of $37,852,083 incurred in the development of the CAT by the Initial Plan Processor. Such costs include development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Initial Plan Processor. Such costs include costs related to Industry Member technical specifications for orders and transactions, the system security plan, testing and production for Participant CAT reporting, third-party security assessment and response, query portal, onboarding of the Chief Information Security Officer, and ingestion of FINRA TRF data and FINRA data related to halts and corporate actions.</P>
                    <HD SOURCE="HD3">(c) Legal Costs</HD>
                    <P>The legal costs of $6,143,278 represent the fees paid to WilmerHale for legal services from November 15, 2017 through November 15, 2018. During this period, WilmerHale provided legal assistance to the CAT including with regard to the following:</P>
                    <P>• Provided legal support for the governance of the CAT, including governance support for the Operating Committee, Advisory Committee, Compliance Subcommittee, and CAT working groups;</P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan;</P>
                    <P>• Provided assistance related to CAT security;</P>
                    <P>• Drafted exemptive requests, including requests related to PII;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided advice with regard to regulator access to the CAT;</P>
                    <P>• Assisted with the Plan Processor transition;</P>
                    <P>• Provided assistance regarding communications with the industry regarding the CAT;</P>
                    <P>• Provided advice regarding Customer Account Information and PII;</P>
                    <P>• Provided support for litigation related to SEC exemptive orders; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretative and implementation issues.</P>
                    <HD SOURCE="HD3">(d) Consulting Costs</HD>
                    <P>The consulting costs of $4,452,106 represent the fees paid to Deloitte for their role as project manager for the CAT from November 15, 2017 through November 15, 2018. During this period, Deloitte engaged in the following activities with respect to the CAT:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>
                        • Provided governance support to the Operating Committee, including support for Subcommittees and working groups of the Operating Committee (
                        <E T="03">e.g.,</E>
                         Compliance Subcommittee, Cost and Funding Working Group, Technical Working Group, Industry Outreach Working Group, Security Working Group and Steering Committee);
                    </P>
                    <P>• Assisted with cost and funding issue for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress.</P>
                    <HD SOURCE="HD3">(e) Insurance</HD>
                    <P>CAT LLC did not incur costs related to insurance during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(f) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $340,145 represent the fees paid to Anchin, Exegy and RSM from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in April 2018 through November 15, 2018, Anchin engaged in the following activities with respect to the CAT:
                    </P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Market Data Provider:</E>
                         Exegy. From July 2018 through November 15, 2018, CAT LLC purchased market data from Exegy (as described in more detail above).
                    </P>
                    <P>
                        <E T="03">Security Assessment:</E>
                         RSM. From October 2018 through November 15, 2018, CAT LLC incurred costs for RSM's performance of a security assessment (as described in more detail above).
                    </P>
                    <HD SOURCE="HD3">(g) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $87,325 represent the fees paid to Sloane from November 15, 2017 through November 15, 2018. From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in March 2018 through November 15, 2018, Sloane provided professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, Sloane provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting 
                        <PRTPAGE P="10263"/>
                        such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan).
                    </P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        Under the CAT NMS Plan, the Operating Committee is required to reasonably establish the length of the Historical Recovery Period used in calculating each Historical Fee Rate based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment, and to describe the reasons for its length.
                        <SU>69</SU>
                        <FTREF/>
                         The Historical Recovery Period used in calculating the Historical Fee Rate may not be less than 24 months or more than five years.
                        <SU>70</SU>
                        <FTREF/>
                         The Operating Committee has determined to establish a Historical Recovery Period 1 of 24 months for Historical CAT Assessment 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             Section 11.3(b)(i)(D)(I) and Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             Section 11.3(b)(i)(D)(I) of the CAT NMS Plan. In the CAT Funding Model Approval Order, the SEC stated that “[i]n the Commission's view, it is reasonable for the Operating Committee to establish the length of the Historical Recovery Period to be no less than 24 months and no more than five years.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The Operating Committee determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans to the Participants in a timely fashion. The Operating Committee determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>71</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, the Operating Committee recognized that the total costs for Historical CAT Assessment 1 were less than the total costs for 2022 and 2023,
                        <SU>72</SU>
                        <FTREF/>
                         and therefore it would be reasonable and appropriate to recover costs subject to this filing over an approximate two-year period. Furthermore, the Operating Committee notes that 24 months is appropriate because it is not currently proposing that Industry Members be required to pay additional CAT fees with regard to another Historical CAT Assessment or CAT Fees with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model at 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             The total CAT costs for 2022 were approximately $186 million and the total CAT costs for 2023 are estimated to be approximately $233 million.
                        </P>
                    </FTNT>
                    <P>
                        The length of the Historical Recovery Period 1 and the reasons for its length are provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>73</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             Section 11.3(b)(iii)(B)(II)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Total Executed Equivalent Share Volume</HD>
                    <P>
                        The calculation of Historical Fee Rate 1 also requires the determination of the projected total executed equivalent share volume of transactions in Eligible Securities for Historical Recovery Period 1. Under the CAT NMS Plan, the Operating Committee is required to “reasonably determine the projected total executed equivalent share volume of all transactions in Eligible Securities for each Historical Recovery Period based on the executed equivalent share volume of all transactions in Eligible Securities for the prior twelve months.” 
                        <SU>74</SU>
                        <FTREF/>
                         The Operating Committee is required to base its projection on the prior twelve months, but it may use its discretion to analyze the likely volume for the upcoming year. Such discretion would allow the Operating Committee to use its judgment when estimating projected total executed equivalent share volume if the volume over the prior twelve months was unusual or otherwise unfit to serve as the basis of a future volume estimate.
                        <SU>75</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             Section 11.3(b)(i)(E) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. The Operating Committee has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. The Operating Committee determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is projected to be 7,685,722,694,558.88 executed equivalent shares.
                        <SU>76</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <P>
                        The projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1 and a description of the calculation of the projection is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             Section 11.3(b)(iii)(B)(II)(D) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Historical Fee Rate 1</HD>
                    <P>
                        Historical Fee Rate 1 would be calculated by dividing Historical CAT Costs 1 by the reasonably projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1, as described in detail above.
                        <SU>78</SU>
                        <FTREF/>
                         Specifically, Historical Fee Rate 1 would be calculated by dividing $337,688,610 by 7,685,722,694,558.88. As a result, the Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. Historical Fee Rate 1 is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide the Historical Fee Rate in a fee filing for a Historical CAT Assessment.
                        <SU>79</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             In approving the CAT Funding Model, the Commission stated that “[t]he calculation of the Historical Fee Rate by dividing the Historical CAT Costs by the projected total executed equivalent share volume of all transactions in Eligible Securities for the Historical Recovery Period is reasonable.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             Section 11.3(b)(iii)(B)(II)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Past CAT Costs and Participants</HD>
                    <P>Participants would not be required to pay any fees associated with Historical CAT Assessment 1 as the Participants previously have paid all Past CAT Costs. The CAT NMS Plan explains that:</P>
                    <EXTRACT>
                        <P>
                            Because Participants previously have paid Past CAT Costs via loans to the Company, Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs and such other additional Past CAT Costs as reasonably determined by the Operating Committee will be paid by the cancellation of loans made to the Company on a pro rata basis based on the outstanding loan amounts due under the loans.
                            <SU>80</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>80</SU>
                                 Section 11.3(b)(ii) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The CAT NMS Plan further states that “Historical CAT Assessments are 
                        <PRTPAGE P="10264"/>
                        designed to recover two-thirds of the Historical CAT Costs.” 
                        <SU>81</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>81</SU>
                             
                            <E T="03">Id.</E>
                             In approving the CAT Funding Model, the Commission stated that “[t]he proposed allocation of the Historical CAT Assessment solely to CEBs and CEBBs, and ultimately Industry Members, is reasonable. The Historical CAT Assessment will still be divided into thirds,” as the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made to the Company. CAT Funding Model Approval Order at 62666.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(4) Monthly Fees</HD>
                    <P>
                        CEBBs and CEBSs would be required to pay fees for Historical CAT Assessment 1 on a monthly basis for the period in which Historical CAT Assessment 1 is in effect.
                        <SU>82</SU>
                        <FTREF/>
                         A CEBB or CEBS's fee for each month would be calculated based on the transactions in Eligible Securities executed by the CEBB or CEBS from the prior month.
                        <SU>83</SU>
                        <FTREF/>
                         Proposed paragraph (a)(1)(A) of the fee schedule would state that each CAT Executing Broker would receive its first invoice in April 2024, and “would receive an invoice each month thereafter in which Historical CAT Assessment 1 is in effect.” Proposed paragraph (a)(1)(B) of the fee schedule would state that “Consolidated Audited Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” In addition, proposed paragraph (b)(1) of the fee schedule states that each CEBB and CEBS is required to pay its CAT fees “each month.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             
                            <E T="03">See</E>
                             proposed paragraph (a)(1)(B) of the fee schedule.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(5) Actual Recovery Period for Historical CAT Assessment 1</HD>
                    <P>
                        The CAT NMS Plan states that, “[n]otwithstanding the length of the Historical Recovery Period used in calculating the Historical Fee Rate, each Historical CAT Assessment calculated using the Historical Fee Rate will remain in effect until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                        <SU>84</SU>
                        <FTREF/>
                         Accordingly, Historical CAT Assessment 1 will remain in effect until all Historical CAT Costs 1 have been collected. The actual recovery period for Historical CAT Assessment 1 may be shorter or longer than Historical Recovery Period 1 depending on the actual executed equivalent share volumes during the time that Historical CAT Assessment 1 is in effect.
                        <SU>85</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             Section 11.3(b)(i)(D)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             In approving the CAT Funding Model, the Commission stated that “[i]n the Commission's view, it is reasonable for Industry Members to be charged a Historical CAT Assessment until all Historical CAT Costs for the Historical CAT Assessment are collected.” CAT Funding Model Approval Order at 62665.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(6) Consolidated Audit Trail Funding Fees</HD>
                    <P>To implement Historical CAT Assessment 1, a “Consolidated Audit Trail Funding Fees” section would be added to the Exchange's fee schedule, to include the proposed paragraphs described below.</P>
                    <HD SOURCE="HD3">(A) Fee Schedule for Historical CAT Assessment 1</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Each month in which a Historical CAT Assessment is in effect, each CEBB and each CEBS shall pay a fee for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate reasonably determined pursuant to paragraph (b)(i) of this Section 11.3.
                            <SU>86</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>86</SU>
                                 Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>Accordingly, based on the factors discussed above, the Exchange proposes to add paragraph (a)(1) to the Consolidated Audit Trail Funding Fees section of its fee schedule. Proposed paragraph (a)(1) would state the following:</FP>
                    <EXTRACT>
                        <P>(A) Each CAT Executing Broker shall receive its first invoice for Historical CAT Assessment 1 in April 2024, which shall set forth the Historical CAT Assessment 1 fees calculated based on transactions in March 2024, and shall receive an invoice for Historical CAT Assessment 1 for each month thereafter in which Historical CAT Assessment 1 is in effect.</P>
                        <P>(B) Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis. Each month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.</P>
                        <P>(C) Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time. Consolidated Audit Trail, LLC will provide notice when Historical CAT Assessment 1 will no longer be in effect.</P>
                        <P>(D) Each CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).</P>
                    </EXTRACT>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, “as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>87</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of the fee schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 of $0.0000439371316687066 by one-third, and rounding the result to 6 decimal places.
                        <SU>88</SU>
                        <FTREF/>
                         The Operating Committee determined to use six decimal places to balance the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>87</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             Dividing $0.0000439371316687066 by three equals $0.00001464571055623553. Rounding $$0.00001464571055623553 to six decimal places equals $0.000015.
                        </P>
                    </FTNT>
                    <P>The proposed language in paragraph (a)(1)(A) of the fee schedule would describe when CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1. Specifically, CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 and the fees set forth in that invoice would be calculated based on transactions executed in the prior month, that is, transactions executed in March 2024. The payment for the first invoice would be required within 30 days after the receipt of the first invoice (unless a longer period is indicated), as described in proposed paragraph (b)(2) of the fee schedule.</P>
                    <P>Proposed paragraph (a)(1)(A) of the fee schedule also would describe the monthly cadence of the invoices for Historical CAT Assessment 1. Specifically, after the first invoices are provided to CAT Executing Brokers in April 2024, invoices will be sent to CAT Executing Brokers each month thereafter while Historical CAT Assessment 1 is in effect.</P>
                    <P>
                        Proposed paragraph (a)(1)(B) of the fee schedule would describe the invoices for Historical CAT Assessment 1. Proposed paragraph (a)(1)(B) of the fee schedule would state that “Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” Proposed paragraph (a)(1)(B) of the fee schedule also would describe the fees to be set forth in the 
                        <PRTPAGE P="10265"/>
                        invoices for Historical CAT Assessment 1. Specifically, it would state that “[e]ach month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.”
                    </P>
                    <P>
                        Furthermore, proposed paragraph (a)(1)(C) of the fee schedule would describe how long Historical CAT Assessment 1 would remain in effect. It would state that “Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time.” This proposed paragraph would further state that “Consolidated Audit Trail, LLC will be [
                        <E T="03">sic</E>
                        ] provide notice when Historical CAT Assessment 1 will no longer be in effect.”
                    </P>
                    <P>Historical CAT Assessment 1 will be assessed for all transactions executed in each month through the end of the month in which two-thirds of Historical CAT Costs 1 are assessed, and then CAT LLC will provide notice that Historical CAT Assessment 1 is no longer in effect. Since Historical CAT Assessment 1 is a monthly fee based on transaction volume from the prior month, Historical CAT Assessment 1 may collect more than two-thirds of Historical CAT Costs 1. To the extent that occurs, any excess money collected during the final month in which Historical CAT Assessment 1 is in effect will be used to offset future fees and/or to fund the reserve for the CAT.</P>
                    <P>Finally, proposed paragraph (a)(1)(D) of the fee schedule sets forth the requirement for the CAT Executing Brokers to pay the invoices for Historical CAT Assessment 1. It would state that “[e]ach CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).”</P>
                    <HD SOURCE="HD3">(B) Manner of Payment</HD>
                    <P>
                        The Exchange proposes to add paragraph (b)(1) to the “Consolidated Audit Trail Funding Fees” section of its fee schedule to describe the manner of payment of Industry Member CAT fees. The CAT NMS Plan requires the Operating Committee to establish a system for the collection of CAT fees.
                        <SU>89</SU>
                        <FTREF/>
                         The Plan Processor has established a billing system for CAT fees.
                        <SU>90</SU>
                        <FTREF/>
                         Therefore, the Exchange proposes to require CAT Executing Brokers to pay Historical CAT Assessment 1 in accordance with such system. Accordingly, proposed paragraph (b)(1) would state that “[e]ach CAT Executing Broker shall pay its CAT fees as required pursuant to paragraph (a) each month to the Consolidated Audit Trail, LLC in the manner prescribed by the Consolidated Audit Trail, LLC.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             Section 11.4 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             The billing process and system are described in CAT Alert 2023-02 as well as the CAT FAQs related to the billing of CAT fees, the Industry Member CAT Reporter Portal User Guide, the FCAT Industry Member Onboarding Guide, the FCAT Connectivity Supplement for Industry Members and the CAT Billing Webinars (dated September 28, 2023 and November 7, 2023), each available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(C) Failure to Pay CAT Fees</HD>
                    <P>The CAT NMS Plan further states that:</P>
                    <EXTRACT>
                        <P>
                            Participants shall require each Industry Member to pay all applicable fees authorized under this Article XI within thirty (30) days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due (as determined in accordance with the preceding sentence), such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of: (a) the Prime Rate plus 300 basis points; or (b) the maximum rate permitted by applicable law.
                            <SU>91</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>91</SU>
                                 Section 11.4 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, the Exchange proposes to add this requirement to the Exchange's fee schedule. Proposed paragraph (b)(2) of the fee schedule would state:</P>
                    <EXTRACT>
                        <P>Each CAT Executing Broker shall pay the CAT fees required pursuant to paragraph (a) within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If a CAT Executing Broker fails to pay any such CAT fee when due, such CAT Executing Broker shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of (i) the Prime Rate plus 300 basis points, or (ii) the maximum rate permitted by applicable law.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(7) Historical CAT Assessment Details</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Details regarding the calculation of a CAT Executing Broker's Historical CAT Assessment will be provided upon request to such CAT Executing Broker. At a minimum, such details would include each CAT Executing Broker's executed equivalent share volume and corresponding fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise than on an exchange, and (3) by buy-side transactions and sell-side transactions.
                            <SU>92</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>92</SU>
                                 Section 11.3(a)(iv)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        Such information would provide CEBBs and CEBSs with the ability to understand the details regarding the calculation of their Historical CAT Assessment.
                        <SU>93</SU>
                        <FTREF/>
                         CAT LLC will provide CAT Executing Brokers with these details regarding the calculation of their Historical CAT Assessments on their monthly invoice for the Historical CAT Assessment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>93</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, providing CAT Execut[ing] Brokers information regarding the calculation of their CAT Fees will aid in transparency and permit CAT Execut[ing] Brokers to confirm the accuracy of their invoices for CAT Fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>
                        In addition, CAT LLC will make certain aggregate statistics regarding Historical CAT Assessments publicly available. Specifically, the CAT NMS Plan states that, “[f]or each Historical CAT Assessment, at a minimum, CAT LLC will make publicly available the aggregate executed equivalent share volume and corresponding aggregate fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise on an exchange, and (3) by buy-side transactions and sell-side transactions.” 
                        <SU>94</SU>
                        <FTREF/>
                         Such aggregate statistics will be available on the CAT website.
                    </P>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             Section 11.3(a)(iv)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission stated that “[t]he publication of the aggregate executed equivalent share volume and aggregate fee is appropriate because it would allow Participants and CAT Executing Brokers a high-level validation of executed volume and fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>
                        Furthermore, CAT LLC will make publicly available on the CAT website the total amount invoiced each month that Historical CAT Assessment 1 is in effect as well as the total amount invoiced for Historical CAT Assessment 1 for all months since its commencement. CAT LLC also will make publicly available on the CAT website the total costs to be collected from Industry Members for Historical CAT Assessment 1. By reviewing statistics regarding how much has been invoiced and how much remains to be invoiced for Historical CAT Assessment 1, Industry Members would have sufficient information to reasonably track how much longer Historical CAT Assessment 1 is likely to be in place.
                        <PRTPAGE P="10266"/>
                    </P>
                    <HD SOURCE="HD3">(8) Implementation Assistance</HD>
                    <P>To assist Industry Members with compliance with the commencement of Historical CAT Assessment 1, CAT LLC will make available to CAT Executing Brokers four months of mock invoices prior to the commencement of Historical CAT Assessment 1. Specifically, CAT Executing Brokers will receive mock invoices based on transaction data from November 2023, December 2023, January 2024 and February 2024. The mock invoices will be in the same form as the actual, payable invoices, including both the relevant transaction data and the corresponding fee. However, no payments will be required in response to such mock invoices; they are to be used solely to assist CAT Executing Brokers with the development of their processes for paying the CAT fees. Such data will provide CAT Executing Brokers with a preview of the transaction data used in creating the invoices for Historical CAT Assessment 1 fees, as the data will be the same as data provided in actual invoices. Such data preview is intended to facilitate the payment of Historical CAT Assessment 1.</P>
                    <HD SOURCE="HD3">(9) Financial Accountability Milestones</HD>
                    <P>
                        The CAT NMS Plan states that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.” 
                        <SU>95</SU>
                        <FTREF/>
                         The CAT NMS Plan further states that “in all filings submitted by the Participants to the Commission under Section 19(b) of the Exchange Act, to establish or implement Post-Amendment Industry Member Fees pursuant to this Article, . . . the Participants shall clearly indicate whether such fees are related to Post-Amendment Expenses incurred during Period 1, Period 2, Period 3, or Period 4.” 
                        <SU>96</SU>
                        <FTREF/>
                         As discussed in detail below, all applicable Financial Accountability Milestones for Historical CAT Assessment 1—that is, Period 1, Period 2 and Period 3 of the Financial Accountability Milestones—have been satisfied. Furthermore, as discussed below, this filing clearly indicates that Historical CAT Assessment 1 relates to Post-Amendment Expenses incurred during Periods 1, 2 and 3 of the Financial Accountability Milestones.
                    </P>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             Section 11.6(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Period 1 of the Financial Accountability Milestones</HD>
                    <P>
                        In accordance with Section 11.6(b) of the CAT NMS Plan, Historical CAT Assessment 1 seeks to recover costs that are related to “all fees, costs, and expenses (including legal and consulting fees, costs, and expenses) incurred by or for the Company in connection with the development, implementation and operation of the CAT from the effective date of [Section 11.6 of the CAT NMS Plan] until such time as Full Implementation of CAT NMS Plan Requirements has been achieved” 
                        <SU>97</SU>
                        <FTREF/>
                         (“Post-Amendment Expenses”) incurred during FAM Period 1. FAM Period 1 began on June 22, 2020, the effective date of Section 11.6 of the CAT NMS Plan, and concluded on July 31, 2020, the date of Initial Industry Member Core Equity and Options Reporting. Section 1.1 of the CAT NMS Plan defines “Initial Industry Member Core Equity and Options Reporting” as: 
                    </P>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             Section 11.6 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>The reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of both: (a) equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information; and (b) options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.</P>
                    </EXTRACT>
                    <FP>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports.
                        <SU>98</SU>
                        <FTREF/>
                         As indicated by the Participants' Quarterly Progress Report for the third quarter of 2020,
                        <SU>99</SU>
                        <FTREF/>
                         Initial Industry Member Core Equity and Option Reporting was completed on schedule on July 22, 2020, which is prior to the July 31, 2020 deadline.
                    </FP>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             The Quarterly Progress Reports are available at 
                            <E T="03">https://www.catnmsplan.com/implementation-plan.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020) and Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Under the FAM Period 1 requirement of Initial Industry Member Core Equity and Options Reporting, Industry Members—excluding Small Industry Members that are not OATS reporters—were required to report two categories of data to the CAT: equites transaction data and options transaction data (both excluding Customer Account Information, Customer-ID, and Customer Identifying Information) by July 31, 2020. Pursuant to exemptive relief provided by the Commission, the Commission authorized the Participants' Compliance Rules to allow core equity reporting for Industry Members (Phase 2a) to begin on June 22, 2020 and core options reporting for Industry Members (Phase 2b) to begin on July 20, 2020.
                        <SU>100</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order. Under the CAT NMS Plan as adopted, the Participants were required, through their Compliance Rules, to require their Large Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2018, and to require their Small Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2019. Sections 6.7(a)(v) and (vi) of the CAT NMS Plan. The SEC granted exemptive relief from these provisions of the CAT NMS Plan to allow for the phased implementation of Industry Member reporting via five phases addressing the reporting requirements for Phase 2a Industry Member Data, Phase 2b Industry Member Data, Phase 2c Industry Member Data, Phase 2d Industry Member Data and Phase 2e Industry Member Data.
                        </P>
                    </FTNT>
                    <P>
                        In adopting the FAMs, the Commission stated that the equities transaction reporting required for FAM Period 1 “is consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Equities 2a file submission and data integrity validations.' ” 
                        <SU>101</SU>
                        <FTREF/>
                         The Phase 2a Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the following data related to Eligible Securities that are equities:
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             Securities Exchange Act Rel. No. 88890, 85 FR 31322, 31330 n.97 (“FAM Adopting Release”).
                        </P>
                    </FTNT>
                    <P>• All events and scenarios covered by OATS, which includes information related to the receipt or origination of orders, order transmittal, and order modifications, cancellations and executions;</P>
                    <P>
                        • Reportable Events for: (1) proprietary orders, including market maker orders, for Eligible Securities that are equities; (2) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) sent to a national securities exchange or FINRA's Alternative Display Facility (“ADF”); (3) electronic quotes in unlisted Eligible Securities (
                        <E T="03">i.e.,</E>
                         OTC Equity Securities) received by an Industry Member operating an interdealer quotation system (“IDQS”); and (4) electronic quotes in unlisted Eligible Securities sent to an IDQS or other quotation system not operated by a Participant or Industry Member;
                    </P>
                    <P>• Firm Designated IDs (“FDIDs”), which Industry Members must report to the CAT as required by Sections 6.3(d)(i)(A) and 6.4(d)(ii)(C) of the CAT NMS Plan.</P>
                    <P>
                        • Industry Members would be required to report all street side representative orders, including both agency and proprietary orders and mark 
                        <PRTPAGE P="10267"/>
                        such orders as representative orders, except in certain limited exceptions as described in the Industry Member Technical Specifications;
                    </P>
                    <P>• The link between the street side representative order and the order being represented when: (1) the representative order was originated specifically to represent a single order received either from a customer or another broker-dealer; and (2) there is (a) an existing direct electronic link in the Industry Member's system between the order being represented and the representative order and (b) any resulting executions are immediately and automatically applied to the represented order in the Industry Member's system;</P>
                    <P>• Manual and Electronic Capture Time for Manual Order Events;</P>
                    <P>• Special handling instructions for the original receipt or origination of an order during Phase 2a; and</P>
                    <P>• When routing an order, whether the order was routed as an intermarket sweep order (“ISO”).</P>
                    <P>
                        In Phase 2a, Industry Members were not required to report modifications of a previously routed order in certain limited instances, nor were they required to report a cancellation of an order received from a Customer after the order has been executed.
                        <SU>102</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             Phased Reporting Exemptive Relief Order at 23076-78.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Equities 2a file submission and data integrity validation (Large Industry Members and Small OATS Reporters)” was completed on June 22, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information” was completed on June 22, 2020.</P>
                    <P>
                        In adopting the FAMs, the Commission stated that the options transaction reporting required for FAM Period 1 is “consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Options 2b file submission and data integrity validations.'”  
                        <SU>103</SU>
                        <FTREF/>
                         The Phase 2b Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the Industry Member Data related to Eligible Securities that are options and related to simple electronic option orders, excluding electronic paired option orders. A simple electronic option order is an order to buy or sell a single option that is not related to or dependent on any other transaction for pricing and timing of execution that is either received or routed electronically by an Industry Member. Electronic receipt of an order is defined as the initial receipt of an order by an Industry Member in electronic form in standard format directly into an order handling or execution system. Electronic routing of an order is the routing of an order via electronic medium in standard format from one Industry Member's order handling or execution system to an exchange or another Industry Member. An electronic paired option order is an electronic option order that contains both the buy and sell side that is routed to another Industry Member or exchange for crossing and/or price improvement as a single transaction on an exchange. Responses to auctions of simple orders and paired simple orders would be reportable in Phase 2b. Furthermore, combined orders in options would be treated in Phase 2b in the same way as equity representative orders are treated in Phase 2a. A combined order would mean, as permitted by SRO rules, a single, simple order in Listed Options created by combining individual, simple orders in Listed Options from a customer with the same exchange origin code before routing to an exchange. During Phase 2b, the single combined order sent to an exchange must be reported and marked as a combined order, but the linkage to the underlying orders is not required to be reported until Phase 2d.
                        <SU>104</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             FAM Adopting Release at 31330, n.98.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             Phased Reporting Exemptive Relief Order at 23078.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Options 2b file submission and data integrity validations” was completed on July 20, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information” was completed on July 20, 2020.</P>
                    <P>As discussed above, the Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from June 22, 2020 through July 31, 2020. The total costs for this period, as discussed above, are $6,377,343. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781).</P>
                    <HD SOURCE="HD3">(B) Period 2 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 2. FAM Period 2 began on August 1, 2020, and concluded on December 31, 2020, the date of the Full Implementation of Core Equity Reporting. Section 1.1 of the CAT NMS Plan defines “Full Implementation of Core Equity Reporting” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2020,
                        <SU>105</SU>
                        <FTREF/>
                         Full Implementation of Core Equity Reporting was completed on schedule by December 31, 2020.
                    </P>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the Full Implementation of Core Equity Reporting requires the satisfaction of two prongs. The first prong requires Participants to have fully implemented the first phase of equities transaction reporting for Industry Members (excluding Small Industry Members that are not OATS reporters) at an Error Rate of less than 5%. In addition, equities transaction data produced by the CAT at this stage must 
                        <PRTPAGE P="10268"/>
                        also be sufficiently interlinked so as to permit full analysis of an order's lifecycle across the national market, excluding full linkage of representative orders. As CAT LLC reported on its Quarterly Progress Reports, Phase 2a was fully implemented as of October 26, 2020, including intra-firm, inter-firm, national securities exchange, and trade reporting facilities linkages.
                        <SU>106</SU>
                        <FTREF/>
                         In addition to the reporting of Phase 2a Industry Member Data as described above with regard to FAM Period 1, the following linkage data was added to the CAT as described in the Quarterly Progress Reports for the third and fourth quarter of 2020:
                    </P>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             For a description of the requirements of Phases 2a, 
                            <E T="03">see</E>
                             Phased Reporting Exemptive Relief Order.
                        </P>
                    </FTNT>
                    <P>
                        • “Production Go-Live for Equities 2a Intrafirm Linkage validations” was completed on 7/27/2020; 
                        <SU>107</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             Q3 2020 Quarterly Progress Report (Oct. 20, 2021).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Firm to Firm Linkage validations for Equities 2a (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020; and</P>
                    <P>• “Production Go-Live for Equities 2a Exchange and TRF Linkage validations (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020.</P>
                    <P>Furthermore, as CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2020, the average overall error rate for Phase 2a Industry Member Data was less than 5% as of December 31, 2020. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The second prong of this FAM requires that the equities transaction data collected by the CAT at this stage be made available to regulators through two basic query tools required by the CAT NMS Plan—a targeted query tool that will enable regulators to retrieve data via an online query screen with a variety of predefined selection criteria, and a user-defined direct query tool that will provide regulators with the ability to query data using all available attributes and data sources.
                        <SU>108</SU>
                        <FTREF/>
                         As CAT LLC reported on its Quarterly Progress Reports, the query tool functionality incorporating the data from Phase 2a was available to the Participants and the Commission as of December 31, 2020.
                        <SU>109</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>108</SU>
                             Section 6.10(c)(i)(A) of the CAT NMS Plan requires the Plan Processor to “provide Participants and the SEC with access to all CAT Data stored in the Central Repository” via an “online targeted query tool.” Appendix D, Sections 8.1.1-8.1.3 of the CAT NMS Plan describes the required functionality associated with this regulatory tool. Appendix D, Section 8.2.1 describes the required functionality associated with a user-defined direct query tool that will “deliver large sets of data that can then be used in internal surveillance or market analysis applications.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020); Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021); and Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>110</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             Securities Exchange Act Rel. No. 98848 (Nov. 2, 2023), 88 FR 77128, 77129 n.13 (Nov. 8, 2023) (“Settlement Exemptive Order”).
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from August 1, 2020 through December 31, 2020. The total costs for this period, as discussed above, are $42,976,478. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($14,325,492.70) and CEBSs paying one-third ($14,325,492.70).
                    </P>
                    <HD SOURCE="HD3">(C) Period 3 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 3. FAM Period 3 began on January 1, 2021, and concluded on December 31, 2021, the date of the Full Availability and Regulatory Utilization of Transactional Database Functionality. Section 1.1 of the CAT NMS Plan defines “Full Availability and Regulatory Utilization of Transactional Database Functionality” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <FP>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>111</SU>
                        <FTREF/>
                         Full Availability and Regulatory Utilization of Transactional Database Functionality was completed on schedule by December 31, 2021.
                    </FP>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires the satisfaction of five prongs. The first prong requires that reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>112</SU>
                        <FTREF/>
                         FINRA retired OATS effective September 1, 2021.
                        <SU>113</SU>
                        <FTREF/>
                         Accordingly, after the retirement of OATS, reporting to OATS was no longer required.
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             Securities Exchange Act Rel. No. 92239 (June 23, 2021), 86 FR 34293 (June 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        In addition to Phase 2a and Phase 2b Industry Member Data, the second and third prongs of “Full Availability and Regulatory Utilization of Transactional Database Functionality” require Industry Member reporting of Phase 2c Industry Member Data and Phase 2d Industry Member Data. The Phase 2c Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. That Order states that “Phase 2c Industry Member Data” is Industry Member Data related to Eligible Securities that are equities other than Phase 2a Industry Member Data, Phase 2d Industry Member Data, or Phase 2e Industry Member Data. 
                        <PRTPAGE P="10269"/>
                        Specifically, the Phase 2c Industry Member Data includes Industry Member Data that is related to Eligible Securities that are equities and that is related to: (1) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (2) quotes in unlisted Eligible Securities sent to an IDQS operated by a CAT Reporter (reportable by the Industry Member sending the quotes) (except for quotes reportable in Phase 2d, as discussed below); (3) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) that are not sent to a national securities exchange or FINRA's Alternative Display Facility; (4) reporting changes to client instructions regarding modifications to algorithms; (5) marking as a representative order any order originated to work a customer order in price guarantee scenarios, such as a guaranteed VWAP; (6) flagging rejected external routes to indicate a route was not accepted by the receiving destination; (7) linkage of duplicate electronic messages related to a Manual Order Event between the electronic event and the original manual route; (8) special handling instructions on order route reports (other than the ISO, which is required to be reported in Phase 2a); (9) quote identifier on trade events; (10) reporting of LTIDs (if applicable) for accounts with Reportable Events that are reportable to CAT as of and including Phase 2c; (11) reporting of date account opened or Account Effective Date71 (as applicable) for accounts and reporting of a flag indicating the Firm Designated ID type as account or relationship; (12) order effective time for orders that are received by an Industry Member and do not become effective until a later time; (13) the modification or cancellation of an internal route of an order; and (14) linkages to the customer orders(s) being represented for representative order scenarios, including agency average price trades, net trades, aggregated orders, and disconnected Order Management System (“OMS”)—Execution Management System (“EMS”) scenarios, as required in the Industry Member Technical Specifications.
                        <SU>114</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             Phase Reporting Exemptive Relief Order at 23078-79.
                        </P>
                    </FTNT>
                    <P>
                        Phase 2c Industry Member Data also includes electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are equities and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: (1) an equity bid or offer is displayed publicly or has been communicated (a) for listed securities to the Alternative Display Facility (ADF) operated by FINRA; or (b) for unlisted equity securities to an “interdealer quotation system,” as defined in FINRA Rule 6420(c); or (2) an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing; 
                        <E T="03">i.e.,</E>
                         no further manual or electronic action is required by the responder providing the quote in order to execute or cause a trade to be executed). With respect to OTC Equity Securities, OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter (other than such an IDQS that does not match and execute orders) are reportable by the Industry Member sending them in Phase 2c. Accordingly, any response to a request for quote or other form of solicitation response provided in a standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this quote definition (
                        <E T="03">i.e.,</E>
                         an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing) would be reportable in Phase 2c.
                        <SU>115</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>115</SU>
                             
                            <E T="03">Id.</E>
                             at 23079.
                        </P>
                    </FTNT>
                    <P>
                        The Phase 2d Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. “Phase 2d Industry Member Data” is Industry Member Data that is related to Eligible Securities that are options other than Phase 2b Industry Member Data, Industry Member Data that is related to Eligible Securities that are equities other than Phase 2a Industry Member Data or Phase 2c Industry Member Data, and Industry Member Data other than Phase 2e Industry Member Data. Phase 2d Industry Member Data includes with respect to the Eligible Securities that are options: (1) simple manual orders; (2) electronic and manual paired orders; (3) all complex orders with linkages to all CAT-reportable legs; (4) LTIDs (if applicable) for accounts with Reportable Events for Phase 2d; (5) date account opened or Account Effective Date (as applicable) for accounts with an LTID and flag indicating the Firm Designated ID type as account or relationship for such accounts; (6) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (7) the modification or cancellation of an internal route of an order; and (8) linkage between a combined order and the original customer orders. Phase 2d Industry Member Data also would include electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are options and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: a listed option bid or offer which is accessible electronically by customers or other market participants and is immediately actionable (
                        <E T="03">i.e.,</E>
                         no further action is required by the responder providing the quote in order to execute or cause a trade to be executed). Accordingly, any response to a request for quote or other form of solicitation response provided in standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this definition is reportable in Phase 2d for options.
                        <SU>116</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Phase 2d Industry Member Data also includes with respect to Eligible Securities that are options or equities (1) receipt time of cancellation and modification instructions through Order Cancel Request and Order Modification Request events; (2) modifications of previously routed orders in certain instances; and (3) OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter that does not match and execute orders. In addition, subject to any exemptive or other relief, Phase 2d Industry Member Data will include verbal or manual quotes on an exchange floor or in the over-the-counter market, where verbal quotes and manual quotes are defined as bids or offers in Eligible Securities provided verbally or that are provided or received other than via a CAT Reporter's order handling and execution system (
                        <E T="03">e.g.,</E>
                         quotations provided via email or instant messaging).
                        <SU>117</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             
                            <E T="03">Id.</E>
                             at 23079-80.
                        </P>
                    </FTNT>
                    <P>
                        The Quarterly Progress Report for the fourth quarter of 2021 states that “Phase 2a was fully implemented as of October 26, 2020;” “Phase 2b was fully implemented as of January 4, 2021;” “Phase 2c was implemented as of April 26, 2021;” and “Phase 2d was fully implemented as of December 13, 2021.” 
                        <SU>118</SU>
                        <FTREF/>
                         The Quarterly Progress Reports for 2021 provide additional detail regarding the implementation of these steps including the following:
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        • “Production Go-Live for Equities 2c reporting requirements (Large Industry Members)” was completed on April 26, 2021;
                        <PRTPAGE P="10270"/>
                    </P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2a, 2b and 2c (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “FCAT Plan Processor creates linkages of the lifecycle of order events based on the received data through Phase 2d Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2b reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2d (Large Industry Members)” was completed on December 13, 2021; and</P>
                    <P>
                        • “LTID Account Information Reporting Go-Live for Phases 2a, 2b, 2c and 2d (Small Industry Members)” was completed on December 13, 2021.
                        <SU>119</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             
                            <E T="03">See</E>
                             Q2 2021 Quarterly Progress Report (July 27, 2021); and Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>The third prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” also imposes an Error Rate requirement of 5% or less. The Quarterly Progress Report for the fourth quarter of 2021 states the average overall error rate was less than 5% as of December 31, 2021. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The fourth prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires that the data collected by the CAT at this stage be made available to regulators through an online targeted query tool and a user-defined direct query tool. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021, the query tool functionality incorporating the data from Phases 2a, 2b, 2c and 2d was available to the Participants and to the Commission as of December 31, 2021.
                        <SU>120</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>120</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The fifth prong requires the requirements of Section 6.10(a) of the CAT NMS Plan to have been met. Section 6.10(a) of the CAT NMS Plan requires the Participants to use the tools described in Appendix D to “develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository.” The Exchange implemented a surveillance system, or enhanced existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository as of December 31, 2021 in accordance with Section 6.10(a) of the CAT NMS Plan.
                        <SU>121</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             
                            <E T="03">See</E>
                             Q1 2021 Quarterly Progress Report (April 30, 2021); Q2 2021 Quarterly Progress Report (July 27, 2021); Q3 2021 Quarterly Progress Report (Nov. 1, 2021); Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>122</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             Settlement Exemptive Order at 77129 n.13.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from January 1, 2021 through December 31, 2021. The total costs for this period, as discussed above, are $144,415,268. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($48,138,422.70) and CBSs paying one-third ($48,138,422.70).
                    </P>
                    <P>
                        The Exchange believes the proposed rule change is consistent with the requirements of the Exchange Act. The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,
                        <SU>123</SU>
                        <FTREF/>
                         which requires, among other things, that the Exchange's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act,
                        <SU>124</SU>
                        <FTREF/>
                         because it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. The Exchange further believes that the proposed rule change is consistent with Section 6(b)(8) of the Act,
                        <SU>125</SU>
                        <FTREF/>
                         which requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. These provisions also require that the Exchange be “so organized and [have] the capacity to be able to carry out the purposes” of the Act and “to comply, and . . . to enforce compliance by its members and persons associated with its members,” with the provisions of the Exchange Act.
                        <SU>126</SU>
                        <FTREF/>
                         Accordingly, a reasonable reading of the Act indicates that it intended that regulatory funding be sufficient to permit an exchange to fulfill its statutory responsibility under the Act, and contemplated that such funding would be achieved through equitable assessments on the members, issuers, and other users of an exchange's facilities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             15 U.S.C. 78f(b)(6).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             
                            <E T="03">See</E>
                             Section 6(b)(1) of the Exchange Act.
                        </P>
                    </FTNT>
                    <P>
                        The Exchange believes that this proposal is consistent with the Act because it implements provisions of the Plan and is designed to assist the Exchange in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>127</SU>
                        <FTREF/>
                         To the extent that this proposal implements the Plan and applies specific requirements to Industry Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             CAT NMS Plan Approval Order at 84697.
                        </P>
                    </FTNT>
                    <P>
                        The Exchange believes that the proposed fees paid by the CEBBs and CEBSs are reasonable, equitably allocated and not unfairly discriminatory. First, the Historical CAT Assessment 1 fees to be collected are directly associated with the costs of establishing and maintaining the CAT, where such costs include Plan Processor costs and costs related to technology, 
                        <PRTPAGE P="10271"/>
                        legal, consulting, insurance, professional and administration, and public relations costs. The Exchange has already incurred such development and implementation costs and the proposed Historical CAT Assessment 1 fees, therefore, would allow the Exchange to collect certain of such costs in a fair and reasonable manner from Industry Members, as contemplated by the CAT NMS Plan.
                    </P>
                    <P>The proposed Historical CAT Assessment 1 fees would be charged to Industry Members in support of the maintenance of a consolidated audit trail for regulatory purposes. The proposed fees, therefore, are consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business operations. The proposed fees would not cover Exchange services unrelated to the CAT. In addition, any surplus would be used as a reserve to offset future fees. Given the direct relationship between CAT fees and CAT costs, the Exchange believes that the proposed fees are reasonable, equitable and not unfairly discriminatory.</P>
                    <P>As further discussed below, the SEC approved the CAT Funding Model, finding it was reasonable and that it equitably allocates fees among Participants and Industry Members. The Exchange believes that the proposed fees adopted pursuant to the CAT Funding Model approved by the SEC are reasonable, equitably allocated and not unfairly discriminatory.</P>
                    <HD SOURCE="HD3">(1) Implementation of CAT Funding Model in CAT NMS Plan</HD>
                    <P>
                        Section 11.1(b) of the CAT NMS Plan states that “[t]he Participants shall file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves.” Per Section 11.1(b) of the CAT NMS Plan, the Exchange has filed this fee filing to implement the Industry Member CAT fees included in the CAT Funding Model. The Exchange believes that this proposal is consistent with the Exchange Act because it is consistent with, and implements, the CAT Funding Model in the CAT NMS Plan, and is designed to assist the Exchange and its Industry Members in meeting regulatory obligations pursuant to the CAT NMS Plan. In approving the CAT NMS Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>128</SU>
                        <FTREF/>
                         Similarly, in approving the CAT Funding Model, the SEC concluded that the CAT Funding Model met this standard.
                        <SU>129</SU>
                        <FTREF/>
                         As this proposal implements the Plan and the CAT Funding Model described therein, and applies specific requirements to Industry Members in compliance with the Plan, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Exchange Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             CAT NMS Plan Approval Order at 84696.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             CAT Funding Model Approval Order at 62686.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(2) Calculation of Fee Rate for Historical CAT Assessment 1 Is Reasonable</HD>
                    <P>
                        The SEC has determined that the CAT Funding Model is reasonable and satisfies the requirements of the Exchange Act. Specifically, the SEC has concluded that the method for determining Historical CAT Assessments as set forth in Section 11.3 of the CAT NMS Plan, including the formula for calculating the Historical Fee Rate, the identification of the parties responsible for payment and the transactions subject to the fee rate for the Historical CAT Assessment, is reasonable and satisfies the Exchange Act.
                        <SU>130</SU>
                        <FTREF/>
                         In each respect, as discussed above, Historical CAT Assessment 1 is calculated, and would be applied, in accordance with the requirements applicable to Historical CAT Assessments as set forth in the CAT NMS Plan. Furthermore, as discussed below, the Exchange believes that each of the figures for the variables in the SEC-approved formula for calculating the fee rate for Historical CAT Assessment 1 is reasonable and consistent with the Exchange Act. Calculation of the Historical Fee Rate for Historical CAT Assessment 1 requires the figures for the Historical CAT Costs 1, the executed equivalent share volume for the prior twelve months, the determination of Historical Recovery Period 1, and the projection of the executed equivalent share volume for Historical Recovery Period 1. Each of these variables is reasonable and satisfies the Exchange Act, as discussed throughout this filing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             
                            <E T="03">Id.</E>
                             at 62662-63.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Historical CAT Costs 1</HD>
                    <P>The formula for calculating a Historical Fee Rate requires the amount of Historical CAT Costs to be recovered. Specifically, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires a fee filing to provide:</P>
                    <EXTRACT>
                        <FP>a brief description of the amount and type of the Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.</FP>
                    </EXTRACT>
                    <FP>In accordance with this requirement, the Exchange has set forth the amount and type of Historical CAT Costs 1 for each of these categories of costs above.</FP>
                    <P>Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan also requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” As discussed below, the Exchange believes that the amounts set forth in this filing for each of these cost categories is “reasonable and appropriate.” Each of the costs included in Historical CAT Costs 1 are reasonable and appropriate because the costs are consistent with standard industry practice, based on the need to comply with the requirements of the CAT NMS Plan, incurred subject to negotiations performed on an arm's length basis, and/or are consistent with the needs of any legal entity, particularly one with no employees.</P>
                    <HD SOURCE="HD3">(i) Technology: Cloud Hosting Services</HD>
                    <P>
                        In approving the CAT Funding Model, the Commission recognized that it is appropriate to recover costs related to cloud hosting services as a part of Historical CAT Assessments.
                        <SU>131</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to cloud hosting services described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. As described above, the cloud hosting services costs reflect, among other things, the breadth of the CAT cloud activities, data volume far in excess of the original volume estimates, the need for specialized cloud services given the volume and unique nature of the CAT, the processing time requirements of the Plan, and regular efforts to seek to minimize costs where permissible under the Plan. CAT LLC determined that use of cloud hosting services is necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT, and that the fees for cloud hosting services negotiated by FCAT were reasonable, taking into consideration a variety of factors, including the expected volume of data and the breadth of services provided and market rates for similar services.
                        <FTREF/>
                        <SU>132</SU>
                          
                        <PRTPAGE P="10272"/>
                        Indeed, the actual costs of the CAT are far in excess of the original estimated costs of the CAT due to various factors, including the higher volumes and greater complexity of the CAT than anticipated when Rule 613 was originally adopted.
                    </P>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             For a discussion of the amount and type of cloud hosting services fees, 
                            <E T="03">see</E>
                             Sections 
                            <PRTPAGE/>
                            3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>To comply with the requirements of the Plan, the breadth of the cloud activities related to the CAT is substantial. The cloud services not only include the production environment for the CAT, but they also include two industry testing environments, support environments for quality assurance and stress testing and disaster recovery capabilities. Moreover, the cloud storage costs are driven by the requirements of the Plan, which requires the storage of multiple versions of the data, from the original submitted version of the data through various processing steps, to the final version of the data.</P>
                    <P>
                        Data volume is a significant driver of costs for cloud hosting services. When the Commission adopted the CAT NMS Plan in 2016, it estimated that the CAT would need to receive 58 billion records per day 
                        <SU>133</SU>
                        <FTREF/>
                         and that annual operating costs for the CAT would range from $36.5 million to $55 million.
                        <SU>134</SU>
                        <FTREF/>
                         Through 2021, the actual data volumes have been five times that original estimate. The data volumes for each period are set forth in detail above.
                        <SU>135</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             CAT NMS Plan Approval Order at 84801.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>
                        In addition to the effect of the data volume on the cloud hosting costs, the processing timelines set forth in the Plan contribute to the cloud hosting costs. Although CAT LLC has proactively sought to manage cloud hosting costs while complying with the Plan, including through requests to the Commission for exemptive relief and an amendment to the CAT NMS Plan, stringent CAT NMS Plan requirements do not allow for any material flexibility in cloud architecture design choices, processing timelines (
                        <E T="03">e.g.,</E>
                         the use of non-peak processing windows), or lower-cost storage tiers. As a result, the required CAT processing timelines contribute to the cloud hosting costs of the CAT.
                    </P>
                    <P>The costs for cloud hosting services also reflect the need for specialized cloud hosting services given the data volume and unique processing needs of the CAT. The data volume as well as the data processing needs of the CAT necessitate the use of cloud hosting services. The equipment, power and services required for an on-premises data model, the alternative to cloud hosting services, would be cost prohibitive. Moreover, as CAT was being developed, there were limited cloud hosting providers that could satisfy all the necessary CAT requirements, including the operational and security criteria. Over time more providers offering cloud hosting services that would satisfy these criteria have entered the market. CAT LLC will continue to evaluate alternative cloud hosting services, recognizing that the time and cost to move to an alternative cloud provider would be substantial.</P>
                    <P>
                        The reasonableness of the cloud hosting services costs is further supported by key cost discipline mechanisms for the CAT—a cost-based funding structure, cost transparency, cost management efforts (including regular efforts to lower compute and storage costs where permitted by the Plan) and oversight. Together, these mechanisms help ensure the ongoing reasonableness of the CAT's costs and the level of fees assessed to support those costs.
                        <SU>136</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 97151 (Mar. 15, 2023), 88 FR 17086, 17117 (Mar. 21, 2023) (describing key cost discipline mechanisms for the CAT).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Technology: Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to operating fees as a part of Historical CAT Assessments.
                        <SU>137</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The operating fees include the negotiated fees paid by CAT LLC to the Plan Processor to operate and maintain the system for order-related information and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the selection of FCAT as the Plan Processor was reasonable and appropriate given its expertise with securities regulatory reporting, after a process of considering other potential candidates.
                        <SU>138</SU>
                        <FTREF/>
                         CAT LLC also determined that the fixed price contract, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, was reasonable and appropriate, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity.
                        <SU>139</SU>
                        <FTREF/>
                         The services performed by FCAT for each period and the costs related to such services are described above.
                        <SU>140</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(b), 3(a)(2)(B)(ii)(b), 3(a)(2)(B)(iii)(b) and 3(a)(2)(B)(iv)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iii) Technology: CAIS Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to CAIS operating fees as a part of Historical CAT Assessments.
                        <SU>141</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to CAIS operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The CAIS operating fees include the fees paid to the Plan Processor to operate and maintain CAIS and to perform the business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the FCAT-negotiated fees for Kingland's CAIS-related services, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity, were reasonable and appropriate.
                        <SU>142</SU>
                        <FTREF/>
                         The services performed by Kingland for each period and the costs for each period are described above.
                        <SU>143</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(c), 3(a)(2)(B)(ii)(c), 3(a)(2)(B)(iii)(c) and 3(a)(2)(B)(iv)(c) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iv) Technology: Change Request Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to change request fees as a part of Historical CAT Assessments.
                        <SU>144</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to change request fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. It is common practice to utilize a change request process to address evolving needs in technology projects. This is particularly true for a project like CAT that is the first of its kind, both in 
                        <PRTPAGE P="10273"/>
                        substance and in scale. The substance and costs of each of the change requests are evaluated by the Operating Committee, and approved in accordance with the requirements for Operating Committee meetings. In each case, CAT LLC determined that the change requests were necessary to implement the CAT. As described above, the change requests cover various technology changes, including, for example, changes related to CAT reporting, data feeds and exchange functionality. CAT LLC also determined that the costs for each change request were appropriate for the relevant technology change. A description of the change requests for each FAM Period and their total costs are set described above.
                        <SU>145</SU>
                        <FTREF/>
                         As noted above, the total costs for change requests through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.25% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(d), 3(a)(2)(B)(ii)(d), 3(a)(2)(B)(iii)(d) and 3(a)(2)(B)(iv)(d) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(v) Capitalized Developed Technology Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to capitalized developed technology costs as a part of Historical CAT Assessments.
                        <SU>146</SU>
                        <FTREF/>
                         Capitalized developed technology costs include costs related to certain development costs, costs related to certain modifications, upgrades and other changes to the CAT, CAIS implementation fees and license fees. The amount and type of costs for each period are described in more detail above.
                        <SU>147</SU>
                        <FTREF/>
                         CAT LLC determined that these costs are reasonable and should be included as a part of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(e), 3(a)(2)(B)(ii)(e), 3(a)(2)(B)(iii)(e) and 3(a)(2)(B)(iv)(e) above.
                        </P>
                    </FTNT>
                    <P>
                        These costs involve the activity of both the Initial Plan Processor and FCAT, as the successor Plan Processor.
                        <SU>148</SU>
                        <FTREF/>
                         With regard to the Initial Plan Processor, the Participants utilized an RFP to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan. CAT LLC entered into an agreement with the Initial Plan Processor in which CAT LLC would pay the Initial Plan Processor a negotiated, fixed price fee.
                        <SU>149</SU>
                        <FTREF/>
                         In addition, as described above, CAT LLC determined that is [
                        <E T="03">sic</E>
                        ] was appropriate to enter into an agreement with FCAT as the successor Plan Processor.
                        <SU>150</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(e) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vi) Legal</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to legal fees as a part of Historical CAT Assessments.
                        <SU>151</SU>
                        <FTREF/>
                         CAT LLC determined that the legal costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Given the unique nature of the CAT, the number of parties involved with the CAT (including, for example, the SEC, Participants, Industry Members, and vendors) and the many regulatory issues associated with the CAT, the scope of the necessary legal services are substantial. CAT LLC determined that the scope of the legal services is necessary to implement and maintain the CAT and that the legal rates reflect the specialized services necessary for such a project. When hiring each law firm for a CAT project, CAT LLC interviewed multiple firms, and determined to hire each firm based on a variety of factors, including the relevant expertise and fees. In each case, CAT LLC determined that the hourly fee rates were in line with market rates for the specialized legal expertise. In addition, CAT LLC determined that the total costs incurred for each CAT project were appropriate given the breadth of services provided. The services performed by each law firm for each period and the costs related to such services are described above.
                        <SU>152</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(2) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(f), 3(a)(2)(B)(ii)(f), 3(a)(2)(B)(iii)(f) and 3(a)(2)(B)(iv)(f) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vii) Consulting</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover consulting costs as a part of Historical CAT Assessments.
                        <SU>153</SU>
                        <FTREF/>
                         CAT LLC determined that the consulting costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees 
                        <SU>154</SU>
                        <FTREF/>
                         and because of the significant number of issues associated with the CAT, the consultants provided assistance in the management of various CAT matters and the processes related to such matters.
                        <SU>155</SU>
                        <FTREF/>
                         CAT LLC considered a variety of factors in choosing a consulting firm and determined to select Deloitte after an interview process.
                        <SU>156</SU>
                        <FTREF/>
                         CAT LLC also determined that the consulting services were provided at reasonable market rates, as the fees were negotiated annually and comparable to the rates charged by other consulting firms for similar work.
                        <SU>157</SU>
                        <FTREF/>
                         Moreover, the total costs for such consulting services were appropriate in light of the breadth of services provided by Deloitte. The services performed by Deloitte and the costs related to such services are described above.
                        <SU>158</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(3) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             As stated in the filing of the proposed CAT NMS Plan, “[i]t is the intent of the Participants that the Company have no employees.” Securities Exchange Act Rel. No. 77724 (Apr. 27, 2016), 81 FR 30614, 30621 (May 17, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             CAT LLC uses certain third parties to perform tasks that may be performed by administrators for other NMS Plans. 
                            <E T="03">See, e.g.,</E>
                             CTA Plan and CQ Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(g), 3(a)(2)(B)(ii)(g), 3(a)(2)(B)(iii)(g) and 3(a)(2)(B)(iv)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(viii) Insurance</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover insurance costs as a part of Historical CAT Assessments.
                        <SU>159</SU>
                        <FTREF/>
                         CAT LLC determined that the insurance costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that it is common practice to have directors' and officers' liability insurance, and errors and omissions liability insurance. CAT LLC further determined that it was important to have cyber security insurance given the nature of the CAT, and such a decision is consistent with the CAT NMS Plan, which states that the cyber incident response plan may include “[i]nsurance against security breaches.” 
                        <SU>160</SU>
                        <FTREF/>
                         In selecting the insurance providers for these policies, CAT LLC engaged in an evaluation of alternative insurers, including a comparison of the pricing offered by the alternative insurers.
                        <SU>161</SU>
                        <FTREF/>
                         Based on this analysis, CAT LLC determined that the selected insurance policies provided appropriate coverage at reasonable market rates.
                        <SU>162</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(4) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             Section 4.1.5 of Appendix D of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(h), 3(a)(2)(B)(ii)(h), 3(a)(2)(B)(iii)(h) and 3(a)(2)(B)(iv)(h) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ix) Professional and Administration</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover professional and administration costs as a part of 
                        <PRTPAGE P="10274"/>
                        Historical CAT Assessments.
                        <SU>163</SU>
                        <FTREF/>
                         CAT LLC determined that the professional and administration costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees, all required accounting, financial, tax, cash management and treasury functions for CAT LLC have been outsourced at market rates. In addition, the required annual financial statement audit of CAT LLC is included in professional and administration costs, which costs are also at market rates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(5) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees.
                        <SU>164</SU>
                        <FTREF/>
                         The hourly fee rates for this firm were in line with market rates for the financial advisory services provided.
                        <SU>165</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Anchin. The services performed by Anchin and the costs related to such services are described above.
                        <SU>166</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC also determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the role given the balance of these considerations.
                        <SU>167</SU>
                        <FTREF/>
                         Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services.
                        <SU>168</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Grant Thornton. The services performed by Grant Thornton and the costs related to such services are described above.
                        <SU>169</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to the receipt of certain market data from Exegy. After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy. Exegy provided the data elements required by the CAT NMS Plan, and the fees were reasonable and in line with market rates for the market data received.
                        <SU>170</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment.
                        <SU>171</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(x) Public Relations Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover public relations costs as a part of Historical CAT Assessments.
                        <SU>172</SU>
                        <FTREF/>
                         CAT LLC determined that the public relations costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that the types of public relations services utilized were beneficial to the CAT and market participants more generally. Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                        <SU>173</SU>
                        <FTREF/>
                         By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT issues to the benefit of all market participants.
                        <SU>174</SU>
                        <FTREF/>
                         Moreover, CAT LLC determined that the rates charged for such services were in line with market rates.
                        <SU>175</SU>
                        <FTREF/>
                         As noted above, the total public relations costs through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.1% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(6) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(j), 3(a)(2)(B)(ii)(j), 3(a)(2)(B)(iii)(j) and 3(a)(2)(B)(iv)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Total Executed Equivalent Share Volume for the Prior 12 Months</HD>
                    <P>The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. CAT LLC determined the total executed equivalent share volume for the prior twelve months by counting executed equivalent shares in the same manner as it will count executed equivalent shares for CAT billing purposes.</P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to establish a Historical Recovery Period of 24 months for Historical CAT Assessment 1 and that such length is reasonable. CAT LLC determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans notes to the Participants in a timely fashion. CAT LLC determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>176</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, CAT LLC recognized that the total costs for Historical CAT Assessment 1 was less than the total costs for 2022 and 2023, and therefore it would be appropriate to recover those costs in two years. Furthermore, CAT LLC notes 24 months is appropriate because it is not currently proposing that Industry Members be required to pay another Historical CAT Assessment or CAT Fee with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model Approval Order at 62682.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Executed Equivalent Share Volume for Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. CAT LLC determined that such an approach was reasonable as the CAT's annual 
                        <PRTPAGE P="10275"/>
                        executed equivalent share volume has remained relatively constant in recent years. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is 7,685,722,694,558.88 executed equivalent shares.
                        <SU>177</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Actual Fee Rate for Historical CAT Assessment 1</HD>
                    <HD SOURCE="HD3">(i) Decimal Places</HD>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>178</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of the fee schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 by one-third, and rounding the result to 6 decimal places. CAT LLC determined that the use of six decimal places is reasonable as it balances the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Reasonable Fee Level</HD>
                    <P>
                        The Exchange believes that imposing Historical CAT Assessment 1 with a fee rate of $0.000015 per executed equivalent share is reasonable because it provides for a revenue stream for the Company that is aligned with Historical CAT Costs 1 and such costs would be spread out over an appropriate recovery period, as discussed above. Moreover, the Exchange believes that the level of the fee rate is reasonable, as it is comparable to other transaction-based fees. Indeed, Historical CAT Assessment 1 is significantly lower than fees assessed pursuant to Section 31 (
                        <E T="03">e.g.,</E>
                         $0.0009 per share to 0.0004 per share),
                        <SU>179</SU>
                        <FTREF/>
                         and, as a result, the magnitude of Historical CAT Assessment 1 is small, and therefore will mitigate any potential adverse economic effects or inefficiencies.
                        <SU>180</SU>
                        <FTREF/>
                         Furthermore, the reasonable fee rate for Historical CAT Assessment 1 further supports CAT LLC's decision to seek to recover all Historical CAT Costs prior to 2022, rather than establishing separate Historical CAT Assessments for pre-FAM, FAM 1, FAM 2 and FAM 3 costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             CAT Funding Model Approval Order at 62663, 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Historical CAT Assessment 1 Provides for an Equitable Allocation of Fees</HD>
                    <P>
                        Historical CAT Assessment 1 provides for an equitable allocation of fees, as it equitably allocates CAT costs between and among the Participants and Industry Members. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act, including the formula for calculating Historical CAT Assessments as well as the Industry Members to be charged the Historical CAT Assessments.
                        <SU>181</SU>
                        <FTREF/>
                         In approving the CAT Funding Model, the SEC stated that “[t]he Participants have sufficiently demonstrated that the proposed allocation of fees is reasonable.” 
                        <SU>182</SU>
                        <FTREF/>
                         Accordingly, the CAT Funding Model sets forth the requirements for allocating fees related to Historical CAT Costs among Participants and Industry Members, and the fee filings for Historical CAT Assessments must comply with those requirements.
                    </P>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <P>Historical CAT Assessment 1 provides for an equitable allocation of fees as it complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. For example, as described above, the calculation of Historical CAT Assessment 1 complies with the formula set forth in Section 11.3(b) of the CAT NMS Plan. In addition, Historical CAT Assessment 1 would be charged to CEBBs and CEBSs in accordance with Section 11.3(b) of the CAT NMS Plan. Furthermore, the Participants would continue to remain responsible for their designated share of Past CAT Costs through the cancellation of loans made by the Participants to CAT LLC.</P>
                    <P>In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1—Historical CAT Costs 1 (including Excluded Costs), the count for the executed equivalent share volume for the prior 12 months, the length of the Historical Recovery Period, and the projected executed equivalent share volume for the Historical Recovery Period—are reasonable. Moreover, these inputs lead to a reasonable fee rate for Historical CAT Assessment 1 that is lower than other fee rates for transaction-based fees. A reasonable fee rate allocated in accordance with the requirements of the CAT Funding Model provides for an equitable allocation of fees.</P>
                    <HD SOURCE="HD3">(4) Historical CAT Assessment 1 Is Not Unfairly Discriminatory</HD>
                    <P>Historical CAT Assessment 1 is not an unfairly discriminatory fee. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act. In reaching this conclusion, the SEC analyzed the potential effect of Historical CAT Assessments calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Historical CAT Assessment 1 complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 and the resulting fee rate for Historical CAT Assessment 1 is reasonable. Therefore, Historical CAT Assessment 1 does not impose an unfairly discriminatory fee on Industry Members.</P>
                    <P>
                        Finally, the Exchange believes the proposed fees established pursuant to the CAT Funding Model promote just and equitable principles of trade, and, in general, protect investors and the public interest, and are provided in a transparent manner and specificity in the fee schedule. The Exchange also believes that the proposed fees are reasonable because they would provide ease of calculation, ease of billing and other administrative functions, and predictability of a fee based on fixed rate per executed equivalent share. Such factors are crucial to estimating a reliable revenue stream for CAT LLC and for permitting Exchange members to reasonably predict their payment obligations for budgeting purposes.
                        <PRTPAGE P="10276"/>
                    </P>
                    <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                    <P>
                        Section 6(b)(8) of the Act 
                        <SU>183</SU>
                        <FTREF/>
                         requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that Historical CAT Assessment 1 implements provisions of the CAT NMS Plan that were approved by the Commission and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>In addition, all Participants (including exchanges and FINRA) are proposing to introduce Historical CAT Assessment 1 on behalf of CAT LLC to implement the requirements of the CAT NMS Plan. Therefore, this is not a competitive fee filing, and, therefore, it does not raise competition issues between and among the Participants.</P>
                    <P>
                        Furthermore, in approving the CAT Funding Model, the SEC analyzed the potential competitive impact of the CAT Funding Model, including competitive issues related to market services, trading services and regulatory services, efficiency concerns, and capital formation.
                        <SU>184</SU>
                        <FTREF/>
                         The SEC also analyzed the potential effect of CAT fees calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Based on this analysis, the SEC approved the CAT Funding Model as compliant with the Exchange Act. Historical CAT Assessment 1 is calculated and implemented in accordance with the CAT Funding Model as approved by the SEC.
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             CAT Funding Model Approval Order at 62676-86.
                        </P>
                    </FTNT>
                    <P>As discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 is reasonable and the resulting fee rate for Historical CAT Assessment 1 calculated in accordance with the CAT Funding Model is reasonable. Therefore, Historical CAT Assessment 1 would not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act.</P>
                    <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                    <P>No written comments were either solicited or received.</P>
                    <HD SOURCE="HD1">III. Suspension of the Proposed Rule Change</HD>
                    <P>
                        Pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>185</SU>
                        <FTREF/>
                         at any time within 60 days of the date of filing of a proposed rule change pursuant to Section 19(b)(1) of the Act,
                        <SU>186</SU>
                        <FTREF/>
                         the Commission summarily may temporarily suspend the change in the rules of an SRO if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. As discussed below, a temporary suspension of the proposed rule change is necessary or appropriate to allow for additional analysis of the proposed rule change's consistency with the Act and the rules thereunder.
                    </P>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <P>
                        When exchanges file their proposed rule changes with the Commission, including fee filings like the Exchange's present proposed rule change, they are required to provide a statement supporting the proposed rule change's basis under the Act and the rules and regulations thereunder applicable to the exchange.
                        <SU>187</SU>
                        <FTREF/>
                         The instructions to Form 19b-4, on which exchanges file their proposed rule changes, specify that such statement “should be sufficiently detailed and specific to support a finding that the proposed rule change is consistent with [those] requirements.” 
                        <SU>188</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.19b-4 (Item 3 entitled “Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>188</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Among other things, the Exchange's proposed rule change is subject to Section 6 of the Act, including Sections 6(b)(4), (5), and (8), which require the rules of an exchange to: (1) provide for the equitable allocation of reasonable fees among members, issuers, and other persons using the exchange's facilities; 
                        <SU>189</SU>
                        <FTREF/>
                         (2) be designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers; 
                        <SU>190</SU>
                        <FTREF/>
                         and (3) not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
                        <SU>191</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>190</SU>
                             15 U.S.C. 78f(b)(5).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>The proposed rule change is also subject to the CAT Funding Model set forth in the CAT NMS Plan. For example, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” In addition, Section 11.3(b)(i)(C) of the CAT NMS Plan provides that the “Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and Section 11.3(b)(i)(D) of the CAT NMS Plan provides that “[t]he length of the Historical Recovery Period used in calculating each Historical Fee Rate will be reasonably established by the Operating Committee based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment. . .” Further, Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan provides that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.”</P>
                    <P>
                        In temporarily suspending the Exchange's fee change, the Commission intends to further consider whether the proposed fees are consistent with the statutory requirements applicable to a national securities exchange under the Act and with the requirements set forth in the CAT Funding Model. Among other things, the Commission will consider whether the proposed rule change provides for reasonable fees that satisfy the standards under the Act and the rules thereunder.
                        <SU>192</SU>
                        <FTREF/>
                         Further, and among other things, the Commission will consider whether the proposed rule change, as required by the CAT Funding Model, provides “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including, but not limited to, whether 
                        <PRTPAGE P="10277"/>
                        the Operating Committee has “reasonably determine[d] the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and whether the “length of the Historical Recovery Period used in calculating each Historical Fee Rate [was] reasonably established by the Operating Committee.” 
                        <SU>193</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>192</SU>
                             
                            <E T="03">See</E>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>193</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <P>
                        Therefore, the Commission finds that it is necessary or appropriate in the public interest, for the protection of investors, and otherwise in furtherance of the purposes of the Act, to temporarily suspend the proposed rule change.
                        <SU>194</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>194</SU>
                             For purposes of temporarily suspending the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                            <E T="03">See</E>
                             15 U.S.C. 78c(f).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">IV. Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</HD>
                    <P>
                        In addition to temporarily suspending the proposed rule change, the Commission is instituting proceedings pursuant to Sections 19(b)(3)(C) 
                        <SU>195</SU>
                        <FTREF/>
                         and 19(b)(2)(B) 
                        <SU>196</SU>
                        <FTREF/>
                         of the Act to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change to inform the Commission's analysis of whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>195</SU>
                             15 U.S.C. 78s(b)(3)(C). Once the Commission temporarily suspends a proposed rule change, Section 19(b)(3)(C) of the Act requires that the Commission institute proceedings under Section 19(b)(2)(B) to determine whether a proposed rule change should be approved or disapproved.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>196</SU>
                             15 U.S.C. 78s(b)(2)(B).
                        </P>
                    </FTNT>
                    <P>
                        Pursuant to Section 19(b)(2)(B) of the Act,
                        <SU>197</SU>
                        <FTREF/>
                         the Commission is providing notice of the grounds for possible disapproval under consideration. The Commission is instituting proceedings to allow for additional consideration and comment on whether the Exchange has sufficiently demonstrated that the proposed rule change is consistent with Section 6(b)(4) 
                        <SU>198</SU>
                        <FTREF/>
                         of the Act, and consistent with the CAT Funding Model. Section 6(b)(4) of the Act, among other things, provides that the dues, fees, and other charges for an exchange's members be reasonable. And the CAT Funding Model, as noted above, requires, among other things, that the proposed rule change provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including whether the Operating Committee has reasonably determined the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee and whether the length of the Historical Recovery Period used in calculating each Historical Fee Rate was reasonably established by the Operating Committee.
                        <SU>199</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>197</SU>
                             15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the Act also provides that proceedings to determine whether to disapprove a proposed rule change must be concluded within 180 days of the date of publication of notice of the filing of the proposed rule change. 
                            <E T="03">See id.</E>
                             The time for conclusion of the proceedings may be extended for up to 60 days if the Commission finds good cause for such extension and publishes its reasons for so finding, or if the exchange consents to the longer period. 
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>198</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>199</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">V. Commission's Solicitation of Comments</HD>
                    <P>
                        The Commission requests that interested persons provide written submission of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they have with the proposed rule change. In particular, the Commission invites the written views of interested persons concerning whether the proposed rule change is consistent with Section 6(b)(4), or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.
                        <SU>200</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>200</SU>
                             15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act grants the Commission flexibility to determine what type of proceeding—either oral or notice and opportunity for written comments—is appropriate for consideration of a particular proposed rule change by an exchange. 
                            <E T="03">See</E>
                             Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975).
                        </P>
                    </FTNT>
                    <P>Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule changes should be approved or disapproved by March 5, 2024. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by March 19, 2024.</P>
                    <P>Comments may be submitted by any of the following methods:</P>
                    <HD SOURCE="HD2">Electronic Comments</HD>
                    <P>
                        • Use the Commission's internet comment form (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ); or
                    </P>
                    <P>
                        • Send an email to 
                        <E T="03">rule-comments@sec.gov.</E>
                         Please include file number
                    </P>
                    <P>SR-ISE-2024-02 on the subject line.</P>
                    <HD SOURCE="HD2">Paper Comments</HD>
                    <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                    <FP>
                        All submissions should refer to file number SR-ISE-2024-02. 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 internet website (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-ISE-2024-02 and should be submitted on or before March 5, 2024. Rebuttal comments should be submitted by March 19, 2024.
                    </FP>
                    <HD SOURCE="HD1">VI. Conclusion</HD>
                    <P>
                        <E T="03">It is therefore ordered,</E>
                         pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>201</SU>
                        <FTREF/>
                         that 
                        <PRTPAGE P="10278"/>
                        File No. SR-ISE-2024-02 be, and hereby is, temporarily suspended. In addition, the Commission is instituting proceedings to determine whether the proposed rule change should be approved or disapproved.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>202</SU>
                             17 CFR 200.30-3(a)(12), (57) and (58).
                        </P>
                    </FTNT>
                    <SIG>
                        <P>
                            For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                            <SU>202</SU>
                        </P>
                        <NAME>Sherry R. Haywood,</NAME>
                        <TITLE>Assistant Secretary.</TITLE>
                    </SIG>
                </PREAMB>
                <FRDOC>[FR Doc. 2024-01173 Filed 2-12-24; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 8011-01-P</BILCOD>
            </NOTICE>
            <NOTICE>
                <PREAMB>
                    <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                    <DEPDOC>[Release No. 34-99365; File No. SR-GEMX-2024-02]</DEPDOC>
                    <SUBJECT>Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing of a Proposed Rule Change To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail; Suspension of and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</SUBJECT>
                    <DATE>January 17, 2024.</DATE>
                    <P>
                        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act” or the “Exchange Act”),
                        <SU>1</SU>
                        <FTREF/>
                         and Rule 19b-4 thereunder,
                        <SU>2</SU>
                        <FTREF/>
                         notice is hereby given that on January 5, 2024, Nasdaq GEMX, LLC (“GEMX” or “Exchange”) filed with the Securities and Exchange Commission (“SEC” or the “Commission”) the proposed rule change as described in Items I and II, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is, pursuant to Section 19(b)(3)(C) of the Act, hereby: (i) temporarily suspending the rule change; and (ii) instituting proceedings to determine whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             17 CFR 240.19b-4.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                    <P>The Exchange proposes to establish fees for Industry Members related to certain historical costs of the National Market System Plan Governing the Consolidated Audit Trail (the “CAT NMS Plan” or “Plan”) incurred prior to January 1, 2022, as described further below.</P>
                    <P>
                        The text of the proposed rule change is available on the Exchange's website at 
                        <E T="03">https://listingcenter.nasdaq.com/rulebook/nasdaq/rules,</E>
                         at the principal office of the Exchange, and at the Commission's Public Reference Room.
                    </P>
                    <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item V below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                    <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <HD SOURCE="HD3">1. Purpose</HD>
                    <P>
                        On July 11, 2012, the Commission adopted Rule 613 of Regulation NMS, which required the self-regulatory organizations (“SROs”) to submit a national market system (“NMS”) plan to create, implement and maintain a consolidated audit trail that would capture customer and order event information for orders in NMS securities across all markets, from the time of order inception through routing, cancellation, modification or execution.
                        <SU>3</SU>
                        <FTREF/>
                         On November 15, 2016, the Commission approved the CAT NMS Plan.
                        <SU>4</SU>
                        <FTREF/>
                         Under the CAT NMS Plan, the Operating Committee has the discretion to establish funding for the Consolidated Audit Trail, LLC (“CAT LLC” or “the Company”) 
                        <SU>5</SU>
                        <FTREF/>
                         to operate the CAT, including establishing fees for Industry Members 
                        <SU>6</SU>
                        <FTREF/>
                         to be assessed by CAT LLC that would be implemented on behalf of CAT LLC by the Participants.
                        <SU>7</SU>
                        <FTREF/>
                         The Operating Committee adopted a revised funding model to fund the CAT (“CAT Funding Model”). On September 6, 2023, the Commission approved the CAT Funding Model, after concluding that the model was reasonable and that it satisfied the requirements of Section 11A of the Exchange Act and Rule 608 thereunder.
                        <SU>8</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             Securities Exchange Act Rel. No. 67457 (July 18, 2012), 77 FR 45721 (Aug. 1, 2012).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             Securities Exchange Act Rel. No. 79318 (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016) (“CAT NMS Plan Approval Order”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             The term “CAT LLC” may be used to refer to Consolidated Audit Trail, LLC or CAT NMS, LLC, depending on the context.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             An “Industry Member” is defined as “a member of a national securities exchange or a member of a national securities association.” Nasdaq Rule General 7(u) (GEMX General 7 incorporates The Nasdaq Stock Market LLC Rule General 7 by reference) 
                            <E T="03">See also</E>
                             Section 1.1 of the CAT NMS Plan. Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth in the CAT NMS Plan and/or the CAT Compliance Rule. Nasdaq General 7 (Consolidated Audit Trail Compliance).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Securities Exchange Act Rel. No. 98290 (Sept. 6, 2023), 88 FR 62628 (Sept. 12, 2023) (“CAT Funding Model Approval Order”).
                        </P>
                    </FTNT>
                    <P>
                        The CAT Funding Model provides a framework for the recovery of the costs to create, develop and maintain the CAT, including providing a method for allocating costs to fund the CAT among Participants and Industry Members. The CAT Funding Model establishes two categories of fees: (1) CAT fees assessed by CAT LLC and payable by certain Industry Members to recover a portion of historical CAT costs previously paid by the Participants (“Historical CAT Assessment” fees); and (2) CAT fees assessed by CAT LLC and payable by Participants and Industry Members to fund prospective CAT costs (“Prospective CAT Costs” fees).
                        <SU>9</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             Under the CAT Funding Model, the Operating Committee may establish one or more Historical CAT Assessments. Section 11.3(b) of the CAT NMS Plan. This filing only establishes Historical CAT Assessment 1 related to certain Historical CAT Costs as described herein; it does not address any other potential Historical CAT Assessment related to other Historical CAT Costs. In addition, under the CAT Funding Model, the Operating Committee also may establish CAT Fees related to CAT costs going forward. Section 11.3(a) of the CAT NMS Plan. This filing does not address any potential CAT Fees related to CAT costs going forward. Any such other fee for any other Historical CAT Assessment or CAT Fee for Prospective CAT Costs will be subject to a separate fee filing.
                        </P>
                    </FTNT>
                    <P>
                        Under the CAT Funding Model, “[t]he Operating Committee will establish one or more fees (each a `Historical CAT Assessment') to be payable by Industry Members with regard to CAT costs previously paid by the Participants (`Past CAT Costs').” 
                        <SU>10</SU>
                        <FTREF/>
                         In establishing a Historical CAT Assessment, the Operating Committee will determine a “Historical Recovery Period” and calculate a “Historical Fee Rate” for that Historical Recovery Period. Then, for each month in which a Historical CAT Assessment is in effect, each CEBB and CEBS would be required to pay the fee—the Historical CAT Assessment—for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the 
                        <PRTPAGE P="10279"/>
                        transaction by one-third and by the Historical Fee Rate.
                        <SU>11</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, the proposed recovery of the Past CAT Costs via the Historical CAT Assessment is reasonable.” CAT Funding Model Approval Order at 62662.
                        </P>
                    </FTNT>
                    <P>
                        Each Historical CAT Assessment to be paid by CEBBs and CEBSs is designed to contribute toward the recovery of two-thirds of the Historical CAT Costs. Because the Participants previously have paid Past CAT Costs via loans to the Company, the Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made by the Participants to the Company on a pro rata basis based on the outstanding loan amounts due under the loans, instead of through the payment of a CAT fee.
                        <SU>12</SU>
                        <FTREF/>
                         In addition, Participants also will be 100% responsible for certain Excluded Costs (as discussed below).
                    </P>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             Section 11.3(b)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC proposes to charge CEBBs and CEBSs (as described in more detail below) Historical CAT Assessment 1 to recover certain historical CAT costs incurred prior to January 1, 2022, in accordance with the CAT Funding Model. To implement this fee on behalf of CAT LLC, the CAT NMS Plan requires the Participants to “file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves, and such fees shall be labeled as `Consolidated Audit Trail Funding Fees.’ ” 
                        <SU>13</SU>
                        <FTREF/>
                         The Plan further states that “Participants will be required to file with the SEC pursuant to Section 19(b) of the Exchange Act a filing for each Historical CAT Assessment.” 
                        <SU>14</SU>
                        <FTREF/>
                         Accordingly, the purpose of this filing is to implement a Historical CAT Assessment on behalf of CAT LLC for Industry Members, referred to as Historical CAT Assessment 1, in accordance with the CAT NMS Plan.
                        <SU>15</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             Section 11.3(b)(iii)(B)(I) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             Note that there may be one or more Historical CAT Assessments depending on the timing of the completion of the Financial Accountability Milestones, among other things. Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(1) CAT Executing Brokers</HD>
                    <P>
                        Historical CAT Assessment 1 will be charged to each CEBB and CEBS for each applicable transaction in Eligible Securities.
                        <SU>16</SU>
                        <FTREF/>
                         The CAT NMS Plan defines a “CAT Executing Broker” to mean:
                    </P>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             In its approval of the CAT Funding Model, the Commission determined that charging CAT fees to CAT Executing Brokers was reasonable. In reaching this conclusion the Commission noted that the use of CAT Executing Brokers is appropriate because the CAT Funding Model is based upon the calculation of 
                            <E T="03">executed</E>
                             equivalent shares, and, therefore, charging CAT Executing Brokers would reflect their executing role in each transaction. Furthermore, the Commission noted that, because CAT Executing Brokers are already identified in transaction reports from the exchanges and FINRA's equity trade reporting facilities recorded in CAT Data, charging CAT Executing Brokers could streamline the billing process. CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <FP>
                            (a) with respect to a transaction in an Eligible Security that is executed on an exchange, the Industry Member identified as the Industry Member responsible for the order on the buy-side of the transaction and the Industry Member responsible for the sell-side of the transaction in the equity order trade event and option trade event in the CAT Data submitted to the CAT by the relevant exchange pursuant to the Participant Technical Specifications; and (b) with respect to a transaction in an Eligible Security that is executed otherwise than on an exchange and required to be reported to an equity trade reporting facility of a registered national securities association, the Industry Member identified as the executing broker and the Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event in the CAT Data submitted to the CAT by FINRA pursuant to the Participant Technical Specifications; provided, however, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.
                            <SU>17</SU>
                            <FTREF/>
                        </FP>
                        <FTNT>
                            <P>
                                <SU>17</SU>
                                 Section 1.1 of the CAT NMS Plan. Note that CEBBs and CEBSs may, but are not required to, pass-through their CAT fees to their clients, who may, in turn, pass their fees to their clients until they are imposed ultimately on the account that executed the transaction. 
                                <E T="03">See</E>
                                 CAT Funding Model Approval Order at 62649.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The following fields of the Participant Technical Specifications indicate the CAT Executing Brokers for the transactions executed on an exchange.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>18</SU>
                             
                            <E T="03">See</E>
                             Table 23, Section 4.7 (Order Trade Event) of the CAT Reporting Technical Specifications for Plan Participants, Version 4.1.0-r20 (Sept. 25, 2023), 
                            <E T="03">https://www.catnmsplan.com/sites/default/files/2023-09/9.25.2023-CAT_Reporting_Technical_Specifications_for_Participants_4.1.0-r20.pdf</E>
                             (“CAT Reporting Technical Specifications for Plan Participants”).
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="187">
                        <GID>EN13FE24.012</GID>
                    </GPH>
                    <GPH SPAN="3" DEEP="79">
                        <PRTPAGE P="10280"/>
                        <GID>EN13FE24.013</GID>
                    </GPH>
                    <P>
                        In addition,
                        <FTREF/>
                         the following fields of the Participant Technical Specifications would indicate the CAT Executing Brokers for the transactions executed otherwise than on an exchange.
                    </P>
                    <FTNT>
                        <P>
                            <SU>19</SU>
                             
                            <E T="03">See</E>
                             Table 51, Section 5.2.5.1 (Simple Option Trade Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="107">
                        <GID>EN13FE24.014</GID>
                    </GPH>
                    <HD SOURCE="HD3">
                        (2) Calculation
                        <FTREF/>
                         of Historical Fee Rate 1
                    </HD>
                    <FTNT>
                        <P>
                            <SU>20</SU>
                             
                            <E T="03">See</E>
                             Table 61, Section 6.1 (TRF/ORF/ADF Transaction Data Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <P>The Operating Committee determined the Historical Fee Rate to be used in calculating Historical CAT Assessment 1 (“Historical Fee Rate 1”) by dividing the Historical CAT Costs for Historical CAT Assessment 1 (“Historical CAT Costs 1”) by the projected total executed share volume of all transactions in Eligible Securities for the Historical Recovery Period for Historical CAT Assessment 1 (“Historical Recovery Period 1”), as discussed in detail below. Based on this calculation, the Operating Committee has determined that Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. This rate is then divided by three and rounded to determine the fee rate of $0.000015 per executed equivalent share that will be assessed to CEBBs and CEBSs, as also discussed in detail below.</P>
                    <HD SOURCE="HD3">(A) Executed Equivalent Shares for Transactions in Eligible Securities</HD>
                    <P>
                        Under the CAT NMS Plan, for purposes of calculating each Historical CAT Assessment, executed equivalent shares in a transaction in Eligible Securities will be reasonably counted as follows: (1) each executed share for a transaction in NMS Stocks will be counted as one executed equivalent share; (2) each executed contract for a transaction in Listed Options will be counted based on the multiplier applicable to the specific Listed Options (
                        <E T="03">i.e.,</E>
                         100 executed equivalent shares or such other applicable multiplier); and (3) each executed share for a transaction in OTC Equity Securities shall be counted as 0.01 executed equivalent share.
                        <SU>21</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             Section 11.3(a)(i)(B) and 11.3(b)(i)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission concluded that “the use of executed equivalent share volume as the basis of the proposed cost allocation methodology is reasonable and consistent with the approach taken by the funding principles of the CAT NMS Plan.” CAT Funding Model Approval Order at 62640.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Historical CAT Costs 1</HD>
                    <P>
                        The CAT NMS Plan states that “[t]he Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee. Each Historical CAT Assessment will seek to recover from CAT Executing Brokers two-thirds of Historical CAT Costs incurred during the period covered by the Historical CAT Assessment.” 
                        <SU>22</SU>
                        <FTREF/>
                         As described in detail below, Historical CAT Costs 1 would be $337,688,610. This figure includes Past CAT Costs of $401,312,909 minus certain Excluded Costs of $63,624,299. Participants collectively will remain responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), plus the Excluded Costs of $63,624,299. CEBBs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), and CEBSs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870).
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             Section 11.3(b)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        The following describes in detail Historical CAT Costs 1 with regard to four separate historical time periods as well as Past CAT Costs excluded from Historical CAT Costs 1 (“Excluded Costs”). The following cost details are provided in accordance with the requirement in the CAT NMS Plan to provide in the fee filing “a brief description of the amount and type of Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.” 
                        <SU>23</SU>
                        <FTREF/>
                         Each of the costs described below are reasonable, appropriate and necessary for the creation, implementation and maintenance of CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             Section 11.3(b)(iii)(B)(II)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <PRTPAGE P="10281"/>
                    <HD SOURCE="HD3">(i) Historical CAT Costs Incurred Prior to June 22, 2020 (Pre-FAM Costs)</HD>
                    <P>Historical CAT Costs 1 would include costs incurred by CAT prior to June 22, 2020 (“Pre-FAM Period”) and already funded by the Participants, excluding Excluded Costs (described further below). Historical CAT Costs 1 would include costs for the Pre-FAM Period of $143,919,521. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($47,973,174), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($47,973,174) and CEBSs paying one-third ($47,973,174). These costs do not include Excluded Costs, as discussed further below. The following table breaks down Historical CAT Costs 1 for the Pre-FAM Period into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.</P>
                    <GPH SPAN="3" DEEP="295">
                        <GID>EN13FE24.015</GID>
                    </GPH>
                    <P>
                        The Pre-FAM
                        <FTREF/>
                         Period includes a broad range of CAT-related activity from 2012 through June 22, 2020, including the evaluation of the requirements of SEC Rule 613, the development of the CAT NMS Plan, the evaluation and selection of the initial and successor Plan Processors, the commencement of the creation and implementation of the CAT to comply with Rule 613 and the CAT NMS Plan, including technical specifications for transaction reporting and regulatory access, and related technology and the commencement of reporting to the CAT. The following describes the costs for each of the categories for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             With respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>25</SU>
                             The costs described in this table of costs for the Pre-FAM Period were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website. In addition, in accordance with Section 6.6(a)(i) of the CAT NMS Plan, in 2018 CAT LLC provided the SEC with “an independent audit of fees, costs, and expenses incurred by the Participants on behalf of the Company prior to the Effective Date of the Plan that will be publicly available.” The audit is available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>The $10,268,840 in technology costs for cloud hosting services represent costs incurred for services provided by the cloud services provider for the CAT, Amazon Web Services, Inc. (“AWS”), during the Pre-FAM Period.</P>
                    <P>As part of its proposal for acting as the successor Plan Processor for the CAT, FCAT selected AWS as a subcontractor to provide cloud hosting services. In 2019, after reviewing the capabilities of other cloud services providers, FCAT determined that AWS was the only cloud services provider at that time sufficiently mature and capable of providing the full suite of necessary cloud services for the CAT, including, for example, the security, resiliency and complexity necessary for the CAT computing requirements. The use of cloud hosting services is standard for this type of high-volume data activity and reasonable and necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT the fees incurred by the Plan Processor for cloud hosting services provided by AWS as FCAT's subcontrator on a monthly basis for the cloud hosting services, and FCAT, in turn, pays such fees to AWS. The fees for cloud hosting services were negotiated by FCAT on an arm's length basis with the goals of managing cost and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the expected volume of data, the breadth of services provided and market rates for 
                        <PRTPAGE P="10282"/>
                        similar services. The fees for cloud hosting services during the Pre-FAM Period were paid to FCAT by CAT NMS LLC 
                        <SU>26</SU>
                        <FTREF/>
                         and subsequently Consolidated Audit Trail, LLC (as previously noted, both entities are referred to generally as “CAT LLC”),
                        <SU>27</SU>
                        <FTREF/>
                         and FCAT, in turn, paid AWS. CAT LLC was funded via loan contributions by the Participants.
                        <SU>28</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>26</SU>
                             CAT NMS, LLC was formed by FINRA and the U.S. national securities exchanges to implement the requirements of SEC Rule 613 under the Exchange Act. SEC Rule 613 required the SROs to jointly submit to the SEC the CAT NMS Plan to create, implement and maintain the CAT. The SEC approved the CAT NMS Plan on November 15, 2016. CAT NMS Plan Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             On August 29, 2019, the Participants formed a new Delaware limited liability company named Consolidated Audit Trail, LLC for the purpose of conducting activities related to the CAT from and after the effectiveness of the proposed amendment of the CAT NMS Plan to replace CAT NMS, LLC. 
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 87149 (Sept. 27, 2019), 84 FR 52905 (Oct. 3, 2019).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             For each of the costs paid by CAT NMS, LLC and Consolidated Audit Trail, LLC as discussed throughout this filing, CAT NMS, LLC and Consolidated Audit Trail, LLC paid these costs via loan contributions by the Participants to CAT NMS, LLC and Consolidated Audit Trail, LLC, respectively.
                        </P>
                    </FTNT>
                    <P>AWS was engaged by FCAT to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. Services provided by AWS include storage services, databases, compute services and other services (such as networking, management tools and DevOps tools). AWS also was engaged to provide various environments for CAT, such as development, performance testing, test and production environments.</P>
                    <P>
                        The cost for AWS services for the CAT is a function of the volume of CAT Data. The greater the amount of CAT Data, the greater the cost of AWS services to the CAT. During the Pre-FAM Period from the engagement of AWS in February 2019 through June 2020, AWS provided cloud hosting services for volumes of CAT Data far in excess of the volume predictions set forth in the CAT NMS Plan. The CAT NMS Plan states, when all CAT Reporters are submitting their data to the CAT, it “must be sized to receive[,] process and load more than 58 billion records per day,” 
                        <SU>29</SU>
                        <FTREF/>
                         and that “[i]t is expected that the Central Repository will grow to more than 29 petabytes of raw, uncompressed data.” 
                        <SU>30</SU>
                        <FTREF/>
                         However, the volume of CAT Data for the Pre-FAM Period was far in excess of these predicted levels. By the end of this period, data submitted to the CAT included options and equities Participant Data,
                        <SU>31</SU>
                        <FTREF/>
                         Phase 2a and Phase 2b Industry Member Data 
                        <SU>32</SU>
                        <FTREF/>
                         (including certain linkages), as well as SIP Data,
                        <SU>33</SU>
                        <FTREF/>
                         reference data and other types of Other Data.
                        <SU>34</SU>
                        <FTREF/>
                         The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during the Pre-FAM Period.
                        <SU>35</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             Appendix D-5 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             
                            <E T="03">See</E>
                             Section 6.3(d) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Rel. No. 88702 (Apr. 20, 2020), 85 FR 23075 (Apr. 24, 2020) (“Phased Reporting Exemptive Relief Order”) for a description of Phase 2a and Phase 2b Industry Member Data.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See</E>
                             Appendix C-108 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                        <P>
                            <SU>36</SU>
                             Note that, although there were compute hours during this period, data related to such compute hours are no longer available in current data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="350">
                        <GID>EN13FE24.016</GID>
                    </GPH>
                    <PRTPAGE P="10283"/>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>
                        The $21,085,485 in technology costs related to operating fees represent costs incurred with regard to activities of FCAT as the Plan Processor. Operating fees are those fees paid by CAT LLC to FCAT as the Plan Processor to operate and maintain the CAT and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management as required by the CAT NMS Plan.
                    </P>
                    <P>
                        FCAT was selected to assume the role of the successor Plan Processor. Prior to this selection, the Participants engaged in discussions with two prior Bidders 
                        <SU>37</SU>
                        <FTREF/>
                         for the successor Plan Processor role. The Operating Committee formed a Selection Subcommittee in accordance with Section 4.12 of the CAT NMS Plan to evaluate and review Bids and to make a recommendation to the Operating Committee with respect to the selection of the successor Plan Processor. In an April 9, 2019 letter to the Commission, the Participants described the reasons for its selection of the successor Plan Processor:
                    </P>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             The term “Bidder” is defined in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>The Selection Subcommittee considered factors including, but not limited to, the following, in recommending FINRA to the Operating Committee as the successor Plan Processor:</P>
                    <EXTRACT>
                        <P>a. FINRA's specialized technical expertise and capabilities in the area of broker-dealer technology;</P>
                        <P>b. The need to appoint a successor Plan Processor with specialized expertise to develop, implement, and maintain the CAT System in accordance with the CAT NMS Plan and SEC Rule 613;</P>
                        <P>c. FINRA's detailed proposal in response to CATLLC's recent inquiries; and</P>
                        <P>d. FINRA's data query and analytics systems demonstration to the Participants.</P>
                    </EXTRACT>
                    <P>
                        Based on these and other factors, the Selection Subcommittee determined that FINRA was the most appropriate Bidder to become the successor Plan Processor.
                        <SU>38</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             Letter from Michael J. Simon, Chair, CAT NMS, LLC Operating Committee, to Brent J. Fields, Secretary, SEC (Apr. 9, 2019), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection-040919.pdf.</E>
                        </P>
                    </FTNT>
                    <P>
                        On February 26, 2019, the Operating Committee (with FINRA recusing itself) voted to select FINRA as the successor Plan Processor pursuant to Section 6.1(t) of the CAT NMS Plan.
                        <SU>39</SU>
                        <FTREF/>
                         On March 29, 2019, CAT LLC and FCAT (a wholly owned subsidiary of FINRA) entered into a Plan Processor Agreement pursuant to which FCAT would perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>39</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT a negotiated monthly fixed price for the operation of the CAT. This fixed price contract was negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity. The operating fees during the Pre-FAM Period were paid to FCAT by CAT LLC.</P>
                    <P>From March 29, 2019 (the commencement of the Plan Processor Agreement with FCAT) through June 22, 2020 (the end of the Pre-FAM Period), the Plan Processor's activities with respect to the CAT included the following:</P>
                    <P>
                        • Commenced user acceptance testing with market data provided by Exegy Incorporated (“Exegy”), a market data provider; 
                        <SU>40</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             The use of Exegy to provide market data, including the costs and market data provided, is discussed below in Section 3(a)(2)(B)(i)(i).
                        </P>
                    </FTNT>
                    <P>• Published Technical Specifications and related reporting scenarios documents for Phase 2a, 2b and 2c reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated testing for Phase 2a and 2b reporting for Industry Members;</P>
                    <P>• Began developing Technical Specifications and related reporting scenarios documents for Phase 2d reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published Central Repository Access Technical Specifications, and provided regulator access to test data from Industry Members;</P>
                    <P>• Facilitated Participant exchanges that support options market makers sending Quote Sent Time to the CAT;</P>
                    <P>• Facilitated the introduction of OPRA and Options NBBO Other Data to CAT;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing requirements under Regulation SCI;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants, SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk, which is the primary source for answers to questions about CAT, including questions regarding: clock synchronization, firm reporting responsibilities, interpretive questions, technical specifications for reporting to CAT and more;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>
                        • Administered the CAT website and all of its content; 
                        <SU>41</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             The CAT website is 
                            <E T="03">https://www.catnmsplan.com.</E>
                        </P>
                    </FTNT>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>The $2,072,908 in technology costs related to CAIS operating fees represent the fees paid for FCAT's subcontractor charged with the development and operation of CAT's Customer and Account Information System (“CAIS”). The CAT is required under the CAT NMS Plan to capture and store Customer Identifying Information and Customer Account Information in a database separate from the transactional database and to create a CAT-Customer-ID for each Customer.</P>
                    <P>During the Pre-FAM Period, the CAIS-related services were provided by the Plan Processor through the Plan Processor's subcontractor, Kingland Systems Incorporation (“Kingland”). Kingland had experience operating in the securities regulatory technology space, and as a part of its proposal for acting as the Plan Processor for the CAT, FCAT selected Kingland as a subcontractor to provide certain CAIS-related services.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay to the Plan Processor the fees incurred by the FCAT for CAIS-related services provided by FCAT through Kingland on 
                        <PRTPAGE P="10284"/>
                        a monthly basis. FCAT negotiated the fees for Kingland's CAIS-related services on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity. The fees for CAIS-related services during the Pre-FAM Period were paid by CAT LLC to FCAT. FCAT, in turn, paid Kingland. During the Pre-FAM Period, Kingland began development of the CAIS Technical Specifications and the building of CAIS. In addition, Kingland also worked on the build related to the CCID Alternative, an alternative approach to customer information that was not included in the CAT NMS Plan as originally adopted.
                        <SU>42</SU>
                        <FTREF/>
                         Furthermore, Kingland also worked on the acceleration of the reporting of large trader identifiers (“LTID”) earlier than originally contemplated during this period, in accordance with exemptive relief granted by the SEC.
                        <SU>43</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             For a discussion of the CCID Alternative, 
                            <E T="03">see</E>
                             Securities Exchange Act Rel. No. 88393 (Mar. 17, 2020), 85 FR 16152 (Mar. 20, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             Phased Reporting Exemptive Relief Order at 23079-80.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        The technology costs related to change request fees include costs related to certain modifications, upgrades or other changes to the CAT. Change requests are standard practice and necessary to reflect operational changes, including changes related to new market developments, such as new market participants. In general, if CAT LLC determines that a modification, upgrade or other changes to the functionality or service is necessary and appropriate, CAT LLC will submit a request for such a change to the Plan Processor. The Plan Processor will then respond to the request with a proposal for implementing the change, including the cost (if any) of such a change. CAT LLC then determines whether to approve the proposed change. The change request costs were paid by CAT LLC to FCAT. During the Pre-FAM Period, CAT LLC incurred costs of $141,346 related to change requests implemented by FCAT. Such change requests related to a development fee regarding the OPRA and SIP data feeds, and the reprocessing of certain exchange data.
                        <SU>44</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             Note that CAT LLC also has incurred costs related to specific Industry Members (
                            <E T="03">e.g.,</E>
                             reprocessing costs related to Industry Member reporting errors).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>This category of costs includes capitalizable application development costs incurred in the development of the CAT. The capitalized developed technology costs for the Pre-FAM Period of $71,475,941 relate to technology provided by the Initial Plan Processor and the successor Plan Processor.</P>
                    <P>
                        <E T="03">Initial Plan Processor: Thesys CAT, LLC.</E>
                         The capitalized developed technology costs related to the Initial Plan Processor include costs incurred with regard to testing for Participant reporting, Participant reporting to the CAT, a security assessment of the CAT, the development of the billing function for the CAT, and a Plan Processor transition fee.
                    </P>
                    <P>
                        On January 17, 2017, the Selection Committee of the CAT NMS Plan selected the Initial Plan Processor, Thesys Technologies, LLC, for the CAT NMS Plan pursuant to Article V of the CAT NMS Plan.
                        <SU>45</SU>
                        <FTREF/>
                         The Participants utilized a request for proposal (“RFP”) to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan, taking into consideration that the Initial Plan Processor had experience operating in the securities regulatory technology space, among other considerations. On April 6, 2017, CAT LLC entered into an agreement with Thesys CAT LLC (“Thesys CAT”), a Thesys affiliate, to perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT. Under the agreement, CAT LLC would pay Thesys CAT a negotiated, fixed price fee for its role as the Initial Plan Processor. Effective January 30, 2019, the Plan Processor Agreement with Thesys CAT was terminated, and FCAT was subsequently selected as the successor Plan Processor.
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             Letter from the Participants to Brent J. Fields, Secretary, SEC (Jan. 18, 2017), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection.pdf.</E>
                        </P>
                    </FTNT>
                    <P>From January 17, 2017 through January 30, 2019, the time in which the Thesys CAT was engaged for the CAT, but excluding the period from November 15, 2017 through November 15, 2018, the Initial Plan Processor engaged in various activities with respect to the CAT, including preparing iterative drafts of Participant Technical Specifications, Industry Member Technical Specifications and the Central Repository Access Technical Specifications. Thesys CAT initiated and maintained the Participant reporting per the Participant Technical Specifications. In addition, Thesys CAT also developed CAT technology, addressed compliance items, including drafting CAT policies and procedures, addressing Regulation SCI requirements, establishing a CAT Compliance Officer and a Chief Information Security Officer, and addressed security-related matters for the CAT. Furthermore, Thesys CAT performed transition services related to the transition from Thesys CAT to FCAT as the successor Plan Processor from January 30, 2019 through April 15, 2019.</P>
                    <P>
                        <E T="03">Successor Plan Processor: FCAT.</E>
                         The capitalized developed technology costs related to FCAT include: (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, including the completion of go-live functionality related to options ingestion and validation, equities regulatory services agreement query tool updates and unlinked options data query, options linkages release, Industry Member Phase 2a file submission and data integrity (including error corrections), and Industry Member testing, including reporting relationships, ATS order type management, basic reporting statistics, SFTP data integrity feedback and error correction; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including a one-time development fee for a secure analytics workspace, a one-time development fee of an Industry Member connectivity solution, and a one-time development fee for the acceleration of multi-factor authentication; (3) CAIS implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $19,674,463 represent the fees paid for legal services provided by two law firms, Wilmer Cutler Pickering Hale and Dorr LLP (“WilmerHale”) and Pillsbury Winthrop Shaw Pittman LLP (“Pillsbury”), during the Pre-FAM Period. The legal costs exclude those costs incurred from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         Following the adoption of Rule 613, the Participants determined it was necessary to engage 
                        <PRTPAGE P="10285"/>
                        external legal counsel to advise the Participants with respect to corporate and regulatory legal matters related to the CAT, including drafting and developing the CAT NMS Plan. The Participants considered a variety of factors in their analysis of prospective law firms, including (1) the firm's qualifications, resources and expertise, (2) the firm's relevant experience and understanding of the regulatory matters raised by the CAT and in advising on matters of similar scope, (3) the composition of the legal team, and (4) professional fees. Following a series of interviews, the Participants acting as a consortium determined that WilmerHale was well qualified given the balance of these considerations and engaged WilmerHale in February 2013.
                    </P>
                    <P>WilmerHale's billing rates are negotiated on an annual basis and are determined with reference to the rates charged by other leading law firms for similar work. The Participants assess WilmerHale's performance and review prospective budgets and staffing plans submitted by WilmerHale on an annual basis. WilmerHale's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading law firms for similar work.</P>
                    <P>The legal costs for WilmerHale during the Pre-FAM Period included costs incurred from 2013 until June 22, 2020 to address corporate and regulatory legal matters related to the CAT. The legal fees for this law firm during the period from February 2013 until the formation of the CAT NMS, LLC on November 15, 2016 were paid directly by the exchanges and FINRA to WilmerHale. After the formation of CAT NMS LLC, the legal fees were paid by CAT LLC to WilmerHale.</P>
                    <P>After WilmerHale was engaged in 2013 through the end of the Pre-FAM Period on June 22, 2020 (excluding the legal costs from November 15, 2017 through November 15, 2018), WilmerHale provided legal assistance to the CAT on a variety of matters, including with regard to the following:</P>
                    <P>• Analyzed various legal matters associated with the Selection Plan, and drafted an amendment to Selection Plan;</P>
                    <P>• Assisted with the RFP and bidding process for the CAT Plan Processor;</P>
                    <P>• Analyzed legal matters related to the Development Advisory Group (“DAG”);</P>
                    <P>• Drafted the CAT NMS Plan, analyzed various items related to the CAT NMS Plan, and responded to comment letters on CAT NMS Plan;</P>
                    <P>
                        • Provided legal support for the formation of the legal entity, the governance of the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan; and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan and related filings;</P>
                    <P>• Negotiated and drafted the plan processor agreements with the Initial Plan Processor and the successor Plan Processor;</P>
                    <P>• Provided assistance with compliance with Regulation SCI;</P>
                    <P>• Assisted with clock synchronization study;</P>
                    <P>• Provided assistance with respect to the establishment of CAT security;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including with regard to options market maker quotes, Customer IDs, CAT Reporter IDs, linking allocations to executions, CAT reporting timeline, FDIDs, customer and account information, timestamp granularity, small industry members, data facility reporting and linkage, allocation reports, SRO-assigned market participant identifiers and cancelled trade indicators, thereby seeking to implement changes that would be cost effective and benefit Industry Members and Participants;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided advice regarding CAT policies and procedures;</P>
                    <P>• Analyzed the SEC's amendment of the CAT NMS Plan regarding financial accountability;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues; and</P>
                    <P>• Assisted with third party vendor agreements.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         The legal costs for CAT during the Pre-FAM Period include costs related to the legal services performed by Pillsbury. The Participants interviewed this law firm as well as other potential law firms to provide legal assistance regarding certain liability matters. After considering a variety of factors in its analysis, including the relevant expertise and fees of the firm, CAT LLC determined to hire Pillsbury in April 2019. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees were paid by CAT LLC to Pillsbury. The legal costs for Pillsbury during the Pre-FAM Period included costs incurred from April 2019 until June 22, 2020 to address legal matters regarding the agreements between CAT Reporters and CAT LLC concerning certain terms associated with CAT Reporting (the “Reporter Agreement”). During that period, Pillsbury advised CAT LLC regarding applicable legal matters, participated in negotiations between the Participants and Industry Members, participated in meetings with senior SEC staff, the Chairman, and Commissioners, represented CAT LLC and the Participants in an SEC administrative proceeding, and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, litigation involving CAT LLC is an expense of operating the CAT, and, therefore, is appropriately an obligation of both Participants and Industry Members under the CAT Funding Model.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $17,013,414 represent the fees paid to the consulting firm Deloitte &amp; Touche LLP (“Deloitte”) as project manager during the Pre-FAM Period, from October 2012 until June 22, 2020. These consulting costs include costs for advisory services related to the operation of the CAT, and meeting facilitation and communications coordination, vendor support and financial analyses.</P>
                    <P>
                        To help facilitate project management given the unprecedented complexity and scope of the CAT project, the Participants determined it was necessary to engage a consulting firm to assist with the CAT project in 2012, following the adoption of Rule 613. A variety of factors were considered in the analysis of prospective consulting firms, including (1) the firm's qualifications, resources, and expertise, (2) the firm's relevant experience and understanding of the regulatory issues raised by the CAT and in coordinating matters of 
                        <PRTPAGE P="10286"/>
                        similar scope, (3) the composition of the consulting team, and (4) professional fees. Following a series of interviews, the exchanges and FINRA as a consortium determined that Deloitte was well qualified given the balance of these considerations and engaged Deloitte on October 1, 2012.
                    </P>
                    <P>Deloitte's fee rates are negotiated on an annual basis and are in line with market rates for this type of specialized consulting work. CAT LLC assesses Deloitte's performance and reviews prospective budgets and staffing plans submitted by Deloitte on an annual basis. Deloitte's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading consulting firms for similar work.</P>
                    <P>The consulting costs for CAT during the period from 2012 until the formation of the CAT NMS, LLC were paid directly by the Participants to Deloitte. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC to Deloitte. CAT LLC reviewed the consulting fees each month and approved the invoices.</P>
                    <P>After Deloitte was hired in 2012 through the end of the Pre-FAM Period on June 22, 2020 (excluding the consulting costs from November 15, 2017 through November 15, 2018), Deloitte provided a variety of consulting services, including the following:</P>
                    <P>
                        • Established and implemented program operations for the CAT project, including the program managment [
                        <E T="03">sic</E>
                        ] office and workstream design;
                    </P>
                    <P>• Assisted with the Plan Processor selection process, including but not limited to, the development of the RFP and the bidder evaluation process, and facilitation and consolidation of the Participant's independent reviews;</P>
                    <P>• Assisted with the development and drafting of the CAT NMS Plan, including conducting cost-benefit studies, analyzing OATS and CAT requirements, and drafting appendices to the Plan;</P>
                    <P>• Assisted with cost and funding-related activities for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>
                        • Provided governance support to the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with industry outreach and communications regarding the CAT, including assistance with industry outreach events, the development of the CAT website, frequently asked questions, and coordinating with the CAT LLC's public relations firm;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress;</P>
                    <P>• Coordinated efforts regarding the selection of the successor Plan Processor;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor, including support for the Operating Committee and successor Plan Processor for the new role; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $880,419 represent the cost incurred for insurance for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT insurance policies, which included engaging in discussions with different insurance companies and conducting cost comparisons of various alternative approaches to insurance. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance from USI Insurance Services LLC (“USI”). Such policies are standard for corporate entities, and cyber security liability insurance is important for the CAT System. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        In adopting the CAT NMS Plan, the Commission amended the Plan to add a requirement that CAT LLC's financial statements be prepared in compliance with GAAP, audited by an independent public accounting firm, and made publicly available.
                        <SU>46</SU>
                        <FTREF/>
                         The professional and administration costs include costs related to accounting and accounting advisory services to support the operating and financial functions of CAT, financial statement audit services by an independent accounting firm, preparation of tax returns, and various cash management and treasury functions. In addition, professional and administration costs for the Pre-FAM Period include costs related to the receipt of market data and a security assessment. The costs for these professional and administration services were $1,082,036 for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             Section 9.2 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin Accountants &amp; Advisors (“Anchin”).</E>
                         CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT in April 2018. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services were paid by CAT LLC to Anchin.
                    </P>
                    <P>After Anchin was hired in April 2018 through the end of the Pre-FAM Period on June 22, 2020 (excluding the period from April 2018 through November 15, 2018), Anchin provided a variety of services, including the following:</P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial and operating inquiries from Participants;</P>
                    <P>
                        • Developed and maintained quarterly and annual operating and 
                        <PRTPAGE P="10287"/>
                        financial budgets, including budget to actual fluctuation analyses;
                    </P>
                    <P>• Addressed accounting and financial reporting matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton LLP (“Grant Thornton”).</E>
                         In February 2020, CAT LLC determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the proposed role given the balance of these considerations. Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services. The fees for these services were paid by CAT LLC to Grant Thornton.
                    </P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         The professional and administrative costs for the Pre-FAM Period included costs related to the receipt of certain market data for the CAT pursuant to an agreement with the CAT LLC, and then with FCAT. Exegy provided SIP Data required by the CAT NMS Plan.
                    </P>
                    <P>
                        After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy from July 2018 through March 2019. CAT LLC determined that, unlike certain other vendors, Exegy provided market data that included all data elements required by the CAT NMS Plan.
                        <SU>47</SU>
                        <FTREF/>
                         In addition, the fees were reasonable and in line with market rates for the market data received. Accordingly, the professional and administrative costs for the Pre-FAM Period include the Exegy costs from November 2018 through March 2019. The cost of the market data was reasonable for the market data received. The fees for the market data were paid directly by CAT LLC to Exegy.
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>Upon the termination of the contract between CAT LLC and Exegy, FCAT entered into a contract with Exegy to purchase the required market data from Exegy in July 2019. All costs under the contract were treated as a direct pass through cost to CAT LLC. Therefore, the fees for the market data were paid by CAT LLC to FCAT, who, in turn, paid Exegy for the market data.</P>
                    <P>
                        <E T="03">Security Assessment: RSM US LLP (“RSM”).</E>
                         The operating costs for the Pre-FAM Period include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation, and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment. RSM performed the assessment from October 2018 through December 2018. Accordingly, the costs for the Pre-FAM Period include the costs incurred in November and December 2018. The cost for the security assessment were paid directly to RSM by CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $224,669 represent the fees paid to public relations firms during the Pre-FAM Period for professional communications services to CAT, including media relations consulting, strategy and execution. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants. Specifically, the public relations firms provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                    </P>
                    <P>The services performed by each of the public relations firms were comparable. The fees for such services were reasonable and in line with market rates. Only one public relations firm was engaged at a time; the three firms were engaged sequentially as the primary public relations contact moved among the three firms during this time period.</P>
                    <P>
                        <E T="03">Public Relations Firm: Peppercomm, Inc. (“Peppercomm”).</E>
                         The national securities exchanges and FINRA, acting as a consortium, determined to hire the public relations firm Peppercomm in October 2014 and continued to engage this firm through September 2017. The exchanges and FINRA made this engagement decision after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fee rates for this public relations firm were negotiated on an arm's length basis and were in line with market rates for these types of services. The public relations costs during the period from October 2014 until the formation of the CAT NMS LLC were paid directly by the exchanges and FINRA to the public relations firm. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Sloane &amp; Company (“Sloane”).</E>
                         CAT LLC determined to hire a new public relations firm, Sloane, in March 2018, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Sloane. CAT LLC continued the engagement with Sloane until February 2020.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Peak Strategies.</E>
                         CAT LLC determined to hire a new public relations firm, Peak Strategies, in March 2020, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Peak Strategies.
                        <PRTPAGE P="10288"/>
                    </P>
                    <HD SOURCE="HD3">(ii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 1</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 1 of the Financial Accountability Milestones (“FAM Period 1”),
                        <SU>48</SU>
                        <FTREF/>
                         which covers the period from June 22, 2020—July 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 1 of $6,377,343. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($2,125,781), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781). The following table breaks down Historical CAT Costs 1 for FAM Period 1 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             Section 11.6(a)(i)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <GID>EN13FE24.017</GID>
                    </GPH>
                    <P>
                        By the
                        <FTREF/>
                         completion of FAM Period 1, CAT LLC was required to implement the reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of equities transaction data and options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.
                        <SU>51</SU>
                        <FTREF/>
                         CAT LLC completed the requirements of FAM Period 1 by July 31, 2020. The following describes the costs for each of the categories for FAM Period 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>50</SU>
                             The costs described in this table of costs for FAM Period 1 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             
                            <E T="03">See</E>
                             definition of “Initial Industry Member Core Equity and Options Reporting” in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 1 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 1 Period. Accordingly, the $2,642,122 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 1. The fee arrangement for AWS described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. Moreover, CAT LLC continued to believe that AWS's maturity in the cloud services space as well as the significant cost and time necessary to move the CAT to a different cloud services provider supported the continued engagement of AWS.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 1 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, reference data and other types of Other Data. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 1.
                        <SU>52</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="298">
                        <PRTPAGE P="10289"/>
                        <GID>EN13FE24.018</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 1. Accordingly, the $1,099,680 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 1. The fee arrangement for FCAT described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Published iterative drafts of draft Technical Specifications for Phase 2d, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published iterative drafts of CAIS Technical Specifications, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated Industry Member reporting of Quote Sent Time on Options Market Maker quotes;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 1. Accordingly, the $254,998 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 1. The fee arrangement for Kingland described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>CAT LLC did not incur costs related to change requests during FAM Period 1.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>
                        Capitalized developed technology costs for FAM Period 1 of $1,684,870 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include: (1) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including separate production and industry test entitlements, and reprocessing of exchange event 
                        <PRTPAGE P="10290"/>
                        timestamps; (2) implementation fees; and (3) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $481,687 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 1.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 1 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to WilmerHale. During FAM Period 1, WilmerHale provided legal assistance to the CAT including with regard to the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments and fee filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, verbal activity, options market maker quote sent time, TRF linkages, and allocations;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including the Financial Accountability Milestone amendment;</P>
                    <P>• Assisted with compliance with Regulation SCI;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the drafting of the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Assisted with communications and presentations for the industry regarding CAIS;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding CAT technical specifications;</P>
                    <P>• Assisted with third party vendor agreements; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to Pillsbury. During FAM Period 1, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $137,209 represent the fees paid to Deloitte as project manager during FAM Period 1. CAT LLC continued to employ Deloitte during FAM Period 1 based on, among other things, their expertise and cumulative experience with the CAT. The fee rates for Deloitte during FAM Period 1 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 1 were paid by CAT LLC to the consulting firm. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 1, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>Although insurance was in effect during FAM Period 1, CAT LLC did not incur costs related to insurance during FAM Period 1.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         The professional and administration costs of $69,077 represent the fees paid to Anchin during FAM Period 1. CAT LLC continued to employ Anchin during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these type of financial advisory services. The fees for these services during FAM Period 1 were paid by CAT LLC to Anchin. During FAM Period 1, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups; and</P>
                    <P>• Prepared monthly and quarterly financial statements.</P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $7,700 represent the fees paid to Peak Strategies during FAM Period 1. CAT LLC continued to employ Peak Strategies during FAM Period 1 based on, among other things, their expertise and history with the project. The fee rates for this firm were reasonable and in line with market rates for these types of services. The fees for these services during FAM Period 1 were paid by CAT LLC to Peak Strategies. During FAM Period 1, Peak Strategies continued to provide professional communications services to CAT LLC, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT 
                        <PRTPAGE P="10291"/>
                        (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 2</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT LLC and already funded by Participants during Period 2 of the Financial Accountability Milestones (“FAM Period 2”),
                        <SU>53</SU>
                        <FTREF/>
                         which covers the period from August 1, 2020-December 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 2 of $42,976,478. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($14,325,493), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($14,325,493) and CEBSs paying one-third ($14,325,493). The following table breaks down Historical CAT Costs 1 for FAM Period 2 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             Section 11.6(a)(i)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <GID>EN13FE24.019</GID>
                    </GPH>
                    <P>
                        By the
                        <FTREF/>
                         completion of FAM Period 2, CAT LLC was required to implement the following with regard to the CAT:
                    </P>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>55</SU>
                             The costs described in this table of costs for FAM Period 2 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, CustomerID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission.
                            <SU>56</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>56</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Implementation of Core Equity Reporting Requirements” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 2 by December 31, 2020. The following describes the costs for each of the categories for FAM Period 2.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 2 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 2 Period. Accordingly, the $20,709,212 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 2. The fee arrangement for AWS described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 2 Period, the volume of CAT Data 
                        <PRTPAGE P="10292"/>
                        continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, and Other Data, including reference data. In addition, Industry Members began reporting LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 2.
                        <SU>57</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>57</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="315">
                        <GID>EN13FE24.020</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 2. Accordingly, the $9,108,700 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 2. The fee arrangement for FCAT described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, FCAT's activities with respect to the CAT included publishing the Technical Specifications for Phase 2d and overseeing the reporting of firm to firm and intrafirm linkages by Industry Members. In addition, FCAT also continued to engage in the following activities during FAM Period 2:</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the development and implementation of the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>
                        Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 2. Accordingly, the $1,590,298 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 2. The fee arrangement for Kingland described above with regard to the Pre-FAM Period and FAM Period 1 
                        <PRTPAGE P="10293"/>
                        continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs.
                    </P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 2, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 2, CAT incurred costs of $51,823 related to a change request regarding the addition of functionality for exchange Participants to report rejected messages to the CAT.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 2 of $6,761,094 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to separate production and industry test entitlements, market maker reference data, and back-processing of exchange exception logic; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $2,766,644 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 2.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 2 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to WilmerHale. During FAM Period 1 [
                        <E T="03">sic</E>
                        ], the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, allocations, exchange activity, OTQT, initial data validation, error corrections and recordkeeping;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittees, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6 of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for the Compliance Subcommittee, including with regard to responses to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding the SEC's proposed security amendments to the CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>
                        • Assisted with third party vendor agreements (
                        <E T="03">e.g.,</E>
                         with regard to Anchin, Grant Thornton and insurance policies);
                    </P>
                    <P>• Assisted with change requests; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to Pillsbury. During FAM Period 2, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted and filed a proposed amendment to the CAT NMS plan regarding liability matters. As discussed above, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $532,146 represent the fees paid to Deloitte as project manager during FAM Period 2. CAT LLC continued to employ Deloitte during FAM Period 2 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 2 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 2 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 2, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $976,098 represent the fees paid for insurance during FAM Period 2. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $438,523 represent the fees paid to Anchin and Grant Thornton for financial services provided during FAM Period 2.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to engage Anchin during FAM Period 2 based on, among other things, their expertise and history 
                        <PRTPAGE P="10294"/>
                        with the project. The hourly fee rates for this firm were in line with market rates for these types of financial advisory services. The fees for these services during FAM Period 2 were paid by CAT LLC to Anchin. During FAM Period 2, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from the Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audit by an independent auditor; and</P>
                    <P>• Reviewed historical costs from inception.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 2 based on, among other things, its expertise and cumulative knowledge of CAT LLC. CAT LLC continued to believe that Grant Thornton was well qualified for its role and its fee rates were in line with with market rates for these accounting services. The fees for these services during FAM Period 2 were paid by CAT LLC to Grant Thornton. During FAM Period 2, Grant Thornton performed a financial statement audit for CAT LLC as an independent accounting firm.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $41,940 represent the fees paid to Peak Strategies during FAM Period 2. CAT LLC continued to employ Peak Strategies during FAM Period 2 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 2 were paid by CAT LLC to Peak Strategies. During FAM Period 2, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iv) Historical CAT Costs Incurred in Financial Accountability Milestone Period 3</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 3 of the Financial Accountability Milestones (“FAM Period 3”),
                        <SU>58</SU>
                        <FTREF/>
                         which covers the period from January 1, 2021-December 31, 2021. Historical CAT Costs 1 would include costs for FAM Period 3 of $144,415,268. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($48,138,423), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($48,138,423) and CEBSs paying one-third ($48,138,423). The following table breaks down Historical CAT Costs 1 for FAM Period 3 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             Section 11.6(a)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10295"/>
                        <GID>EN13FE24.021</GID>
                    </GPH>
                    <P>
                        By the
                        <FTREF/>
                         completion of FAM Period 3, CAT LLC was required to implement the following requirements with regard the CAT:
                    </P>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>60</SU>
                             The costs described in this table of costs for FAM Period 3 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <FP>
                            (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met.
                            <SU>61</SU>
                            <FTREF/>
                        </FP>
                        <FTNT>
                            <P>
                                <SU>61</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Availability and Regulatory Utilization of Transactional Database Functionality” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 3 by December 31, 2021. The following describes the costs for each of the categories for FAM Period 3.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 3 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 3 Period. Accordingly, the $94,574,759 in technology costs for cloud hosting services represents costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 3. The fee arrangement for AWS described above for the earlier periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During FAM Period 3, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a, Phase 2b, Phase 2c and Phase 2d Industry Member Data (including certain linkages), SIP Data, Other Data, including reference data, and LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 3.
                        <SU>62</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>62</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="325">
                        <PRTPAGE P="10296"/>
                        <GID>EN13FE24.022</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 3. Accordingly, the $23,106,091 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 3. The fee arrangement for FCAT described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Facilitated Phase 2c and Phase 2d testing for Industry Members;</P>
                    <P>• Oversaw creation of linkages of the lifecycle of order events based on the received data through Phase 2d;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement with FCAT discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 3. Accordingly, the $5,562,383 in technology costs for CAIS operating fees represents costs incurred for services provided by Kingland during FAM Period 3. The fee arrangement for Kingland described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs. The full CAIS Technical Specifications were published during FAM Period 3.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        During FAM Period 3, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 3, CAT incurred costs of $396,169 related to change requests, including the following: (1) the addition of functionality for exchange Participants to report rejected messages to the CAT; (2) the migration of MIRS query engine to AWS to reduce operational costs and increase resiliency; and (3) updating the Participant Technical Specifications to allow for two-sided Participant option quote reporting.
                        <PRTPAGE P="10297"/>
                    </P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 3 of $10,763,372 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor, including the transition from equity data received by FINRA pursuant to various regulatory services agreements between FINRA and Participant exchanges to the equity CAT Data, and the completion of the Industry Member Phase 2d options manual and complex orders go-live requirements; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to off-exchange volume concentration, Participant 24-hour trading and an external metastore; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $6,333,248 represent the fees paid for legal services provided by three law firms, WilmerHale, Pillsbury and Covington &amp; Burling LLP (“Covington”) during FAM Period 3.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 3 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to WilmerHale. During FAM Period 3, the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including, for example, verbal activity regarding Phase 2c cutover, error reports, error corrections, Phase 2d Reporting, unique Order-ID on internal route events, reporting addresses, recordkeeping, and unique CCID for foreign customers;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs, CAIS requirements, ADF, and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6(c) of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding SEC's proposed security amendments to CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>• Provided assistance with change requests;</P>
                    <P>• Provided guidance and regulatory support for litigation regarding the response to SEC's exemptive orders;</P>
                    <P>• Assisted with communications with the industry, includng CAT Alerts and presentations;</P>
                    <P>• Provided guidance regarding the confidentiality of CAT Data, including third-party information requests;</P>
                    <P>• Assisted with cost management analysis and proposals; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to Pillsbury. During FAM Period 3, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During this period, Pillsbury advised CAT LLC regarding applicable legal matters, reviewed and responded to comment letters regarding the proposed Plan amendment, participated in meetings with senior SEC staff, responded to comments submitted following the SEC's April 6, 2021 order instituting proceedings,
                        <SU>63</SU>
                        <FTREF/>
                         and assessed legal matters regarding the SEC's October 29, 2021 order denying the proposed Plan amendment.
                        <SU>64</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             Securities Exchange Act Rel. No. 91487 (Apr. 6, 2021), 86 FR 19054 (Apr. 12, 2021).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             Securities Exchange Act Rel. No. 93484 (Oct. 29, 2021), 86 FR 60933 (Nov. 4, 2021).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Law Firm: Covington.</E>
                         CAT LLC hired Covington for litigation with the SEC regarding certain exemptive orders related to the CAT, including orders issued in December 2020.
                        <SU>65</SU>
                        <FTREF/>
                         CAT LLC interviewed this law firm as well as other potential law firms, considering a variety of factors in its analysis for choosing legal assistance, including the relevant expertise and fees of the potential lawyers. CAT LLC approved the engagement of Covington in January 2021. The fee rates for this law firm, which were calculated based on hourly rates, were in line with market rates for specialized services. The legal fees for FAM Period 3 for this firm were paid by CAT LLC to Covington.
                    </P>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 90688 (Dec. 16, 2020), 85 FR 83634 (Dec. 22, 2020); and Securities Exchange Act Rel. No. 90689 (Dec. 16, 2020), 85 FR 83667 (Dec. 22, 2020) (collectively, the “2020 Orders”).
                        </P>
                    </FTNT>
                    <P>After Covington was hired in 2021 through the end of 2021, the firm provided legal assistance regarding the litigation with the SEC regarding the 2020 Orders. These services included researching, drafting, and filing motions to stay the 2020 orders and related materials in proceedings before the SEC, as well as researching, drafting, and filing petitions for judicial review of the 2020 Orders in proceedings before the U.S. Court of Appeals for the D.C. Circuit. Covington oversaw ongoing litigation proceedings on these matters, and also supported WilmerHale with respect to settlement negotiations with the SEC staff regarding the 2020 Orders.</P>
                    <P>
                        In addition to these services, CAT LLC engaged Covington in November 2021 to provide assistance with respect to the SEC's disapproval of CAT NMS Plan amendments concerning a proposed limitation on liability in the event of a data breach or similar event. Covington provided advice concerning CAT's response to the SEC's disapproval order. This work accounted for a minority of Covington's fees in 2021.
                        <SU>66</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             As discussed above with regard to Pillsbury's work on liability matters, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, such activity is a necessary part of the operation of the CAT.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>
                        The consulting costs of $1,408,209 represent the fees paid to Deloitte as project manager during FAM Period 3. CAT LLC continued to employ Deloitte during FAM Period 3 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 3 were negotiated and in line with market rates 
                        <PRTPAGE P="10298"/>
                        for this type of specialized consulting work. The consulting fees during FAM Period 3 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 3, Deloitte's CAT-related activities included the following:
                    </P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $1,582,714 represent the fees paid for insurance FAM Period 3. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $595,923 represent the fees paid to Anchin and Grant Thornton for financial services during FAM Period 3.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to employ Anchin during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services during FAM Period 3 were paid by CAT LLC to Anchin. During FAM Period 3, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 3 based on, among other things, their expertise and cumulative knowledge of CAT LLC. CAT LLC determined that Grant Thornton was well qualified for its role and that its fixed fee rates were in line with market rates for these accountant services. The fees for these services during FAM Period 3 were paid by CAT LLC to Grant Thornton. During FAM Period 3, Grant Thornton provided audited financial statements for CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $92,400 represent the fees paid to Peak Strategies during FAM Period 3. CAT LLC continued to employ Peak Strategies during FAM Period 3 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 3 were paid by CAT LLC to Peak Strategies. During FAM Period 3, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(v) Excluded Costs</HD>
                    <P>
                        Historical CAT Costs 1 would not include two categories of CAT costs (“Excluded Costs”): (1) $48,874,937, which are all CAT costs incurred from November 15, 2017 through November 15, 2018; and (2) $14,749,362 of costs related to the termination of the relationship with the Initial Plan Processor. The Participants would remain responsible for 100% of these costs, which total $63,624,299. CAT LLC determined that it was reasonable to exclude these Excluded Costs from Historical CAT Costs 1 because the excluded costs relate to the delay in the start of reporting to the CAT and the conclusion of the relationship with the Initial Plan Processor.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             In approving the CAT Funding Model, the Commission states that “the proposed exclusion of the `Excluded Costs' from Past CAT Costs is reasonable in the Commission's view because it would not require all costs incurred by the Participants to be recovered from Industry Members through the Historical CAT Assessment, specifically excluding those costs related to the delay in the start of reporting to the CAT and costs related to the conclusion of the relationship with the Initial Plan Processor.” CAT Funding Model Approval Order at 62663.
                        </P>
                    </FTNT>
                    <P>First, Historical CAT Costs 1 would not include $14,749,362 of costs related to the conclusion of the relationship with the Initial Plan Processor. Such costs include costs related to the American Arbitration Association, the legal assistance of Pillsbury with regard to the arbitration with Thesys CAT, and the settlement costs related to the arbitration with Thesys CAT. The Participants would remain responsible for 100% of these $14,749,362 in costs.</P>
                    <P>
                        Second, the Historical CAT Costs would exclude all CAT costs incurred from November 15, 2017 through November 15, 2018. CAT LLC determined to exclude all costs during 
                        <PRTPAGE P="10299"/>
                        this one-year period of $48,874,937 from fees charged to Industry Members due to the delay in the start of reporting to the CAT. The Participants would remain responsible for 100% of these $48,874,937 in costs. The following table breaks down these costs into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             The costs described in this table of Excluded Costs were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="239">
                        <GID>EN13FE24.023</GID>
                    </GPH>
                    <P>The following provides additional detail regarding the Excluded Costs.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services, Operating Fees, CAIS Operating Fees and Change Request Fees</HD>
                    <P>CAT LLC did not incur technology costs related to the categories of cloud hosting services, operating fees, CAIS operating fees or change requests during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(b) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for the period from November 15, 2017 through November 15, 2018 include capitalizable application development costs of $37,852,083 incurred in the development of the CAT by the Initial Plan Processor. Such costs include development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Initial Plan Processor. Such costs include costs related to Industry Member technical specifications for orders and transactions, the system security plan, testing and production for Participant CAT reporting, third-party security assessment and response, query portal, onboarding of the Chief Information Security Officer, and ingestion of FINRA TRF data and FINRA data related to halts and corporate actions.</P>
                    <HD SOURCE="HD3">(c) Legal Costs</HD>
                    <P>The legal costs of $6,143,278 represent the fees paid to WilmerHale for legal services from November 15, 2017 through November 15, 2018. During this period, WilmerHale provided legal assistance to the CAT including with regard to the following:</P>
                    <P>• Provided legal support for the governance of the CAT, including governance support for the Operating Committee, Advisory Committee, Compliance Subcommittee, and CAT working groups;</P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan;</P>
                    <P>• Provided assistance related to CAT security;</P>
                    <P>• Drafted exemptive requests, including requests related to PII;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided advice with regard to regulator access to the CAT;</P>
                    <P>• Assisted with the Plan Processor transition;</P>
                    <P>• Provided assistance regarding communications with the industry regarding the CAT;</P>
                    <P>• Provided advice regarding Customer Account Information and PII;</P>
                    <P>• Provided support for litigation related to SEC exemptive orders; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretative and implementation issues.</P>
                    <HD SOURCE="HD3">(d) Consulting Costs</HD>
                    <P>The consulting costs of $4,452,106 represent the fees paid to Deloitte for their role as project manager for the CAT from November 15, 2017 through November 15, 2018. During this period, Deloitte engaged in the following activities with respect to the CAT:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>
                        • Provided governance support to the Operating Committee, including support for Subcommittees and working groups of the Operating Committee (
                        <E T="03">e.g.,</E>
                         Compliance Subcommittee, Cost and Funding Working Group, Technical Working Group, Industry Outreach Working Group, Security Working Group and Steering Committee);
                    </P>
                    <P>
                        • Assisted with cost and funding issue for the CAT, including the 
                        <PRTPAGE P="10300"/>
                        development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;
                    </P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress.</P>
                    <HD SOURCE="HD3">(e) Insurance</HD>
                    <P>CAT LLC did not incur costs related to insurance during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(f) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $340,145 represent the fees paid to Anchin, Exegy and RSM from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in April 2018 through November 15, 2018, Anchin engaged in the following activities with respect to the CAT:
                    </P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         From July 2018 through November 15, 2018, CAT LLC purchased market data from Exegy (as described in more detail above).
                    </P>
                    <P>
                        <E T="03">Security Assessment: RSM.</E>
                         From October 2018 through November 15, 2018, CAT LLC incurred costs for RSM's performance of a security assessment (as described in more detail above).
                    </P>
                    <HD SOURCE="HD3">(g) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $87,325 represent the fees paid to Sloane from November 15, 2017 through November 15, 2018. From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in March 2018 through November 15, 2018, Sloane provided professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, Sloane provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan).
                    </P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        Under the CAT NMS Plan, the Operating Committee is required to reasonably establish the length of the Historical Recovery Period used in calculating each Historical Fee Rate based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment, and to describe the reasons for its length.
                        <SU>69</SU>
                        <FTREF/>
                         The Historical Recovery Period used in calculating the Historical Fee Rate may not be less than 24 months or more than five years.
                        <SU>70</SU>
                        <FTREF/>
                         The Operating Committee has determined to establish a Historical Recovery Period 1 of 24 months for Historical CAT Assessment 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             Section 11.3(b)(i)(D)(I) and Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             Section 11.3(b)(i)(D)(I) of the CAT NMS Plan. In the CAT Funding Model Approval Order, the SEC stated that “[i]n the Commission's view, it is reasonable for the Operating Committee to establish the length of the Historical Recovery Period to be no less than 24 months and no more than five years.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The Operating Committee determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans to the Participants in a timely fashion. The Operating Committee determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>71</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, the Operating Committee recognized that the total costs for Historical CAT Assessment 1 were less than the total costs for 2022 and 2023,
                        <SU>72</SU>
                        <FTREF/>
                         and therefore it would be reasonable and appropriate to recover costs subject to this filing over an approximate two-year period. Furthermore, the Operating Committee notes that 24 months is appropriate because it is not currently proposing that Industry Members be required to pay additional CAT fees with regard to another Historical CAT Assessment or CAT Fees with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model at 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             The total CAT costs for 2022 were approximately $186 million and the total CAT costs for 2023 are estimated to be approximately $233 million.
                        </P>
                    </FTNT>
                    <P>
                        The length of the Historical Recovery Period 1 and the reasons for its length are provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>73</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             Section 11.3(b)(iii)(B)(II)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Total Executed Equivalent Share Volume</HD>
                    <P>
                        The calculation of Historical Fee Rate 1 also requires the determination of the projected total executed equivalent share volume of transactions in Eligible Securities for Historical Recovery Period 1. Under the CAT NMS Plan, the Operating Committee is required to “reasonably determine the projected total executed equivalent share volume of all transactions in Eligible Securities for each Historical Recovery Period based on the executed equivalent share volume of all transactions in Eligible Securities for the prior twelve months.” 
                        <SU>74</SU>
                        <FTREF/>
                         The Operating Committee is required to base its projection on the prior twelve months, but it may use its discretion to analyze the likely volume for the upcoming year. Such discretion would allow the Operating Committee to use its judgment when estimating projected total executed equivalent share volume if the volume over the prior twelve months was unusual or 
                        <PRTPAGE P="10301"/>
                        otherwise unfit to serve as the basis of a future volume estimate.
                        <SU>75</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             Section 11.3(b)(i)(E) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. The Operating Committee has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. The Operating Committee determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is projected to be 7,685,722,694,558.88 executed equivalent shares.
                        <SU>76</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <P>
                        The projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1 and a description of the calculation of the projection is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             Section 11.3(b)(iii)(B)(II)(D) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Historical Fee Rate 1</HD>
                    <P>
                        Historical Fee Rate 1 would be calculated by dividing Historical CAT Costs 1 by the reasonably projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1, as described in detail above.
                        <SU>78</SU>
                        <FTREF/>
                         Specifically, Historical Fee Rate 1 would be calculated by dividing $337,688,610 by 7,685,722,694,558.88. As a result, the Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. Historical Fee Rate 1 is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide the Historical Fee Rate in a fee filing for a Historical CAT Assessment.
                        <SU>79</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             In approving the CAT Funding Model, the Commission stated that “[t]he calculation of the Historical Fee Rate by dividing the Historical CAT Costs by the projected total executed equivalent share volume of all transactions in Eligible Securities for the Historical Recovery Period is reasonable.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             Section 11.3(b)(iii)(B)(II)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Past CAT Costs and Participants</HD>
                    <P>Participants would not be required to pay any fees associated with Historical CAT Assessment 1 as the Participants previously have paid all Past CAT Costs. The CAT NMS Plan explains that:</P>
                    <EXTRACT>
                        <P>
                            Because Participants previously have paid Past CAT Costs via loans to the Company, Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs and such other additional Past CAT Costs as reasonably determined by the Operating Committee will be paid by the cancellation of loans made to the Company on a pro rata basis based on the outstanding loan amounts due under the loans.
                            <SU>80</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>80</SU>
                                 Section 11.3(b)(ii) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The CAT NMS Plan further states that “Historical CAT Assessments are designed to recover two-thirds of the Historical CAT Costs.” 
                        <SU>81</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>81</SU>
                             
                            <E T="03">Id.</E>
                             In approving the CAT Funding Model, the Commission stated that “[t]he proposed allocation of the Historical CAT Assessment solely to CEBs and CEBBs, and ultimately Industry Members, is reasonable. The Historical CAT Assessment will still be divided into thirds,” as the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made to the Company. CAT Funding Model Approval Order at 62666.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(4) Monthly Fees</HD>
                    <P>
                        CEBBs and CEBSs would be required to pay fees for Historical CAT Assessment 1 on a monthly basis for the period in which Historical CAT Assessment 1 is in effect.
                        <SU>82</SU>
                        <FTREF/>
                         A CEBB or CEBS's fee for each month would be calculated based on the transactions in Eligible Securities executed by the CEBB or CEBS from the prior month.
                        <SU>83</SU>
                        <FTREF/>
                         Proposed paragraph (a)(1)(A) of the fee schedule would state that each CAT Executing Broker would receive its first invoice in April 2024, and “would receive an invoice each month thereafter in which Historical CAT Assessment 1 is in effect.” Proposed paragraph (a)(1)(B) of the fee schedule would state that “Consolidated Audited Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” In addition, proposed paragraph (b)(1) of the fee schedule states that each CEBB and CEBS is required to pay its CAT fees “each month.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             
                            <E T="03">See</E>
                             proposed paragraph (a)(1)(B) of the fee schedule.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(5) Actual Recovery Period for Historical CAT Assessment 1</HD>
                    <P>
                        The CAT NMS Plan states that, “[n]otwithstanding the length of the Historical Recovery Period used in calculating the Historical Fee Rate, each Historical CAT Assessment calculated using the Historical Fee Rate will remain in effect until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                        <SU>84</SU>
                        <FTREF/>
                         Accordingly, Historical CAT Assessment 1 will remain in effect until all Historical CAT Costs 1 have been collected. The actual recovery period for Historical CAT Assessment 1 may be shorter or longer than Historical Recovery Period 1 depending on the actual executed equivalent share volumes during the time that Historical CAT Assessment 1 is in effect.
                        <SU>85</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             Section 11.3(b)(i)(D)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             In approving the CAT Funding Model, the Commission stated that “[i]n the Commission's view, it is reasonable for Industry Members to be charged a Historical CAT Assessment until all Historical CAT Costs for the Historical CAT Assessment are collected.” CAT Funding Model Approval Order at 62665.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(6) Consolidated Audit Trail Funding Fees</HD>
                    <P>To implement Historical CAT Assessment 1, a “Consolidated Audit Trail Funding Fees” section would be added to the Exchange's fee schedule, to include the proposed paragraphs described below.</P>
                    <HD SOURCE="HD3">(A) Fee Schedule for Historical CAT Assessment 1</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Each month in which a Historical CAT Assessment is in effect, each CEBB and each CEBS shall pay a fee for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate reasonably determined pursuant to paragraph (b)(i) of this Section 11.3.
                            <SU>86</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>86</SU>
                                 Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, based on the factors discussed above, the Exchange proposes to add paragraph (a)(1) to the Consolidated Audit Trail Funding Fees section of its fee schedule. Proposed paragraph (a)(1) would state the following:</P>
                    <EXTRACT>
                        <P>
                            (A) Each CAT Executing Broker shall receive its first invoice for Historical CAT Assessment 1 in April 2024, which shall set forth the Historical CAT Assessment 1 fees calculated based on transactions in March 2024, and shall receive an invoice for Historical CAT Assessment 1 for each month 
                            <PRTPAGE P="10302"/>
                            thereafter in which Historical CAT Assessment 1 is in effect.
                        </P>
                        <P>(B) Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis. Each month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.</P>
                        <P>(C) Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time. Consolidated Audit Trail, LLC will provide notice when Historical CAT Assessment 1 will no longer be in effect.</P>
                        <P>(D) Each CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).</P>
                    </EXTRACT>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, “as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>87</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of the fee schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 of $0.0000439371316687066 by one-third, and rounding the result to 6 decimal places.
                        <SU>88</SU>
                        <FTREF/>
                         The Operating Committee determined to use six decimal places to balance the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>87</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             Dividing $0.0000439371316687066 by three equals $0.00001464571055623553. Rounding $0.00001464571055623553 to six decimal places equals $0.000015.
                        </P>
                    </FTNT>
                    <P>The proposed language in paragraph (a)(1)(A) of the fee schedule would describe when CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1. Specifically, CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 and the fees set forth in that invoice would be calculated based on transactions executed in the prior month, that is, transactions executed in March 2024. The payment for the first invoice would be required within 30 days after the receipt of the first invoice (unless a longer period is indicated), as described in proposed paragraph (b)(2) of the fee schedule.</P>
                    <P>Proposed paragraph (a)(1)(A) of the fee schedule also would describe the monthly cadence of the invoices for Historical CAT Assessment 1. Specifically, after the first invoices are provided to CAT Executing Brokers in April 2024, invoices will be sent to CAT Executing Brokers each month thereafter while Historical CAT Assessment 1 is in effect.</P>
                    <P>Proposed paragraph (a)(1)(B) of the fee schedule would describe the invoices for Historical CAT Assessment 1. Proposed paragraph (a)(1)(B) of the fee schedule would state that “Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” Proposed paragraph (a)(1)(B) of the fee schedule also would describe the fees to be set forth in the invoices for Historical CAT Assessment 1. Specifically, it would state that “[e]ach month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.”</P>
                    <P>
                        Furthermore, proposed paragraph (a)(1)(C) of the fee schedule would describe how long Historical CAT Assessment 1 would remain in effect. It would state that “Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time.” This proposed paragraph would further state that “Consolidated Audit Trail, LLC will be [
                        <E T="03">sic</E>
                        ] provide notice when Historical CAT Assessment 1 will no longer be in effect.”
                    </P>
                    <P>Historical CAT Assessment 1 will be assessed for all transactions executed in each month through the end of the month in which two-thirds of Historical CAT Costs 1 are assessed, and then CAT LLC will provide notice that Historical CAT Assessment 1 is no longer in effect. Since Historical CAT Assessment 1 is a monthly fee based on transaction volume from the prior month, Historical CAT Assessment 1 may collect more than two-thirds of Historical CAT Costs 1. To the extent that occurs, any excess money collected during the final month in which Historical CAT Assessment 1 is in effect will be used to offset future fees and/or to fund the reserve for the CAT.</P>
                    <P>Finally, proposed paragraph (a)(1)(D) of the fee schedule sets forth the requirement for the CAT Executing Brokers to pay the invoices for Historical CAT Assessment 1. It would state that “[e]ach CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).”</P>
                    <HD SOURCE="HD3">(B) Manner of Payment</HD>
                    <P>
                        The Exchange proposes to add paragraph (b)(1) to the “Consolidated Audit Trail Funding Fees” section of its fee schedule to describe the manner of payment of Industry Member CAT fees. The CAT NMS Plan requires the Operating Committee to establish a system for the collection of CAT fees.
                        <SU>89</SU>
                        <FTREF/>
                         The Plan Processor has established a billing system for CAT fees.
                        <SU>90</SU>
                        <FTREF/>
                         Therefore, the Exchange proposes to require CAT Executing Brokers to pay Historical CAT Assessment 1 in accordance with such system. Accordingly, proposed paragraph (b)(1) would state that “[e]ach CAT Executing Broker shall pay its CAT fees as required pursuant to paragraph (a) each month to the Consolidated Audit Trail, LLC in the manner prescribed by the Consolidated Audit Trail, LLC.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             Section 11.4 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             The billing process and system are described in CAT Alert 2023-02 as well as the CAT FAQs related to the billing of CAT fees, the Industry Member CAT Reporter Portal User Guide, the FCAT Industry Member Onboarding Guide, the FCAT Connectivity Supplement for Industry Members and the CAT Billing Webinars (dated September 28, 2023 and November 7, 2023), each available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(C) Failure To Pay CAT Fees</HD>
                    <P>The CAT NMS Plan further states that:</P>
                    <EXTRACT>
                        <P>
                            Participants shall require each Industry Member to pay all applicable fees authorized under this Article XI within thirty (30) days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due (as determined in accordance with the preceding sentence), such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser 
                            <PRTPAGE P="10303"/>
                            of: (a) the Prime Rate plus 300 basis points; or (b) the maximum rate permitted by applicable law.
                            <SU>91</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>91</SU>
                                 Section 11.4 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, the Exchange proposes to add this requirement to the Exchange's fee schedule. Proposed paragraph (b)(2) of the fee schedule would state:</P>
                    <EXTRACT>
                        <P>Each CAT Executing Broker shall pay the CAT fees required pursuant to paragraph (a) within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If a CAT Executing Broker fails to pay any such CAT fee when due, such CAT Executing Broker shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of (i) the Prime Rate plus 300 basis points, or (ii) the maximum rate permitted by applicable law.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(7) Historical CAT Assessment Details</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Details regarding the calculation of a CAT Executing Broker's Historical CAT Assessment will be provided upon request to such CAT Executing Broker. At a minimum, such details would include each CAT Executing Broker's executed equivalent share volume and corresponding fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise than on an exchange, and (3) by buy-side transactions and sell-side transactions.
                            <SU>92</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>92</SU>
                                 Section 11.3(a)(iv)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        Such information would provide CEBBs and CEBSs with the ability to understand the details regarding the calculation of their Historical CAT Assessment.
                        <SU>93</SU>
                        <FTREF/>
                         CAT LLC will provide CAT Executing Brokers with these details regarding the calculation of their Historical CAT Assessments on their monthly invoice for the Historical CAT Assessment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>93</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, providing CAT Execut[ing] Brokers information regarding the calculation of their CAT Fees will aid in transparency and permit CAT Execut[ing] Brokers to confirm the accuracy of their invoices for CAT Fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>
                        In addition, CAT LLC will make certain aggregate statistics regarding Historical CAT Assessments publicly available. Specifically, the CAT NMS Plan states that, “[f]or each Historical CAT Assessment, at a minimum, CAT LLC will make publicly available the aggregate executed equivalent share volume and corresponding aggregate fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise on an exchange, and (3) by buy-side transactions and sell-side transactions.” 
                        <SU>94</SU>
                        <FTREF/>
                         Such aggregate statistics will be available on the CAT website.
                    </P>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             Section 11.3(a)(iv)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission stated that “[t]he publication of the aggregate executed equivalent share volume and aggregate fee is appropriate because it would allow Participants and CAT Executing Brokers a high-level validation of executed volume and fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>Furthermore, CAT LLC will make publicly available on the CAT website the total amount invoiced each month that Historical CAT Assessment 1 is in effect as well as the total amount invoiced for Historical CAT Assessment 1 for all months since its commencement. CAT LLC also will make publicly available on the CAT website the total costs to be collected from Industry Members for Historical CAT Assessment 1. By reviewing statistics regarding how much has been invoiced and how much remains to be invoiced for Historical CAT Assessment 1, Industry Members would have sufficient information to reasonably track how much longer Historical CAT Assessment 1 is likely to be in place.</P>
                    <HD SOURCE="HD3">(8) Implementation Assistance</HD>
                    <P>To assist Industry Members with compliance with the commencement of Historical CAT Assessment 1, CAT LLC will make available to CAT Executing Brokers four months of mock invoices prior to the commencement of Historical CAT Assessment 1. Specifically, CAT Executing Brokers will receive mock invoices based on transaction data from November 2023, December 2023, January 2024 and February 2024. The mock invoices will be in the same form as the actual, payable invoices, including both the relevant transaction data and the corresponding fee. However, no payments will be required in response to such mock invoices; they are to be used solely to assist CAT Executing Brokers with the development of their processes for paying the CAT fees. Such data will provide CAT Executing Brokers with a preview of the transaction data used in creating the invoices for Historical CAT Assessment 1 fees, as the data will be the same as data provided in actual invoices. Such data preview is intended to facilitate the payment of Historical CAT Assessment 1.</P>
                    <HD SOURCE="HD3">(9) Financial Accountability Milestones</HD>
                    <P>
                        The CAT NMS Plan states that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.” 
                        <SU>95</SU>
                        <FTREF/>
                         The CAT NMS Plan further states that “in all filings submitted by the Participants to the Commission under Section 19(b) of the Exchange Act, to establish or implement Post-Amendment Industry Member Fees pursuant to this Article, . . . the Participants shall clearly indicate whether such fees are related to Post-Amendment Expenses incurred during Period 1, Period 2, Period 3, or Period 4.” 
                        <SU>96</SU>
                        <FTREF/>
                         As discussed in detail below, all applicable Financial Accountability Milestones for Historical CAT Assessment 1—that is, Period 1, Period 2 and Period 3 of the Financial Accountability Milestones—have been satisfied. Furthermore, as discussed below, this filing clearly indicates that Historical CAT Assessment 1 relates to Post-Amendment Expenses incurred during Periods 1, 2 and 3 of the Financial Accountability Milestones.
                    </P>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             Section 11.6(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Period 1 of the Financial Accountability Milestones</HD>
                    <P>
                        In accordance with Section 11.6(b) of the CAT NMS Plan, Historical CAT Assessment 1 seeks to recover costs that are related to “all fees, costs, and expenses (including legal and consulting fees, costs, and expenses) incurred by or for the Company in connection with the development, implementation and operation of the CAT from the effective date of [Section 11.6 of the CAT NMS Plan] until such time as Full Implementation of CAT NMS Plan Requirements has been achieved” 
                        <SU>97</SU>
                        <FTREF/>
                         (“Post-Amendment Expenses”) incurred during FAM Period 1. FAM Period 1 began on June 22, 2020, the effective date of Section 11.6 of the CAT NMS Plan, and concluded on July 31, 2020, the date of Initial Industry Member Core Equity and Options Reporting. Section 1.1 of the CAT NMS Plan defines “Initial Industry Member Core Equity and Options Reporting” as:
                    </P>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             Section 11.6 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>The reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of both: (a) equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information; and (b) options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.</P>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability 
                        <PRTPAGE P="10304"/>
                        Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports.
                        <SU>98</SU>
                        <FTREF/>
                         As indicated by the Participants' Quarterly Progress Report for the third quarter of 2020,
                        <SU>99</SU>
                        <FTREF/>
                         Initial Industry Member Core Equity and Option Reporting was completed on schedule on July 22, 2020, which is prior to the July 31, 2020 deadline.
                    </P>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             The Quarterly Progress Reports are available at 
                            <E T="03">https://www.catnmsplan.com/implementation-plan.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020) and Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Under the FAM Period 1 requirement of Initial Industry Member Core Equity and Options Reporting, Industry Members—excluding Small Industry Members that are not OATS reporters—were required to report two categories of data to the CAT: equites transaction data and options transaction data (both excluding Customer Account Information, Customer-ID, and Customer Identifying Information) by July 31, 2020. Pursuant to exemptive relief provided by the Commission, the Commission authorized the Participants' Compliance Rules to allow core equity reporting for Industry Members (Phase 2a) to begin on June 22, 2020 and core options reporting for Industry Members (Phase 2b) to begin on July 20, 2020.
                        <SU>100</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order. Under the CAT NMS Plan as adopted, the Participants were required, through their Compliance Rules, to require their Large Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2018, and to require their Small Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2019. Sections 6.7(a)(v) and (vi) of the CAT NMS Plan. The SEC granted exemptive relief from these provisions of the CAT NMS Plan to allow for the phased implementation of Industry Member reporting via five phases addressing the reporting requirements for Phase 2a Industry Member Data, Phase 2b Industry Member Data, Phase 2c Industry Member Data, Phase 2d Industry Member Data and Phase 2e Industry Member Data.
                        </P>
                    </FTNT>
                    <P>
                        In adopting the FAMs, the Commission stated that the equities transaction reporting required for FAM Period 1 “is consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Equities 2a file submission and data integrity validations.' ” 
                        <SU>101</SU>
                        <FTREF/>
                         The Phase 2a Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the following data related to Eligible Securities that are equities:
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             Securities Exchange Act Rel. No. 88890, 85 FR 31322, 31330 n.97 (“FAM Adopting Release”).
                        </P>
                    </FTNT>
                    <P>• All events and scenarios covered by OATS, which includes information related to the receipt or origination of orders, order transmittal, and order modifications, cancellations and executions;</P>
                    <P>
                        • Reportable Events for: (1) proprietary orders, including market maker orders, for Eligible Securities that are equities; (2) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) sent to a national securities exchange or FINRA's Alternative Display Facility (“ADF”); (3) electronic quotes in unlisted Eligible Securities (
                        <E T="03">i.e.,</E>
                         OTC Equity Securities) received by an Industry Member operating an interdealer quotation system (“IDQS”); and (4) electronic quotes in unlisted Eligible Securities sent to an IDQS or other quotation system not operated by a Participant or Industry Member;
                    </P>
                    <P>• Firm Designated IDs (“FDIDs”), which Industry Members must report to the CAT as required by Sections 6.3(d)(i)(A) and 6.4(d)(ii)(C) of the CAT NMS Plan.</P>
                    <P>• Industry Members would be required to report all street side representative orders, including both agency and proprietary orders and mark such orders as representative orders, except in certain limited exceptions as described in the Industry Member Technical Specifications;</P>
                    <P>• The link between the street side representative order and the order being represented when: (1) the representative order was originated specifically to represent a single order received either from a customer or another broker-dealer; and (2) there is (a) an existing direct electronic link in the Industry Member's system between the order being represented and the representative order and (b) any resulting executions are immediately and automatically applied to the represented order in the Industry Member's system;</P>
                    <P>• Manual and Electronic Capture Time for Manual Order Events;</P>
                    <P>• Special handling instructions for the original receipt or origination of an order during Phase 2a; and</P>
                    <P>• When routing an order, whether the order was routed as an intermarket sweep order (“ISO”).</P>
                    <P>
                        In Phase 2a, Industry Members were not required to report modifications of a previously routed order in certain limited instances, nor were they required to report a cancellation of an order received from a Customer after the order has been executed.
                        <SU>102</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             Phased Reporting Exemptive Relief Order at 23076-78.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Equities 2a file submission and data integrity validation (Large Industry Members and Small OATS Reporters)” was completed on June 22, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information” was completed on June 22, 2020.</P>
                    <P>
                        In adopting the FAMs, the Commission stated that the options transaction reporting required for FAM Period 1 is “consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Options 2b file submission and data integrity validations.' ” 
                        <SU>103</SU>
                        <FTREF/>
                         The Phase 2b Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the Industry Member Data related to Eligible Securities that are options and related to simple electronic option orders, excluding electronic paired option orders. A simple electronic option order is an order to buy or sell a single option that is not related to or dependent on any other transaction for pricing and timing of execution that is either received or routed electronically by an Industry Member. Electronic receipt of an order is defined as the initial receipt of an order by an Industry Member in electronic form in standard format directly into an order handling or execution system. Electronic routing of an order is the routing of an order via electronic medium in standard format from one Industry Member's order handling or execution system to an exchange or another Industry Member. An electronic paired option order is an electronic option order that contains both the buy and sell side that is routed to another Industry Member or exchange for crossing and/or price improvement as a single transaction on an exchange. Responses to auctions of simple orders and paired simple orders would be reportable in Phase 2b. Furthermore, combined orders in options would be treated in Phase 2b in the same way as equity representative orders are treated in Phase 2a. A combined order would mean, as permitted by SRO rules, a single, simple order in Listed Options created by combining individual, simple orders in Listed Options from a customer with the same exchange origin code before routing to an exchange. During Phase 2b, the single combined order sent to an exchange must be reported and marked as a combined order, but the linkage to the underlying 
                        <PRTPAGE P="10305"/>
                        orders is not required to be reported until Phase 2d.
                        <SU>104</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             FAM Adopting Release at 31330, n.98.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             Phased Reporting Exemptive Relief Order at 23078.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Options 2b file submission and data integrity validations” was completed on July 20, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information” was completed on July 20, 2020.</P>
                    <P>As discussed above, the Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from June 22, 2020 through July 31, 2020. The total costs for this period, as discussed above, are $6,377,343. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781).</P>
                    <HD SOURCE="HD3">(B) Period 2 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 2. FAM Period 2 began on August 1, 2020, and concluded on December 31, 2020, the date of the Full Implementation of Core Equity Reporting. Section 1.1 of the CAT NMS Plan defines “Full Implementation of Core Equity Reporting” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2020,
                        <SU>105</SU>
                        <FTREF/>
                         Full Implementation of Core Equity Reporting was completed on schedule by December 31, 2020.
                    </P>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the Full Implementation of Core Equity Reporting requires the satisfaction of two prongs. The first prong requires Participants to have fully implemented the first phase of equities transaction reporting for Industry Members (excluding Small Industry Members that are not OATS reporters) at an Error Rate of less than 5%. In addition, equities transaction data produced by the CAT at this stage must also be sufficiently interlinked so as to permit full analysis of an order's lifecycle across the national market, excluding full linkage of representative orders. As CAT LLC reported on its Quarterly Progress Reports, Phase 2a was fully implemented as of October 26, 2020, including intra-firm, inter-firm, national securities exchange, and trade reporting facilities linkages.
                        <SU>106</SU>
                        <FTREF/>
                         In addition to the reporting of Phase 2a Industry Member Data as described above with regard to FAM Period 1, the following linkage data was added to the CAT as described in the Quarterly Progress Reports for the third and fourth quarter of 2020:
                    </P>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             For a description of the requirements of Phases 2a, 
                            <E T="03">see</E>
                             Phased Reporting Exemptive Relief Order.
                        </P>
                    </FTNT>
                    <P>
                        • “Production Go-Live for Equities 2a Intrafirm Linkage validations” was completed on 7/27/2020; 
                        <SU>107</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             Q3 2020 Quarterly Progress Report (Oct. 20, 2021).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Firm to Firm Linkage validations for Equities 2a (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020; and</P>
                    <P>• “Production Go-Live for Equities 2a Exchange and TRF Linkage validations (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020.</P>
                    <P>Furthermore, as CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2020, the average overall error rate for Phase 2a Industry Member Data was less than 5% as of December 31, 2020. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The second prong of this FAM requires that the equities transaction data collected by the CAT at this stage be made available to regulators through two basic query tools required by the CAT NMS Plan—a targeted query tool that will enable regulators to retrieve data via an online query screen with a variety of predefined selection criteria, and a user-defined direct query tool that will provide regulators with the ability to query data using all available attributes and data sources.
                        <SU>108</SU>
                        <FTREF/>
                         As CAT LLC reported on its Quarterly Progress Reports, the query tool functionality incorporating the data from Phase 2a was available to the Participants and the Commission as of December 31, 2020.
                        <SU>109</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>108</SU>
                             Section 6.10(c)(i)(A) of the CAT NMS Plan requires the Plan Processor to “provide Participants and the SEC with access to all CAT Data stored in the Central Repository” via an “online targeted query tool.” Appendix D, Sections 8.1.1-8.1.3 of the CAT NMS Plan describes the required functionality associated with this regulatory tool. Appendix D, Section 8.2.1 describes the required functionality associated with a user-defined direct query tool that will “deliver large sets of data that can then be used in internal surveillance or market analysis applications.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020); Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021); and Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>110</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             Securities Exchange Act Rel. No. 98848 (Nov. 2, 2023), 88 FR 77128, 77129 n.13 (Nov. 8, 2023) (“Settlement Exemptive Order”).
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from August 1, 2020 through December 31, 2020. The total costs for this period, as discussed above, are $42,976,478. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($14,325,492.70) and CEBSs paying one-third ($14,325,492.70).
                    </P>
                    <HD SOURCE="HD3">(C) Period 3 of the Financial Accountability Milestones</HD>
                    <P>
                        Historical CAT Assessment 1 seeks to recover costs that are related to Post-
                        <PRTPAGE P="10306"/>
                        Amendment Expenses incurred during FAM Period 3. FAM Period 3 began on January 1, 2021, and concluded on December 31, 2021, the date of the Full Availability and Regulatory Utilization of Transactional Database Functionality. Section 1.1 of the CAT NMS Plan defines “Full Availability and Regulatory Utilization of Transactional Database Functionality” as:
                    </P>
                    <EXTRACT>
                        <FP>the point at which: (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>111</SU>
                        <FTREF/>
                         Full Availability and Regulatory Utilization of Transactional Database Functionality was completed on schedule by December 31, 2021.
                    </P>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires the satisfaction of five prongs. The first prong requires that reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>112</SU>
                        <FTREF/>
                         FINRA retired OATS effective September 1, 2021.
                        <SU>113</SU>
                        <FTREF/>
                         Accordingly, after the retirement of OATS, reporting to OATS was no longer required.
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             Securities Exchange Act Rel. No. 92239 (June 23, 2021), 86 FR 34293 (June 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        In addition to Phase 2a and Phase 2b Industry Member Data, the second and third prongs of “Full Availability and Regulatory Utilization of Transactional Database Functionality” require Industry Member reporting of Phase 2c Industry Member Data and Phase 2d Industry Member Data. The Phase 2c Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. That Order states that “Phase 2c Industry Member Data” is Industry Member Data related to Eligible Securities that are equities other than Phase 2a Industry Member Data, Phase 2d Industry Member Data, or Phase 2e Industry Member Data. Specifically, the Phase 2c Industry Member Data includes Industry Member Data that is related to Eligible Securities that are equities and that is related to: (1) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (2) quotes in unlisted Eligible Securities sent to an IDQS operated by a CAT Reporter (reportable by the Industry Member sending the quotes) (except for quotes reportable in Phase 2d, as discussed below); (3) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) that are not sent to a national securities exchange or FINRA's Alternative Display Facility; (4) reporting changes to client instructions regarding modifications to algorithms; (5) marking as a representative order any order originated to work a customer order in price guarantee scenarios, such as a guaranteed VWAP; (6) flagging rejected external routes to indicate a route was not accepted by the receiving destination; (7) linkage of duplicate electronic messages related to a Manual Order Event between the electronic event and the original manual route; (8) special handling instructions on order route reports (other than the ISO, which is required to be reported in Phase 2a); (9) quote identifier on trade events; (10) reporting of LTIDs (if applicable) for accounts with Reportable Events that are reportable to CAT as of and including Phase 2c; (11) reporting of date account opened or Account Effective Date71 (as applicable) for accounts and reporting of a flag indicating the Firm Designated ID type as account or relationship; (12) order effective time for orders that are received by an Industry Member and do not become effective until a later time; (13) the modification or cancellation of an internal route of an order; and (14) linkages to the customer orders(s) being represented for representative order scenarios, including agency average price trades, net trades, aggregated orders, and disconnected Order Management System (“OMS”)—Execution Management System (“EMS”) scenarios, as required in the Industry Member Technical Specifications.
                        <SU>114</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             Phase Reporting Exemptive Relief Order at 23078-79.
                        </P>
                    </FTNT>
                    <P>
                        Phase 2c Industry Member Data also includes electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are equities and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: (1) an equity bid or offer is displayed publicly or has been communicated (a) for listed securities to the Alternative Display Facility (ADF) operated by FINRA; or (b) for unlisted equity securities to an “interdealer quotation system,” as defined in FINRA Rule 6420(c); or (2) an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing; 
                        <E T="03">i.e.,</E>
                         no further manual or electronic action is required by the responder providing the quote in order to execute or cause a trade to be executed). With respect to OTC Equity Securities, OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter (other than such an IDQS that does not match and execute orders) are reportable by the Industry Member sending them in Phase 2c. Accordingly, any response to a request for quote or other form of solicitation response provided in a standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this quote definition (
                        <E T="03">i.e.,</E>
                         an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing) would be reportable in Phase 2c.
                        <SU>115</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>115</SU>
                             
                            <E T="03">Id.</E>
                             at 23079.
                        </P>
                    </FTNT>
                    <P>
                        The Phase 2d Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. “Phase 2d Industry Member Data” is Industry Member Data that is related to Eligible Securities that are 
                        <PRTPAGE P="10307"/>
                        options other than Phase 2b Industry Member Data, Industry Member Data that is related to Eligible Securities that are equities other than Phase 2a Industry Member Data or Phase 2c Industry Member Data, and Industry Member Data other than Phase 2e Industry Member Data. Phase 2d Industry Member Data includes with respect to the Eligible Securities that are options: (1) simple manual orders; (2) electronic and manual paired orders; (3) all complex orders with linkages to all CAT-reportable legs; (4) LTIDs (if applicable) for accounts with Reportable Events for Phase 2d; (5) date account opened or Account Effective Date (as applicable) for accounts with an LTID and flag indicating the Firm Designated ID type as account or relationship for such accounts; (6) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (7) the modification or cancellation of an internal route of an order; and (8) linkage between a combined order and the original customer orders. Phase 2d Industry Member Data also would include electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are options and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: a listed option bid or offer which is accessible electronically by customers or other market participants and is immediately actionable (
                        <E T="03">i.e.,</E>
                         no further action is required by the responder providing the quote in order to execute or cause a trade to be executed). Accordingly, any response to a request for quote or other form of solicitation response provided in standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this definition is reportable in Phase 2d for options.
                        <SU>116</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Phase 2d Industry Member Data also includes with respect to Eligible Securities that are options or equities (1) receipt time of cancellation and modification instructions through Order Cancel Request and Order Modification Request events; (2) modifications of previously routed orders in certain instances; and (3) OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter that does not match and execute orders. In addition, subject to any exemptive or other relief, Phase 2d Industry Member Data will include verbal or manual quotes on an exchange floor or in the over-the-counter market, where verbal quotes and manual quotes are defined as bids or offers in Eligible Securities provided verbally or that are provided or received other than via a CAT Reporter's order handling and execution system (
                        <E T="03">e.g.,</E>
                         quotations provided via email or instant messaging).
                        <SU>117</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             
                            <E T="03">Id.</E>
                             at 23079-80.
                        </P>
                    </FTNT>
                    <P>
                        The Quarterly Progress Report for the fourth quarter of 2021 states that “Phase 2a was fully implemented as of October 26, 2020;” “Phase 2b was fully implemented as of January 4, 2021;” “Phase 2c was implemented as of April 26, 2021; ” and “Phase 2d was fully implemented as of December 13, 2021.” 
                        <SU>118</SU>
                        <FTREF/>
                         The Quarterly Progress Reports for 2021 provide additional detail regarding the implementation of these steps including the following:
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2a, 2b and 2c (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “FCAT Plan Processor creates linkages of the lifecycle of order events based on the received data through Phase 2d Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2b reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2d (Large Industry Members)” was completed on December 13, 2021; and</P>
                    <P>
                        • “LTID Account Information Reporting Go-Live for Phases 2a, 2b, 2c and 2d (Small Industry Members)” was completed on December 13, 2021.
                        <SU>119</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             
                            <E T="03">See</E>
                             Q2 2021 Quarterly Progress Report (July 27, 2021); and Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>The third prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” also imposes an Error Rate requirement of 5% or less. The Quarterly Progress Report for the fourth quarter of 2021 states the average overall error rate was less than 5% as of December 31, 2021. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The fourth prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires that the data collected by the CAT at this stage be made available to regulators through an online targeted query tool and a user-defined direct query tool. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021, the query tool functionality incorporating the data from Phases 2a, 2b, 2c and 2d was available to the Participants and to the Commission as of December 31, 2021.
                        <SU>120</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>120</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The fifth prong requires the requirements of Section 6.10(a) of the CAT NMS Plan to have been met. Section 6.10(a) of the CAT NMS Plan requires the Participants to use the tools described in Appendix D to “develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository.” The Exchange implemented a surveillance system, or enhanced existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository as of December 31, 2021 in accordance with Section 6.10(a) of the CAT NMS Plan.
                        <SU>121</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             
                            <E T="03">See</E>
                             Q1 2021 Quarterly Progress Report (April 30, 2021); Q2 2021 Quarterly Progress Report (July 27, 2021); Q3 2021 Quarterly Progress Report (Nov. 1, 2021); Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>122</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             Settlement Exemptive Order at 77129 n.13.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from January 1, 2021 through December 31, 2021. The total costs for this period, 
                        <PRTPAGE P="10308"/>
                        as discussed above, are $144,415,268. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($48,138,422.70) and CBSs paying one-third ($48,138,422.70).
                    </P>
                    <HD SOURCE="HD3">2. Statutory Basis</HD>
                    <P>
                        The Exchange believes the proposed rule change is consistent with the requirements of the Exchange Act. The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,
                        <SU>123</SU>
                        <FTREF/>
                         which requires, among other things, that the Exchange's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act,
                        <SU>124</SU>
                        <FTREF/>
                         because it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. The Exchange further believes that the proposed rule change is consistent with Section 6(b)(8) of the Act,
                        <SU>125</SU>
                        <FTREF/>
                         which requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. These provisions also require that the Exchange be “so organized and [have] the capacity to be able to carry out the purposes” of the Act and “to comply, and . . . to enforce compliance by its members and persons associated with its members,” with the provisions of the Exchange Act.
                        <SU>126</SU>
                        <FTREF/>
                         Accordingly, a reasonable reading of the Act indicates that it intended that regulatory funding be sufficient to permit an exchange to fulfill its statutory responsibility under the Act, and contemplated that such funding would be achieved through equitable assessments on the members, issuers, and other users of an exchange's facilities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             15 U.S.C. 78f(b)(6).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             
                            <E T="03">See</E>
                             Section 6(b)(1) of the Exchange Act.
                        </P>
                    </FTNT>
                    <P>
                        The Exchange believes that this proposal is consistent with the Act because it implements provisions of the Plan and is designed to assist the Exchange in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>127</SU>
                        <FTREF/>
                         To the extent that this proposal implements the Plan and applies specific requirements to Industry Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             CAT NMS Plan Approval Order at 84697.
                        </P>
                    </FTNT>
                    <P>The Exchange believes that the proposed fees paid by the CEBBs and CEBSs are reasonable, equitably allocated and not unfairly discriminatory. First, the Historical CAT Assessment 1 fees to be collected are directly associated with the costs of establishing and maintaining the CAT, where such costs include Plan Processor costs and costs related to technology, legal, consulting, insurance, professional and administration, and public relations costs. The Exchange has already incurred such development and implementation costs and the proposed Historical CAT Assessment 1 fees, therefore, would allow the Exchange to collect certain of such costs in a fair and reasonable manner from Industry Members, as contemplated by the CAT NMS Plan.</P>
                    <P>The proposed Historical CAT Assessment 1 fees would be charged to Industry Members in support of the maintenance of a consolidated audit trail for regulatory purposes. The proposed fees, therefore, are consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business operations. The proposed fees would not cover Exchange services unrelated to the CAT. In addition, any surplus would be used as a reserve to offset future fees. Given the direct relationship between CAT fees and CAT costs, the Exchange believes that the proposed fees are reasonable, equitable and not unfairly discriminatory.</P>
                    <P>As further discussed below, the SEC approved the CAT Funding Model, finding it was reasonable and that it equitably allocates fees among Participants and Industry Members. The Exchange believes that the proposed fees adopted pursuant to the CAT Funding Model approved by the SEC are reasonable, equitably allocated and not unfairly discriminatory.</P>
                    <HD SOURCE="HD3">(1) Implementation of CAT Funding Model in CAT NMS Plan</HD>
                    <P>
                        Section 11.1(b) of the CAT NMS Plan states that “[t]he Participants shall file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves.” Per Section 11.1(b) of the CAT NMS Plan, the Exchange has filed this fee filing to implement the Industry Member CAT fees included in the CAT Funding Model. The Exchange believes that this proposal is consistent with the Exchange Act because it is consistent with, and implements, the CAT Funding Model in the CAT NMS Plan, and is designed to assist the Exchange and its Industry Members in meeting regulatory obligations pursuant to the CAT NMS Plan. In approving the CAT NMS Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>128</SU>
                        <FTREF/>
                         Similarly, in approving the CAT Funding Model, the SEC concluded that the CAT Funding Model met this standard.
                        <SU>129</SU>
                        <FTREF/>
                         As this proposal implements the Plan and the CAT Funding Model described therein, and applies specific requirements to Industry Members in compliance with the Plan, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Exchange Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             CAT NMS Plan Approval Order at 84696.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             CAT Funding Model Approval Order at 62686.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(2) Calculation of Fee Rate for Historical CAT Assessment 1 Is Reasonable</HD>
                    <P>
                        The SEC has determined that the CAT Funding Model is reasonable and satisfies the requirements of the Exchange Act. Specifically, the SEC has concluded that the method for determining Historical CAT Assessments as set forth in Section 11.3 of the CAT NMS Plan, including the formula for calculating the Historical Fee Rate, the identification of the parties responsible for payment and the transactions subject to the fee rate for the Historical CAT Assessment, is reasonable and satisfies the Exchange Act.
                        <SU>130</SU>
                        <FTREF/>
                         In each respect, as discussed above, Historical CAT Assessment 1 is calculated, and would be applied, in accordance with the requirements 
                        <PRTPAGE P="10309"/>
                        applicable to Historical CAT Assessments as set forth in the CAT NMS Plan. Furthermore, as discussed below, the Exchange believes that each of the figures for the variables in the SEC-approved formula for calculating the fee rate for Historical CAT Assessment 1 is reasonable and consistent with the Exchange Act. Calculation of the Historical Fee Rate for Historical CAT Assessment 1 requires the figures for the Historical CAT Costs 1, the executed equivalent share volume for the prior twelve months, the determination of Historical Recovery Period 1, and the projection of the executed equivalent share volume for Historical Recovery Period 1. Each of these variables is reasonable and satisfies the Exchange Act, as discussed throughout this filing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             
                            <E T="03">Id.</E>
                             at 62662-63.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Historical CAT Costs 1</HD>
                    <P>The formula for calculating a Historical Fee Rate requires the amount of Historical CAT Costs to be recovered. Specifically, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires a fee filing to provide:</P>
                    <EXTRACT>
                        <FP>a brief description of the amount and type of the Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.</FP>
                    </EXTRACT>
                    <P>In accordance with this requirement, the Exchange has set forth the amount and type of Historical CAT Costs 1 for each of these categories of costs above.</P>
                    <P>Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan also requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” As discussed below, the Exchange believes that the amounts set forth in this filing for each of these cost categories is “reasonable and appropriate.” Each of the costs included in Historical CAT Costs 1 are reasonable and appropriate because the costs are consistent with standard industry practice, based on the need to comply with the requirements of the CAT NMS Plan, incurred subject to negotiations performed on an arm's length basis, and/or are consistent with the needs of any legal entity, particularly one with no employees.</P>
                    <HD SOURCE="HD3">(i) Technology: Cloud Hosting Services</HD>
                    <P>
                        In approving the CAT Funding Model, the Commission recognized that it is appropriate to recover costs related to cloud hosting services as a part of Historical CAT Assessments.
                        <SU>131</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to cloud hosting services described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. As described above, the cloud hosting services costs reflect, among other things, the breadth of the CAT cloud activities, data volume far in excess of the original volume estimates, the need for specialized cloud services given the volume and unique nature of the CAT, the processing time requirements of the Plan, and regular efforts to seek to minimize costs where permissible under the Plan. CAT LLC determined that use of cloud hosting services is necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT, and that the fees for cloud hosting services negotiated by FCAT were reasonable, taking into consideration a variety of factors, including the expected volume of data and the breadth of services provided and market rates for similar services.
                        <SU>132</SU>
                        <FTREF/>
                         Indeed, the actual costs of the CAT are far in excess of the original estimated costs of the CAT due to various factors, including the higher volumes and greater complexity of the CAT than anticipated when Rule 613 was originally adopted.
                    </P>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             For a discussion of the amount and type of cloud hosting services fees, 
                            <E T="03">see</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>To comply with the requirements of the Plan, the breadth of the cloud activities related to the CAT is substantial. The cloud services not only include the production environment for the CAT, but they also include two industry testing environments, support environments for quality assurance and stress testing and disaster recovery capabilities. Moreover, the cloud storage costs are driven by the requirements of the Plan, which requires the storage of multiple versions of the data, from the original submitted version of the data through various processing steps, to the final version of the data.</P>
                    <P>
                        Data volume is a significant driver of costs for cloud hosting services. When the Commission adopted the CAT NMS Plan in 2016, it estimated that the CAT would need to receive 58 billion records per day 
                        <SU>133</SU>
                        <FTREF/>
                         and that annual operating costs for the CAT would range from $36.5 million to $55 million.
                        <SU>134</SU>
                        <FTREF/>
                         Through 2021, the actual data volumes have been five times that original estimate. The data volumes for each period are set forth in detail above.
                        <SU>135</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             CAT NMS Plan Approval Order at 84801.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>
                        In addition to the effect of the data volume on the cloud hosting costs, the processing timelines set forth in the Plan contribute to the cloud hosting costs. Although CAT LLC has proactively sought to manage cloud hosting costs while complying with the Plan, including through requests to the Commission for exemptive relief and an amendment to the CAT NMS Plan, stringent CAT NMS Plan requirements do not allow for any material flexibility in cloud architecture design choices, processing timelines (
                        <E T="03">e.g.,</E>
                         the use of non-peak processing windows), or lower-cost storage tiers. As a result, the required CAT processing timelines contribute to the cloud hosting costs of the CAT.
                    </P>
                    <P>The costs for cloud hosting services also reflect the need for specialized cloud hosting services given the data volume and unique processing needs of the CAT. The data volume as well as the data processing needs of the CAT necessitate the use of cloud hosting services. The equipment, power and services required for an on-premises data model, the alternative to cloud hosting services, would be cost prohibitive. Moreover, as CAT was being developed, there were limited cloud hosting providers that could satisfy all the necessary CAT requirements, including the operational and security criteria. Over time more providers offering cloud hosting services that would satisfy these criteria have entered the market. CAT LLC will continue to evaluate alternative cloud hosting services, recognizing that the time and cost to move to an alternative cloud provider would be substantial.</P>
                    <P>
                        The reasonableness of the cloud hosting services costs is further supported by key cost discipline mechanisms for the CAT—a cost-based funding structure, cost transparency, cost management efforts (including regular efforts to lower compute and storage costs where permitted by the Plan) and oversight. Together, these mechanisms help ensure the ongoing reasonableness of the CAT's costs and the level of fees assessed to support those costs.
                        <SU>136</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 97151 (Mar. 15, 2023), 88 FR 17086, 17117 (Mar. 21, 2023) (describing key cost discipline mechanisms for the CAT).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Technology: Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to operating fees 
                        <PRTPAGE P="10310"/>
                        as a part of Historical CAT Assessments.
                        <SU>137</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The operating fees include the negotiated fees paid by CAT LLC to the Plan Processor to operate and maintain the system for order-related information and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the selection of FCAT as the Plan Processor was reasonable and appropriate given its expertise with securities regulatory reporting, after a process of considering other potential candidates.
                        <SU>138</SU>
                        <FTREF/>
                         CAT LLC also determined that the fixed price contract, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, was reasonable and appropriate, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity.
                        <SU>139</SU>
                        <FTREF/>
                         The services performed by FCAT for each period and the costs related to such services are described above.
                        <SU>140</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(b), 3(a)(2)(B)(ii)(b), 3(a)(2)(B)(iii)(b) and 3(a)(2)(B)(iv)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iii) Technology: CAIS Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to CAIS operating fees as a part of Historical CAT Assessments. 
                        <SU>141</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to CAIS operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The CAIS operating fees include the fees paid to the Plan Processor to operate and maintain CAIS and to perform the business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the FCAT-negotiated fees for Kingland's CAIS-related services, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity, were reasonable and appropriate.
                        <SU>142</SU>
                        <FTREF/>
                         The services performed by Kingland for each period and the costs for each period are described above.
                        <SU>143</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(c), 3(a)(2)(B)(ii)(c), 3(a)(2)(B)(iii)(c) and 3(a)(2)(B)(iv)(c) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iv) Technology: Change Request Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to change request fees as a part of Historical CAT Assessments.
                        <SU>144</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to change request fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. It is common practice to utilize a change request process to address evolving needs in technology projects. This is particularly true for a project like CAT that is the first of its kind, both in substance and in scale. The substance and costs of each of the change requests are evaluated by the Operating Committee, and approved in accordance with the requirements for Operating Committee meetings. In each case, CAT LLC determined that the change requests were necessary to implement the CAT. As described above, the change requests cover various technology changes, including, for example, changes related to CAT reporting, data feeds and exchange functionality. CAT LLC also determined that the costs for each change request were appropriate for the relevant technology change. A description of the change requests for each FAM Period and their total costs are set described above.
                        <SU>145</SU>
                        <FTREF/>
                         As noted above, the total costs for change requests through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.25% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(d), 3(a)(2)(B)(ii)(d), 3(a)(2)(B)(iii)(d) and 3(a)(2)(B)(iv)(d) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(v) Capitalized Developed Technology Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to capitalized developed technology costs as a part of Historical CAT Assessments.
                        <SU>146</SU>
                        <FTREF/>
                         Capitalized developed technology costs include costs related to certain development costs, costs related to certain modifications, upgrades and other changes to the CAT, CAIS implementation fees and license fees. The amount and type of costs for each period are described in more detail above.
                        <SU>147</SU>
                        <FTREF/>
                         CAT LLC determined that these costs are reasonable and should be included as a part of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(e), 3(a)(2)(B)(ii)(e), 3(a)(2)(B)(iii)(e) and 3(a)(2)(B)(iv)(e) above.
                        </P>
                    </FTNT>
                    <P>
                        These costs involve the activity of both the Initial Plan Processor and FCAT, as the successor Plan Processor.
                        <SU>148</SU>
                        <FTREF/>
                         With regard to the Initial Plan Processor, the Participants utilized an RFP to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan. CAT LLC entered into an agreement with the Initial Plan Processor in which CAT LLC would pay the Initial Plan Processor a negotiated, fixed price fee.
                        <SU>149</SU>
                        <FTREF/>
                         In addition, as described above, CAT LLC determined that is [
                        <E T="03">sic</E>
                        ] was appropriate to enter into an agreement with FCAT as the successor Plan Processor.
                        <SU>150</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(e) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vi) Legal</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to legal fees as a part of Historical CAT Assessments.
                        <SU>151</SU>
                        <FTREF/>
                         CAT LLC determined that the legal costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Given the unique nature of the CAT, the number of parties involved with the CAT (including, for example, the SEC, Participants, Industry Members, and vendors) and the many regulatory issues associated with the CAT, the scope of the necessary legal services are substantial. CAT LLC determined that the scope of the legal services is necessary to implement and maintain the CAT and that the legal rates reflect the specialized services necessary for such a project. When hiring each law firm for a CAT project, CAT LLC interviewed multiple firms, and determined to hire each firm based on a variety of factors, including the relevant expertise and fees. In each case, 
                        <PRTPAGE P="10311"/>
                        CAT LLC determined that the hourly fee rates were in line with market rates for the specialized legal expertise. In addition, CAT LLC determined that the total costs incurred for each CAT project were appropriate given the breadth of services provided. The services performed by each law firm for each period and the costs related to such services are described above.
                        <SU>152</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(2) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(f), 3(a)(2)(B)(ii)(f), 3(a)(2)(B)(iii)(f) and 3(a)(2)(B)(iv)(f) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vii) Consulting</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover consulting costs as a part of Historical CAT Assessments.
                        <SU>153</SU>
                        <FTREF/>
                         CAT LLC determined that the consulting costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees 
                        <SU>154</SU>
                        <FTREF/>
                         and because of the significant number of issues associated with the CAT, the consultants provided assistance in the management of various CAT matters and the processes related to such matters.
                        <SU>155</SU>
                        <FTREF/>
                         CAT LLC considered a variety of factors in choosing a consulting firm and determined to select Deloitte after an interview process.
                        <SU>156</SU>
                        <FTREF/>
                         CAT LLC also determined that the consulting services were provided at reasonable market rates, as the fees were negotiated annually and comparable to the rates charged by other consulting firms for similar work.
                        <SU>157</SU>
                        <FTREF/>
                         Moreover, the total costs for such consulting services were appropriate in light of the breadth of services provided by Deloitte. The services performed by Deloitte and the costs related to such services are described above.
                        <SU>158</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(3) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             As stated in the filing of the proposed CAT NMS Plan, “[i]t is the intent of the Participants that the Company have no employees.” Securities Exchange Act Rel. No. 77724 (Apr. 27, 2016), 81 FR 30614, 30621 (May 17, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             CAT LLC uses certain third parties to perform tasks that may be performed by administrators for other NMS Plans. 
                            <E T="03">See, e.g.,</E>
                             CTA Plan and CQ Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(g), 3(a)(2)(B)(ii)(g), 3(a)(2)(B)(iii)(g) and 3(a)(2)(B)(iv)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(viii) Insurance</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover insurance costs as a part of Historical CAT Assessments.
                        <SU>159</SU>
                        <FTREF/>
                         CAT LLC determined that the insurance costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that it is common practice to have directors' and officers' liability insurance, and errors and omissions liability insurance. CAT LLC further determined that it was important to have cyber security insurance given the nature of the CAT, and such a decision is consistent with the CAT NMS Plan, which states that the cyber incident response plan may include “[i]nsurance against security breaches.” 
                        <SU>160</SU>
                        <FTREF/>
                         In selecting the insurance providers for these policies, CAT LLC engaged in an evaluation of alternative insurers, including a comparison of the pricing offered by the alternative insurers.
                        <SU>161</SU>
                        <FTREF/>
                         Based on this analysis, CAT LLC determined that the selected insurance policies provided appropriate coverage at reasonable market rates.
                        <SU>162</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(4) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             Section 4.1.5 of Appendix D of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(h), 3(a)(2)(B)(ii)(h), 3(a)(2)(B)(iii)(h) and 3(a)(2)(B)(iv)(h) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ix) Professional and Administration</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover professional and administration costs as a part of Historical CAT Assessments.
                        <SU>163</SU>
                        <FTREF/>
                         CAT LLC determined that the professional and administration costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees, all required accounting, financial, tax, cash management and treasury functions for CAT LLC have been outsourced at market rates. In addition, the required annual financial statement audit of CAT LLC is included in professional and administration costs, which costs are also at market rates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(5) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees.
                        <SU>164</SU>
                        <FTREF/>
                         The hourly fee rates for this firm were in line with market rates for the financial advisory services provided.
                        <SU>165</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Anchin. The services performed by Anchin and the costs related to such services are described above.
                        <SU>166</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC also determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the role given the balanace [
                        <E T="03">sic</E>
                        ] of these considerations.
                        <SU>167</SU>
                        <FTREF/>
                         Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services.
                        <SU>168</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Grant Thornton. The services performed by Grant Thornton and the costs related to such services are described above.
                        <SU>169</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to the receipt of certain market data from Exegy. After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy. Exegy provided the data elements required by the CAT NMS Plan, and the fees were reasonable and in line with market rates for the market data received.
                        <SU>170</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees 
                        <PRTPAGE P="10312"/>
                        were reasonable and in line with market rates for such an assessment.
                        <SU>171</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(x) Public Relations Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover public relations costs as a part of Historical CAT Assessments.
                        <SU>172</SU>
                        <FTREF/>
                         CAT LLC determined that the public relations costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that the types of public relations services utilized were beneficial to the CAT and market participants more generally. Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                        <SU>173</SU>
                        <FTREF/>
                         By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT issues to the benefit of all market participants.
                        <SU>174</SU>
                        <FTREF/>
                         Moreover, CAT LLC determined that the rates charged for such services were in line with market rates.
                        <SU>175</SU>
                        <FTREF/>
                         As noted above, the total public relations costs through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.1% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(6) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(j), 3(a)(2)(B)(ii)(j), 3(a)(2)(B)(iii)(j) and 3(a)(2)(B)(iv)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Total Executed Equivalent Share Volume for the Prior 12 Months</HD>
                    <P>The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. CAT LLC determined the total executed equivalent share volume for the prior twelve months by counting executed equivalent shares in the same manner as it will count executed equivalent shares for CAT billing purposes.</P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to establish a Historical Recovery Period of 24 months for Historical CAT Assessment 1 and that such length is reasonable. CAT LLC determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans notes to the Participants in a timely fashion. CAT LLC determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>176</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, CAT LLC recognized that the total costs for Historical CAT Assessment 1 was less than the total costs for 2022 and 2023, and therefore it would be appropriate to recover those costs in two years. Furthermore, CAT LLC notes 24 months is appropriate because it is not currently proposing that Industry Members be required to pay another Historical CAT Assessment or CAT Fee with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model Approval Order at 62682.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Executed Equivalent Share Volume for Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. CAT LLC determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant in recent years. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is 7,685,722,694,558.88 executed equivalent shares.
                        <SU>177</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Actual Fee Rate for Historical CAT Assessment 1</HD>
                    <HD SOURCE="HD3">(i) Decimal Places</HD>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>178</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of the fee schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 by one-third, and rounding the result to 6 decimal places. CAT LLC determined that the use of six decimal places is reasonable as it balances the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Reasonable Fee Level</HD>
                    <P>
                        The Exchange believes that imposing Historical CAT Assessment 1 with a fee rate of $0.000015 per executed equivalent share is reasonable because it provides for a revenue stream for the Company that is aligned with Historical CAT Costs 1 and such costs would be spread out over an appropriate recovery period, as discussed above. Moreover, the Exchange believes that the level of the fee rate is reasonable, as it is comparable to other transaction-based fees. Indeed, Historical CAT Assessment 1 is significantly lower than fees assessed pursuant to Section 31 (
                        <E T="03">e.g.,</E>
                         $0.0009 per share to 0.0004 per share),
                        <SU>179</SU>
                        <FTREF/>
                         and, as a result, the magnitude of Historical CAT Assessment 1 is small, and therefore will mitigate any potential adverse economic effects or inefficiencies.
                        <SU>180</SU>
                        <FTREF/>
                         Furthermore, the reasonable fee rate for Historical CAT Assessment 1 further supports CAT LLC's decision to seek to recover all Historical CAT Costs prior to 2022, rather than establishing separate Historical CAT Assessments for pre-FAM, FAM 1, FAM 2 and FAM 3 costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             CAT Funding Model Approval Order at 62663, 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Historical CAT Assessment 1 Provides for an Equitable Allocation of Fees</HD>
                    <P>
                        Historical CAT Assessment 1 provides for an equitable allocation of fees, as it equitably allocates CAT costs between and among the Participants and Industry Members. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act, including the formula for calculating Historical CAT Assessments as well as the Industry Members to be charged the Historical CAT Assessments.
                        <SU>181</SU>
                        <FTREF/>
                         In approving the CAT Funding Model, the SEC stated that “[t]he Participants have sufficiently demonstrated that the proposed allocation of fees is reasonable.” 
                        <SU>182</SU>
                        <FTREF/>
                         Accordingly, the CAT Funding Model sets forth the requirements for allocating fees related to Historical CAT Costs 
                        <PRTPAGE P="10313"/>
                        among Participants and Industry Members, and the fee filings for Historical CAT Assessments must comply with those requirements.
                    </P>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <P>Historical CAT Assessment 1 provides for an equitable allocation of fees as it complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. For example, as described above, the calculation of Historical CAT Assessment 1 complies with the formula set forth in Section 11.3(b) of the CAT NMS Plan. In addition, Historical CAT Assessment 1 would be charged to CEBBs and CEBSs in accordance with Section 11.3(b) of the CAT NMS Plan. Furthermore, the Participants would continue to remain responsible for their designated share of Past CAT Costs through the cancellation of loans made by the Participants to CAT LLC.</P>
                    <P>In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1—Historical CAT Costs 1 (including Excluded Costs), the count for the executed equivalent share volume for the prior 12 months, the length of the Historical Recovery Period, and the projected executed equivalent share volume for the Historical Recovery Period—are reasonable. Moreover, these inputs lead to a reasonable fee rate for Historical CAT Assessment 1 that is lower than other fee rates for transaction-based fees. A reasonable fee rate allocated in accordance with the requirements of the CAT Funding Model provides for an equitable allocation of fees.</P>
                    <HD SOURCE="HD3">(4) Historical CAT Assessment 1 Is Not Unfairly Discriminatory</HD>
                    <P>Historical CAT Assessment 1 is not an unfairly discriminatory fee. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act. In reaching this conclusion, the SEC analyzed the potential effect of Historical CAT Assessments calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Historical CAT Assessment 1 complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 and the resulting fee rate for Historical CAT Assessment 1 is reasonable. Therefore, Historical CAT Assessment 1 does not impose an unfairly discriminatory fee on Industry Members.</P>
                    <P>Finally, the Exchange believes the proposed fees established pursuant to the CAT Funding Model promote just and equitable principles of trade, and, in general, protect investors and the public interest, and are provided in a transparent manner and specificity in the fee schedule. The Exchange also believes that the proposed fees are reasonable because they would provide ease of calculation, ease of billing and other administrative functions, and predictability of a fee based on fixed rate per executed equivalent share. Such factors are crucial to estimating a reliable revenue stream for CAT LLC and for permitting Exchange members to reasonably predict their payment obligations for budgeting purposes.</P>
                    <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                    <P>
                        Section 6(b)(8) of the Act 
                        <SU>183</SU>
                        <FTREF/>
                         requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that Historical CAT Assessment 1 implements provisions of the CAT NMS Plan that were approved by the Commission and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>In addition, all Participants (including exchanges and FINRA) are proposing to introduce Historical CAT Assessment 1 on behalf of CAT LLC to implement the requirements of the CAT NMS Plan. Therefore, this is not a competitive fee filing, and, therefore, it does not raise competition issues between and among the Participants.</P>
                    <P>
                        Furthermore, in approving the CAT Funding Model, the SEC analyzed the potential competitive impact of the CAT Funding Model, including competitive issues related to market services, trading services and regulatory services, efficiency concerns, and capital formation.
                        <SU>184</SU>
                        <FTREF/>
                         The SEC also analyzed the potential effect of CAT fees calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Based on this analysis, the SEC approved the CAT Funding Model as compliant with the Exchange Act. Historical CAT Assessment 1 is calculated and implemented in accordance with the CAT Funding Model as approved by the SEC.
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             CAT Funding Model Approval Order at 62676-86.
                        </P>
                    </FTNT>
                    <P>As discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 is reasonable and the resulting fee rate for Historical CAT Assessment 1 calculated in accordance with the CAT Funding Model is reasonable. Therefore, Historical CAT Assessment 1 would not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act.</P>
                    <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                    <P>No written comments were either solicited or received.</P>
                    <HD SOURCE="HD1">III. Suspension of the Proposed Rule Change</HD>
                    <P>
                        Pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>185</SU>
                        <FTREF/>
                         at any time within 60 days of the date of filing of a proposed rule change pursuant to Section 19(b)(1) of the Act,
                        <SU>186</SU>
                        <FTREF/>
                         the Commission summarily may temporarily suspend the change in the rules of an SRO if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. As discussed below, a temporary suspension of the proposed rule change is necessary or appropriate to allow for additional analysis of the proposed rule change's consistency with the Act and the rules thereunder.
                    </P>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <P>
                        When exchanges file their proposed rule changes with the Commission, including fee filings like the Exchange's present proposed rule change, they are required to provide a statement supporting the proposed rule change's basis under the Act and the rules and regulations thereunder applicable to the 
                        <PRTPAGE P="10314"/>
                        exchange.
                        <SU>187</SU>
                        <FTREF/>
                         The instructions to Form 19b-4, on which exchanges file their proposed rule changes, specify that such statement “should be sufficiently detailed and specific to support a finding that the proposed rule change is consistent with [those] requirements.” 
                        <SU>188</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.19b-4 (Item 3 entitled “Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>188</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Among other things, the Exchange's proposed rule change is subject to Section 6 of the Act, including Sections 6(b)(4), (5), and (8), which require the rules of an exchange to: (1) provide for the equitable allocation of reasonable fees among members, issuers, and other persons using the exchange's facilities; 
                        <SU>189</SU>
                        <FTREF/>
                         (2) be designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers; 
                        <SU>190</SU>
                        <FTREF/>
                         and (3) not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
                        <SU>191</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>190</SU>
                             15 U.S.C. 78f(b)(5).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>The proposed rule change is also subject to the CAT Funding Model set forth in the CAT NMS Plan. For example, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” In addition, Section 11.3(b)(i)(C) of the CAT NMS Plan provides that the “Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and Section 11.3(b)(i)(D) of the CAT NMS Plan provides that “[t]he length of the Historical Recovery Period used in calculating each Historical Fee Rate will be reasonably established by the Operating Committee based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment . . .” Further, Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan provides that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.”</P>
                    <P>
                        In temporarily suspending the Exchange's fee change, the Commission intends to further consider whether the proposed fees are consistent with the statutory requirements applicable to a national securities exchange under the Act and with the requirements set forth in the CAT Funding Model. Among other things, the Commission will consider whether the proposed rule change provides for reasonable fees that satisfy the standards under the Act and the rules thereunder.
                        <SU>192</SU>
                        <FTREF/>
                         Further, and among other things, the Commission will consider whether the proposed rule change, as required by the CAT Funding Model, provides “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including, but not limited to, whether the Operating Committee has “reasonably determine[d] the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and whether the “length of the Historical Recovery Period used in calculating each Historical Fee Rate [was] reasonably established by the Operating Committee.” 
                        <SU>193</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>192</SU>
                             
                            <E T="03">See</E>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>193</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <P>
                        Therefore, the Commission finds that it is necessary or appropriate in the public interest, for the protection of investors, and otherwise in furtherance of the purposes of the Act, to temporarily suspend the proposed rule change.
                        <SU>194</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>194</SU>
                             For purposes of temporarily suspending the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                            <E T="03">See</E>
                             15 U.S.C. 78c(f).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">IV. Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</HD>
                    <P>
                        In addition to temporarily suspending the proposed rule change, the Commission is instituting proceedings pursuant to Sections 19(b)(3)(C) 
                        <SU>195</SU>
                        <FTREF/>
                         and 19(b)(2)(B) 
                        <SU>196</SU>
                        <FTREF/>
                         of the Act to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change to inform the Commission's analysis of whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>195</SU>
                             15 U.S.C. 78s(b)(3)(C). Once the Commission temporarily suspends a proposed rule change, Section 19(b)(3)(C) of the Act requires that the Commission institute proceedings under Section 19(b)(2)(B) to determine whether a proposed rule change should be approved or disapproved.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>196</SU>
                             15 U.S.C. 78s(b)(2)(B).
                        </P>
                    </FTNT>
                    <P>
                        Pursuant to Section 19(b)(2)(B) of the Act,
                        <SU>197</SU>
                        <FTREF/>
                         the Commission is providing notice of the grounds for possible disapproval under consideration. The Commission is instituting proceedings to allow for additional consideration and comment on whether the Exchange has sufficiently demonstrated that the proposed rule change is consistent with Section 6(b)(4) 
                        <SU>198</SU>
                        <FTREF/>
                         of the Act, and consistent with the CAT Funding Model. Section 6(b)(4) of the Act, among other things, provides that the dues, fees, and other charges for an exchange's members be reasonable. And the CAT Funding Model, as noted above, requires, among other things, that the proposed rule change provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including whether the Operating Committee has reasonably determined the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee and whether the length of the Historical Recovery Period used in calculating each Historical Fee Rate was reasonably established by the Operating Committee.
                        <SU>199</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>197</SU>
                             15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the Act also provides that proceedings to determine whether to disapprove a proposed rule change must be concluded within 180 days of the date of publication of notice of the filing of the proposed rule change. 
                            <E T="03">See id.</E>
                             The time for conclusion of the proceedings may be extended for up to 60 days if the Commission finds good cause for such extension and publishes its reasons for so finding, or if the exchange consents to the longer period. 
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>198</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>199</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">V. Commission's Solicitation of Comments</HD>
                    <P>
                        The Commission requests that interested persons provide written submission of their views, data, and arguments with respect to the issues identified above, as well as any other 
                        <PRTPAGE P="10315"/>
                        concerns they have with the proposed rule change. In particular, the Commission invites the written views of interested persons concerning whether the proposed rule change is consistent with Section 6(b)(4), or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.
                        <SU>200</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>200</SU>
                             15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act grants the Commission flexibility to determine what type of proceeding—either oral or notice and opportunity for written comments—is appropriate for consideration of a particular proposed rule change by an exchange. 
                            <E T="03">See</E>
                             Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975).
                        </P>
                    </FTNT>
                    <P>Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule changes should be approved or disapproved by March 5, 2024. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by March 19, 2024.</P>
                    <P>Comments may be submitted by any of the following methods:</P>
                    <HD SOURCE="HD2">Electronic Comments</HD>
                    <P>
                        • Use the Commission's internet comment form (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ); or
                    </P>
                    <P>
                        • Send an email to 
                        <E T="03">rule-comments@sec.gov.</E>
                         Please include file number SR-GEMX-2024-02 on the subject line.
                    </P>
                    <HD SOURCE="HD2">Paper Comments</HD>
                    <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                    <FP>
                        All submissions should refer to file number SR-GEMX-2024-02. 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 internet website (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-GEMX-2024-02 and should be submitted on or before March 5, 2024. Rebuttal comments should be submitted by March 19, 2024.
                    </FP>
                    <HD SOURCE="HD1">VI. Conclusion</HD>
                    <P>
                        <E T="03">It is therefore ordered,</E>
                         pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>201</SU>
                        <FTREF/>
                         that File No. SR-GEMX-2024-02 be, and hereby is, temporarily suspended. In addition, the Commission is instituting proceedings to determine whether the proposed rule change should be approved or disapproved.
                    </P>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <SIG>
                        <P>
                            For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                            <SU>202</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>202</SU>
                                 17 CFR 200.30-3(a)(12), (57) and (58).
                            </P>
                        </FTNT>
                        <NAME>Sherry R. Haywood,</NAME>
                        <TITLE>Assistant Secretary.</TITLE>
                    </SIG>
                </PREAMB>
                <FRDOC>[FR Doc. 2024-01174 Filed 2-12-24; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 8011-01-P</BILCOD>
            </NOTICE>
            <NOTICE>
                <PREAMB>
                    <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                    <DEPDOC>[Release No. 34-99366; File No. SR-NYSECHX-2024-02]</DEPDOC>
                    <SUBJECT>Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of Filing of Proposed Rule Change To Amend the Fee Schedule of NYSE Chicago, Inc. To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail; Suspension of and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</SUBJECT>
                    <DATE>January 17, 2024.</DATE>
                    <P>
                        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act” or the “Exchange Act”) 
                        <SU>1</SU>
                        <FTREF/>
                         and Rule 19b-4 thereunder,
                        <SU>2</SU>
                        <FTREF/>
                         notice is hereby given that, on January 8, 2024, the NYSE Chicago, Inc. (“NYSE Chicago” or the “Exchange”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II, below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is, pursuant to Section 19(b)(3)(C) of the Act, hereby: (i) temporarily suspending the rule change; and (ii) instituting proceedings to determine whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             15 U.S.C. 78a.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             17 CFR 240.19b-4.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                    <P>
                        The Exchange proposes to amend the Fee Schedule of NYSE Chicago, Inc. (“Fee Schedule”) to establish fees for Industry Members 
                        <SU>3</SU>
                        <FTREF/>
                         related to certain historical costs of the National Market System Plan Governing the Consolidated Audit Trail (the “CAT NMS Plan” or “Plan”) incurred prior to January 1, 2022. These fees would be payable to Consolidated Audit Trail, LLC (“CAT LLC” or “the Company”) 
                        <SU>4</SU>
                        <FTREF/>
                         and referred to as Historical CAT Assessment 1, and would be described in a section of the Exchange's Fee Schedule titled “Consolidated Audit Trail Funding Fees.” The fee rate for Historical CAT Assessment 1 will be $0.000015 per executed equivalent share. CAT Executing Brokers will receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 calculated based on their transactions as CAT Executing Brokers for the Buyer (“CEBB”) and/or CAT Executing Brokers for the Seller (“CEBS”) in March 2024. The proposed rule change is available on the Exchange's website at 
                        <E T="03">www.nyse.com,</E>
                         at the principal office of the Exchange, and at the Commission's Public Reference Room.
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             An “Industry Member” is defined as “a member of a national securities exchange or a member of a national securities association.” 
                            <E T="03">See</E>
                             NYSE Chicago Rule 6.6810(u). 
                            <E T="03">See also</E>
                             Section 1.1 of the CAT NMS Plan. Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth in the CAT NMS Plan and/or the CAT Compliance Rule. 
                            <E T="03">See</E>
                             NYSE Chicago Rule 6.6810.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             The term “CAT LLC” may be used to refer to Consolidated Audit Trail, LLC or CAT NMS, LLC, depending on the context.
                        </P>
                    </FTNT>
                    <PRTPAGE P="10316"/>
                    <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <P>In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item V below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.</P>
                    <HD SOURCE="HD2">
                        A. 
                        <E T="03">Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change</E>
                    </HD>
                    <HD SOURCE="HD3">1. Purpose</HD>
                    <P>
                        On July 11, 2012, the Securities and Exchange Commission (“Commission” or “SEC”) adopted Rule 613 of Regulation NMS, which required the self-regulatory organizations (“SROs”) to submit a national market system (“NMS”) plan to create, implement and maintain a consolidated audit trail that would capture customer and order event information for orders in NMS securities across all markets, from the time of order inception through routing, cancellation, modification or execution.
                        <SU>5</SU>
                        <FTREF/>
                         On November 15, 2016, the Commission approved the CAT NMS Plan.
                        <SU>6</SU>
                        <FTREF/>
                         Under the CAT NMS Plan, the Operating Committee has the discretion to establish funding for CAT LLC to operate the CAT, including establishing fees for Industry Members to be assessed by CAT LLC that would be implemented on behalf of CAT LLC by the Participants.
                        <SU>7</SU>
                        <FTREF/>
                         The Operating Committee adopted a revised funding model to fund the CAT (“CAT Funding Model”). On September 6, 2023, the Commission approved the CAT Funding Model, after concluding that the model was reasonable and that it satisfied the requirements of Section 11A of the Exchange Act and Rule 608 thereunder.
                        <SU>8</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 67457 (July 18, 2012), 77 FR 45721 (August 1, 2012).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 79318 (November 15, 2016), 81 FR 84696 (November 23, 2016) (“CAT NMS Plan Approval Order”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 98290 (September 6, 2023), 88 FR 62628 (September 12, 2023) (“CAT Funding Model Approval Order”).
                        </P>
                    </FTNT>
                    <P>
                        The CAT Funding Model provides a framework for the recovery of the costs to create, develop and maintain the CAT, including providing a method for allocating costs to fund the CAT among Participants and Industry Members. The CAT Funding Model establishes two categories of fees: (1) CAT fees assessed by CAT LLC and payable by certain Industry Members to recover a portion of historical CAT costs previously paid by the Participants (“Historical CAT Assessment” fees); and (2) CAT fees assessed by CAT LLC and payable by Participants and Industry Members to fund prospective CAT costs (“Prospective CAT Costs” fees).
                        <SU>9</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             Under the CAT Funding Model, the Operating Committee may establish one or more Historical CAT Assessments. Section 11.3(b) of the CAT NMS Plan. This filing only establishes Historical CAT Assessment 1 related to certain Historical CAT Costs as described herein; it does not address any other potential Historical CAT Assessment related to other Historical CAT Costs. In addition, under the CAT Funding Model, the Operating Committee also may establish CAT Fees related to CAT costs going forward. Section 11.3(a) of the CAT NMS Plan. This filing does not address any potential CAT Fees related to CAT costs going forward. Any such other fee for any other Historical CAT Assessment or CAT Fee for Prospective CAT Costs will be subject to a separate fee filing.
                        </P>
                    </FTNT>
                    <P>
                        Under the CAT Funding Model, “[t]he Operating Committee will establish one or more fees (each a `Historical CAT Assessment') to be payable by Industry Members with regard to CAT costs previously paid by the Participants (`Past CAT Costs').” 
                        <SU>10</SU>
                        <FTREF/>
                         In establishing a Historical CAT Assessment, the Operating Committee will determine a “Historical Recovery Period” and calculate a “Historical Fee Rate” for that Historical Recovery Period. Then, for each month in which a Historical CAT Assessment is in effect, each CEBB and CEBS would be required to pay the fee—the Historical CAT Assessment—for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate.
                        <SU>11</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, the proposed recovery of the Past CAT Costs via the Historical CAT Assessment is reasonable.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62662.
                        </P>
                    </FTNT>
                    <P>
                        Each Historical CAT Assessment to be paid by CEBBs and CEBSs is designed to contribute toward the recovery of two-thirds of the Historical CAT Costs. Because the Participants previously have paid Past CAT Costs via loans to the Company, the Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made by the Participants to the Company on a pro rata basis based on the outstanding loan amounts due under the loans, instead of through the payment of a CAT fee.
                        <SU>12</SU>
                        <FTREF/>
                         In addition, Participants also will be 100% responsible for certain Excluded Costs (as discussed below).
                    </P>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             Section 11.3(b)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC proposes to charge CEBBs and CEBSs (as described in more detail below) Historical CAT Assessment 1 to recover certain historical CAT costs incurred prior to January 1, 2022, in accordance with the CAT Funding Model. To implement this fee on behalf of CAT LLC, the CAT NMS Plan requires the Participants to “file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves, and such fees shall be labeled as `Consolidated Audit Trail Funding Fees.' ” 
                        <SU>13</SU>
                        <FTREF/>
                         The Plan further states that “Participants will be required to file with the SEC pursuant to Section 19(b) of the Exchange Act a filing for each Historical CAT Assessment.” 
                        <SU>14</SU>
                        <FTREF/>
                         Accordingly, the purpose of this filing is to implement a Historical CAT Assessment on behalf of CAT LLC for Industry Members, referred to as Historical CAT Assessment 1, in accordance with the CAT NMS Plan.
                        <SU>15</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             Section 11.3(b)(iii)(B)(I) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             Note that there may be one or more Historical CAT Assessments depending on the timing of the completion of the Financial Accountability Milestones, among other things. Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(1) CAT Executing Brokers</HD>
                    <P>
                        Historical CAT Assessment 1 will be charged to each CEBB and CEBS for each applicable transaction in Eligible Securities.
                        <SU>16</SU>
                        <FTREF/>
                         The CAT NMS Plan defines a “CAT Executing Broker” to mean:
                    </P>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             In its approval of the CAT Funding Model, the Commission determined that charging CAT fees to CAT Executing Brokers was reasonable. In reaching this conclusion the Commission noted that the use of CAT Executing Brokers is appropriate because the CAT Funding Model is based upon the calculation of 
                            <E T="03">executed</E>
                             equivalent shares, and, therefore, charging CAT Executing Brokers would reflect their executing role in each transaction. Furthermore, the Commission noted that, because CAT Executing Brokers are already identified in transaction reports from the exchanges and FINRA's equity trade reporting facilities recorded in CAT Data, charging CAT Executing Brokers could streamline the billing process. 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) with respect to a transaction in an Eligible Security that is executed on an exchange, the Industry Member identified as the Industry Member responsible for the order on the buy-side of the transaction and the Industry Member responsible for the sell-side of the transaction in the equity order trade event and option trade event in the CAT Data submitted to the CAT by the relevant exchange pursuant to the Participant Technical Specifications; and (b) with 
                            <PRTPAGE P="10317"/>
                            respect to a transaction in an Eligible Security that is executed otherwise than on an exchange and required to be reported to an equity trade reporting facility of a registered national securities association, the Industry Member identified as the executing broker and the Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event in the CAT Data submitted to the CAT by FINRA pursuant to the Participant Technical Specifications; provided, however, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.
                            <SU>17</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>17</SU>
                                 Section 1.1 of the CAT NMS Plan. Note that CEBBs and CEBSs may, but are not required to, pass-through their CAT fees to their clients, who may, in turn, pass their fees to their clients until they are imposed ultimately on the account that executed the transaction. 
                                <E T="03">See</E>
                                 CAT Funding Model Approval Order at 62649.
                            </P>
                            <P>
                                <SU>18</SU>
                                 
                                <E T="03">See</E>
                                 Table 23, Section 4.7 (Order Trade Event) of the CAT Reporting Technical Specifications for Plan Participants, Version 4.1.0-r20 (Sept. 25, 2023), 
                                <E T="03">https://www.catnmsplan.com/sites/default/files/2023-09/9.25.2023-CAT_Reporting_Technical_Specifications_for_Participants_4.1.0-r20.pdf</E>
                                 (“CAT Reporting Technical Specifications for Plan Participants”).
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>The following fields of the Participant Technical Specifications indicate the CAT Executing Brokers for the transactions executed on an exchange.</P>
                    <GPH SPAN="3" DEEP="203">
                        <GID>EN13FE24.060</GID>
                    </GPH>
                    <GPH SPAN="3" DEEP="93">
                        <GID>EN13FE24.061</GID>
                    </GPH>
                    <P>
                        In addition, the following fields of the Participant Technical Specifications would indicate the CAT Executing Brokers for the transactions executed otherwise than on an exchange.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>19</SU>
                             
                            <E T="03">See</E>
                             Table 51, Section 5.2.5.1 (Simple Option Trade Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                        <P>
                            <SU>20</SU>
                             
                            <E T="03">See</E>
                             Table 61, Section 6.1 (TRF/ORF/ADF Transaction Data Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="121">
                        <GID>EN13FE24.062</GID>
                    </GPH>
                    <PRTPAGE P="10318"/>
                    <HD SOURCE="HD3">
                        (2) Calculation of Historical Fee Rate
                        <E T="51">1</E>
                    </HD>
                    <P>The Operating Committee determined the Historical Fee Rate to be used in calculating Historical CAT Assessment 1 (“Historical Fee Rate 1”) by dividing the Historical CAT Costs for Historical CAT Assessment 1 (“Historical CAT Costs 1”) by the projected total executed share volume of all transactions in Eligible Securities for the Historical Recovery Period for Historical CAT Assessment 1 (“Historical Recovery Period 1”), as discussed in detail below. Based on this calculation, the Operating Committee has determined that Historical Fee Rate 1 would be 0.0000439371316687066 per executed equivalent share. This rate is then divided by three and rounded to determine the fee rate of $0.000015 per executed equivalent share that will be assessed to CEBBs and CEBSs, as also discussed in detail below.</P>
                    <HD SOURCE="HD3">(A) Executed Equivalent Shares for Transactions in Eligible Securities</HD>
                    <P>
                        Under the CAT NMS Plan, for purposes of calculating each Historical CAT Assessment, executed equivalent shares in a transaction in Eligible Securities will be reasonably counted as follows: (1) each executed share for a transaction in NMS Stocks will be counted as one executed equivalent share; (2) each executed contract for a transaction in Listed Options will be counted based on the multiplier applicable to the specific Listed Options (
                        <E T="03">i.e.,</E>
                         100 executed equivalent shares or such other applicable multiplier); and (3) each executed share for a transaction in OTC Equity Securities shall be counted as 0.01 executed equivalent share.
                        <SU>21</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             Section 11.3(a)(i)(B) and 11.3(b)(i)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission concluded that “the use of executed equivalent share volume as the basis of the proposed cost allocation methodology is reasonable and consistent with the approach taken by the funding principles of the CAT NMS Plan.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62640.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Historical CAT Costs</HD>
                    <P>
                        The CAT NMS Plan states that “[t]he Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee. Each Historical CAT Assessment will seek to recover from CAT Executing Brokers two-thirds of Historical CAT Costs incurred during the period covered by the Historical CAT Assessment.” 
                        <SU>22</SU>
                        <FTREF/>
                         As described in detail below, Historical CAT Costs 1 would be $337,688,610. This figure includes Past CAT Costs of $401,312,909 minus certain Excluded Costs of $63,624,299. Participants collectively will remain responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), plus the Excluded Costs of $63,624,299. CEBBs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), and CEBSs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870).
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             Section 11.3(b)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        The following describes in detail Historical CAT Costs 1 with regard to four separate historical time periods as well as Past CAT Costs excluded from Historical CAT Costs 1 (“Excluded Costs”). The following cost details are provided in accordance with the requirement in the CAT NMS Plan to provide in the fee filing “a brief description of the amount and type of Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.” 
                        <SU>23</SU>
                        <FTREF/>
                         Each of the costs described below are reasonable, appropriate and necessary for the creation, implementation and maintenance of CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             Section 11.3(b)(iii)(B)(II)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(i) Historical CAT Costs Incurred Prior to June 22, 2020 (Pre-FAM Costs)</HD>
                    <P>Historical CAT Costs 1 would include costs incurred by CAT prior to June 22, 2020 (“Pre-FAM Period”) and already funded by the Participants, excluding Excluded Costs (described further below). Historical CAT Costs 1 would include costs for the Pre-FAM Period of $143,919,521. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($47,973,174), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($47,973,174) and CEBSs paying one-third ($47,973,174). These costs do not include Excluded Costs, as discussed further below. The following table breaks down Historical CAT Costs 1 for the Pre-FAM Period into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.</P>
                    <GPH SPAN="3" DEEP="294">
                        <PRTPAGE P="10319"/>
                        <GID>EN13FE24.063</GID>
                    </GPH>
                    <P>
                        The Pre-FAM Period includes a broad range of CAT-related activity from 2012 through June 22, 2020, including the evaluation of the requirements of SEC Rule 613, the development of the CAT NMS Plan, the evaluation and selection of the initial and successor Plan Processors, the commencement of the creation and implementation of the CAT to comply with Rule 613 and the CAT NMS Plan, including technical specifications for transaction reporting and regulatory access, and related technology and the commencement of reporting to the CAT. The following describes the costs for each of the categories for the Pre-FAM Period.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             With respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>25</SU>
                             The costs described in this table of costs for the Pre-FAM Period were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website. In addition, in accordance with Section 6.6(a)(i) of the CAT NMS Plan, in 2018 CAT LLC provided the SEC with “an independent audit of fees, costs, and expenses incurred by the Participants on behalf of the Company prior to the Effective Date of the Plan that will be publicly available.” The audit is available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>The $10,268,840 in technology costs for cloud hosting services represent costs incurred for services provided by the cloud services provider for the CAT, Amazon Web Services, Inc. (“AWS”), during the Pre-FAM Period.</P>
                    <P>As part of its proposal for acting as the successor Plan Processor for the CAT, FCAT selected AWS as a subcontractor to provide cloud hosting services. In 2019, after reviewing the capabilities of other cloud services providers, FCAT determined that AWS was the only cloud services provider at that time sufficiently mature and capable of providing the full suite of necessary cloud services for the CAT, including, for example, the security, resiliency and complexity necessary for the CAT computing requirements. The use of cloud hosting services is standard for this type of high-volume data activity and reasonable and necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT the fees incurred by the Plan Processor for cloud hosting services provided by AWS as FCAT's subcontrator on a monthly basis for the cloud hosting services, and FCAT, in turn, pays such fees to AWS. The fees for cloud hosting services were negotiated by FCAT on an arm's length basis with the goals of managing cost and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the expected volume of data, the breadth of services provided and market rates for similar services. The fees for cloud hosting services during the Pre-FAM Period were paid to FCAT by CAT NMS LLC 
                        <SU>26</SU>
                        <FTREF/>
                         and subsequently Consolidated Audit Trail, LLC (as previously noted, both entities are referred to generally as “CAT LLC”),
                        <SU>27</SU>
                        <FTREF/>
                         and FCAT, in turn, paid AWS. CAT LLC was funded via loan contributions by the Participants.
                        <SU>28</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>26</SU>
                             CAT NMS, LLC was formed by FINRA and the U.S. national securities exchanges to implement the requirements of SEC Rule 613 under the Exchange Act. SEC Rule 613 required the SROs to jointly submit to the SEC the CAT NMS Plan to create, implement and maintain the CAT. The SEC approved the CAT NMS Plan on November 15, 2016. 
                            <E T="03">See</E>
                             CAT NMS Plan Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             On August 29, 2019, the Participants formed a new Delaware limited liability company named Consolidated Audit Trail, LLC for the purpose of conducting activities related to the CAT from and after the effectiveness of the proposed amendment of the CAT NMS Plan to replace CAT NMS, LLC. 
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 87149 (September 27, 2019), 84 FR 52905 (October 3, 2019).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             For each of the costs paid by CAT NMS, LLC and Consolidated Audit Trail, LLC as discussed throughout this filing, CAT NMS, LLC and Consolidated Audit Trail, LLC paid these costs via loan contributions by the Participants to CAT NMS, 
                            <PRTPAGE/>
                            LLC and Consolidated Audit Trail, LLC, respectively.
                        </P>
                    </FTNT>
                    <PRTPAGE P="10320"/>
                    <P>AWS was engaged by FCAT to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. Services provided by AWS include storage services, databases, compute services and other services (such as networking, management tools and DevOps tools). AWS also was engaged to provide various environments for CAT, such as development, performance testing, test and production environments.</P>
                    <P>
                        The cost for AWS services for the CAT is a function of the volume of CAT Data. The greater the amount of CAT Data, the greater the cost of AWS services to the CAT. During the Pre-FAM Period from the engagement of AWS in February 2019 through June 2020, AWS provided cloud hosting services for volumes of CAT Data far in excess of the volume predictions set forth in the CAT NMS Plan. The CAT NMS Plan states, when all CAT Reporters are submitting their data to the CAT, it “must be sized to receive[,] process and load more than 58 billion records per day,” 
                        <SU>29</SU>
                        <FTREF/>
                         and that “[i]t is expected that the Central Repository will grow to more than 29 petabytes of raw, uncompressed data.” 
                        <SU>30</SU>
                        <FTREF/>
                         However, the volume of CAT Data for the Pre-FAM Period was far in excess of these predicted levels. By the end of this period, data submitted to the CAT included options and equities Participant Data,
                        <SU>31</SU>
                        <FTREF/>
                         Phase 2a and Phase 2b Industry Member Data 
                        <SU>32</SU>
                        <FTREF/>
                         (including certain linkages), as well as SIP Data,
                        <SU>33</SU>
                        <FTREF/>
                         reference data and other types of Other Data.
                        <SU>34</SU>
                        <FTREF/>
                         The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during the Pre-FAM Period.
                        <SU>35</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             Appendix D-5 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             
                            <E T="03">See</E>
                             Section 6.3(d) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Release No. 88702 (April 20, 2020), 85 FR 23075 (April 24, 2020) (“Phased Reporting Exemptive Relief Order”) for a description of Phase 2a and Phase 2b Industry Member Data.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See</E>
                             Appendix C-108 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="274">
                        <GID>EN13FE24.064</GID>
                    </GPH>
                    <HD SOURCE="HD3">
                        (b) Technology Costs—Operating Fees
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             Note that, although there were compute hours during this period, data related to such compute hours are no longer available in current data.
                        </P>
                    </FTNT>
                    <P>
                        The $21,085,485 in technology costs related to operating fees represent costs incurred with regard to activities of FCAT as the Plan Processor. Operating fees are those fees paid by CAT LLC to FCAT as the Plan Processor to operate and maintain the CAT and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management as required by the CAT NMS Plan.
                    </P>
                    <P>
                        FCAT was selected to assume the role of the successor Plan Processor. Prior to this selection, the Participants engaged in discussions with two prior Bidders 
                        <SU>37</SU>
                        <FTREF/>
                         for the successor Plan Processor role. The Operating Committee formed a Selection Subcommittee in accordance with Section 4.12 of the CAT NMS Plan to evaluate and review Bids and to make a recommendation to the Operating Committee with respect to the selection of the successor Plan Processor. In an April 9, 2019 letter to the Commission, the Participants described the reasons for its selection of the successor Plan Processor:
                    </P>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             The term “Bidder” is defined in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>The Selection Subcommittee considered factors including, but not limited to, the following, in recommending FINRA to the Operating Committee as the successor Plan Processor:</P>
                    <EXTRACT>
                        <P>
                            a. FINRA's specialized technical expertise and capabilities in the area of broker-dealer technology;
                            <PRTPAGE P="10321"/>
                        </P>
                        <P>b. The need to appoint a successor Plan Processor with specialized expertise to develop, implement, and maintain the CAT System in accordance with the CAT NMS Plan and SEC Rule 613;</P>
                        <P>c. FINRA's detailed proposal in response to CATLLC's recent inquiries; and</P>
                        <P>d. FINRA's data query and analytics systems demonstration to the Participants.</P>
                    </EXTRACT>
                    <P>
                        Based on these and other factors, the Selection Subcommittee determined that FINRA was the most appropriate Bidder to become the successor Plan Processor.
                        <SU>38</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             Letter from Michael J. Simon, Chair, CAT NMS, LLC Operating Committee, to Brent J. Fields, Secretary, SEC (Apr. 9, 2019), available at 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection-040919.pdf.</E>
                        </P>
                    </FTNT>
                    <P>
                        On February 26, 2019, the Operating Committee (with FINRA recusing itself) voted to select FINRA as the successor Plan Processor pursuant to Section 6.1(t) of the CAT NMS Plan.
                        <SU>39</SU>
                        <FTREF/>
                         On March 29, 2019, CAT LLC and FCAT (a wholly owned subsidiary of FINRA) entered into a Plan Processor Agreement pursuant to which FCAT would perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>39</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT a negotiated monthly fixed price for the operation of the CAT. This fixed price contract was negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity. The operating fees during the Pre-FAM Period were paid to FCAT by CAT LLC.</P>
                    <P>From March 29, 2019 (the commencement of the Plan Processor Agreement with FCAT) through June 22, 2020 (the end of the Pre-FAM Period), the Plan Processor's activities with respect to the CAT included the following:</P>
                    <P>
                        • Commenced user acceptance testing with market data provided by Exegy Incorporated (“Exegy”), a market data provider; 
                        <SU>40</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             The use of Exegy to provide market data, including the costs and market data provided, is discussed below in Section 3(a)(2)(B)(i)(i).
                        </P>
                    </FTNT>
                    <P>• Published Technical Specifications and related reporting scenarios documents for Phase 2a, 2b and 2c reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated testing for Phase 2a and 2b reporting for Industry Members;</P>
                    <P>• Began developing Technical Specifications and related reporting scenarios documents for Phase 2d reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published Central Repository Access Technical Specifications, and provided regulator access to test data from Industry Members;</P>
                    <P>• Facilitated Participant exchanges that support options market makers sending Quote Sent Time to the CAT;</P>
                    <P>• Facilitated the introduction of OPRA and Options NBBO Other Data to CAT;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing requirements under Regulation SCI;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants, SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk, which is the primary source for answers to questions about CAT, including questions regarding: clock synchronization, firm reporting responsibilities, interpretive questions, technical specifications for reporting to CAT and more;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>
                        • Administered the CAT website and all of its content; 
                        <SU>41</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             The CAT website is 
                            <E T="03">https://www.catnmsplan.com.</E>
                        </P>
                    </FTNT>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>The $2,072,908 in technology costs related to CAIS operating fees represent the fees paid for FCAT's subcontractor charged with the development and operation of CAT's Customer and Account Information System (“CAIS”). The CAT is required under the CAT NMS Plan to capture and store Customer Identifying Information and Customer Account Information in a database separate from the transactional database and to create a CAT-Customer-ID for each Customer.</P>
                    <P>During the Pre-FAM Period, the CAIS-related services were provided by the Plan Processor through the Plan Processor's subcontractor, Kingland Systems Incorporation (“Kingland”). Kingland had experience operating in the securities regulatory technology space, and as a part of its proposal for acting as the Plan Processor for the CAT, FCAT selected Kingland as a subcontractor to provide certain CAIS-related services.</P>
                    <P>Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay to the Plan Processor the fees incurred by the FCAT for CAIS-related services provided by FCAT through Kingland on a monthly basis. FCAT negotiated the fees for Kingland's CAIS-related services on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity. The fees for CAIS-related services during the Pre-FAM Period were paid by CAT LLC to FCAT. FCAT, in turn, paid Kingland.</P>
                    <P>
                        During the Pre-FAM Period, Kingland began development of the CAIS Technical Specifications and the building of CAIS. In addition, Kingland also worked on the build related to the CCID Alternative, an alternative approach to customer information that was not included in the CAT NMS Plan as originally adopted.
                        <SU>42</SU>
                        <FTREF/>
                         Furthermore, Kingland also worked on the acceleration of the reporting of large trader identifiers (“LTID”) earlier than originally contemplated during this period, in accordance with exemptive relief granted by the SEC.
                        <SU>43</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             For a discussion of the CCID Alternative, 
                            <E T="03">see</E>
                             Securities Exchange Act Release No. 88393 (March 17, 2020), 85 FR 16152 (March 20, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order at 23079-80.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        The technology costs related to change request fees include costs related to certain modifications, upgrades or other changes to the CAT. Change requests are standard practice and necessary to reflect operational changes, including changes related to new market developments, such as new market participants. In general, if CAT LLC 
                        <PRTPAGE P="10322"/>
                        determines that a modification, upgrade or other changes to the functionality or service is necessary and appropriate, CAT LLC will submit a request for such a change to the Plan Processor. The Plan Processor will then respond to the request with a proposal for implementing the change, including the cost (if any) of such a change. CAT LLC then determines whether to approve the proposed change. The change request costs were paid by CAT LLC to FCAT. During the Pre-FAM Period, CAT LLC incurred costs of $141,346 related to change requests implemented by FCAT. Such change requests related to a development fee regarding the OPRA and SIP data feeds, and the reprocessing of certain exchange data.
                        <SU>44</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             Note that CAT LLC also has incurred costs related to specific Industry Members (
                            <E T="03">e.g.,</E>
                             reprocessing costs related to Industry Member reporting errors).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>This category of costs includes capitalizable application development costs incurred in the development of the CAT. The capitalized developed technology costs for the Pre-FAM Period of $71,475,941 relate to technology provided by the Initial Plan Processor and the successor Plan Processor.</P>
                    <P>
                        <E T="03">Initial Plan Processor: Thesys CAT, LLC.</E>
                         The capitalized developed technology costs related to the Initial Plan Processor include costs incurred with regard to testing for Participant reporting, Participant reporting to the CAT, a security assessment of the CAT, the development of the billing function for the CAT, and a Plan Processor transition fee.
                    </P>
                    <P>
                        On January 17, 2017, the Selection Committee of the CAT NMS Plan selected the Initial Plan Processor, Thesys Technologies, LLC, for the CAT NMS Plan pursuant to Article V of the CAT NMS Plan.
                        <SU>45</SU>
                        <FTREF/>
                         The Participants utilized a request for proposal (“RFP”) to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan, taking into consideration that the Initial Plan Processor had experience operating in the securities regulatory technology space, among other considerations. On April 6, 2017, CAT LLC entered into an agreement with Thesys CAT LLC (“Thesys CAT”), a Thesys affiliate, to perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT. Under the agreement, CAT LLC would pay Thesys CAT a negotiated, fixed price fee for its role as the Initial Plan Processor. Effective January 30, 2019, the Plan Processor Agreement with Thesys CAT was terminated, and FCAT was subsequently selected as the successor Plan Processor.
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             Letter from the Participants to Brent J. Fields, Secretary, SEC (January 18, 2017), available at 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection.pdf.</E>
                        </P>
                    </FTNT>
                    <P>From January 17, 2017 through January 30, 2019, the time in which the Thesys CAT was engaged for the CAT, but excluding the period from November 15, 2017 through November 15, 2018, the Initial Plan Processor engaged in various activities with respect to the CAT, including preparing iterative drafts of Participant Technical Specifications, Industry Member Technical Specifications and the Central Repository Access Technical Specifications. Thesys CAT initiated and maintained the Participant reporting per the Participant Technical Specifications. In addition, Thesys CAT also developed CAT technology, addressed compliance items, including drafting CAT policies and procedures, addressing Regulation SCI requirements, establishing a CAT Compliance Officer and a Chief Information Security Officer, and addressed security-related matters for the CAT. Furthermore, Thesys CAT performed transition services related to the transition from Thesys CAT to FCAT as the successor Plan Processor from January 30, 2019 through April 15, 2019.</P>
                    <P>
                        <E T="03">Successor Plan Processor: FCAT.</E>
                         The capitalized developed technology costs related to FCAT include: (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, including the completion of go-live functionality related to options ingestion and validation, equities regulatory services agreement query tool updates and unlinked options data query, options linkages release, Industry Member Phase 2a file submission and data integrity (including error corrections), and Industry Member testing, including reporting relationships, ATS order type management, basic reporting statistics, SFTP data integrity feedback and error correction; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including a one-time development fee for a secure analytics workspace, a one-time development fee of an Industry Member connectivity solution, and a one-time development fee for the acceleration of multi-factor authentication; (3) CAIS implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $19,674,463 represent the fees paid for legal services provided by two law firms, Wilmer Cutler Pickering Hale and Dorr LLP (“WilmerHale”) and Pillsbury Winthrop Shaw Pittman LLP (“Pillsbury”), during the Pre-FAM Period. The legal costs exclude those costs incurred from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         Following the adoption of Rule 613, the Participants determined it was necessary to engage external legal counsel to advise the Participants with respect to corporate and regulatory legal matters related to the CAT, including drafting and developing the CAT NMS Plan. The Participants considered a variety of factors in their analysis of prospective law firms, including (1) the firm's qualifications, resources and expertise, (2) the firm's relevant experience and understanding of the regulatory matters raised by the CAT and in advising on matters of similar scope, (3) the composition of the legal team, and (4) professional fees. Following a series of interviews, the Participants acting as a consortium determined that WilmerHale was well qualified given the balance of these considerations and engaged WilmerHale in February 2013.
                    </P>
                    <P>WilmerHale's billing rates are negotiated on an annual basis and are determined with reference to the rates charged by other leading law firms for similar work. The Participants assess WilmerHale's performance and review prospective budgets and staffing plans submitted by WilmerHale on an annual basis. WilmerHale's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading law firms for similar work.</P>
                    <P>
                        The legal costs for WilmerHale during the Pre-FAM Period included costs incurred from 2013 until June 22, 2020 to address corporate and regulatory legal matters related to the CAT. The legal fees for this law firm during the period from February 2013 until the formation of the CAT NMS, LLC on November 15, 2016 were paid directly by the exchanges and FINRA to WilmerHale. After the formation of CAT NMS LLC, the legal fees were paid by CAT LLC to WilmerHale.
                        <PRTPAGE P="10323"/>
                    </P>
                    <P>After WilmerHale was engaged in 2013 through the end of the Pre-FAM Period on June 22, 2020 (excluding the legal costs from November 15, 2017 through November 15, 2018), WilmerHale provided legal assistance to the CAT on a variety of matters, including with regard to the following:</P>
                    <P>• Analyzed various legal matters associated with the Selection Plan, and drafted an amendment to Selection Plan;</P>
                    <P>• Assisted with the RFP and bidding process for the CAT Plan Processor;</P>
                    <P>• Analyzed legal matters related to the Development Advisory Group (“DAG”);</P>
                    <P>• Drafted the CAT NMS Plan, analyzed various items related to the CAT NMS Plan, and responded to comment letters on CAT NMS Plan;</P>
                    <P>
                        • Provided legal support for the formation of the legal entity, the governance of the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan; and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan and related filings;</P>
                    <P>• Negotiated and drafted the plan processor agreements with the Initial Plan Processor and the successor Plan Processor;</P>
                    <P>• Provided assistance with compliance with Regulation SCI;</P>
                    <P>• Assisted with clock synchronization study;</P>
                    <P>• Provided assistance with respect to the establishment of CAT security;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including with regard to options market maker quotes, Customer IDs, CAT Reporter IDs, linking allocations to executions, CAT reporting timeline, FDIDs, customer and account information, timestamp granularity, small industry members, data facility reporting and linkage, allocation reports, SRO-assigned market participant identifiers and cancelled trade indicators, thereby seeking to implement changes that would be cost effective and benefit Industry Members and Participants;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided advice regarding CAT policies and procedures;</P>
                    <P>• Analyzed the SEC's amendment of the CAT NMS Plan regarding financial accountability;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues; and</P>
                    <P>• Assisted with third party vendor agreements.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         The legal costs for CAT during the Pre-FAM Period include costs related to the legal services performed by Pillsbury. The Participants interviewed this law firm as well as other potential law firms to provide legal assistance regarding certain liability matters. After considering a variety of factors in its analysis, including the relevant expertise and fees of the firm, CAT LLC determined to hire Pillsbury in April 2019. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees were paid by CAT LLC to Pillsbury. The legal costs for Pillsbury during the Pre-FAM Period included costs incurred from April 2019 until June 22, 2020 to address legal matters regarding the agreements between CAT Reporters and CAT LLC concerning certain terms associated with CAT Reporting (the “Reporter Agreement”). During that period, Pillsbury advised CAT LLC regarding applicable legal matters, participated in negotiations between the Participants and Industry Members, participated in meetings with senior SEC staff, the Chairman, and Commissioners, represented CAT LLC and the Participants in an SEC administrative proceeding, and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, litigation involving CAT LLC is an expense of operating the CAT, and, therefore, is appropriately an obligation of both Participants and Industry Members under the CAT Funding Model.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $17,013,414 represent the fees paid to the consulting firm Deloitte &amp; Touche LLP (“Deloitte”) as project manager during the Pre-FAM Period, from October 2012 until June 22, 2020. These consulting costs include costs for advisory services related to the operation of the CAT, and meeting facilitation and communications coordination, vendor support and financial analyses.</P>
                    <P>To help facilitate project management given the unprecedented complexity and scope of the CAT project, the Participants determined it was necessary to engage a consulting firm to assist with the CAT project in 2012, following the adoption of Rule 613. A variety of factors were considered in the analysis of prospective consulting firms, including (1) the firm's qualifications, resources, and expertise, (2) the firm's relevant experience and understanding of the regulatory issues raised by the CAT and in coordinating matters of similar scope, (3) the composition of the consulting team, and (4) professional fees. Following a series of interviews, the exchanges and FINRA as a consortium determined that Deloitte was well qualified given the balance of these considerations and engaged Deloitte on October 1, 2012.</P>
                    <P>Deloitte's fee rates are negotiated on an annual basis and are in line with market rates for this type of specialized consulting work. CAT LLC assesses Deloitte's performance and reviews prospective budgets and staffing plans submitted by Deloitte on an annual basis. Deloitte's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading consulting firms for similar work.</P>
                    <P>The consulting costs for CAT during the period from 2012 until the formation of the CAT NMS, LLC were paid directly by the Participants to Deloitte. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC to Deloitte. CAT LLC reviewed the consulting fees each month and approved the invoices.</P>
                    <P>After Deloitte was hired in 2012 through the end of the Pre-FAM Period on June 22, 2020 (excluding the consulting costs from November 15, 2017 through November 15, 2018), Deloitte provided a variety of consulting services, including the following:</P>
                    <P>
                        • Established and implemented program operations for the CAT project, including the program managment [
                        <E T="03">sic</E>
                        ] office and workstream design;
                    </P>
                    <P>
                        • Assisted with the Plan Processor selection process, including but not 
                        <PRTPAGE P="10324"/>
                        limited to, the development of the RFP and the bidder evaluation process, and facilitation and consolidation of the Participant's independent reviews;
                    </P>
                    <P>• Assisted with the development and drafting of the CAT NMS Plan, including conducting cost-benefit studies, analyzing OATS and CAT requirements, and drafting appendices to the Plan;</P>
                    <P>• Assisted with cost and funding-related activities for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>
                        • Provided governance support to the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with industry outreach and communications regarding the CAT, including assistance with industry outreach events, the development of the CAT website, frequently asked questions, and coordinating with the CAT LLC's public relations firm;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress;</P>
                    <P>• Coordinated efforts regarding the selection of the successor Plan Processor;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor, including support for the Operating Committee and successor Plan Processor for the new role; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $880,419 represent the cost incurred for insurance for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT insurance policies, which included engaging in discussions with different insurance companies and conducting cost comparisons of various alternative approaches to insurance. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance from USI Insurance Services LLC (“USI”). Such policies are standard for corporate entities, and cyber security liability insurance is important for the CAT System. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        In adopting the CAT NMS Plan, the Commission amended the Plan to add a requirement that CAT LLC's financial statements be prepared in compliance with GAAP, audited by an independent public accounting firm, and made publicly available.
                        <SU>46</SU>
                        <FTREF/>
                         The professional and administration costs include costs related to accounting and accounting advisory services to support the operating and financial functions of CAT, financial statement audit services by an independent accounting firm, preparation of tax returns, and various cash management and treasury functions. In addition, professional and administration costs for the Pre-FAM Period include costs related to the receipt of market data and a security assessment. The costs for these professional and administration services were $1,082,036 for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             Section 9.2 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin Accountants &amp; Advisors (“Anchin”).</E>
                         CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT in April 2018. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services were paid by CAT LLC to Anchin.
                    </P>
                    <P>After Anchin was hired in April 2018 through the end of the Pre-FAM Period on June 22, 2020 (excluding the period from April 2018 through November 15, 2018), Anchin provided a variety of services, including the following:</P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial reporting matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton LLP (“Grant Thornton”).</E>
                         In February 2020, CAT LLC determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the proposed role given the balance of these considerations. Grant Thornton's fixed fee rate compensation arrangement was 
                        <PRTPAGE P="10325"/>
                        reasonable and appropriate, and in line with the market rates charged for these types of accounting services. The fees for these services were paid by CAT LLC to Grant Thornton.
                    </P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         The professional and administrative costs for the Pre-FAM Period included costs related to the receipt of certain market data for the CAT pursuant to an agreement with the CAT LLC, and then with FCAT. Exegy provided SIP Data required by the CAT NMS Plan.
                    </P>
                    <P>
                        After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy from July 2018 through March 2019. CAT LLC determined that, unlike certain other vendors, Exegy provided market data that included all data elements required by the CAT NMS Plan.
                        <SU>47</SU>
                        <FTREF/>
                         In addition, the fees were reasonable and in line with market rates for the market data received. Accordingly, the professional and administrative costs for the Pre-FAM Period include the Exegy costs from November 2018 through March 2019. The cost of the market data was reasonable for the market data received. The fees for the market data were paid directly by CAT LLC to Exegy.
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>Upon the termination of the contract between CAT LLC and Exegy, FCAT entered into a contract with Exegy to purchase the required market data from Exegy in July 2019. All costs under the contract were treated as a direct pass through cost to CAT LLC. Therefore, the fees for the market data were paid by CAT LLC to FCAT, who, in turn, paid Exegy for the market data.</P>
                    <P>
                        <E T="03">Security Assessment: RSM US LLP (“RSM”).</E>
                         The operating costs for the Pre-FAM Period include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation, and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment. RSM performed the assessment from October 2018 through December 2018. Accordingly, the costs for the Pre-FAM Period include the costs incurred in November and December 2018. The cost for the security assessment were paid directly to RSM by CAT LLC.
                    </P>
                    <P>(j) Public Relations Costs</P>
                    <P>
                        The public relations costs of $224,669 represent the fees paid to public relations firms during the Pre-FAM Period for professional communications services to CAT, including media relations consulting, strategy and execution. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants. Specifically, the public relations firms provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                    </P>
                    <P>The services performed by each of the public relations firms were comparable. The fees for such services were reasonable and in line with market rates. Only one public relations firm was engaged at a time; the three firms were engaged sequentially as the primary public relations contact moved among the three firms during this time period.</P>
                    <P>
                        <E T="03">Public Relations Firm: Peppercomm, Inc. (“Peppercomm”).</E>
                         The national securities exchanges and FINRA, acting as a consortium, determined to hire the public relations firm Peppercomm in October 2014 and continued to engage this firm through September 2017. The exchanges and FINRA made this engagement decision after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fee rates for this public relations firm were negotiated on an arm's length basis and were in line with market rates for these types of services. The public relations costs during the period from October 2014 until the formation of the CAT NMS LLC were paid directly by the exchanges and FINRA to the public relations firm. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Sloane &amp; Company (“Sloane”).</E>
                         CAT LLC determined to hire a new public relations firm, Sloane, in March 2018, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Sloane. CAT LLC continued the engagement with Sloane until February 2020.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Peak Strategies.</E>
                         CAT LLC determined to hire a new public relations firm, Peak Strategies, in March 2020, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Peak Strategies.
                    </P>
                    <HD SOURCE="HD3">(ii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 1</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 1 of the Financial Accountability Milestones (“FAM Period 1”),
                        <SU>48</SU>
                        <FTREF/>
                         which covers the period from June 22, 2020-July 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 1 of $6,377,343. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($2,125,781), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781). The following table breaks down Historical CAT Costs 1 for FAM Period 1 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             Section 11.6(a)(i)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10326"/>
                        <GID>EN13FE24.065</GID>
                    </GPH>
                    <P>
                        By the
                        <FTREF/>
                         completion of FAM Period 1, CAT LLC was required to implement the reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of equities transaction data and options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.
                        <SU>51</SU>
                        <FTREF/>
                         CAT LLC completed the requirements of FAM Period 1 by July 31, 2020. The following describes the costs for each of the categories for FAM Period 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>50</SU>
                             The costs described in this table of costs for FAM Period 1 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             
                            <E T="03">See</E>
                             definition of “Initial Industry Member Core Equity and Options Reporting” in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 1 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 1 Period. Accordingly, the $2,642,122 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 1. The fee arrangement for AWS described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. Moreover, CAT LLC continued to believe that AWS's maturity in the cloud services space as well as the significant cost and time necessary to move the CAT to a different cloud services provider supported the continued engagement of AWS.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 1 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, reference data and other types of Other Data. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 1.
                        <SU>52</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="235">
                        <PRTPAGE P="10327"/>
                        <GID>EN13FE24.066</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 1. Accordingly, the $1,099,680 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 1. The fee arrangement for FCAT described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Published iterative drafts of draft Technical Specifications for Phase 2d, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published iterative drafts of CAIS Technical Specifications, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated Industry Member reporting of Quote Sent Time on Options Market Maker quotes;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 1. Accordingly, the $254,998 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 1. The fee arrangement for Kingland described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>CAT LLC did not incur costs related to change requests during FAM Period 1.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 1 of $1,684,870 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include: (1) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including separate production and industry test entitlements, and reprocessing of exchange event timestamps; (2) implementation fees; and (3) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $481,687 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 1.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 1 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to WilmerHale. During FAM Period 1, 
                        <PRTPAGE P="10328"/>
                        WilmerHale provided legal assistance to the CAT including with regard to the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments and fee filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, verbal activity, options market maker quote sent time, TRF linkages, and allocations;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including the Financial Accountability Milestone amendment;</P>
                    <P>• Assisted with compliance with Regulation SCI;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the drafting of the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Assisted with communications and presentations for the industry regarding CAIS;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding CAT technical specifications;</P>
                    <P>• Assisted with third party vendor agreements; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to Pillsbury. During FAM Period 1, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $137,209 represent the fees paid to Deloitte as project manager during FAM Period 1. CAT LLC continued to employ Deloitte during FAM Period 1 based on, among other things, their expertise and cumulative experience with the CAT. The fee rates for Deloitte during FAM Period 1 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 1 were paid by CAT LLC to the consulting firm. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 1, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>Although insurance was in effect during FAM Period 1, CAT LLC did not incur costs related to insurance during FAM Period 1.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         The professional and administration costs of $69,077 represent the fees paid to Anchin during FAM Period 1. CAT LLC continued to employ Anchin during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these type of financial advisory services. The fees for these services during FAM Period 1 were paid by CAT LLC to Anchin. During FAM Period 1, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups; and</P>
                    <P>• Prepared monthly and quarterly financial statements.</P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $7,700 represent the fees paid to Peak Strategies during FAM Period 1. CAT LLC continued to employ Peak Strategies during FAM Period 1 based on, among other things, their expertise and history with the project. The fee rates for this firm were reasonable and in line with market rates for these types of services. The fees for these services during FAM Period 1 were paid by CAT LLC to Peak Strategies. During FAM Period 1, Peak Strategies continued to provide professional communications services to CAT LLC, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 2</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT LLC and already 
                        <PRTPAGE P="10329"/>
                        funded by Participants during Period 2 of the Financial Accountability Milestones (“FAM Period 2”),
                        <SU>53</SU>
                        <FTREF/>
                         which covers the period from August 1, 2020-December 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 2 of $42,976,478. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($14,325,493), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($14,325,493) and CEBSs paying one-third ($14,325,493). The following table breaks down Historical CAT Costs 1 for FAM Period 2 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             Section 11.6(a)(i)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>55</SU>
                             The costs described in this table of costs for FAM Period 2 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <GID>EN13FE24.067</GID>
                    </GPH>
                    <P>By the completion of FAM Period 2, CAT LLC was required to implement the following with regard to the CAT:</P>
                    <P>
                        (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, CustomerID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission.
                        <SU>56</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>56</SU>
                             
                            <E T="03">See</E>
                             definition of “Full Implementation of Core Equity Reporting Requirements” in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>CAT LLC completed the requirements of FAM Period 2 by December 31, 2020. The following describes the costs for each of the categories for FAM Period 2.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 2 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 2 Period. Accordingly, the $20,709,212 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 2. The fee arrangement for AWS described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 2 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, and Other Data, including reference data. In addition, Industry Members began reporting LTID account information. The following chart provides data regarding the average 
                        <PRTPAGE P="10330"/>
                        daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 2.
                        <SU>57</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>57</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="235">
                        <GID>EN13FE24.068</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 2. Accordingly, the $9,108,700 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 2. The fee arrangement for FCAT described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, FCAT's activities with respect to the CAT included publishing the Technical Specifications for Phase 2d and overseeing the reporting of firm to firm and intrafirm linkages by Industry Members. In addition, FCAT also continued to engage in the following activities during FAM Period 2:</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the development and implementation of the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 2. Accordingly, the $1,590,298 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 2. The fee arrangement for Kingland described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 2, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 2, CAT incurred costs of $51,823 related to a change request regarding the addition of functionality for exchange Participants to report rejected messages to the CAT.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>
                        Capitalized developed technology costs for FAM Period 2 of $6,761,094 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application 
                        <PRTPAGE P="10331"/>
                        development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to separate production and industry test entitlements, market maker reference data, and back-processing of exchange exception logic; (3) implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $2,766,644 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 2.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 2 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to WilmerHale. During FAM Period 1 [
                        <E T="03">sic</E>
                        ], the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, allocations, exchange activity, OTQT, initial data validation, error corrections and recordkeeping;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittees, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6 of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for the Compliance Subcommittee, including with regard to responses to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding the SEC's proposed security amendments to the CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>
                        • Assisted with third party vendor agreements (
                        <E T="03">e.g.,</E>
                         with regard to Anchin, Grant Thornton and insurance policies);
                    </P>
                    <P>• Assisted with change requests; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to Pillsbury. During FAM Period 2, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted and filed a proposed amendment to the CAT NMS plan regarding liability matters. As discussed above, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $532,146 represent the fees paid to Deloitte as project manager during FAM Period 2. CAT LLC continued to employ Deloitte during FAM Period 2 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 2 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 2 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 2, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $976,098 represent the fees paid for insurance during FAM Period 2. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $438,523 represent the fees paid to Anchin and Grant Thornton for financial services provided during FAM Period 2.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to engage Anchin during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these types of financial advisory services. The fees for these services during FAM Period 2 were paid by CAT LLC to Anchin. During FAM Period 2, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from the Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>
                        • Supported compliance with the CAT NMS Plan;
                        <PRTPAGE P="10332"/>
                    </P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audit by an independent auditor; and</P>
                    <P>• Reviewed historical costs from inception.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 2 based on, among other things, its expertise and cumulative knowledge of CAT LLC. CAT LLC continued to believe that Grant Thornton was well qualified for its role and its fee rates were in line with with market rates for these accounting services. The fees for these services during FAM Period 2 were paid by CAT LLC to Grant Thornton. During FAM Period 2, Grant Thornton performed a financial statement audit for CAT LLC as an independent accounting firm.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $41,940 represent the fees paid to Peak Strategies during FAM Period 2. CAT LLC continued to employ Peak Strategies during FAM Period 2 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 2 were paid by CAT LLC to Peak Strategies. During FAM Period 2, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iv) Historical CAT Costs Incurred in Financial Accountability Milestone Period 3</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 3 of the Financial Accountability Milestones (“FAM Period 3”),
                        <SU>58</SU>
                        <FTREF/>
                         which covers the period from January 1, 2021-December 31, 2021. Historical CAT Costs 1 would include costs for FAM Period 3 of $144,415,268. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($48,138,423), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($48,138,423) and CEBSs paying one-third ($48,138,423). The following table breaks down Historical CAT Costs 1 for FAM Period 3 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             Section 11.6(a)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>60</SU>
                             The costs described in this table of costs for FAM Period 3 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <GID>EN13FE24.069</GID>
                    </GPH>
                    <PRTPAGE P="10333"/>
                    <P>By the completion of FAM Period 3, CAT LLC was required to implement the following requirements with regard the CAT:</P>
                    <EXTRACT>
                        <P>
                            (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met.
                            <SU>61</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>61</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Availability and Regulatory Utilization of Transactional Database Functionality” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 3 by December 31, 2021. The following describes the costs for each of the categories for FAM Period 3.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 3 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 3 Period. Accordingly, the $94,574,759 in technology costs for cloud hosting services represents costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 3. The fee arrangement for AWS described above for the earlier periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During FAM Period 3, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a, Phase 2b, Phase 2c and Phase 2d Industry Member Data (including certain linkages), SIP Data, Other Data, including reference data, and LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 3.
                        <SU>62</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>62</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="262">
                        <GID>EN13FE24.070</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>
                        Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 3. Accordingly, the $23,106,091 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 3. The fee arrangement for FCAT described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, 
                        <PRTPAGE P="10334"/>
                        FCAT's activities with respect to the CAT included the following:
                    </P>
                    <P>• Facilitated Phase 2c and Phase 2d testing for Industry Members;</P>
                    <P>• Oversaw creation of linkages of the lifecycle of order events based on the received data through Phase 2d;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement with FCAT discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 3. Accordingly, the $5,562,383 in technology costs for CAIS operating fees represents costs incurred for services provided by Kingland during FAM Period 3. The fee arrangement for Kingland described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs. The full CAIS Technical Specifications were published during FAM Period 3.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 3, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 3, CAT incurred costs of $396,169 related to change requests, including the following: (1) the addition of functionality for exchange Participants to report rejected messages to the CAT; (2) the migration of MIRS query engine to AWS to reduce operational costs and increase resiliency; and (3) updating the Participant Technical Specifications to allow for two-sided Participant option quote reporting.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 3 of $10,763,372 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor, including the transition from equity data received by FINRA pursuant to various regulatory services agreements between FINRA and Participant exchanges to the equity CAT Data, and the completion of the Industry Member Phase 2d options manual and complex orders go-live requirements; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to off-exchange volume concentration, Participant 24-hour trading and an external metastore; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $6,333,248 represent the fees paid for legal services provided by three law firms, WilmerHale, Pillsbury and Covington &amp; Burling LLP (“Covington”) during FAM Period 3.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 3 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to WilmerHale. During FAM Period 3, the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including, for example, verbal activity regarding Phase 2c cutover, error reports, error corrections, Phase 2d Reporting, unique Order-ID on internal route events, reporting addresses, recordkeeping, and unique CCID for foreign customers;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs, CAIS requirements, ADF, and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6(c) of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding SEC's proposed security amendments to CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>• Provided assistance with change requests;</P>
                    <P>• Provided guidance and regulatory support for litigation regarding the response to SEC's exemptive orders;</P>
                    <P>• Assisted with communications with the industry, includng CAT Alerts and presentations;</P>
                    <P>• Provided guidance regarding the confidentiality of CAT Data, including third-party information requests;</P>
                    <P>• Assisted with cost management analysis and proposals; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by 
                        <PRTPAGE P="10335"/>
                        CAT LLC to Pillsbury. During FAM Period 3, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During this period, Pillsbury advised CAT LLC regarding applicable legal matters, reviewed and responded to comment letters regarding the proposed Plan amendment, participated in meetings with senior SEC staff, responded to comments submitted following the SEC's April 6, 2021 order instituting proceedings,
                        <SU>63</SU>
                        <FTREF/>
                         and assessed legal matters regarding the SEC's October 29, 2021 order denying the proposed Plan amendment.
                        <SU>64</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 91487 (April 6, 2021), 86 FR 19054 (April 12, 2021).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 93484 (October 29, 2021), 86 FR 60933 (November 4, 2021).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Law Firm: Covington.</E>
                         CAT LLC hired Covington for litigation with the SEC regarding certain exemptive orders related to the CAT, including orders issued in December 2020.
                        <SU>65</SU>
                        <FTREF/>
                         CAT LLC interviewed this law firm as well as other potential law firms, considering a variety of factors in its analysis for choosing legal assistance, including the relevant expertise and fees of the potential lawyers. CAT LLC approved the engagement of Covington in January 2021. The fee rates for this law firm, which were calculated based on hourly rates, were in line with market rates for specialized services. The legal fees for FAM Period 3 for this firm were paid by CAT LLC to Covington.
                    </P>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 90688 (December 16, 2020), 85 FR 83634 (December 22, 2020); and Securities Exchange Act Release No. 90689 (December 16, 2020), 85 FR 83667 (December 22, 2020) (collectively, the “2020 Orders”).
                        </P>
                    </FTNT>
                    <P>After Covington was hired in 2021 through the end of 2021, the firm provided legal assistance regarding the litigation with the SEC regarding the 2020 Orders. These services included researching, drafting, and filing motions to stay the 2020 orders and related materials in proceedings before the SEC, as well as researching, drafting, and filing petitions for judicial review of the 2020 Orders in proceedings before the U.S. Court of Appeals for the D.C. Circuit. Covington oversaw ongoing litigation proceedings on these matters, and also supported WilmerHale with respect to settlement negotiations with the SEC staff regarding the 2020 Orders.</P>
                    <P>
                        In addition to these services, CAT LLC engaged Covington in November 2021 to provide assistance with respect to the SEC's disapproval of CAT NMS Plan amendments concerning a proposed limitation on liability in the event of a data breach or similar event. Covington provided advice concerning CAT's response to the SEC's disapproval order. This work accounted for a minority of Covington's fees in 2021.
                        <SU>66</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             As discussed above with regard to Pillsbury's work on liability matters, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, such activity is a necessary part of the operation of the CAT.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $1,408,209 represent the fees paid to Deloitte as project manager during FAM Period 3. CAT LLC continued to employ Deloitte during FAM Period 3 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 3 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 3 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 3, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $1,582,714 represent the fees paid for insurance FAM Period 3. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $595,923 represent the fees paid to Anchin and Grant Thornton for financial services during FAM Period 3.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to employ Anchin during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services during FAM Period 3 were paid by CAT LLC to Anchin. During FAM Period 3, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 3 based on, among other things, their expertise and cumulative knowledge of CAT LLC. CAT LLC determined that Grant Thornton was well qualified for its role and that its fixed fee rates were in line with market rates for these accountant services. The fees for these services during FAM Period 3 were paid by CAT LLC to Grant Thornton. During FAM Period 3, Grant Thornton provided audited financial statements for CAT LLC.
                        <PRTPAGE P="10336"/>
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $92,400 represent the fees paid to Peak Strategies during FAM Period 3. CAT LLC continued to employ Peak Strategies during FAM Period 3 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 3 were paid by CAT LLC to Peak Strategies. During FAM Period 3, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(v) Excluded Costs</HD>
                    <P>
                        Historical CAT Costs 1 would not include two categories of CAT costs (“Excluded Costs”): (1) $48,874,937, which are all CAT costs incurred from November 15, 2017 through November 15, 2018; and (2) $14,749,362 of costs related to the termination of the relationship with the Initial Plan Processor. The Participants would remain responsible for 100% of these costs, which total $63,624,299. CAT LLC determined that it was reasonable to exclude these Excluded Costs from Historical CAT Costs 1 because the excluded costs relate to the delay in the start of reporting to the CAT and the conclusion of the relationship with the Initial Plan Processor.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             In approving the CAT Funding Model, the Commission states that “the proposed exclusion of the `Excluded Costs' from Past CAT Costs is reasonable in the Commission's view because it would not require all costs incurred by the Participants to be recovered from Industry Members through the Historical CAT Assessment, specifically excluding those costs related to the delay in the start of reporting to the CAT and costs related to the conclusion of the relationship with the Initial Plan Processor.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62663.
                        </P>
                    </FTNT>
                    <P>First, Historical CAT Costs 1 would not include $14,749,362 of costs related to the conclusion of the relationship with the Initial Plan Processor. Such costs include costs related to the American Arbitration Association, the legal assistance of Pillsbury with regard to the arbitration with Thesys CAT, and the settlement costs related to the arbitration with Thesys CAT. The Participants would remain responsible for 100% of these $14,749,362 in costs.</P>
                    <P>
                        Second, the Historical CAT Costs would exclude all CAT costs incurred from November 15, 2017 through November 15, 2018. CAT LLC determined to exclude all costs during this one-year period of $48,874,937 from fees charged to Industry Members due to the delay in the start of reporting to the CAT. The Participants would remain responsible for 100% of these $48,874,937 in costs. The following table breaks down these costs into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             The costs described in this table of Excluded Costs were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="239">
                        <GID>EN13FE24.071</GID>
                    </GPH>
                    <PRTPAGE P="10337"/>
                    <P>The following provides additional detail regarding the Excluded Costs.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services, Operating Fees, CAIS Operating Fees and Change Request Fees</HD>
                    <P>CAT LLC did not incur technology costs related to the categories of cloud hosting services, operating fees, CAIS operating fees or change requests during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(b) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for the period from November 15, 2017 through November 15, 2018 include capitalizable application development costs of $37,852,083 incurred in the development of the CAT by the Initial Plan Processor. Such costs include development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Initial Plan Processor. Such costs include costs related to Industry Member technical specifications for orders and transactions, the system security plan, testing and production for Participant CAT reporting, third-party security assessment and response, query portal, onboarding of the Chief Information Security Officer, and ingestion of FINRA TRF data and FINRA data related to halts and corporate actions.</P>
                    <HD SOURCE="HD3">(c) Legal Costs</HD>
                    <P>The legal costs of $6,143,278 represent the fees paid to WilmerHale for legal services from November 15, 2017 through November 15, 2018. During this period, WilmerHale provided legal assistance to the CAT including with regard to the following:</P>
                    <P>• Provided legal support for the governance of the CAT, including governance support for the Operating Committee, Advisory Committee, Compliance Subcommittee, and CAT working groups;</P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan;</P>
                    <P>• Provided assistance related to CAT security;</P>
                    <P>• Drafted exemptive requests, including requests related to PII;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided advice with regard to regulator access to the CAT;</P>
                    <P>• Assisted with the Plan Processor transition;</P>
                    <P>• Provided assistance regarding communications with the industry regarding the CAT;</P>
                    <P>• Provided advice regarding Customer Account Information and PII;</P>
                    <P>• Provided support for litigation related to SEC exemptive orders; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretative and implementation issues.</P>
                    <HD SOURCE="HD3">(d) Consulting Costs</HD>
                    <P>The consulting costs of $4,452,106 represent the fees paid to Deloitte for their role as project manager for the CAT from November 15, 2017 through November 15, 2018. During this period, Deloitte engaged in the following activities with respect to the CAT:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>
                        • Provided governance support to the Operating Committee, including support for Subcommittees and working groups of the Operating Committee (
                        <E T="03">e.g.,</E>
                         Compliance Subcommittee, Cost and Funding Working Group, Technical Working Group, Industry Outreach Working Group, Security Working Group and Steering Committee);
                    </P>
                    <P>• Assisted with cost and funding issue for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress.</P>
                    <HD SOURCE="HD3">(e) Insurance</HD>
                    <P>CAT LLC did not incur costs related to insurance during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(f) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $340,145 represent the fees paid to Anchin, Exegy and RSM from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in April 2018 through November 15, 2018, Anchin engaged in the following activities with respect to the CAT:
                    </P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         From July 2018 through November 15, 2018, CAT LLC purchased market data from Exegy (as described in more detail above).
                    </P>
                    <P>
                        <E T="03">Security Assessment: RSM.</E>
                         From October 2018 through November 15, 2018, CAT LLC incurred costs for RSM's performance of a security assessment (as described in more detail above).
                    </P>
                    <HD SOURCE="HD3">(g) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $87,325 represent the fees paid to Sloane from November 15, 2017 through November 15, 2018. From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in March 2018 through November 15, 2018, Sloane provided professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, Sloane provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting 
                        <PRTPAGE P="10338"/>
                        such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan).
                    </P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        Under the CAT NMS Plan, the Operating Committee is required to reasonably establish the length of the Historical Recovery Period used in calculating each Historical Fee Rate based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment, and to describe the reasons for its length.
                        <SU>69</SU>
                        <FTREF/>
                         The Historical Recovery Period used in calculating the Historical Fee Rate may not be less than 24 months or more than five years.
                        <SU>70</SU>
                        <FTREF/>
                         The Operating Committee has determined to establish a Historical Recovery Period 1 of 24 months for Historical CAT Assessment 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             Section 11.3(b)(i)(D)(I) and Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             Section 11.3(b)(i)(D)(I) of the CAT NMS Plan. In the CAT Funding Model Approval Order, the SEC stated that “[i]n the Commission's view, it is reasonable for the Operating Committee to establish the length of the Historical Recovery Period to be no less than 24 months and no more than five years.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The Operating Committee determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans to the Participants in a timely fashion. The Operating Committee determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>71</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, the Operating Committee recognized that the total costs for Historical CAT Assessment 1 were less than the total costs for 2022 and 2023,
                        <SU>72</SU>
                        <FTREF/>
                         and therefore it would be reasonable and appropriate to recover costs subject to this filing over an approximate two-year period. Furthermore, the Operating Committee notes that 24 months is appropriate because it is not currently proposing that Industry Members be required to pay additional CAT fees with regard to another Historical CAT Assessment or CAT Fees with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. 
                            <E T="03">See</E>
                             CAT Funding Model at 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             The total CAT costs for 2022 were approximately $186 million and the total CAT costs for 2023 are estimated to be approximately $233 million.
                        </P>
                    </FTNT>
                    <P>
                        The length of the Historical Recovery Period 1 and the reasons for its length are provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>73</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             Section 11.3(b)(iii)(B)(II)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Total Executed Equivalent Share Volume</HD>
                    <P>
                        The calculation of Historical Fee Rate 1 also requires the determination of the projected total executed equivalent share volume of transactions in Eligible Securities for Historical Recovery Period 1. Under the CAT NMS Plan, the Operating Committee is required to “reasonably determine the projected total executed equivalent share volume of all transactions in Eligible Securities for each Historical Recovery Period based on the executed equivalent share volume of all transactions in Eligible Securities for the prior twelve months.” 
                        <SU>74</SU>
                        <FTREF/>
                         The Operating Committee is required to base its projection on the prior twelve months, but it may use its discretion to analyze the likely volume for the upcoming year. Such discretion would allow the Operating Committee to use its judgment when estimating projected total executed equivalent share volume if the volume over the prior twelve months was unusual or otherwise unfit to serve as the basis of a future volume estimate.
                        <SU>75</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             Section 11.3(b)(i)(E) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. The Operating Committee has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. The Operating Committee determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is projected to be 7,685,722,694,558.88 executed equivalent shares.
                        <SU>76</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <P>
                        The projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1 and a description of the calculation of the projection is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             Section 11.3(b)(iii)(B)(II)(D) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Historical Fee Rate 1</HD>
                    <P>
                        Historical Fee Rate 1 would be calculated by dividing Historical CAT Costs 1 by the reasonably projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1, as described in detail above.
                        <SU>78</SU>
                        <FTREF/>
                         Specifically, Historical Fee Rate 1 would be calculated by dividing $337,688,610 by 7,685,722,694,558.88. As a result, the Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. Historical Fee Rate 1 is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide the Historical Fee Rate in a fee filing for a Historical CAT Assessment.
                        <SU>79</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             In approving the CAT Funding Model, the Commission stated that “[t]he calculation of the Historical Fee Rate by dividing the Historical CAT Costs by the projected total executed equivalent share volume of all transactions in Eligible Securities for the Historical Recovery Period is reasonable.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             Section 11.3(b)(iii)(B)(II)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Past CAT Costs and Participants</HD>
                    <P>Participants would not be required to pay any fees associated with Historical CAT Assessment 1 as the Participants previously have paid all Past CAT Costs. The CAT NMS Plan explains that:</P>
                    <EXTRACT>
                        <P>
                            Because Participants previously have paid Past CAT Costs via loans to the Company, Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs and such other additional Past CAT Costs as reasonably determined by the Operating Committee will be paid by the cancellation of loans made to the Company on a pro rata basis based on the outstanding loan amounts due under the loans.
                            <SU>80</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>80</SU>
                                 Section 11.3(b)(ii) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The CAT NMS Plan further states that “Historical CAT Assessments are 
                        <PRTPAGE P="10339"/>
                        designed to recover two-thirds of the Historical CAT Costs.” 
                        <SU>81</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>81</SU>
                             
                            <E T="03">Id.</E>
                             In approving the CAT Funding Model, the Commission stated that “[t]he proposed allocation of the Historical CAT Assessment solely to CEBs and CEBBs, and ultimately Industry Members, is reasonable. The Historical CAT Assessment will still be divided into thirds,” as the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made to the Company. 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62666.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(4) Monthly Fees</HD>
                    <P>
                        CEBBs and CEBSs would be required to pay fees for Historical CAT Assessment 1 on a monthly basis for the period in which Historical CAT Assessment 1 is in effect.
                        <SU>82</SU>
                        <FTREF/>
                         A CEBB or CEBS's fee for each month would be calculated based on the transactions in Eligible Securities executed by the CEBB or CEBS from the prior month.
                        <SU>83</SU>
                        <FTREF/>
                         Proposed paragraph (a)(1)(A) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would state that each CAT Executing Broker would receive its first invoice in April 2024, and “would receive an invoice each month thereafter in which Historical CAT Assessment 1 is in effect.” Proposed paragraph (a)(1)(B) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would state that “Consolidated Audited Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” In addition, proposed paragraph (b)(1) would state that each CEBB and CEBS is required to pay its CAT fees “each month.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             
                            <E T="03">See</E>
                             proposed paragraph (a)(1)(B) under Consolidated Audit Trail Funding Fees on the Fee Schedule.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(5) Actual Recovery Period for Historical CAT Assessment 1</HD>
                    <P>
                        The CAT NMS Plan states that, “[n]otwithstanding the length of the Historical Recovery Period used in calculating the Historical Fee Rate, each Historical CAT Assessment calculated using the Historical Fee Rate will remain in effect until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                        <SU>84</SU>
                        <FTREF/>
                         Accordingly, Historical CAT Assessment 1 will remain in effect until all Historical CAT Costs 1 have been collected. The actual recovery period for Historical CAT Assessment 1 may be shorter or longer than Historical Recovery Period 1 depending on the actual executed equivalent share volumes during the time that Historical CAT Assessment 1 is in effect.
                        <SU>85</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             Section 11.3(b)(i)(D)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             In approving the CAT Funding Model, the Commission stated that “[i]n the Commission's view, it is reasonable for Industry Members to be charged a Historical CAT Assessment until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62665.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(6) Consolidated Audit Trail Funding Fees</HD>
                    <P>To implement Historical CAT Assessment 1, a “Consolidated Audit Trail Funding Fees” section would be added to the Exchange's Fee Schedule, to include the proposed paragraphs described below.</P>
                    <HD SOURCE="HD3">(A) Fee Schedule for Historical CAT Assessment 1</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <P>
                        Each month in which a Historical CAT Assessment is in effect, each CEBB and each CEBS shall pay a fee for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate reasonably determined pursuant to paragraph (b)(i) of this Section 11.3.
                        <SU>86</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>86</SU>
                             Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>Accordingly, based on the factors discussed above, the Exchange proposes to add paragraph (a)(1) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule. Proposed paragraph (a)(1) would state the following:</P>
                    <P>(A) Each CAT Executing Broker shall receive its first invoice for Historical CAT Assessment 1 in April 2024, which shall set forth the Historical CAT Assessment 1 fees calculated based on transactions in March 2024, and shall receive an invoice for Historical CAT Assessment 1 for each month thereafter in which Historical CAT Assessment 1 is in effect.</P>
                    <P>(B) Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis. Each month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.</P>
                    <P>(C) Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time. Consolidated Audit Trail, LLC will provide notice when Historical CAT Assessment 1 will no longer be in effect.</P>
                    <P>(D) Each CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).</P>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, “as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>87</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 of $0.0000439371316687066 by one-third, and rounding the result to 6 decimal places.
                        <SU>88</SU>
                        <FTREF/>
                         The Operating Committee determined to use six decimal places to balance the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>87</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             Dividing $0.0000439371316687066 by three equals $0.00001464571055623553. Rounding $0.00001464571055623553 to six decimal places equals $0.000015.
                        </P>
                    </FTNT>
                    <P>The proposed language in paragraph (a)(1)(A) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would describe when CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1. Specifically, CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 and the fees set forth in that invoice would be calculated based on transactions executed in the prior month, that is, transactions executed in March 2024. The payment for the first invoice would be required within 30 days after the receipt of the first invoice (unless a longer period is indicated), as described in proposed paragraph (b)(2) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule.</P>
                    <P>
                        Proposed paragraph (a)(1)(A) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule also would describe the monthly cadence of the invoices for Historical CAT Assessment 
                        <PRTPAGE P="10340"/>
                        1. Specifically, after the first invoices are provided to CAT Executing Brokers in April 2024, invoices will be sent to CAT Executing Brokers each month thereafter while Historical CAT Assessment 1 is in effect.
                    </P>
                    <P>Proposed paragraph (a)(1)(B) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would describe the invoices for Historical CAT Assessment 1. Proposed paragraph (a)(1)(B) would state that “Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” Proposed paragraph (a)(1)(B) also would describe the fees to be set forth in the invoices for Historical CAT Assessment 1. Specifically, it would state that “[e]ach month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.”</P>
                    <P>
                        Furthermore, proposed paragraph (a)(1)(C) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would describe how long Historical CAT Assessment 1 would remain in effect. It would state that “Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time.” This proposed paragraph would further state that “Consolidated Audit Trail, LLC will be [
                        <E T="03">sic</E>
                        ] provide notice when Historical CAT Assessment 1 will no longer be in effect.”
                    </P>
                    <P>Historical CAT Assessment 1 will be assessed for all transactions executed in each month through the end of the month in which two-thirds of Historical CAT Costs 1 are assessed, and then CAT LLC will provide notice that Historical CAT Assessment 1 is no longer in effect. Since Historical CAT Assessment 1 is a monthly fee based on transaction volume from the prior month, Historical CAT Assessment 1 may collect more than two-thirds of Historical CAT Costs 1. To the extent that occurs, any excess money collected during the final month in which Historical CAT Assessment 1 is in effect will be used to offset future fees and/or to fund the reserve for the CAT.</P>
                    <P>Finally, proposed paragraph (a)(1)(D) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would set forth the requirement for the CAT Executing Brokers to pay the invoices for Historical CAT Assessment 1. It would state that “[e]ach CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).”</P>
                    <HD SOURCE="HD3">(B) Manner of Payment</HD>
                    <P>
                        The Exchange proposes to add paragraph (b)(1) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule to describe the manner of payment of Industry Member CAT fees. The CAT NMS Plan requires the Operating Committee to establish a system for the collection of CAT fees.
                        <SU>89</SU>
                        <FTREF/>
                         The Plan Processor has established a billing system for CAT fees.
                        <SU>90</SU>
                        <FTREF/>
                         Therefore, the Exchange proposes to require CAT Executing Brokers to pay Historical CAT Assessment 1 in accordance with such system. Accordingly, proposed paragraph (b)(1) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would state that “[e]ach CAT Executing Broker shall pay its CAT fees as required pursuant to paragraph (a) each month to the Consolidated Audit Trail, LLC in the manner prescribed by the Consolidated Audit Trail, LLC.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             Section 11.4 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             The billing process and system are described in CAT Alert 2023-02 as well as the CAT FAQs related to the billing of CAT fees, the Industry Member CAT Reporter Portal User Guide, the FCAT Industry Member Onboarding Guide, the FCAT Connectivity Supplement for Industry Members and the CAT Billing Webinars (dated September 28, 2023 and November 7, 2023), each available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(C) Failure To Pay CAT Fees</HD>
                    <P>The CAT NMS Plan further states that:</P>
                    <EXTRACT>
                        <P>
                            Participants shall require each Industry Member to pay all applicable fees authorized under this Article XI within thirty (30) days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due (as determined in accordance with the preceding sentence), such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of: (a) the Prime Rate plus 300 basis points; or (b) the maximum rate permitted by applicable law.
                            <SU>91</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>91</SU>
                                 Section 11.4 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, the Exchange proposes to add this requirement to the Exchange's Fee Schedule. Proposed paragraph (b)(2) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would state:</P>
                    <EXTRACT>
                        <P>Each CAT Executing Broker shall pay the CAT fees required pursuant to paragraph (a) within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If a CAT Executing Broker fails to pay any such CAT fee when due, such CAT Executing Broker shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of (i) the Prime Rate plus 300 basis points, or (ii) the maximum rate permitted by applicable law.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(7) Historical CAT Assessment Details</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Details regarding the calculation of a CAT Executing Broker's Historical CAT Assessment will be provided upon request to such CAT Executing Broker. At a minimum, such details would include each CAT Executing Broker's executed equivalent share volume and corresponding fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise than on an exchange, and (3) by buy-side transactions and sell-side transactions.
                            <SU>92</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>92</SU>
                                 Section 11.3(a)(iv)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        Such information would provide CEBBs and CEBSs with the ability to understand the details regarding the calculation of their Historical CAT Assessment.
                        <SU>93</SU>
                        <FTREF/>
                         CAT LLC will provide CAT Executing Brokers with these details regarding the calculation of their Historical CAT Assessments on their monthly invoice for the Historical CAT Assessment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>93</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, providing CAT Execut[ing] Brokers information regarding the calculation of their CAT Fees will aid in transparency and permit CAT Execut[ing] Brokers to confirm the accuracy of their invoices for CAT Fees.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>
                        In addition, CAT LLC will make certain aggregate statistics regarding Historical CAT Assessments publicly available. Specifically, the CAT NMS Plan states that, “[f]or each Historical CAT Assessment, at a minimum, CAT LLC will make publicly available the aggregate executed equivalent share volume and corresponding aggregate fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise on an exchange, and (3) by buy-side transactions and sell-side transactions.” 
                        <SU>94</SU>
                        <FTREF/>
                         Such aggregate 
                        <PRTPAGE P="10341"/>
                        statistics will be available on the CAT website.
                    </P>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             Section 11.3(a)(iv)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission stated that “[t]he publication of the aggregate executed equivalent share volume and aggregate fee is appropriate because it would allow Participants and CAT Executing Brokers a high-level validation of executed volume and fees.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>Furthermore, CAT LLC will make publicly available on the CAT website the total amount invoiced each month that Historical CAT Assessment 1 is in effect as well as the total amount invoiced for Historical CAT Assessment 1 for all months since its commencement. CAT LLC also will make publicly available on the CAT website the total costs to be collected from Industry Members for Historical CAT Assessment 1. By reviewing statistics regarding how much has been invoiced and how much remains to be invoiced for Historical CAT Assessment 1, Industry Members would have sufficient information to reasonably track how much longer Historical CAT Assessment 1 is likely to be in place.</P>
                    <HD SOURCE="HD3">(8) Implementation Assistance</HD>
                    <P>To assist Industry Members with compliance with the commencement of Historical CAT Assessment 1, CAT LLC will make available to CAT Executing Brokers four months of mock invoices prior to the commencement of Historical CAT Assessment 1. Specifically, CAT Executing Brokers will receive mock invoices based on transaction data from November 2023, December 2023, January 2024 and February 2024. The mock invoices will be in the same form as the actual, payable invoices, including both the relevant transaction data and the corresponding fee. However, no payments will be required in response to such mock invoices; they are to be used solely to assist CAT Executing Brokers with the development of their processes for paying the CAT fees. Such data will provide CAT Executing Brokers with a preview of the transaction data used in creating the invoices for Historical CAT Assessment 1 fees, as the data will be the same as data provided in actual invoices. Such data preview is intended to facilitate the payment of Historical CAT Assessment 1.</P>
                    <HD SOURCE="HD3">(9) Financial Accountability Milestones</HD>
                    <P>
                        The CAT NMS Plan states that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.” 
                        <SU>95</SU>
                        <FTREF/>
                         The CAT NMS Plan further states that “in all filings submitted by the Participants to the Commission under Section 19(b) of the Exchange Act, to establish or implement Post-Amendment Industry Member Fees pursuant to this Article, . . . the Participants shall clearly indicate whether such fees are related to Post-Amendment Expenses incurred during Period 1, Period 2, Period 3, or Period 4.” 
                        <SU>96</SU>
                        <FTREF/>
                         As discussed in detail below, all applicable Financial Accountability Milestones for Historical CAT Assessment 1—that is, Period 1, Period 2 and Period 3 of the Financial Accountability Milestones—have been satisfied. Furthermore, as discussed below, this filing clearly indicates that Historical CAT Assessment 1 relates to Post-Amendment Expenses incurred during Periods 1, 2 and 3 of the Financial Accountability Milestones.
                    </P>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             Section 11.6(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Period 1 of the Financial Accountability Milestones</HD>
                    <P>
                        In accordance with Section 11.6(b) of the CAT NMS Plan, Historical CAT Assessment 1 seeks to recover costs that are related to “all fees, costs, and expenses (including legal and consulting fees, costs, and expenses) incurred by or for the Company in connection with the development, implementation and operation of the CAT from the effective date of [Section 11.6 of the CAT NMS Plan] until such time as Full Implementation of CAT NMS Plan Requirements has been achieved” 
                        <SU>97</SU>
                        <FTREF/>
                         (“Post-Amendment Expenses”) incurred during FAM Period 1. FAM Period 1 began on June 22, 2020, the effective date of Section 11.6 of the CAT NMS Plan, and concluded on July 31, 2020, the date of Initial Industry Member Core Equity and Options Reporting. Section 1.1 of the CAT NMS Plan defines “Initial Industry Member Core Equity and Options Reporting” as:
                    </P>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             Section 11.6 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>The reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of both: (a) equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information; and (b) options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.</P>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports.
                        <SU>98</SU>
                        <FTREF/>
                         As indicated by the Participants' Quarterly Progress Report for the third quarter of 2020,
                        <SU>99</SU>
                        <FTREF/>
                         Initial Industry Member Core Equity and Option Reporting was completed on schedule on July 22, 2020, which is prior to the July 31, 2020 deadline.
                    </P>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             The Quarterly Progress Reports are available at 
                            <E T="03">https://www.catnmsplan.com/implementation-plan</E>
                            .
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020) and Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Under the FAM Period 1 requirement of Initial Industry Member Core Equity and Options Reporting, Industry Members—excluding Small Industry Members that are not OATS reporters—were required to report two categories of data to the CAT: equites transaction data and options transaction data (both excluding Customer Account Information, Customer-ID, and Customer Identifying Information) by July 31, 2020. Pursuant to exemptive relief provided by the Commission, the Commission authorized the Participants' Compliance Rules to allow core equity reporting for Industry Members (Phase 2a) to begin on June 22, 2020 and core options reporting for Industry Members (Phase 2b) to begin on July 20, 2020.
                        <SU>100</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order. Under the CAT NMS Plan as adopted, the Participants were required, through their Compliance Rules, to require their Large Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2018, and to require their Small Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2019. Sections 6.7(a)(v) and (vi) of the CAT NMS Plan. The SEC granted exemptive relief from these provisions of the CAT NMS Plan to allow for the phased implementation of Industry Member reporting via five phases addressing the reporting requirements for Phase 2a Industry Member Data, Phase 2b Industry Member Data, Phase 2c Industry Member Data, Phase 2d Industry Member Data and Phase 2e Industry Member Data.
                        </P>
                    </FTNT>
                    <P>
                        In adopting the FAMs, the Commission stated that the equities transaction reporting required for FAM Period 1 “is consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Equities 2a file submission and data integrity validations.' ” 
                        <SU>101</SU>
                        <FTREF/>
                         The Phase 2a Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the following data related to Eligible Securities that are equities:
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 88890, 85 FR 31322, 31330 n.97 (“FAM Adopting Release”).
                        </P>
                    </FTNT>
                    <P>• All events and scenarios covered by OATS, which includes information related to the receipt or origination of orders, order transmittal, and order modifications, cancellations and executions;</P>
                    <P>
                        • Reportable Events for: (1) proprietary orders, including market maker orders, for Eligible Securities that 
                        <PRTPAGE P="10342"/>
                        are equities; (2) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) sent to a national securities exchange or FINRA's Alternative Display Facility (“ADF”); (3) electronic quotes in unlisted Eligible Securities (
                        <E T="03">i.e.,</E>
                         OTC Equity Securities) received by an Industry Member operating an interdealer quotation system (“IDQS”); and (4) electronic quotes in unlisted Eligible Securities sent to an IDQS or other quotation system not operated by a Participant or Industry Member;
                    </P>
                    <P>• Firm Designated IDs (“FDIDs”), which Industry Members must report to the CAT as required by Sections 6.3(d)(i)(A) and 6.4(d)(ii)(C) of the CAT NMS Plan.</P>
                    <P>• Industry Members would be required to report all street side representative orders, including both agency and proprietary orders and mark such orders as representative orders, except in certain limited exceptions as described in the Industry Member Technical Specifications;</P>
                    <P>• The link between the street side representative order and the order being represented when: (1) the representative order was originated specifically to represent a single order received either from a customer or another broker-dealer; and (2) there is (a) an existing direct electronic link in the Industry Member's system between the order being represented and the representative order and (b) any resulting executions are immediately and automatically applied to the represented order in the Industry Member's system;</P>
                    <P>• Manual and Electronic Capture Time for Manual Order Events;</P>
                    <P>• Special handling instructions for the original receipt or origination of an order during Phase 2a; and</P>
                    <P>• When routing an order, whether the order was routed as an intermarket sweep order (“ISO”).</P>
                    <P>
                        In Phase 2a, Industry Members were not required to report modifications of a previously routed order in certain limited instances, nor were they required to report a cancellation of an order received from a Customer after the order has been executed.
                        <SU>102</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order at 23076-78.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Equities 2a file submission and data integrity validation (Large Industry Members and Small OATS Reporters)” was completed on June 22, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information” was completed on June 22, 2020.</P>
                    <P>
                        In adopting the FAMs, the Commission stated that the options transaction reporting required for FAM Period 1 is “consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Options 2b file submission and data integrity validations.' ” 
                        <SU>103</SU>
                        <FTREF/>
                         The Phase 2b Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the Industry Member Data related to Eligible Securities that are options and related to simple electronic option orders, excluding electronic paired option orders. A simple electronic option order is an order to buy or sell a single option that is not related to or dependent on any other transaction for pricing and timing of execution that is either received or routed electronically by an Industry Member. Electronic receipt of an order is defined as the initial receipt of an order by an Industry Member in electronic form in standard format directly into an order handling or execution system. Electronic routing of an order is the routing of an order via electronic medium in standard format from one Industry Member's order handling or execution system to an exchange or another Industry Member. An electronic paired option order is an electronic option order that contains both the buy and sell side that is routed to another Industry Member or exchange for crossing and/or price improvement as a single transaction on an exchange. Responses to auctions of simple orders and paired simple orders would be reportable in Phase 2b. Furthermore, combined orders in options would be treated in Phase 2b in the same way as equity representative orders are treated in Phase 2a. A combined order would mean, as permitted by SRO rules, a single, simple order in Listed Options created by combining individual, simple orders in Listed Options from a customer with the same exchange origin code before routing to an exchange. During Phase 2b, the single combined order sent to an exchange must be reported and marked as a combined order, but the linkage to the underlying orders is not required to be reported until Phase 2d.
                        <SU>104</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             
                            <E T="03">See</E>
                             FAM Adopting Release at 31330, n.98.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order at 23078.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Options 2b file submission and data integrity validations” was completed on July 20, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information” was completed on July 20, 2020.</P>
                    <P>As discussed above, the Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from June 22, 2020 through July 31, 2020. The total costs for this period, as discussed above, are $6,377,343. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781).</P>
                    <HD SOURCE="HD3">(B) Period 2 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 2. FAM Period 2 began on August 1, 2020, and concluded on December 31, 2020, the date of the Full Implementation of Core Equity Reporting. Section 1.1 of the CAT NMS Plan defines “Full Implementation of Core Equity Reporting” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability 
                        <PRTPAGE P="10343"/>
                        Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2020,
                        <SU>105</SU>
                        <FTREF/>
                         Full Implementation of Core Equity Reporting was completed on schedule by December 31, 2020.
                    </P>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the Full Implementation of Core Equity Reporting requires the satisfaction of two prongs. The first prong requires Participants to have fully implemented the first phase of equities transaction reporting for Industry Members (excluding Small Industry Members that are not OATS reporters) at an Error Rate of less than 5%. In addition, equities transaction data produced by the CAT at this stage must also be sufficiently interlinked so as to permit full analysis of an order's lifecycle across the national market, excluding full linkage of representative orders. As CAT LLC reported on its Quarterly Progress Reports, Phase 2a was fully implemented as of October 26, 2020, including intra-firm, inter-firm, national securities exchange, and trade reporting facilities linkages.
                        <SU>106</SU>
                        <FTREF/>
                         In addition to the reporting of Phase 2a Industry Member Data as described above with regard to FAM Period 1, the following linkage data was added to the CAT as described in the Quarterly Progress Reports for the third and fourth quarter of 2020:
                    </P>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             For a description of the requirements of Phases 2a, 
                            <E T="03">see</E>
                             Phased Reporting Exemptive Relief Order.
                        </P>
                    </FTNT>
                    <P>
                        • “Production Go-Live for Equities 2a Intrafirm Linkage validations” was completed on 7/27/2020; 
                        <SU>107</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             Q3 2020 Quarterly Progress Report (Oct. 20, 2021).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Firm to Firm Linkage validations for Equities 2a (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020; and</P>
                    <P>• “Production Go-Live for Equities 2a Exchange and TRF Linkage validations (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020.</P>
                    <P>Furthermore, as CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2020, the average overall error rate for Phase 2a Industry Member Data was less than 5% as of December 31, 2020. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The second prong of this FAM requires that the equities transaction data collected by the CAT at this stage be made available to regulators through two basic query tools required by the CAT NMS Plan—a targeted query tool that will enable regulators to retrieve data via an online query screen with a variety of predefined selection criteria, and a user-defined direct query tool that will provide regulators with the ability to query data using all available attributes and data sources.
                        <SU>108</SU>
                        <FTREF/>
                         As CAT LLC reported on its Quarterly Progress Reports, the query tool functionality incorporating the data from Phase 2a was available to the Participants and the Commission as of December 31, 2020.
                        <SU>109</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>108</SU>
                             Section 6.10(c)(i)(A) of the CAT NMS Plan requires the Plan Processor to “provide Participants and the SEC with access to all CAT Data stored in the Central Repository” via an “online targeted query tool.” Appendix D, Sections 8.1.1-8.1.3 of the CAT NMS Plan describes the required functionality associated with this regulatory tool. Appendix D, Section 8.2.1 describes the required functionality associated with a user-defined direct query tool that will “deliver large sets of data that can then be used in internal surveillance or market analysis applications.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020); Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021); and Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>110</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 98848 (November 2, 2023), 88 FR 77128, 77129 n.13 (November 8, 2023) (“Settlement Exemptive Order”).
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from August 1, 2020 through December 31, 2020. The total costs for this period, as discussed above, are $42,976,478. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($14,325,492.70) and CEBSs paying one-third ($14,325,492.70).
                    </P>
                    <HD SOURCE="HD3">(C) Period 3 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 3. FAM Period 3 began on January 1, 2021, and concluded on December 31, 2021, the date of the Full Availability and Regulatory Utilization of Transactional Database Functionality. Section 1.1 of the CAT NMS Plan defines “Full Availability and Regulatory Utilization of Transactional Database Functionality” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>111</SU>
                        <FTREF/>
                         Full Availability and Regulatory Utilization of Transactional Database Functionality was completed on schedule by December 31, 2021.
                    </P>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires the satisfaction of five prongs. The first prong requires that reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>112</SU>
                        <FTREF/>
                         FINRA retired OATS effective 
                        <PRTPAGE P="10344"/>
                        September 1, 2021.
                        <SU>113</SU>
                        <FTREF/>
                         Accordingly, after the retirement of OATS, reporting to OATS was no longer required.
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 92239 (June 23, 2021), 86 FR 34293 (June 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        In addition to Phase 2a and Phase 2b Industry Member Data, the second and third prongs of “Full Availability and Regulatory Utilization of Transactional Database Functionality” require Industry Member reporting of Phase 2c Industry Member Data and Phase 2d Industry Member Data. The Phase 2c Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. That Order states that “Phase 2c Industry Member Data” is Industry Member Data related to Eligible Securities that are equities other than Phase 2a Industry Member Data, Phase 2d Industry Member Data, or Phase 2e Industry Member Data. Specifically, the Phase 2c Industry Member Data includes Industry Member Data that is related to Eligible Securities that are equities and that is related to: (1) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (2) quotes in unlisted Eligible Securities sent to an IDQS operated by a CAT Reporter (reportable by the Industry Member sending the quotes) (except for quotes reportable in Phase 2d, as discussed below); (3) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) that are not sent to a national securities exchange or FINRA's Alternative Display Facility; (4) reporting changes to client instructions regarding modifications to algorithms; (5) marking as a representative order any order originated to work a customer order in price guarantee scenarios, such as a guaranteed VWAP; (6) flagging rejected external routes to indicate a route was not accepted by the receiving destination; (7) linkage of duplicate electronic messages related to a Manual Order Event between the electronic event and the original manual route; (8) special handling instructions on order route reports (other than the ISO, which is required to be reported in Phase 2a); (9) quote identifier on trade events; (10) reporting of LTIDs (if applicable) for accounts with Reportable Events that are reportable to CAT as of and including Phase 2c; (11) reporting of date account opened or Account Effective Date71 (as applicable) for accounts and reporting of a flag indicating the Firm Designated ID type as account or relationship; (12) order effective time for orders that are received by an Industry Member and do not become effective until a later time; (13) the modification or cancellation of an internal route of an order; and (14) linkages to the customer orders(s) being represented for representative order scenarios, including agency average price trades, net trades, aggregated orders, and disconnected Order Management System (“OMS”)—Execution Management System (“EMS”) scenarios, as required in the Industry Member Technical Specifications.
                        <SU>114</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             
                            <E T="03">See</E>
                             Phase Reporting Exemptive Relief Order at 23078-79.
                        </P>
                    </FTNT>
                    <P>
                        Phase 2c Industry Member Data also includes electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are equities and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: (1) an equity bid or offer is displayed publicly or has been communicated (a) for listed securities to the Alternative Display Facility (ADF) operated by FINRA; or (b) for unlisted equity securities to an “interdealer quotation system,” as defined in FINRA Rule 6420(c); or (2) an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing; 
                        <E T="03">i.e.,</E>
                         no further manual or electronic action is required by the responder providing the quote in order to execute or cause a trade to be executed). With respect to OTC Equity Securities, OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter (other than such an IDQS that does not match and execute orders) are reportable by the Industry Member sending them in Phase 2c. Accordingly, any response to a request for quote or other form of solicitation response provided in a standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this quote definition (
                        <E T="03">i.e.,</E>
                         an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing) would be reportable in Phase 2c.
                        <SU>115</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>115</SU>
                             
                            <E T="03">Id.</E>
                             at 23079.
                        </P>
                    </FTNT>
                    <P>
                        The Phase 2d Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. “Phase 2d Industry Member Data” is Industry Member Data that is related to Eligible Securities that are options other than Phase 2b Industry Member Data, Industry Member Data that is related to Eligible Securities that are equities other than Phase 2a Industry Member Data or Phase 2c Industry Member Data, and Industry Member Data other than Phase 2e Industry Member Data. Phase 2d Industry Member Data includes with respect to the Eligible Securities that are options: (1) simple manual orders; (2) electronic and manual paired orders; (3) all complex orders with linkages to all CAT-reportable legs; (4) LTIDs (if applicable) for accounts with Reportable Events for Phase 2d; (5) date account opened or Account Effective Date (as applicable) for accounts with an LTID and flag indicating the Firm Designated ID type as account or relationship for such accounts; (6) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (7) the modification or cancellation of an internal route of an order; and (8) linkage between a combined order and the original customer orders. Phase 2d Industry Member Data also would include electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are options and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: a listed option bid or offer which is accessible electronically by customers or other market participants and is immediately actionable (
                        <E T="03">i.e.,</E>
                         no further action is required by the responder providing the quote in order to execute or cause a trade to be executed). Accordingly, any response to a request for quote or other form of solicitation response provided in standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this definition is reportable in Phase 2d for options.
                        <SU>116</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Phase 2d Industry Member Data also includes with respect to Eligible Securities that are options or equities (1) receipt time of cancellation and modification instructions through Order Cancel Request and Order Modification Request events; (2) modifications of previously routed orders in certain instances; and (3) OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter that does not match and execute orders. In addition, subject to any exemptive or other relief, Phase 2d Industry Member Data will include verbal or manual quotes on an exchange floor or in the over-the-counter market, where verbal quotes and manual quotes are defined as bids or offers in Eligible Securities provided verbally or that are provided or received other than via a CAT Reporter's order handling and execution system (
                        <E T="03">e.g.,</E>
                          
                        <PRTPAGE P="10345"/>
                        quotations provided via email or instant messaging).
                        <SU>117</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             
                            <E T="03">Id.</E>
                             at 23079-80.
                        </P>
                    </FTNT>
                    <P>
                        The Quarterly Progress Report for the fourth quarter of 2021 states that “Phase 2a was fully implemented as of October 26, 2020;” “Phase 2b was fully implemented as of January 4, 2021;” “Phase 2c was implemented as of April 26, 2021;” and “Phase 2d was fully implemented as of December 13, 2021.” 
                        <SU>118</SU>
                        <FTREF/>
                         The Quarterly Progress Reports for 2021 provide additional detail regarding the implementation of these steps including the following:
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (January 17, 2022).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2a, 2b and 2c (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “FCAT Plan Processor creates linkages of the lifecycle of order events based on the received data through Phase 2d Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2b reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2d (Large Industry Members)” was completed on December 13, 2021; and</P>
                    <P>
                        • “LTID Account Information Reporting Go-Live for Phases 2a, 2b, 2c and 2d (Small Industry Members)” was completed on December 13, 2021.
                        <SU>119</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             
                            <E T="03">See</E>
                             Q2 2021 Quarterly Progress Report (July 27, 2021); and Q4 2021 Quarterly Progress Report (January 17, 2022).
                        </P>
                    </FTNT>
                    <P>The third prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” also imposes an Error Rate requirement of 5% or less. The Quarterly Progress Report for the fourth quarter of 2021 states the average overall error rate was less than 5% as of December 31, 2021. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The fourth prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires that the data collected by the CAT at this stage be made available to regulators through an online targeted query tool and a user-defined direct query tool. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021, the query tool functionality incorporating the data from Phases 2a, 2b, 2c and 2d was available to the Participants and to the Commission as of December 31, 2021.
                        <SU>120</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>120</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (January 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The fifth prong requires the requirements of Section 6.10(a) of the CAT NMS Plan to have been met. Section 6.10(a) of the CAT NMS Plan requires the Participants to use the tools described in Appendix D to “develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository.” The Exchange implemented a surveillance system, or enhanced existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository as of December 31, 2021 in accordance with Section 6.10(a) of the CAT NMS Plan.
                        <SU>121</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             
                            <E T="03">See</E>
                             Q1 2021 Quarterly Progress Report (April 30, 2021); Q2 2021 Quarterly Progress Report (July 27, 2021); Q3 2021 Quarterly Progress Report (November 1, 2021); Q4 2021 Quarterly Progress Report (January 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>122</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             
                            <E T="03">See</E>
                             Settlement Exemptive Order at 77129 n.13.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from January 1, 2021 through December 31, 2021. The total costs for this period, as discussed above, are $144,415,268. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($48,138,422.70) and CBSs paying one-third ($48,138,422.70).
                    </P>
                    <HD SOURCE="HD3">2. Statutory Basis</HD>
                    <P>
                        The Exchange believes the proposed rule change is consistent with the requirements of the Exchange Act. The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,
                        <SU>123</SU>
                        <FTREF/>
                         which requires, among other things, that the Exchange's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act,
                        <SU>124</SU>
                        <FTREF/>
                         because it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. The Exchange further believes that the proposed rule change is consistent with Section 6(b)(8) of the Act,
                        <SU>125</SU>
                        <FTREF/>
                         which requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. These provisions also require that the Exchange be “so organized and [have] the capacity to be able to carry out the purposes” of the Act and “to comply, and . . . to enforce compliance by its members and persons associated with its members,” with the provisions of the Exchange Act.
                        <SU>126</SU>
                        <FTREF/>
                         Accordingly, a reasonable reading of the Act indicates that it intended that regulatory funding be sufficient to permit an exchange to fulfill its statutory responsibility under the Act, and contemplated that such funding would be achieved through equitable assessments on the members, issuers, and other users of an exchange's facilities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             15 U.S.C. 78f(b)(6).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             
                            <E T="03">See</E>
                             Section 6(b)(1) of the Exchange Act.
                        </P>
                    </FTNT>
                    <P>
                        The Exchange believes that this proposal is consistent with the Act because it implements provisions of the Plan and is designed to assist the Exchange in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan “is necessary and appropriate in the public interest, for the protection of investors and the maintenance of fair 
                        <PRTPAGE P="10346"/>
                        and orderly markets, to remove impediments to, and perfect the mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>127</SU>
                        <FTREF/>
                         To the extent that this proposal implements the Plan and applies specific requirements to Industry Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             
                            <E T="03">See</E>
                             CAT NMS Plan Approval Order at 84697.
                        </P>
                    </FTNT>
                    <P>The Exchange believes that the proposed fees paid by the CEBBs and CEBSs are reasonable, equitably allocated and not unfairly discriminatory. First, the Historical CAT Assessment 1 fees to be collected are directly associated with the costs of establishing and maintaining the CAT, where such costs include Plan Processor costs and costs related to technology, legal, consulting, insurance, professional and administration, and public relations costs. The Exchange has already incurred such development and implementation costs and the proposed Historical CAT Assessment 1 fees, therefore, would allow the Exchange to collect certain of such costs in a fair and reasonable manner from Industry Members, as contemplated by the CAT NMS Plan.</P>
                    <P>The proposed Historical CAT Assessment 1 fees would be charged to Industry Members in support of the maintenance of a consolidated audit trail for regulatory purposes. The proposed fees, therefore, are consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business operations. The proposed fees would not cover Exchange services unrelated to the CAT. In addition, any surplus would be used as a reserve to offset future fees. Given the direct relationship between CAT fees and CAT costs, the Exchange believes that the proposed fees are reasonable, equitable and not unfairly discriminatory.</P>
                    <P>As further discussed below, the SEC approved the CAT Funding Model, finding it was reasonable and that it equitably allocates fees among Participants and Industry Members. The Exchange believes that the proposed fees adopted pursuant to the CAT Funding Model approved by the SEC are reasonable, equitably allocated and not unfairly discriminatory.</P>
                    <HD SOURCE="HD3">(1) Implementation of CAT Funding Model in CAT NMS Plan</HD>
                    <P>
                        Section 11.1(b) of the CAT NMS Plan states that “[t]he Participants shall file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves.” Per Section 11.1(b) of the CAT NMS Plan, the Exchange has filed this fee filing to implement the Industry Member CAT fees included in the CAT Funding Model. The Exchange believes that this proposal is consistent with the Exchange Act because it is consistent with, and implements, the CAT Funding Model in the CAT NMS Plan, and is designed to assist the Exchange and its Industry Members in meeting regulatory obligations pursuant to the CAT NMS Plan. In approving the CAT NMS Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>128</SU>
                        <FTREF/>
                         Similarly, in approving the CAT Funding Model, the SEC concluded that the CAT Funding Model met this standard.
                        <SU>129</SU>
                        <FTREF/>
                         As this proposal implements the Plan and the CAT Funding Model described therein, and applies specific requirements to Industry Members in compliance with the Plan, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Exchange Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             
                            <E T="03">See</E>
                             CAT NMS Plan Approval Order at 84696.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62686.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(2) Calculation of Fee Rate for Historical CAT Assessment 1 Is Reasonable</HD>
                    <P>
                        The SEC has determined that the CAT Funding Model is reasonable and satisfies the requirements of the Exchange Act. Specifically, the SEC has concluded that the method for determining Historical CAT Assessments as set forth in Section 11.3 of the CAT NMS Plan, including the formula for calculating the Historical Fee Rate, the identification of the parties responsible for payment and the transactions subject to the fee rate for the Historical CAT Assessment, is reasonable and satisfies the Exchange Act.
                        <SU>130</SU>
                        <FTREF/>
                         In each respect, as discussed above, Historical CAT Assessment 1 is calculated, and would be applied, in accordance with the requirements applicable to Historical CAT Assessments as set forth in the CAT NMS Plan. Furthermore, as discussed below, the Exchange believes that each of the figures for the variables in the SEC-approved formula for calculating the fee rate for Historical CAT Assessment 1 is reasonable and consistent with the Exchange Act. Calculation of the Historical Fee Rate for Historical CAT Assessment 1 requires the figures for the Historical CAT Costs 1, the executed equivalent share volume for the prior twelve months, the determination of Historical Recovery Period 1, and the projection of the executed equivalent share volume for Historical Recovery Period 1. Each of these variables is reasonable and satisfies the Exchange Act, as discussed throughout this filing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             
                            <E T="03">Id.</E>
                             at 62662-63.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Historical CAT Costs 1</HD>
                    <P>The formula for calculating a Historical Fee Rate requires the amount of Historical CAT Costs to be recovered. Specifically, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires a fee filing to provide:</P>
                    <EXTRACT>
                        <FP>a brief description of the amount and type of the Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.</FP>
                    </EXTRACT>
                    <P>In accordance with this requirement, the Exchange has set forth the amount and type of Historical CAT Costs 1 for each of these categories of costs above.</P>
                    <P>Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan also requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” As discussed below, the Exchange believes that the amounts set forth in this filing for each of these cost categories is “reasonable and appropriate.” Each of the costs included in Historical CAT Costs 1 are reasonable and appropriate because the costs are consistent with standard industry practice, based on the need to comply with the requirements of the CAT NMS Plan, incurred subject to negotiations performed on an arm's length basis, and/or are consistent with the needs of any legal entity, particularly one with no employees.</P>
                    <HD SOURCE="HD3">(i) Technology: Cloud Hosting Services</HD>
                    <P>
                        In approving the CAT Funding Model, the Commission recognized that it is appropriate to recover costs related to cloud hosting services as a part of Historical CAT Assessments.
                        <SU>131</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to cloud hosting services described in this filing are reasonable and should be 
                        <PRTPAGE P="10347"/>
                        included as a part of Historical CAT Costs 1. As described above, the cloud hosting services costs reflect, among other things, the breadth of the CAT cloud activities, data volume far in excess of the original volume estimates, the need for specialized cloud services given the volume and unique nature of the CAT, the processing time requirements of the Plan, and regular efforts to seek to minimize costs where permissible under the Plan. CAT LLC determined that use of cloud hosting services is necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT, and that the fees for cloud hosting services negotiated by FCAT were reasonable, taking into consideration a variety of factors, including the expected volume of data and the breadth of services provided and market rates for similar services.
                        <SU>132</SU>
                        <FTREF/>
                         Indeed, the actual costs of the CAT are far in excess of the original estimated costs of the CAT due to various factors, including the higher volumes and greater complexity of the CAT than anticipated when Rule 613 was originally adopted.
                    </P>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             For a discussion of the amount and type of cloud hosting services fees, 
                            <E T="03">see</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>To comply with the requirements of the Plan, the breadth of the cloud activities related to the CAT is substantial. The cloud services not only include the production environment for the CAT, but they also include two industry testing environments, support environments for quality assurance and stress testing and disaster recovery capabilities. Moreover, the cloud storage costs are driven by the requirements of the Plan, which requires the storage of multiple versions of the data, from the original submitted version of the data through various processing steps, to the final version of the data.</P>
                    <P>
                        Data volume is a significant driver of costs for cloud hosting services. When the Commission adopted the CAT NMS Plan in 2016, it estimated that the CAT would need to receive 58 billion records per day 
                        <SU>133</SU>
                        <FTREF/>
                         and that annual operating costs for the CAT would range from $36.5 million to $55 million.
                        <SU>134</SU>
                        <FTREF/>
                         Through 2021, the actual data volumes have been five times that original estimate. The data volumes for each period are set forth in detail above.
                        <SU>135</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             
                            <E T="03">See</E>
                             CAT NMS Plan Approval Order at 84801.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>
                        In addition to the effect of the data volume on the cloud hosting costs, the processing timelines set forth in the Plan contribute to the cloud hosting costs. Although CAT LLC has proactively sought to manage cloud hosting costs while complying with the Plan, including through requests to the Commission for exemptive relief and an amendment to the CAT NMS Plan, stringent CAT NMS Plan requirements do not allow for any material flexibility in cloud architecture design choices, processing timelines (
                        <E T="03">e.g.,</E>
                         the use of non-peak processing windows), or lower-cost storage tiers. As a result, the required CAT processing timelines contribute to the cloud hosting costs of the CAT.
                    </P>
                    <P>The costs for cloud hosting services also reflect the need for specialized cloud hosting services given the data volume and unique processing needs of the CAT. The data volume as well as the data processing needs of the CAT necessitate the use of cloud hosting services. The equipment, power and services required for an on-premises data model, the alternative to cloud hosting services, would be cost prohibitive. Moreover, as CAT was being developed, there were limited cloud hosting providers that could satisfy all the necessary CAT requirements, including the operational and security criteria. Over time more providers offering cloud hosting services that would satisfy these criteria have entered the market. CAT LLC will continue to evaluate alternative cloud hosting services, recognizing that the time and cost to move to an alternative cloud provider would be substantial.</P>
                    <P>
                        The reasonableness of the cloud hosting services costs is further supported by key cost discipline mechanisms for the CAT—a cost-based funding structure, cost transparency, cost management efforts (including regular efforts to lower compute and storage costs where permitted by the Plan) and oversight. Together, these mechanisms help ensure the ongoing reasonableness of the CAT's costs and the level of fees assessed to support those costs.
                        <SU>136</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 97151 (March 15, 2023), 88 FR 17086, 17117 (March 21, 2023) (describing key cost discipline mechanisms for the CAT).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Technology: Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to operating fees as a part of Historical CAT Assessments.
                        <SU>137</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The operating fees include the negotiated fees paid by CAT LLC to the Plan Processor to operate and maintain the system for order-related information and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the selection of FCAT as the Plan Processor was reasonable and appropriate given its expertise with securities regulatory reporting, after a process of considering other potential candidates.
                        <SU>138</SU>
                        <FTREF/>
                         CAT LLC also determined that the fixed price contract, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, was reasonable and appropriate, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity.
                        <SU>139</SU>
                        <FTREF/>
                         The services performed by FCAT for each period and the costs related to such services are described above.
                        <SU>140</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(b), 3(a)(2)(B)(ii)(b), 3(a)(2)(B)(iii)(b) and 3(a)(2)(B)(iv)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iii) Technology: CAIS Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to CAIS operating fees as a part of Historical CAT Assessments.
                        <SU>141</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to CAIS operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The CAIS operating fees include the fees paid to the Plan Processor to operate and maintain CAIS and to perform the business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the FCAT-negotiated fees for Kingland's CAIS-related services, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity, were reasonable and 
                        <PRTPAGE P="10348"/>
                        appropriate.
                        <SU>142</SU>
                        <FTREF/>
                         The services performed by Kingland for each period and the costs for each period are described above.
                        <SU>143</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(c), 3(a)(2)(B)(ii)(c), 3(a)(2)(B)(iii)(c) and 3(a)(2)(B)(iv)(c) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iv) Technology: Change Request Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to change request fees as a part of Historical CAT Assessments.
                        <SU>144</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to change request fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. It is common practice to utilize a change request process to address evolving needs in technology projects. This is particularly true for a project like CAT that is the first of its kind, both in substance and in scale. The substance and costs of each of the change requests are evaluated by the Operating Committee, and approved in accordance with the requirements for Operating Committee meetings. In each case, CAT LLC determined that the change requests were necessary to implement the CAT. As described above, the change requests cover various technology changes, including, for example, changes related to CAT reporting, data feeds and exchange functionality. CAT LLC also determined that the costs for each change request were appropriate for the relevant technology change. A description of the change requests for each FAM Period and their total costs are set described above.
                        <SU>145</SU>
                        <FTREF/>
                         As noted above, the total costs for change requests through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.25% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(d), 3(a)(2)(B)(ii)(d), 3(a)(2)(B)(iii)(d) and 3(a)(2)(B)(iv)(d) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(v) Capitalized Developed Technology Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to capitalized developed technology costs as a part of Historical CAT Assessments.
                        <SU>146</SU>
                        <FTREF/>
                         Capitalized developed technology costs include costs related to certain development costs, costs related to certain modifications, upgrades and other changes to the CAT, CAIS implementation fees and license fees. The amount and type of costs for each period are described in more detail above.
                        <SU>147</SU>
                        <FTREF/>
                         CAT LLC determined that these costs are reasonable and should be included as a part of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(e), 3(a)(2)(B)(ii)(e), 3(a)(2)(B)(iii)(e) and 3(a)(2)(B)(iv)(e) above.
                        </P>
                    </FTNT>
                    <P>
                        These costs involve the activity of both the Initial Plan Processor and FCAT, as the successor Plan Processor.
                        <SU>148</SU>
                        <FTREF/>
                         With regard to the Initial Plan Processor, the Participants utilized an RFP to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan. CAT LLC entered into an agreement with the Initial Plan Processor in which CAT LLC would pay the Initial Plan Processor a negotiated, fixed price fee.
                        <SU>149</SU>
                        <FTREF/>
                         In addition, as described above, CAT LLC determined that is [
                        <E T="03">sic</E>
                        ] was appropriate to enter into an agreement with FCAT as the successor Plan Processor.
                        <SU>150</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(e) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vi) Legal  </HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to legal fees as a part of Historical CAT Assessments.
                        <SU>151</SU>
                        <FTREF/>
                         CAT LLC determined that the legal costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Given the unique nature of the CAT, the number of parties involved with the CAT (including, for example, the SEC, Participants, Industry Members, and vendors) and the many regulatory issues associated with the CAT, the scope of the necessary legal services are substantial. CAT LLC determined that the scope of the legal services is necessary to implement and maintain the CAT and that the legal rates reflect the specialized services necessary for such a project. When hiring each law firm for a CAT project, CAT LLC interviewed multiple firms, and determined to hire each firm based on a variety of factors, including the relevant expertise and fees. In each case, CAT LLC determined that the hourly fee rates were in line with market rates for the specialized legal expertise. In addition, CAT LLC determined that the total costs incurred for each CAT project were appropriate given the breadth of services provided. The services performed by each law firm for each period and the costs related to such services are described above.
                        <SU>152</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(2) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(f), 3(a)(2)(B)(ii)(f), 3(a)(2)(B)(iii)(f) and 3(a)(2)(B)(iv)(f) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vii) Consulting</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover consulting costs as a part of Historical CAT Assessments.
                        <SU>153</SU>
                        <FTREF/>
                         CAT LLC determined that the consulting costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees 
                        <SU>154</SU>
                        <FTREF/>
                         and because of the significant number of issues associated with the CAT, the consultants provided assistance in the management of various CAT matters and the processes related to such matters.
                        <SU>155</SU>
                        <FTREF/>
                         CAT LLC considered a variety of factors in choosing a consulting firm and determined to select Deloitte after an interview process.
                        <SU>156</SU>
                        <FTREF/>
                         CAT LLC also determined that the consulting services were provided at reasonable market rates, as the fees were negotiated annually and comparable to the rates charged by other consulting firms for similar work.
                        <SU>157</SU>
                        <FTREF/>
                         Moreover, the total costs for such consulting services were appropriate in light of the breadth of services provided by Deloitte. The services performed by Deloitte and the costs related to such services are described above.
                        <SU>158</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(3) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             As stated in the filing of the proposed CAT NMS Plan, “[i]t is the intent of the Participants that the Company have no employees.” 
                            <E T="03">See</E>
                             Securities Exchange Act Release. No. 77724 (April 27, 2016), 81 FR 30614, 30621 (May 17, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             CAT LLC uses certain third parties to perform tasks that may be performed by administrators for other NMS Plans. 
                            <E T="03">See, e.g.,</E>
                             CTA Plan and CQ Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(g), 3(a)(2)(B)(ii)(g), 3(a)(2)(B)(iii)(g) and 3(a)(2)(B)(iv)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(viii) Insurance</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover insurance costs as a part of Historical CAT Assessments.
                        <SU>159</SU>
                        <FTREF/>
                         CAT LLC determined that the insurance costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that it is common practice to have directors' and officers' liability insurance, and errors and omissions liability insurance. CAT LLC further determined that it was important to have cyber security insurance given the nature of the CAT, and such a decision 
                        <PRTPAGE P="10349"/>
                        is consistent with the CAT NMS Plan, which states that the cyber incident response plan may include “[i]nsurance against security breaches.” 
                        <SU>160</SU>
                        <FTREF/>
                         In selecting the insurance providers for these policies, CAT LLC engaged in an evaluation of alternative insurers, including a comparison of the pricing offered by the alternative insurers.
                        <SU>161</SU>
                        <FTREF/>
                         Based on this analysis, CAT LLC determined that the selected insurance policies provided appropriate coverage at reasonable market rates.
                        <SU>162</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(4) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             Section 4.1.5 of Appendix D of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(h), 3(a)(2)(B)(ii)(h), 3(a)(2)(B)(iii)(h) and 3(a)(2)(B)(iv)(h) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ix) Professional and Administration</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover professional and administration costs as a part of Historical CAT Assessments.
                        <SU>163</SU>
                        <FTREF/>
                         CAT LLC determined that the professional and administration costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees, all required accounting, financial, tax, cash management and treasury functions for CAT LLC have been outsourced at market rates. In addition, the required annual financial statement audit of CAT LLC is included in professional and administration costs, which costs are also at market rates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(5) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees.
                        <SU>164</SU>
                        <FTREF/>
                         The hourly fee rates for this firm were in line with market rates for the financial advisory services provided.
                        <SU>165</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Anchin. The services performed by Anchin and the costs related to such services are described above.
                        <SU>166</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC also determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the role given the balanace [
                        <E T="03">sic</E>
                        ] of these considerations.
                        <SU>167</SU>
                        <FTREF/>
                         Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services.
                        <SU>168</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Grant Thornton. The services performed by Grant Thornton and the costs related to such services are described above.
                        <SU>169</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to the receipt of certain market data from Exegy. After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy. Exegy provided the data elements required by the CAT NMS Plan, and the fees were reasonable and in line with market rates for the market data received.
                        <SU>170</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment.
                        <SU>171</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(x) Public Relations Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover public relations costs as a part of Historical CAT Assessments.
                        <SU>172</SU>
                        <FTREF/>
                         CAT LLC determined that the public relations costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that the types of public relations services utilized were beneficial to the CAT and market participants more generally. Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                        <SU>173</SU>
                        <FTREF/>
                         By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT issues to the benefit of all market participants.
                        <SU>174</SU>
                        <FTREF/>
                         Moreover, CAT LLC determined that the rates charged for such services were in line with market rates.
                        <SU>175</SU>
                        <FTREF/>
                         As noted above, the total public relations costs through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.1% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(6) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(j), 3(a)(2)(B)(ii)(j), 3(a)(2)(B)(iii)(j) and 3(a)(2)(B)(iv)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Total Executed Equivalent Share Volume for the Prior 12 Months</HD>
                    <P>The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. CAT LLC determined the total executed equivalent share volume for the prior twelve months by counting executed equivalent shares in the same manner as it will count executed equivalent shares for CAT billing purposes.</P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to establish a Historical Recovery Period of 24 months for Historical CAT Assessment 1 and that such length is reasonable. CAT LLC determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans notes to the Participants in a timely fashion. CAT LLC determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <FTREF/>
                        <SU>176</SU>
                          
                        <PRTPAGE P="10350"/>
                        In addition, in establishing a Historical Recovery Period of 24 months, CAT LLC recognized that the total costs for Historical CAT Assessment 1 was less than the total costs for 2022 and 2023, and therefore it would be appropriate to recover those costs in two years. Furthermore, CAT LLC notes 24 months is appropriate because it is not currently proposing that Industry Members be required to pay another Historical CAT Assessment or CAT Fee with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from 
                            <PRTPAGE/>
                            $0.00009 per share to $0.0004 per share. 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62682.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Executed Equivalent Share Volume for Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. CAT LLC determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant in recent years. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is 7,685,722,694,558.88 executed equivalent shares.
                        <SU>177</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Actual Fee Rate for Historical CAT Assessment 1</HD>
                    <HD SOURCE="HD3">(i) Decimal Places</HD>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>178</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 by one-third, and rounding the result to 6 decimal places. CAT LLC determined that the use of six decimal places is reasonable as it balances the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Reasonable Fee Level</HD>
                    <P>
                        The Exchange believes that imposing Historical CAT Assessment 1 with a fee rate of $0.000015 per executed equivalent share is reasonable because it provides for a revenue stream for the Company that is aligned with Historical CAT Costs 1 and such costs would be spread out over an appropriate recovery period, as discussed above. Moreover, the Exchange believes that the level of the fee rate is reasonable, as it is comparable to other transaction-based fees. Indeed, Historical CAT Assessment 1 is significantly lower than fees assessed pursuant to Section 31 (
                        <E T="03">e.g.,</E>
                         $0.0009 per share to 0.0004 per share),
                        <SU>179</SU>
                        <FTREF/>
                         and, as a result, the magnitude of Historical CAT Assessment 1 is small, and therefore will mitigate any potential adverse economic effects or inefficiencies.
                        <SU>180</SU>
                        <FTREF/>
                         Furthermore, the reasonable fee rate for Historical CAT Assessment 1 further supports CAT LLC's decision to seek to recover all Historical CAT Costs prior to 2022, rather than establishing separate Historical CAT Assessments for pre-FAM, FAM 1, FAM 2 and FAM 3 costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62663, 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Historical CAT Assessment 1 Provides for an Equitable Allocation of Fees</HD>
                    <P>
                        Historical CAT Assessment 1 provides for an equitable allocation of fees, as it equitably allocates CAT costs between and among the Participants and Industry Members. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act, including the formula for calculating Historical CAT Assessments as well as the Industry Members to be charged the Historical CAT Assessments.
                        <SU>181</SU>
                        <FTREF/>
                         In approving the CAT Funding Model, the SEC stated that “[t]he Participants have sufficiently demonstrated that the proposed allocation of fees is reasonable.” 
                        <SU>182</SU>
                        <FTREF/>
                         Accordingly, the CAT Funding Model sets forth the requirements for allocating fees related to Historical CAT Costs among Participants and Industry Members, and the fee filings for Historical CAT Assessments must comply with those requirements.
                    </P>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <P>Historical CAT Assessment 1 provides for an equitable allocation of fees as it complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. For example, as described above, the calculation of Historical CAT Assessment 1 complies with the formula set forth in Section 11.3(b) of the CAT NMS Plan. In addition, Historical CAT Assessment 1 would be charged to CEBBs and CEBSs in accordance with Section 11.3(b) of the CAT NMS Plan. Furthermore, the Participants would continue to remain responsible for their designated share of Past CAT Costs through the cancellation of loans made by the Participants to CAT LLC.</P>
                    <P>In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1—Historical CAT Costs 1 (including Excluded Costs), the count for the executed equivalent share volume for the prior 12 months, the length of the Historical Recovery Period, and the projected executed equivalent share volume for the Historical Recovery Period—are reasonable. Moreover, these inputs lead to a reasonable fee rate for Historical CAT Assessment 1 that is lower than other fee rates for transaction-based fees. A reasonable fee rate allocated in accordance with the requirements of the CAT Funding Model provides for an equitable allocation of fees.</P>
                    <HD SOURCE="HD3">(4) Historical CAT Assessment 1 Is Not Unfairly Discriminatory</HD>
                    <P>
                        Historical CAT Assessment 1 is not an unfairly discriminatory fee. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act. In reaching this conclusion, the SEC analyzed the potential effect of Historical CAT Assessments calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Historical CAT Assessment 1 complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 and the resulting fee rate for Historical CAT Assessment 1 is 
                        <PRTPAGE P="10351"/>
                        reasonable. Therefore, Historical CAT Assessment 1 does not impose an unfairly discriminatory fee on Industry Members.
                    </P>
                    <P>Finally, the Exchange believes the proposed fees established pursuant to the CAT Funding Model promote just and equitable principles of trade, and, in general, protect investors and the public interest, and are provided in a transparent manner and specificity in the Fee Schedule. The Exchange also believes that the proposed fees are reasonable because they would provide ease of calculation, ease of billing and other administrative functions, and predictability of a fee based on fixed rate per executed equivalent share. Such factors are crucial to estimating a reliable revenue stream for CAT LLC and for permitting Exchange members to reasonably predict their payment obligations for budgeting purposes.</P>
                    <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                    <P>
                        Section 6(b)(8) of the Act 
                        <SU>183</SU>
                        <FTREF/>
                         requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that Historical CAT Assessment 1 implements provisions of the CAT NMS Plan that were approved by the Commission and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>In addition, all Participants (including exchanges and FINRA) are proposing to introduce Historical CAT Assessment 1 on behalf of CAT LLC to implement the requirements of the CAT NMS Plan. Therefore, this is not a competitive fee filing, and, therefore, it does not raise competition issues between and among the Participants.</P>
                    <P>
                        Furthermore, in approving the CAT Funding Model, the SEC analyzed the potential competitive impact of the CAT Funding Model, including competitive issues related to market services, trading services and regulatory services, efficiency concerns, and capital formation.
                        <SU>184</SU>
                        <FTREF/>
                         The SEC also analyzed the potential effect of CAT fees calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Based on this analysis, the SEC approved the CAT Funding Model as compliant with the Exchange Act. Historical CAT Assessment 1 is calculated and implemented in accordance with the CAT Funding Model as approved by the SEC.
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62676-86.
                        </P>
                    </FTNT>
                    <P>As discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 is reasonable and the resulting fee rate for Historical CAT Assessment 1 calculated in accordance with the CAT Funding Model is reasonable. Therefore, Historical CAT Assessment 1 would not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act.</P>
                    <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                    <P>No written comments were solicited or received with respect to the proposed rule change.</P>
                    <HD SOURCE="HD1">III. Suspension of the Proposed Rule Change</HD>
                    <P>
                        Pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>185</SU>
                        <FTREF/>
                         at any time within 60 days of the date of filing of a proposed rule change pursuant to Section 19(b)(1) of the Act,
                        <SU>186</SU>
                        <FTREF/>
                         the Commission summarily may temporarily suspend the change in the rules of an SRO if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. As discussed below, a temporary suspension of the proposed rule change is necessary or appropriate to allow for additional analysis of the proposed rule change's consistency with the Act and the rules thereunder.
                    </P>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <P>
                        When exchanges file their proposed rule changes with the Commission, including fee filings like the Exchange's present proposed rule change, they are required to provide a statement supporting the proposed rule change's basis under the Act and the rules and regulations thereunder applicable to the exchange.
                        <SU>187</SU>
                        <FTREF/>
                         The instructions to Form 19b-4, on which exchanges file their proposed rule changes, specify that such statement “should be sufficiently detailed and specific to support a finding that the proposed rule change is consistent with [those] requirements.” 
                        <SU>188</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.19b-4 (Item 3 entitled “Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>188</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Among other things, the Exchange's proposed rule change is subject to Section 6 of the Act, including Sections 6(b)(4), (5), and (8), which require the rules of an exchange to: (1) provide for the equitable allocation of reasonable fees among members, issuers, and other persons using the exchange's facilities; 
                        <SU>189</SU>
                        <FTREF/>
                         (2) be designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers; 
                        <SU>190</SU>
                        <FTREF/>
                         and (3) not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
                        <SU>191</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>190</SU>
                             15 U.S.C. 78f(b)(5).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>
                        The proposed rule change is also subject to the CAT Funding Model set forth in the CAT NMS Plan. For example, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” In addition, Section 11.3(b)(i)(C) of the CAT NMS Plan provides that the “Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and Section 11.3(b)(i)(D) of the CAT NMS Plan provides that “[t]he length of the Historical Recovery Period used in calculating each Historical Fee Rate will be reasonably established by the Operating Committee based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment . . .” Further, Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan provides that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable 
                        <PRTPAGE P="10352"/>
                        Financial Accountability Milestone described in Section 11.6 has been satisfied.”
                    </P>
                    <P>
                        In temporarily suspending the Exchange's fee change, the Commission intends to further consider whether the proposed fees are consistent with the statutory requirements applicable to a national securities exchange under the Act and with the requirements set forth in the CAT Funding Model. Among other things, the Commission will consider whether the proposed rule change provides for reasonable fees that satisfy the standards under the Act and the rules thereunder.
                        <SU>192</SU>
                        <FTREF/>
                         Further, and among other things, the Commission will consider whether the proposed rule change, as required by the CAT Funding Model, provides “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including, but not limited to, whether the Operating Committee has “reasonably determine[d] the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and whether the “length of the Historical Recovery Period used in calculating each Historical Fee Rate [was] reasonably established by the Operating Committee.” 
                        <SU>193</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>192</SU>
                             
                            <E T="03">See</E>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>193</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <P>
                        Therefore, the Commission finds that it is necessary or appropriate in the public interest, for the protection of investors, and otherwise in furtherance of the purposes of the Act, to temporarily suspend the proposed rule change.
                        <SU>194</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>194</SU>
                             For purposes of temporarily suspending the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                            <E T="03">See</E>
                             15 U.S.C. 78c(f).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">IV. Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</HD>
                    <P>
                        In addition to temporarily suspending the proposed rule change, the Commission is instituting proceedings pursuant to Sections 19(b)(3)(C) 
                        <SU>195</SU>
                        <FTREF/>
                         and 19(b)(2)(B) 
                        <SU>196</SU>
                        <FTREF/>
                         of the Act to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change to inform the Commission's analysis of whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>195</SU>
                             15 U.S.C. 78s(b)(3)(C). Once the Commission temporarily suspends a proposed rule change, Section 19(b)(3)(C) of the Act requires that the Commission institute proceedings under Section 19(b)(2)(B) to determine whether a proposed rule change should be approved or disapproved.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>196</SU>
                             15 U.S.C. 78s(b)(2)(B).
                        </P>
                    </FTNT>
                    <P>
                        Pursuant to Section 19(b)(2)(B) of the Act,
                        <SU>197</SU>
                        <FTREF/>
                         the Commission is providing notice of the grounds for possible disapproval under consideration. The Commission is instituting proceedings to allow for additional consideration and comment on whether the Exchange has sufficiently demonstrated that the proposed rule change is consistent with Section 6(b)(4) 
                        <SU>198</SU>
                        <FTREF/>
                         of the Act, and consistent with the CAT Funding Model. Section 6(b)(4) of the Act, among other things, provides that the dues, fees, and other charges for an exchange's members be reasonable. And the CAT Funding Model, as noted above, requires, among other things, that the proposed rule change provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including whether the Operating Committee has reasonably determined the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee and whether the length of the Historical Recovery Period used in calculating each Historical Fee Rate was reasonably established by the Operating Committee.
                        <SU>199</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>197</SU>
                             15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the Act also provides that proceedings to determine whether to disapprove a proposed rule change must be concluded within 180 days of the date of publication of notice of the filing of the proposed rule change. 
                            <E T="03">See id.</E>
                             The time for conclusion of the proceedings may be extended for up to 60 days if the Commission finds good cause for such extension and publishes its reasons for so finding, or if the exchange consents to the longer period. 
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>198</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>199</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">V. Commission's Solicitation of Comments</HD>
                    <P>
                        The Commission requests that interested persons provide written submission of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they have with the proposed rule change. In particular, the Commission invites the written views of interested persons concerning whether the proposed rule change is consistent with Section 6(b)(4), or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.
                        <SU>200</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>200</SU>
                             15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act grants the Commission flexibility to determine what type of proceeding—either oral or notice and opportunity for written comments—is appropriate for consideration of a particular proposed rule change by an exchange. 
                            <E T="03">See</E>
                             Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975).
                        </P>
                    </FTNT>
                    <P>Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule changes should be approved or disapproved by March 5, 2024. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by March 19, 2024.</P>
                    <P>Comments may be submitted by any of the following methods:</P>
                    <HD SOURCE="HD2">Electronic Comments</HD>
                    <P>
                        • Use the Commission's internet comment form (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ); or
                    </P>
                    <P>
                        • Send an email to 
                        <E T="03">rule-comments@sec.gov.</E>
                         Please include file number SR-NYSECHX-2024-02 on the subject line.
                    </P>
                    <HD SOURCE="HD2">Paper Comments</HD>
                    <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                    <FP>
                        All submissions should refer to file number SR-NYSECHX-2024-02. 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 internet website (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, 
                        <PRTPAGE P="10353"/>
                        Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-NYSECHX-2024-02 and should be submitted on or before March 5, 2024. Rebuttal comments should be submitted by March 19, 2024.
                    </FP>
                    <HD SOURCE="HD1">VI. Conclusion</HD>
                    <P>
                        <E T="03">It is therefore ordered,</E>
                         pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>201</SU>
                        <FTREF/>
                         that File No. SR-NYSECHX-2024-02 be, and hereby is, temporarily suspended. In addition, the Commission is instituting proceedings to determine whether the proposed rule change should be approved or disapproved.
                    </P>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <SIG>
                        <P>
                            For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                            <SU>202</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>202</SU>
                                 17 CFR 200.30-3(a)(12), (57) and (58).
                            </P>
                        </FTNT>
                        <NAME>Sherry R. Haywood,</NAME>
                        <TITLE>Assistant Secretary.</TITLE>
                    </SIG>
                </PREAMB>
                <FRDOC>[FR Doc. 2024-01175 Filed 2-12-24; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 8011-01-P</BILCOD>
            </NOTICE>
            <NOTICE>
                <PREAMB>
                    <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                    <DEPDOC>[Release No. 34-99368; File No. SR-NYSENAT-2024-01]</DEPDOC>
                    <SUBJECT>Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing of Proposed Rule Change To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail; Suspension of and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</SUBJECT>
                    <DATE>January 17, 2024.</DATE>
                    <P>
                        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act” or the “Exchange Act”) 
                        <SU>1</SU>
                        <FTREF/>
                         and Rule 19b-4 thereunder,
                        <SU>2</SU>
                        <FTREF/>
                         notice is hereby given that, on January 3, 2024, NYSE National, Inc. (“NYSE National” or the “Exchange”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is, pursuant to Section 19(b)(3)(C) of the Act, hereby: (i) temporarily suspending the rule change; and (ii) instituting proceedings to determine whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             15 U.S.C. 78a.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             17 CFR 240.19b-4.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                    <P>
                        The Exchange proposes to amend the NYSE National Schedule of Fees and Rebates (“Fee Schedule”) to establish fees for Industry Members 
                        <SU>3</SU>
                        <FTREF/>
                         related to certain historical costs of the National Market System Plan Governing the Consolidated Audit Trail (the “CAT NMS Plan” or “Plan”) incurred prior to January 1, 2022. These fees would be payable to Consolidated Audit Trail, LLC (“CAT LLC” or “the Company”) 
                        <SU>4</SU>
                        <FTREF/>
                         and referred to as Historical CAT Assessment 1, and would be described in a section of the Fee Schedule titled “Consolidated Audit Trail Funding Fees.” The fee rate for Historical CAT Assessment 1 will be $0.000015 per executed equivalent share. CAT Executing Brokers will receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 calculated based on their transactions as CAT Executing Brokers for the Buyer (“CEBB”) and/or CAT Executing Brokers for the Seller (“CEBS”) in March 2024. The proposed change is available on the Exchange's website at 
                        <E T="03">www.nyse.com,</E>
                         at the principal office of the Exchange, and at the Commission's Public Reference Room.
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             An “Industry Member” is defined as “a member of a national securities exchange or a member of a national securities association.” 
                            <E T="03">See</E>
                             NYSE National Rule 6.6810(u). 
                            <E T="03">See also</E>
                             Section 1.1 of the CAT NMS Plan. Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth in the CAT NMS Plan and/or the CAT Compliance Rule. 
                            <E T="03">See</E>
                             NYSE National Rule 6.6810.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             The term “CAT LLC” may be used to refer to Consolidated Audit Trail, LLC or CAT NMS, LLC, depending on the context.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <P>In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item V below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements.</P>
                    <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <HD SOURCE="HD3">1. Purpose</HD>
                    <P>
                        On July 11, 2012, the Securities and Exchange Commission (“Commission” or “SEC”) adopted Rule 613 of Regulation NMS, which required the self-regulatory organizations (“SROs”) to submit a national market system (“NMS”) plan to create, implement and maintain a consolidated audit trail that would capture customer and order event information for orders in NMS securities across all markets, from the time of order inception through routing, cancellation, modification or execution.
                        <SU>5</SU>
                        <FTREF/>
                         On November 15, 2016, the Commission approved the CAT NMS Plan.
                        <SU>6</SU>
                        <FTREF/>
                         Under the CAT NMS Plan, the Operating Committee has the discretion to establish funding for CAT LLC to operate the CAT, including establishing fees for Industry Members to be assessed by CAT LLC that would be implemented on behalf of CAT LLC by the Participants.
                        <SU>7</SU>
                        <FTREF/>
                         The Operating Committee adopted a revised funding model to fund the CAT (“CAT Funding Model”). On September 6, 2023, the Commission approved the CAT Funding Model, after concluding that the model was reasonable and that it satisfied the requirements of Section 11A of the Exchange Act and Rule 608 thereunder.
                        <SU>8</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 67457 (July 18, 2012), 77 FR 45721 (August 1, 2012).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 79318 (November 15, 2016), 81 FR 84696 (November 23, 2016) (“CAT NMS Plan Approval Order”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 98290 (September 6, 2023), 88 FR 62628 (September 12, 2023) (“CAT Funding Model Approval Order”).
                        </P>
                    </FTNT>
                    <P>
                        The CAT Funding Model provides a framework for the recovery of the costs to create, develop and maintain the CAT, including providing a method for allocating costs to fund the CAT among Participants and Industry Members. The CAT Funding Model establishes two categories of fees: (1) CAT fees assessed by CAT LLC and payable by certain Industry Members to recover a portion of historical CAT costs previously paid by the Participants (“Historical CAT Assessment” fees); and (2) CAT fees assessed by CAT LLC and payable by Participants and Industry Members to fund prospective CAT costs (“Prospective CAT Costs” fees).
                        <SU>9</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             Under the CAT Funding Model, the Operating Committee may establish one or more Historical CAT Assessments. Section 11.3(b) of the CAT NMS 
                            <PRTPAGE/>
                            Plan. This filing only establishes Historical CAT Assessment 1 related to certain Historical CAT Costs as described herein; it does not address any other potential Historical CAT Assessment related to other Historical CAT Costs. In addition, under the CAT Funding Model, the Operating Committee also may establish CAT Fees related to CAT costs going forward. Section 11.3(a) of the CAT NMS Plan. This filing does not address any potential CAT Fees related to CAT costs going forward. Any such other fee for any other Historical CAT Assessment or CAT Fee for Prospective CAT Costs will be subject to a separate fee filing.
                        </P>
                    </FTNT>
                    <PRTPAGE P="10354"/>
                    <P>
                        Under the CAT Funding Model, “[t]he Operating Committee will establish one or more fees (each a `Historical CAT Assessment') to be payable by Industry Members with regard to CAT costs previously paid by the Participants (`Past CAT Costs').” 
                        <SU>10</SU>
                        <FTREF/>
                         In establishing a Historical CAT Assessment, the Operating Committee will determine a “Historical Recovery Period” and calculate a “Historical Fee Rate” for that Historical Recovery Period. Then, for each month in which a Historical CAT Assessment is in effect, each CEBB and CEBS would be required to pay the fee—the Historical CAT Assessment—for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate.
                        <SU>11</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, the proposed recovery of the Past CAT Costs via the Historical CAT Assessment is reasonable.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62662.
                        </P>
                    </FTNT>
                    <P>
                        Each Historical CAT Assessment to be paid by CEBBs and CEBSs is designed to contribute toward the recovery of two-thirds of the Historical CAT Costs. Because the Participants previously have paid Past CAT Costs via loans to the Company, the Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made by the Participants to the Company on a pro rata basis based on the outstanding loan amounts due under the loans, instead of through the payment of a CAT fee.
                        <SU>12</SU>
                        <FTREF/>
                         In addition, Participants also will be 100% responsible for certain Excluded Costs (as discussed below).
                    </P>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             Section 11.3(b)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC proposes to charge CEBBs and CEBSs (as described in more detail below) Historical CAT Assessment 1 to recover certain historical CAT costs incurred prior to January 1, 2022, in accordance with the CAT Funding Model. To implement this fee on behalf of CAT LLC, the CAT NMS Plan requires the Participants to “file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves, and such fees shall be labeled as `Consolidated Audit Trail Funding Fees.' ” 
                        <SU>13</SU>
                        <FTREF/>
                         The Plan further states that “Participants will be required to file with the SEC pursuant to Section 19(b) of the Exchange Act a filing for each Historical CAT Assessment.” 
                        <SU>14</SU>
                        <FTREF/>
                         Accordingly, the purpose of this filing is to implement a Historical CAT Assessment on behalf of CAT LLC for Industry Members, referred to as Historical CAT Assessment 1, in accordance with the CAT NMS Plan.
                        <SU>15</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             Section 11.3(b)(iii)(B)(I) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             Note that there may be one or more Historical CAT Assessments depending on the timing of the completion of the Financial Accountability Milestones, among other things. Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(1) CAT Executing Brokers</HD>
                    <P>
                        Historical CAT Assessment 1 will be charged to each CEBB and CEBS for each applicable transaction in Eligible Securities.
                        <SU>16</SU>
                        <FTREF/>
                         The CAT NMS Plan defines a “CAT Executing Broker” to mean:
                    </P>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             In its approval of the CAT Funding Model, the Commission determined that charging CAT fees to CAT Executing Brokers was reasonable. In reaching this conclusion the Commission noted that the use of CAT Executing Brokers is appropriate because the CAT Funding Model is based upon the calculation of executed equivalent shares, and, therefore, charging CAT Executing Brokers would reflect their executing role in each transaction. Furthermore, the Commission noted that, because CAT Executing Brokers are already identified in transaction reports from the exchanges and FINRA's equity trade reporting facilities recorded in CAT Data, charging CAT Executing Brokers could streamline the billing process. 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) with respect to a transaction in an Eligible Security that is executed on an exchange, the Industry Member identified as the Industry Member responsible for the order on the buy-side of the transaction and the Industry Member responsible for the sell-side of the transaction in the equity order trade event and option trade event in the CAT Data submitted to the CAT by the relevant exchange pursuant to the Participant Technical Specifications; and (b) with respect to a transaction in an Eligible Security that is executed otherwise than on an exchange and required to be reported to an equity trade reporting facility of a registered national securities association, the Industry Member identified as the executing broker and the Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event in the CAT Data submitted to the CAT by FINRA pursuant to the Participant Technical Specifications; provided, however, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.
                            <SU>17</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>17</SU>
                                 Section 1.1 of the CAT NMS Plan. Note that CEBBs and CEBSs may, but are not required to, pass-through their CAT fees to their clients, who may, in turn, pass their fees to their clients until they are imposed ultimately on the account that executed the transaction. 
                                <E T="03">See</E>
                                 CAT Funding Model Approval Order at 62649.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>The following fields of the Participant Technical Specifications indicate the CAT Executing Brokers for the transactions executed on an exchange.</P>
                    <GPH SPAN="3" DEEP="203">
                        <PRTPAGE P="10355"/>
                        <GID>EN13FE24.074</GID>
                    </GPH>
                    <GPH SPAN="3" DEEP="93">
                        <GID>EN13FE24.075</GID>
                    </GPH>
                    <P>
                        In addition, the following fields of the Participant Technical Specifications would indicate the CAT Executing Brokers for the transactions executed otherwise than on an exchange.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>18</SU>
                             
                            <E T="03">See</E>
                             Table 23, Section 4.7 (Order Trade Event) of the CAT Reporting Technical Specifications for Plan Participants, Version 4.1.0-r20 (Sept. 25, 2023), 
                            <E T="03">https://www.catnmsplan.com/sites/default/files/2023-09/9.25.2023-CAT_Reporting_Technical_Specifications_for_Participants_4.1.0-r20.pdf</E>
                             (“CAT Reporting Technical Specifications for Plan Participants”).
                        </P>
                        <P>
                            <SU>19</SU>
                             
                            <E T="03">See</E>
                             Table 51, Section 5.2.5.1 (Simple Option Trade Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                        <P>
                            <SU>20</SU>
                             
                            <E T="03">See</E>
                             Table 61, Section 6.1 (TRF/ORF/ADF Transaction Data Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="134">
                        <GID>EN13FE24.076</GID>
                    </GPH>
                    <HD SOURCE="HD3">(2) Calculation of Historical Fee Rate 1</HD>
                    <P>The Operating Committee determined the Historical Fee Rate to be used in calculating Historical CAT Assessment 1 (“Historical Fee Rate 1”) by dividing the Historical CAT Costs for Historical CAT Assessment 1 (“Historical CAT Costs 1”) by the projected total executed share volume of all transactions in Eligible Securities for the Historical Recovery Period for Historical CAT Assessment 1 (“Historical Recovery Period 1”), as discussed in detail below. Based on this calculation, the Operating Committee has determined that Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. This rate is then divided by three and rounded to determine the fee rate of $0.000015 per executed equivalent share that will be assessed to CEBBs and CEBSs, as also discussed in detail below.</P>
                    <PRTPAGE P="10356"/>
                    <HD SOURCE="HD3">(A) Executed Equivalent Shares for Transactions in Eligible Securities</HD>
                    <P>
                        Under the CAT NMS Plan, for purposes of calculating each Historical CAT Assessment, executed equivalent shares in a transaction in Eligible Securities will be reasonably counted as follows: (1) each executed share for a transaction in NMS Stocks will be counted as one executed equivalent share; (2) each executed contract for a transaction in Listed Options will be counted based on the multiplier applicable to the specific Listed Options (
                        <E T="03">i.e.,</E>
                         100 executed equivalent shares or such other applicable multiplier); and (3) each executed share for a transaction in OTC Equity Securities shall be counted as 0.01 executed equivalent share.
                        <SU>21</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             Section 11.3(a)(i)(B) and 11.3(b)(i)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission concluded that “the use of executed equivalent share volume as the basis of the proposed cost allocation methodology is reasonable and consistent with the approach taken by the funding principles of the CAT NMS Plan.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62640.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Historical CAT Costs 1</HD>
                    <P>
                        The CAT NMS Plan states that “[t]he Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee. Each Historical CAT Assessment will seek to recover from CAT Executing Brokers two-thirds of Historical CAT Costs incurred during the period covered by the Historical CAT Assessment.” 
                        <SU>22</SU>
                        <FTREF/>
                         As described in detail below, Historical CAT Costs 1 would be $337,688,610. This figure includes Past CAT Costs of $401,312,909 minus certain Excluded Costs of $63,624,299. Participants collectively will remain responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), plus the Excluded Costs of $63,624,299. CEBBs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), and CEBSs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870).
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             Section 11.3(b)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        The following describes in detail Historical CAT Costs 1 with regard to four separate historical time periods as well as Past CAT Costs excluded from Historical CAT Costs 1 (“Excluded Costs”). The following cost details are provided in accordance with the requirement in the CAT NMS Plan to provide in the fee filing “a brief description of the amount and type of Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.” 
                        <SU>23</SU>
                        <FTREF/>
                         Each of the costs described below are reasonable, appropriate and necessary for the creation, implementation and maintenance of CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             Section 11.3(b)(iii)(B)(II)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(i) Historical CAT Costs Incurred Prior to June 22, 2020 (Pre-FAM Costs)</HD>
                    <P>Historical CAT Costs 1 would include costs incurred by CAT prior to June 22, 2020 (“Pre-FAM Period”) and already funded by the Participants, excluding Excluded Costs (described further below). Historical CAT Costs 1 would include costs for the Pre-FAM Period of $143,919,521. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($47,973,174), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($47,973,174) and CEBSs paying one-third ($47,973,174). These costs do not include Excluded Costs, as discussed further below. The following table breaks down Historical CAT Costs 1 for the Pre-FAM Period into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.</P>
                    <GPH SPAN="3" DEEP="295">
                        <PRTPAGE P="10357"/>
                        <GID>EN13FE24.077</GID>
                    </GPH>
                    <P>
                        The Pre-FAM Period includes a broad range of CAT-related activity from 2012 through June 22, 2020, including the evaluation of the requirements of SEC Rule 613, the development of the CAT NMS Plan, the evaluation and selection of the initial and successor Plan Processors, the commencement of the creation and implementation of the CAT to comply with Rule 613 and the CAT NMS Plan, including technical specifications for transaction reporting and regulatory access, and related technology and the commencement of reporting to the CAT. The following describes the costs for each of the categories for the Pre-FAM Period.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             With respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>25</SU>
                             The costs described in this table of costs for the Pre-FAM Period were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website. In addition, in accordance with Section 6.6(a)(i) of the CAT NMS Plan, in 2018 CAT LLC provided the SEC with “an independent audit of fees, costs, and expenses incurred by the Participants on behalf of the Company prior to the Effective Date of the Plan that will be publicly available.” The audit is available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>The $10,268,840 in technology costs for cloud hosting services represent costs incurred for services provided by the cloud services provider for the CAT, Amazon Web Services, Inc. (“AWS”), during the Pre-FAM Period.</P>
                    <P>As part of its proposal for acting as the successor Plan Processor for the CAT, FCAT selected AWS as a subcontractor to provide cloud hosting services. In 2019, after reviewing the capabilities of other cloud services providers, FCAT determined that AWS was the only cloud services provider at that time sufficiently mature and capable of providing the full suite of necessary cloud services for the CAT, including, for example, the security, resiliency and complexity necessary for the CAT computing requirements. The use of cloud hosting services is standard for this type of high-volume data activity and reasonable and necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT the fees incurred by the Plan Processor for cloud hosting services provided by AWS as FCAT's subcontrator on a monthly basis for the cloud hosting services, and FCAT, in turn, pays such fees to AWS. The fees for cloud hosting services were negotiated by FCAT on an arm's length basis with the goals of managing cost and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the expected volume of data, the breadth of services provided and market rates for similar services. The fees for cloud hosting services during the Pre-FAM Period were paid to FCAT by CAT NMS LLC 
                        <SU>26</SU>
                        <FTREF/>
                         and subsequently Consolidated Audit Trail, LLC (as previously noted, both entities are referred to generally as “CAT LLC”),
                        <SU>27</SU>
                        <FTREF/>
                         and FCAT, in turn, paid AWS. CAT LLC was funded via loan contributions by the Participants.
                        <SU>28</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>26</SU>
                             CAT NMS, LLC was formed by FINRA and the U.S. national securities exchanges to implement the requirements of SEC Rule 613 under the Exchange Act. SEC Rule 613 required the SROs to jointly submit to the SEC the CAT NMS Plan to create, implement and maintain the CAT. The SEC approved the CAT NMS Plan on November 15, 2016. 
                            <E T="03">See</E>
                             CAT NMS Plan Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             On August 29, 2019, the Participants formed a new Delaware limited liability company named Consolidated Audit Trail, LLC for the purpose of conducting activities related to the CAT from and after the effectiveness of the proposed amendment of the CAT NMS Plan to replace CAT NMS, LLC. 
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 87149 (September 27, 2019), 84 FR 52905 (October 3, 2019).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             For each of the costs paid by CAT NMS, LLC and Consolidated Audit Trail, LLC as discussed throughout this filing, CAT NMS, LLC and Consolidated Audit Trail, LLC paid these costs via 
                            <PRTPAGE/>
                            loan contributions by the Participants to CAT NMS, LLC and Consolidated Audit Trail, LLC, respectively.
                        </P>
                    </FTNT>
                    <PRTPAGE P="10358"/>
                    <P>AWS was engaged by FCAT to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. Services provided by AWS include storage services, databases, compute services and other services (such as networking, management tools and DevOps tools). AWS also was engaged to provide various environments for CAT, such as development, performance testing, test and production environments.</P>
                    <P>
                        The cost for AWS services for the CAT is a function of the volume of CAT Data. The greater the amount of CAT Data, the greater the cost of AWS services to the CAT. During the Pre-FAM Period from the engagement of AWS in February 2019 through June 2020, AWS provided cloud hosting services for volumes of CAT Data far in excess of the volume predictions set forth in the CAT NMS Plan. The CAT NMS Plan states, when all CAT Reporters are submitting their data to the CAT, it “must be sized to receive[,] process and load more than 58 billion records per day,” 
                        <SU>29</SU>
                        <FTREF/>
                         and that “[i]t is expected that the Central Repository will grow to more than 29 petabytes of raw, uncompressed data.” 
                        <SU>30</SU>
                        <FTREF/>
                         However, the volume of CAT Data for the Pre-FAM Period was far in excess of these predicted levels. By the end of this period, data submitted to the CAT included options and equities Participant Data,
                        <SU>31</SU>
                        <FTREF/>
                         Phase 2a and Phase 2b Industry Member Data 
                        <SU>32</SU>
                        <FTREF/>
                         (including certain linkages), as well as SIP Data,
                        <SU>33</SU>
                        <FTREF/>
                         reference data and other types of Other Data.
                        <SU>34</SU>
                        <FTREF/>
                         The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during the Pre-FAM Period.
                        <SU>35</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             Appendix D-5 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             
                            <E T="03">See</E>
                             Section 6.3(d) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Release No. 88702 (April 20, 2020), 85 FR 23075 (April 24, 2020) (“Phased Reporting Exemptive Relief Order”) for a description of Phase 2a and Phase 2b Industry Member Data.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See</E>
                             Appendix C-108 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="295">
                        <GID>EN13FE24.078</GID>
                    </GPH>
                    <HD SOURCE="HD3">
                        (b) Technology Costs—Operating Fees
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             Note that, although there were compute hours during this period, data related to such compute hours are no longer available in current data.
                        </P>
                    </FTNT>
                    <P>
                        The $21,085,485 in technology costs related to operating fees represent costs incurred with regard to activities of FCAT as the Plan Processor. Operating fees are those fees paid by CAT LLC to FCAT as the Plan Processor to operate and maintain the CAT and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management as required by the CAT NMS Plan.
                    </P>
                    <P>
                        FCAT was selected to assume the role of the successor Plan Processor. Prior to this selection, the Participants engaged in discussions with two prior Bidders 
                        <SU>37</SU>
                        <FTREF/>
                         for the successor Plan Processor role. The Operating Committee formed a Selection Subcommittee in accordance with Section 4.12 of the CAT NMS Plan to evaluate and review Bids and to make a recommendation to the Operating Committee with respect to the selection of the successor Plan Processor. In an April 9, 2019 letter to the Commission, the Participants described the reasons for its selection of the successor Plan Processor:
                    </P>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             The term “Bidder” is defined in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        The Selection Subcommittee considered factors including, but not limited to, the following, in recommending FINRA to the Operating 
                        <PRTPAGE P="10359"/>
                        Committee as the successor Plan Processor:
                    </P>
                    <EXTRACT>
                        <P>a. FINRA's specialized technical expertise and capabilities in the area of broker-dealer technology;</P>
                        <P>b. The need to appoint a successor Plan Processor with specialized expertise to develop, implement, and maintain the CAT System in accordance with the CAT NMS Plan and SEC Rule 613;</P>
                        <P>c. FINRA's detailed proposal in response to CATLLC's recent inquiries; and</P>
                        <P>d. FINRA's data query and analytics systems demonstration to the Participants.</P>
                    </EXTRACT>
                    <P>
                        Based on these and other factors, the Selection Subcommittee determined that FINRA was the most appropriate Bidder to become the successor Plan Processor.
                        <SU>38</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             Letter from Michael J. Simon, Chair, CAT NMS, LLC Operating Committee, to Brent J. Fields, Secretary, SEC (Apr. 9, 2019), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection-040919.pdf</E>
                            .
                        </P>
                    </FTNT>
                    <P>
                        On February 26, 2019, the Operating Committee (with FINRA recusing itself) voted to select FINRA as the successor Plan Processor pursuant to Section 6.1(t) of the CAT NMS Plan.
                        <SU>39</SU>
                        <FTREF/>
                         On March 29, 2019, CAT LLC and FCAT (a wholly owned subsidiary of FINRA) entered into a Plan Processor Agreement pursuant to which FCAT would perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>39</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT a negotiated monthly fixed price for the operation of the CAT. This fixed price contract was negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity. The operating fees during the Pre-FAM Period were paid to FCAT by CAT LLC.</P>
                    <P>From March 29, 2019 (the commencement of the Plan Processor Agreement with FCAT) through June 22, 2020 (the end of the Pre-FAM Period), the Plan Processor's activities with respect to the CAT included the following:</P>
                    <P>
                        • Commenced user acceptance testing with market data provided by Exegy Incorporated (“Exegy”), a market data provider; 
                        <SU>40</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             The use of Exegy to provide market data, including the costs and market data provided, is discussed below in Section 3(a)(2)(B)(i)(i).
                        </P>
                    </FTNT>
                    <P>• Published Technical Specifications and related reporting scenarios documents for Phase 2a, 2b and 2c reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated testing for Phase 2a and 2b reporting for Industry Members;</P>
                    <P>• Began developing Technical Specifications and related reporting scenarios documents for Phase 2d reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published Central Repository Access Technical Specifications, and provided regulator access to test data from Industry Members;</P>
                    <P>• Facilitated Participant exchanges that support options market makers sending Quote Sent Time to the CAT;</P>
                    <P>• Facilitated the introduction of OPRA and Options NBBO Other Data to CAT;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing requirements under Regulation SCI;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants, SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk, which is the primary source for answers to questions about CAT, including questions regarding: clock synchronization, firm reporting responsibilities, interpretive questions, technical specifications for reporting to CAT and more;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>
                        • Administered the CAT website and all of its content; 
                        <SU>41</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             The CAT website is 
                            <E T="03">https://www.catnmsplan.com.</E>
                        </P>
                    </FTNT>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>The $2,072,908 in technology costs related to CAIS operating fees represent the fees paid for FCAT's subcontractor charged with the development and operation of CAT's Customer and Account Information System (“CAIS”). The CAT is required under the CAT NMS Plan to capture and store Customer Identifying Information and Customer Account Information in a database separate from the transactional database and to create a CAT-Customer-ID for each Customer.</P>
                    <P>During the Pre-FAM Period, the CAIS-related services were provided by the Plan Processor through the Plan Processor's subcontractor, Kingland Systems Incorporation (“Kingland”). Kingland had experience operating in the securities regulatory technology space, and as a part of its proposal for acting as the Plan Processor for the CAT, FCAT selected Kingland as a subcontractor to provide certain CAIS-related services.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay to the Plan Processor the fees incurred by the FCAT for CAIS-related services provided by FCAT through Kingland on a monthly basis. FCAT negotiated the fees for Kingland's CAIS-related services on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity. The fees for CAIS-related services during the Pre-FAM Period were paid by CAT LLC to FCAT. FCAT, in turn, paid Kingland. During the Pre-FAM Period, Kingland began development of the CAIS Technical Specifications and the building of CAIS. In addition, Kingland also worked on the build related to the CCID Alternative, an alternative approach to customer information that was not included in the CAT NMS Plan as originally adopted.
                        <SU>42</SU>
                        <FTREF/>
                         Furthermore, Kingland also worked on the acceleration of the reporting of large trader identifiers (“LTID”) earlier than originally contemplated during this period, in accordance with exemptive relief granted by the SEC.
                        <SU>43</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             For a discussion of the CCID Alternative, 
                            <E T="03">see</E>
                             Securities Exchange Act Release No. 88393 (March 17, 2020), 85 FR 16152 (March 20, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order at 23079-80.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        The technology costs related to change request fees include costs related to certain modifications, upgrades or other changes to the CAT. Change requests are standard practice and necessary to reflect operational changes, 
                        <PRTPAGE P="10360"/>
                        including changes related to new market developments, such as new market participants. In general, if CAT LLC determines that a modification, upgrade or other changes to the functionality or service is necessary and appropriate, CAT LLC will submit a request for such a change to the Plan Processor. The Plan Processor will then respond to the request with a proposal for implementing the change, including the cost (if any) of such a change. CAT LLC then determines whether to approve the proposed change. The change request costs were paid by CAT LLC to FCAT. During the Pre-FAM Period, CAT LLC incurred costs of $141,346 related to change requests implemented by FCAT. Such change requests related to a development fee regarding the OPRA and SIP data feeds, and the reprocessing of certain exchange data.
                        <SU>44</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             Note that CAT LLC also has incurred costs related to specific Industry Members (
                            <E T="03">e.g.,</E>
                             reprocessing costs related to Industry Member reporting errors).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>This category of costs includes capitalizable application development costs incurred in the development of the CAT. The capitalized developed technology costs for the Pre-FAM Period of $71,475,941 relate to technology provided by the Initial Plan Processor and the successor Plan Processor.</P>
                    <P>
                        <E T="03">Initial Plan Processor: Thesys CAT, LLC.</E>
                         The capitalized developed technology costs related to the Initial Plan Processor include costs incurred with regard to testing for Participant reporting, Participant reporting to the CAT, a security assessment of the CAT, the development of the billing function for the CAT, and a Plan Processor transition fee.
                    </P>
                    <P>
                        On January 17, 2017, the Selection Committee of the CAT NMS Plan selected the Initial Plan Processor, Thesys Technologies, LLC, for the CAT NMS Plan pursuant to Article V of the CAT NMS Plan.
                        <SU>45</SU>
                        <FTREF/>
                         The Participants utilized a request for proposal (“RFP”) to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan, taking into consideration that the Initial Plan Processor had experience operating in the securities regulatory technology space, among other considerations. On April 6, 2017, CAT LLC entered into an agreement with Thesys CAT LLC (“Thesys CAT”), a Thesys affiliate, to perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT. Under the agreement, CAT LLC would pay Thesys CAT a negotiated, fixed price fee for its role as the Initial Plan Processor. Effective January 30, 2019, the Plan Processor Agreement with Thesys CAT was terminated, and FCAT was subsequently selected as the successor Plan Processor.
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             Letter from the Participants to Brent J. Fields, Secretary, SEC (January 18, 2017), 
                            <E T="03">available at https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection.pdf</E>
                            .
                        </P>
                    </FTNT>
                    <P>From January 17, 2017 through January 30, 2019, the time in which the Thesys CAT was engaged for the CAT, but excluding the period from November 15, 2017 through November 15, 2018, the Initial Plan Processor engaged in various activities with respect to the CAT, including preparing iterative drafts of Participant Technical Specifications, Industry Member Technical Specifications and the Central Repository Access Technical Specifications. Thesys CAT initiated and maintained the Participant reporting per the Participant Technical Specifications. In addition, Thesys CAT also developed CAT technology, addressed compliance items, including drafting CAT policies and procedures, addressing Regulation SCI requirements, establishing a CAT Compliance Officer and a Chief Information Security Officer, and addressed security-related matters for the CAT. Furthermore, Thesys CAT performed transition services related to the transition from Thesys CAT to FCAT as the successor Plan Processor from January 30, 2019 through April 15, 2019.</P>
                    <P>
                        <E T="03">Successor Plan Processor: FCAT.</E>
                         The capitalized developed technology costs related to FCAT include: (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, including the completion of go-live functionality related to options ingestion and validation, equities regulatory services agreement query tool updates and unlinked options data query, options linkages release, Industry Member Phase 2a file submission and data integrity (including error corrections), and Industry Member testing, including reporting relationships, ATS order type management, basic reporting statistics, SFTP data integrity feedback and error correction; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including a one-time development fee for a secure analytics workspace, a one-time development fee of an Industry Member connectivity solution, and a one-time development fee for the acceleration of multi-factor authentication; (3) CAIS implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $19,674,463 represent the fees paid for legal services provided by two law firms, Wilmer Cutler Pickering Hale and Dorr LLP (“WilmerHale”) and Pillsbury Winthrop Shaw Pittman LLP (“Pillsbury”), during the Pre-FAM Period. The legal costs exclude those costs incurred from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         Following the adoption of Rule 613, the Participants determined it was necessary to engage external legal counsel to advise the Participants with respect to corporate and regulatory legal matters related to the CAT, including drafting and developing the CAT NMS Plan. The Participants considered a variety of factors in their analysis of prospective law firms, including (1) the firm's qualifications, resources and expertise, (2) the firm's relevant experience and understanding of the regulatory matters raised by the CAT and in advising on matters of similar scope, (3) the composition of the legal team, and (4) professional fees. Following a series of interviews, the Participants acting as a consortium determined that WilmerHale was well qualified given the balance of these considerations and engaged WilmerHale in February 2013.
                    </P>
                    <P>WilmerHale's billing rates are negotiated on an annual basis and are determined with reference to the rates charged by other leading law firms for similar work. The Participants assess WilmerHale's performance and review prospective budgets and staffing plans submitted by WilmerHale on an annual basis. WilmerHale's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading law firms for similar work.</P>
                    <P>
                        The legal costs for WilmerHale during the Pre-FAM Period included costs incurred from 2013 until June 22, 2020 to address corporate and regulatory legal matters related to the CAT. The legal fees for this law firm during the period from February 2013 until the formation of the CAT NMS, LLC on November 15, 2016 were paid directly by the exchanges and FINRA to WilmerHale. 
                        <PRTPAGE P="10361"/>
                        After the formation of CAT NMS LLC, the legal fees were paid by CAT LLC to WilmerHale.
                    </P>
                    <P>After WilmerHale was engaged in 2013 through the end of the Pre-FAM Period on June 22, 2020 (excluding the legal costs from November 15, 2017 through November 15, 2018), WilmerHale provided legal assistance to the CAT on a variety of matters, including with regard to the following:</P>
                    <P>• Analyzed various legal matters associated with the Selection Plan, and drafted an amendment to Selection Plan;</P>
                    <P>• Assisted with the RFP and bidding process for the CAT Plan Processor;</P>
                    <P>• Analyzed legal matters related to the Development Advisory Group (“DAG”);</P>
                    <P>• Drafted the CAT NMS Plan, analyzed various items related to the CAT NMS Plan, and responded to comment letters on CAT NMS Plan;</P>
                    <P>
                        • Provided legal support for the formation of the legal entity, the governance of the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan; and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan and related filings;</P>
                    <P>• Negotiated and drafted the plan processor agreements with the Initial Plan Processor and the successor Plan Processor;</P>
                    <P>• Provided assistance with compliance with Regulation SCI;</P>
                    <P>• Assisted with clock synchronization study;</P>
                    <P>• Provided assistance with respect to the establishment of CAT security;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including with regard to options market maker quotes, Customer IDs, CAT Reporter IDs, linking allocations to executions, CAT reporting timeline, FDIDs, customer and account information, timestamp granularity, small industry members, data facility reporting and linkage, allocation reports, SRO-assigned market participant identifiers and cancelled trade indicators, thereby seeking to implement changes that would be cost effective and benefit Industry Members and Participants;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided advice regarding CAT policies and procedures;</P>
                    <P>• Analyzed the SEC's amendment of the CAT NMS Plan regarding financial accountability;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues; and</P>
                    <P>• Assisted with third party vendor agreements.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         The legal costs for CAT during the Pre-FAM Period include costs related to the legal services performed by Pillsbury. The Participants interviewed this law firm as well as other potential law firms to provide legal assistance regarding certain liability matters. After considering a variety of factors in its analysis, including the relevant expertise and fees of the firm, CAT LLC determined to hire Pillsbury in April 2019. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees were paid by CAT LLC to Pillsbury. The legal costs for Pillsbury during the Pre-FAM Period included costs incurred from April 2019 until June 22, 2020 to address legal matters regarding the agreements between CAT Reporters and CAT LLC concerning certain terms associated with CAT Reporting (the “Reporter Agreement”). During that period, Pillsbury advised CAT LLC regarding applicable legal matters, participated in negotiations between the Participants and Industry Members, participated in meetings with senior SEC staff, the Chairman, and Commissioners, represented CAT LLC and the Participants in an SEC administrative proceeding, and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, litigation involving CAT LLC is an expense of operating the CAT, and, therefore, is appropriately an obligation of both Participants and Industry Members under the CAT Funding Model.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $17,013,414 represent the fees paid to the consulting firm Deloitte &amp; Touche LLP (“Deloitte”) as project manager during the Pre-FAM Period, from October 2012 until June 22, 2020. These consulting costs include costs for advisory services related to the operation of the CAT, and meeting facilitation and communications coordination, vendor support and financial analyses.</P>
                    <P>To help facilitate project management given the unprecedented complexity and scope of the CAT project, the Participants determined it was necessary to engage a consulting firm to assist with the CAT project in 2012, following the adoption of Rule 613. A variety of factors were considered in the analysis of prospective consulting firms, including (1) the firm's qualifications, resources, and expertise, (2) the firm's relevant experience and understanding of the regulatory issues raised by the CAT and in coordinating matters of similar scope, (3) the composition of the consulting team, and (4) professional fees. Following a series of interviews, the exchanges and FINRA as a consortium determined that Deloitte was well qualified given the balance of these considerations and engaged Deloitte on October 1, 2012.</P>
                    <P>Deloitte's fee rates are negotiated on an annual basis and are in line with market rates for this type of specialized consulting work. CAT LLC assesses Deloitte's performance and reviews prospective budgets and staffing plans submitted by Deloitte on an annual basis. Deloitte's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading consulting firms for similar work.</P>
                    <P>The consulting costs for CAT during the period from 2012 until the formation of the CAT NMS, LLC were paid directly by the Participants to Deloitte. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC to Deloitte. CAT LLC reviewed the consulting fees each month and approved the invoices.</P>
                    <P>After Deloitte was hired in 2012 through the end of the Pre-FAM Period on June 22, 2020 (excluding the consulting costs from November 15, 2017 through November 15, 2018), Deloitte provided a variety of consulting services, including the following:</P>
                    <P>
                        • Established and implemented program operations for the CAT project, including the program managment [
                        <E T="03">sic</E>
                        ] office and workstream design;
                    </P>
                    <P>
                        • Assisted with the Plan Processor selection process, including but not 
                        <PRTPAGE P="10362"/>
                        limited to, the development of the RFP and the bidder evaluation process, and facilitation and consolidation of the Participant's independent reviews;
                    </P>
                    <P>• Assisted with the development and drafting of the CAT NMS Plan, including conducting cost-benefit studies, analyzing OATS and CAT requirements, and drafting appendices to the Plan;</P>
                    <P>• Assisted with cost and funding-related activities for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>
                        • Provided governance support to the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with industry outreach and communications regarding the CAT, including assistance with industry outreach events, the development of the CAT website, frequently asked questions, and coordinating with the CAT LLC's public relations firm;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress;</P>
                    <P>• Coordinated efforts regarding the selection of the successor Plan Processor;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor, including support for the Operating Committee and successor Plan Processor for the new role; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $880,419 represent the cost incurred for insurance for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT insurance policies, which included engaging in discussions with different insurance companies and conducting cost comparisons of various alternative approaches to insurance. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance from USI Insurance Services LLC (“USI”). Such policies are standard for corporate entities, and cyber security liability insurance is important for the CAT System. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        In adopting the CAT NMS Plan, the Commission amended the Plan to add a requirement that CAT LLC's financial statements be prepared in compliance with GAAP, audited by an independent public accounting firm, and made publicly available.
                        <SU>46</SU>
                        <FTREF/>
                         The professional and administration costs include costs related to accounting and accounting advisory services to support the operating and financial functions of CAT, financial statement audit services by an independent accounting firm, preparation of tax returns, and various cash management and treasury functions. In addition, professional and administration costs for the Pre-FAM Period include costs related to the receipt of market data and a security assessment. The costs for these professional and administration services were $1,082,036 for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             Section 9.2 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin Accountants &amp; Advisors (“Anchin”).</E>
                         CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT in April 2018. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services were paid by CAT LLC to Anchin.
                    </P>
                    <P>After Anchin was hired in April 2018 through the end of the Pre-FAM Period on June 22, 2020 (excluding the period from April 2018 through November 15, 2018), Anchin provided a variety of services, including the following:</P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial reporting matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton LLP (“Grant Thornton”).</E>
                         In February 2020, CAT LLC determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the proposed role given the balance of these considerations. Grant Thornton's fixed fee rate compensation arrangement was 
                        <PRTPAGE P="10363"/>
                        reasonable and appropriate, and in line with the market rates charged for these types of accounting services. The fees for these services were paid by CAT LLC to Grant Thornton.
                    </P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         The professional and administrative costs for the Pre-FAM Period included costs related to the receipt of certain market data for the CAT pursuant to an agreement with the CAT LLC, and then with FCAT. Exegy provided SIP Data required by the CAT NMS Plan.
                    </P>
                    <P>
                        After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy from July 2018 through March 2019. CAT LLC determined that, unlike certain other vendors, Exegy provided market data that included all data elements required by the CAT NMS Plan.
                        <SU>47</SU>
                        <FTREF/>
                         In addition, the fees were reasonable and in line with market rates for the market data received. Accordingly, the professional and administrative costs for the Pre-FAM Period include the Exegy costs from November 2018 through March 2019. The cost of the market data was reasonable for the market data received. The fees for the market data were paid directly by CAT LLC to Exegy.
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>Upon the termination of the contract between CAT LLC and Exegy, FCAT entered into a contract with Exegy to purchase the required market data from Exegy in July 2019. All costs under the contract were treated as a direct pass through cost to CAT LLC. Therefore, the fees for the market data were paid by CAT LLC to FCAT, who, in turn, paid Exegy for the market data.</P>
                    <P>
                        <E T="03">Security Assessment: RSM US LLP (“RSM”).</E>
                         The operating costs for the Pre-FAM Period include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation, and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment. RSM performed the assessment from October 2018 through December 2018. Accordingly, the costs for the Pre-FAM Period include the costs incurred in November and December 2018. The cost for the security assessment were paid directly to RSM by CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $224,669 represent the fees paid to public relations firms during the Pre-FAM Period for professional communications services to CAT, including media relations consulting, strategy and execution. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants. Specifically, the public relations firms provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                    </P>
                    <P>The services performed by each of the public relations firms were comparable. The fees for such services were reasonable and in line with market rates. Only one public relations firm was engaged at a time; the three firms were engaged sequentially as the primary public relations contact moved among the three firms during this time period.</P>
                    <P>
                        <E T="03">Public Relations Firm: Peppercomm, Inc. (“Peppercomm”).</E>
                         The national securities exchanges and FINRA, acting as a consortium, determined to hire the public relations firm Peppercomm in October 2014 and continued to engage this firm through September 2017. The exchanges and FINRA made this engagement decision after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fee rates for this public relations firm were negotiated on an arm's length basis and were in line with market rates for these types of services. The public relations costs during the period from October 2014 until the formation of the CAT NMS LLC were paid directly by the exchanges and FINRA to the public relations firm. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Sloane &amp; Company (“Sloane”).</E>
                         CAT LLC determined to hire a new public relations firm, Sloane, in March 2018, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Sloane. CAT LLC continued the engagement with Sloane until February 2020.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Peak Strategies.</E>
                         CAT LLC determined to hire a new public relations firm, Peak Strategies, in March 2020, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Peak Strategies.
                    </P>
                    <HD SOURCE="HD3">(ii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 1</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 1 of the Financial Accountability Milestones (“FAM Period 1”),
                        <SU>48</SU>
                         which covers the period from June 22, 2020-July 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 1 of $6,377,343. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($2,125,781), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781). The following table breaks down Historical CAT Costs 1 for FAM Period 1 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             Section 11.6(a)(i)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10364"/>
                        <GID>EN13FE24.079</GID>
                    </GPH>
                    <P>
                        By the
                        <FTREF/>
                         completion of FAM Period 1, CAT LLC was required to implement the reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of equities transaction data and options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.
                        <SU>51</SU>
                        <FTREF/>
                         CAT LLC completed the requirements of FAM Period 1 by July 31, 2020. The following describes the costs for each of the categories for FAM Period 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>50</SU>
                             The costs described in this table of costs for FAM Period 1 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             
                            <E T="03">See</E>
                             definition of “Initial Industry Member Core Equity and Options Reporting” in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 1 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 1 Period. Accordingly, the $2,642,122 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 1. The fee arrangement for AWS described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. Moreover, CAT LLC continued to believe that AWS's maturity in the cloud services space as well as the significant cost and time necessary to move the CAT to a different cloud services provider supported the continued engagement of AWS.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 1 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, reference data and other types of Other Data. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 1.
                        <SU>52</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="298">
                        <PRTPAGE P="10365"/>
                        <GID>EN13FE24.080</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 1. Accordingly, the $1,099,680 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 1. The fee arrangement for FCAT described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Published iterative drafts of draft Technical Specifications for Phase 2d, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published iterative drafts of CAIS Technical Specifications, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated Industry Member reporting of Quote Sent Time on Options Market Maker quotes;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 1. Accordingly, the $254,998 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 1. The fee arrangement for Kingland described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>CAT LLC did not incur costs related to change requests during FAM Period 1.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>
                        Capitalized developed technology costs for FAM Period 1 of $1,684,870 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include: (1) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including separate production and industry test entitlements, and reprocessing of exchange event 
                        <PRTPAGE P="10366"/>
                        timestamps; (2) implementation fees; and (3) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $481,687 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 1.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 1 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to WilmerHale. During FAM Period 1, WilmerHale provided legal assistance to the CAT including with regard to the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments and fee filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, verbal activity, options market maker quote sent time, TRF linkages, and allocations;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including the Financial Accountability Milestone amendment;</P>
                    <P>• Assisted with compliance with Regulation SCI;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the drafting of the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Assisted with communications and presentations for the industry regarding CAIS;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding CAT technical specifications;</P>
                    <P>• Assisted with third party vendor agreements; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to Pillsbury. During FAM Period 1, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $137,209 represent the fees paid to Deloitte as project manager during FAM Period 1. CAT LLC continued to employ Deloitte during FAM Period 1 based on, among other things, their expertise and cumulative experience with the CAT. The fee rates for Deloitte during FAM Period 1 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 1 were paid by CAT LLC to the consulting firm. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 1, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>Although insurance was in effect during FAM Period 1, CAT LLC did not incur costs related to insurance during FAM Period 1.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         The professional and administration costs of $69,077 represent the fees paid to Anchin during FAM Period 1. CAT LLC continued to employ Anchin during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these type of financial advisory services. The fees for these services during FAM Period 1 were paid by CAT LLC to Anchin. During FAM Period 1, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups; and</P>
                    <P>• Prepared monthly and quarterly financial statements.</P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $7,700 represent the fees paid to Peak Strategies during FAM Period 1. CAT LLC continued to employ Peak Strategies during FAM Period 1 based on, among other things, their expertise and history with the project. The fee rates for this firm were reasonable and in line with market rates for these types of services. The fees for these services during FAM Period 1 were paid by CAT LLC to Peak Strategies. During FAM Period 1, Peak Strategies continued to provide professional communications services to CAT LLC, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT 
                        <PRTPAGE P="10367"/>
                        (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 2</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT LLC and already funded by Participants during Period 2 of the Financial Accountability Milestones (“FAM Period 2”),
                        <SU>53</SU>
                        <FTREF/>
                         which covers the period from August 1, 2020-December 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 2 of $42,976,478. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($14,325,493), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($14,325,493) and CEBSs paying one-third ($14,325,493). The following table breaks down Historical CAT Costs 1 for FAM Period 2 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             Section 11.6(a)(i)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>55</SU>
                             The costs described in this table of costs for FAM Period 2 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="277">
                        <GID>EN13FE24.081</GID>
                    </GPH>
                    <P>By the completion of FAM Period 2, CAT LLC was required to implement the following with regard to the CAT:</P>
                    <EXTRACT>
                        <P>
                            (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, CustomerID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission.
                            <SU>56</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>56</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Implementation of Core Equity Reporting Requirements” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>CAT LLC completed the requirements of FAM Period 2 by December 31, 2020. The following describes the costs for each of the categories for FAM Period 2.</FP>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>
                        CAT LLC continued to utilize AWS in FAM Period 2 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 2 Period. Accordingly, the $20,709,212 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 2. The fee arrangement for AWS described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement.
                        <PRTPAGE P="10368"/>
                    </P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 2 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, and Other Data, including reference data. In addition, Industry Members began reporting LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 2.
                        <SU>57</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>57</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="311">
                        <GID>EN13FE24.082</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 2. Accordingly, the $9,108,700 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 2. The fee arrangement for FCAT described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, FCAT's activities with respect to the CAT included publishing the Technical Specifications for Phase 2d and overseeing the reporting of firm to firm and intrafirm linkages by Industry Members. In addition, FCAT also continued to engage in the following activities during FAM Period 2:</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the development and implementation of the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>
                        Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 2. Accordingly, the $1,590,298 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM 
                        <PRTPAGE P="10369"/>
                        Period 2. The fee arrangement for Kingland described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs.
                    </P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 2, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 2, CAT incurred costs of $51,823 related to a change request regarding the addition of functionality for exchange Participants to report rejected messages to the CAT.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 2 of $6,761,094 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to separate production and industry test entitlements, market maker reference data, and back-processing of exchange exception logic; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $2,766,644 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 2.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 2 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to WilmerHale. During FAM Period 1 [
                        <E T="03">sic</E>
                        ], the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, allocations, exchange activity, OTQT, initial data validation, error corrections and recordkeeping;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittees, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6 of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for the Compliance Subcommittee, including with regard to responses to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding the SEC's proposed security amendments to the CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>
                        • Assisted with third party vendor agreements (
                        <E T="03">e.g.,</E>
                         with regard to Anchin, Grant Thornton and insurance policies);
                    </P>
                    <P>• Assisted with change requests; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to Pillsbury. During FAM Period 2, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted and filed a proposed amendment to the CAT NMS plan regarding liability matters. As discussed above, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $532,146 represent the fees paid to Deloitte as project manager during FAM Period 2. CAT LLC continued to employ Deloitte during FAM Period 2 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 2 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 2 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 2, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $976,098 represent the fees paid for insurance during FAM Period 2. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        The professional and administration costs of $438,523 represent the fees paid to Anchin and Grant Thornton for financial services provided during FAM Period 2.
                        <PRTPAGE P="10370"/>
                    </P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to engage Anchin during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these types of financial advisory services. The fees for these services during FAM Period 2 were paid by CAT LLC to Anchin. During FAM Period 2, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from the Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audit by an independent auditor; and</P>
                    <P>• Reviewed historical costs from inception.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 2 based on, among other things, its expertise and cumulative knowledge of CAT LLC. CAT LLC continued to believe that Grant Thornton was well qualified for its role and its fee rates were in line with with market rates for these accounting services. The fees for these services during FAM Period 2 were paid by CAT LLC to Grant Thornton. During FAM Period 2, Grant Thornton performed a financial statement audit for CAT LLC as an independent accounting firm.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $41,940 represent the fees paid to Peak Strategies during FAM Period 2. CAT LLC continued to employ Peak Strategies during FAM Period 2 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 2 were paid by CAT LLC to Peak Strategies. During FAM Period 2, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iv) Historical CAT Costs Incurred in Financial Accountability Milestone Period 3</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 3 of the Financial Accountability Milestones (“FAM Period 3”),
                        <SU>58</SU>
                        <FTREF/>
                         which covers the period from January 1, 2021-December 31, 2021. Historical CAT Costs 1 would include costs for FAM Period 3 of $144,415,268. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($48,138,423), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($48,138,423) and CEBSs paying one-third ($48,138,423). The following table breaks down Historical CAT Costs 1 for FAM Period 3 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             Section 11.6(a)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10371"/>
                        <GID>EN13FE24.083</GID>
                    </GPH>
                    <P>By the completion of FAM Period 3, CAT LLC was required to implement the following requirements with regard the CAT:</P>
                    <EXTRACT>
                        <P>
                            (a) reporting to
                            <FTREF/>
                             the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met.
                            <SU>61</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>59</SU>
                                 As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                            </P>
                            <P>
                                <SU>60</SU>
                                 The costs described in this table of costs for FAM Period 3 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                            </P>
                        </FTNT>
                        <FTNT>
                            <P>
                                <SU>61</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Availability and Regulatory Utilization of Transactional Database Functionality” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>CAT LLC completed the requirements of FAM Period 3 by December 31, 2021. The following describes the costs for each of the categories for FAM Period 3.</FP>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 3 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 3 Period. Accordingly, the $94,574,759 in technology costs for cloud hosting services represents costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 3. The fee arrangement for AWS described above for the earlier periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During FAM Period 3, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a, Phase 2b, Phase 2c and Phase 2d Industry Member Data (including certain linkages), SIP Data, Other Data, including reference data, and LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 3.
                        <SU>62</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>62</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="638">
                        <PRTPAGE P="10372"/>
                        <GID>EN13FE24.084</GID>
                    </GPH>
                    <PRTPAGE P="10373"/>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 3. Accordingly, the $23,106,091 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 3. The fee arrangement for FCAT described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Facilitated Phase 2c and Phase 2d testing for Industry Members;</P>
                    <P>• Oversaw creation of linkages of the lifecycle of order events based on the received data through Phase 2d;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement with FCAT discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 3. Accordingly, the $5,562,383 in technology costs for CAIS operating fees represents costs incurred for services provided by Kingland during FAM Period 3. The fee arrangement for Kingland described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs. The full CAIS Technical Specifications were published during FAM Period 3.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 3, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 3, CAT incurred costs of $396,169 related to change requests, including the following: (1) the addition of functionality for exchange Participants to report rejected messages to the CAT; (2) the migration of MIRS query engine to AWS to reduce operational costs and increase resiliency; and (3) updating the Participant Technical Specifications to allow for two-sided Participant option quote reporting.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 3 of $10,763,372 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor, including the transition from equity data received by FINRA pursuant to various regulatory services agreements between FINRA and Participant exchanges to the equity CAT Data, and the completion of the Industry Member Phase 2d options manual and complex orders go-live requirements; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to off-exchange volume concentration, Participant 24-hour trading and an external metastore; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $6,333,248 represent the fees paid for legal services provided by three law firms, WilmerHale, Pillsbury and Covington &amp; Burling LLP (“Covington”) during FAM Period 3.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 3 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to WilmerHale. During FAM Period 3, the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including, for example, verbal activity regarding Phase 2c cutover, error reports, error corrections, Phase 2d Reporting, unique Order-ID on internal route events, reporting addresses, recordkeeping, and unique CCID for foreign customers;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs, CAIS requirements, ADF, and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6(c) of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding SEC's proposed security amendments to CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>• Provided assistance with change requests;</P>
                    <P>• Provided guidance and regulatory support for litigation regarding the response to SEC's exemptive orders;</P>
                    <P>• Assisted with communications with the industry, includng CAT Alerts and presentations;</P>
                    <P>
                        • Provided guidance regarding the confidentiality of CAT Data, including third-party information requests;
                        <PRTPAGE P="10374"/>
                    </P>
                    <P>• Assisted with cost management analysis and proposals; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to Pillsbury. During FAM Period 3, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During this period, Pillsbury advised CAT LLC regarding applicable legal matters, reviewed and responded to comment letters regarding the proposed Plan amendment, participated in meetings with senior SEC staff, responded to comments submitted following the SEC's April 6, 2021 order instituting proceedings,
                        <SU>63</SU>
                        <FTREF/>
                         and assessed legal matters regarding the SEC's October 29, 2021 order denying the proposed Plan amendment.
                        <SU>64</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 91487 (April 6, 2021), 86 FR 19054 (April 12, 2021).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 93484 (October 29, 2021), 86 FR 60933 (November 4, 2021).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Law Firm: Covington.</E>
                         CAT LLC hired Covington for litigation with the SEC regarding certain exemptive orders related to the CAT, including orders issued in December 2020.
                        <SU>65</SU>
                        <FTREF/>
                         CAT LLC interviewed this law firm as well as other potential law firms, considering a variety of factors in its analysis for choosing legal assistance, including the relevant expertise and fees of the potential lawyers. CAT LLC approved the engagement of Covington in January 2021. The fee rates for this law firm, which were calculated based on hourly rates, were in line with market rates for specialized services. The legal fees for FAM Period 3 for this firm were paid by CAT LLC to Covington.
                    </P>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 90688 (December 16, 2020), 85 FR 83634 (December 22, 2020); and Securities Exchange Act Release. No. 90689 (December. 16, 2020), 85 FR 83667 (December 22, 2020) (collectively, the “2020 Orders”).
                        </P>
                    </FTNT>
                    <P>After Covington was hired in 2021 through the end of 2021, the firm provided legal assistance regarding the litigation with the SEC regarding the 2020 Orders. These services included researching, drafting, and filing motions to stay the 2020 orders and related materials in proceedings before the SEC, as well as researching, drafting, and filing petitions for judicial review of the 2020 Orders in proceedings before the U.S. Court of Appeals for the D.C. Circuit. Covington oversaw ongoing litigation proceedings on these matters, and also supported WilmerHale with respect to settlement negotiations with the SEC staff regarding the 2020 Orders.</P>
                    <P>
                        In addition to these services, CAT LLC engaged Covington in November 2021 to provide assistance with respect to the SEC's disapproval of CAT NMS Plan amendments concerning a proposed limitation on liability in the event of a data breach or similar event. Covington provided advice concerning CAT's response to the SEC's disapproval order. This work accounted for a minority of Covington's fees in 2021.
                        <SU>66</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             As discussed above with regard to Pillsbury's work on liability matters, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, such activity is a necessary part of the operation of the CAT.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $1,408,209 represent the fees paid to Deloitte as project manager during FAM Period 3. CAT LLC continued to employ Deloitte during FAM Period 3 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 3 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 3 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 3, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $1,582,714 represent the fees paid for insurance FAM Period 3. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $595,923 represent the fees paid to Anchin and Grant Thornton for financial services during FAM Period 3.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to employ Anchin during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services during FAM Period 3 were paid by CAT LLC to Anchin. During FAM Period 3, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the 
                        <PRTPAGE P="10375"/>
                        accounting firm Grant Thornton during FAM Period 3 based on, among other things, their expertise and cumulative knowledge of CAT LLC. CAT LLC determined that Grant Thornton was well qualified for its role and that its fixed fee rates were in line with market rates for these accountant services. The fees for these services during FAM Period 3 were paid by CAT LLC to Grant Thornton. During FAM Period 3, Grant Thornton provided audited financial statements for CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $92,400 represent the fees paid to Peak Strategies during FAM Period 3. CAT LLC continued to employ Peak Strategies during FAM Period 3 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 3 were paid by CAT LLC to Peak Strategies. During FAM Period 3, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(v) Excluded Costs</HD>
                    <P>
                        Historical CAT Costs 1 would not include two categories of CAT costs (“Excluded Costs”): (1) $48,874,937, which are all CAT costs incurred from November 15, 2017 through November 15, 2018; and (2) $14,749,362 of costs related to the termination of the relationship with the Initial Plan Processor. The Participants would remain responsible for 100% of these costs, which total $63,624,299. CAT LLC determined that it was reasonable to exclude these Excluded Costs from Historical CAT Costs 1 because the excluded costs relate to the delay in the start of reporting to the CAT and the conclusion of the relationship with the Initial Plan Processor.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             In approving the CAT Funding Model, the Commission states that “the proposed exclusion of the `Excluded Costs' from Past CAT Costs is reasonable in the Commission's view because it would not require all costs incurred by the Participants to be recovered from Industry Members through the Historical CAT Assessment, specifically excluding those costs related to the delay in the start of reporting to the CAT and costs related to the conclusion of the relationship with the Initial Plan Processor.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62663.
                        </P>
                    </FTNT>
                    <P>First, Historical CAT Costs 1 would not include $14,749,362 of costs related to the conclusion of the relationship with the Initial Plan Processor. Such costs include costs related to the American Arbitration Association, the legal assistance of Pillsbury with regard to the arbitration with Thesys CAT, and the settlement costs related to the arbitration with Thesys CAT. The Participants would remain responsible for 100% of these $14,749,362 in costs.</P>
                    <P>Second, the Historical CAT Costs would exclude all CAT costs incurred from November 15, 2017 through November 15, 2018. CAT LLC determined to exclude all costs during this one-year period of $48,874,937 from fees charged to Industry Members due to the delay in the start of reporting to the CAT. The Participants would remain responsible for 100% of these $48,874,937 in costs. The following table breaks down these costs into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.</P>
                    <GPH SPAN="3" DEEP="377">
                        <PRTPAGE P="10376"/>
                        <GID>EN13FE24.085</GID>
                    </GPH>
                    <P>
                        The following
                        <FTREF/>
                         provides additional detail regarding the Excluded Costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             The costs described in this table of Excluded Costs were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services, Operating Fees, CAIS Operating Fees and Change Request Fees</HD>
                    <P>CAT LLC did not incur technology costs related to the categories of cloud hosting services, operating fees, CAIS operating fees or change requests during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(b) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for the period from November 15, 2017 through November 15, 2018 include capitalizable application development costs of $37,852,083 incurred in the development of the CAT by the Initial Plan Processor. Such costs include development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Initial Plan Processor. Such costs include costs related to Industry Member technical specifications for orders and transactions, the system security plan, testing and production for Participant CAT reporting, third-party security assessment and response, query portal, onboarding of the Chief Information Security Officer, and ingestion of FINRA TRF data and FINRA data related to halts and corporate actions.</P>
                    <HD SOURCE="HD3">(c) Legal Costs</HD>
                    <P>The legal costs of $6,143,278 represent the fees paid to WilmerHale for legal services from November 15, 2017 through November 15, 2018. During this period, WilmerHale provided legal assistance to the CAT including with regard to the following:</P>
                    <P>• Provided legal support for the governance of the CAT, including governance support for the Operating Committee, Advisory Committee, Compliance Subcommittee, and CAT working groups;</P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan;</P>
                    <P>• Provided assistance related to CAT security;</P>
                    <P>• Drafted exemptive requests, including requests related to PII;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided advice with regard to regulator access to the CAT;</P>
                    <P>• Assisted with the Plan Processor transition;</P>
                    <P>• Provided assistance regarding communications with the industry regarding the CAT;</P>
                    <P>• Provided advice regarding Customer Account Information and PII;</P>
                    <P>• Provided support for litigation related to SEC exemptive orders; and</P>
                    <P>
                        • Provided support with regard to discussions with the SEC and its staff, including with respect to addressing 
                        <PRTPAGE P="10377"/>
                        interpretative and implementation issues.
                    </P>
                    <HD SOURCE="HD3">(d) Consulting Costs</HD>
                    <P>The consulting costs of $4,452,106 represent the fees paid to Deloitte for their role as project manager for the CAT from November 15, 2017 through November 15, 2018. During this period, Deloitte engaged in the following activities with respect to the CAT:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>
                        • Provided governance support to the Operating Committee, including support for Subcommittees and working groups of the Operating Committee (
                        <E T="03">e.g.,</E>
                         Compliance Subcommittee, Cost and Funding Working Group, Technical Working Group, Industry Outreach Working Group, Security Working Group and Steering Committee);
                    </P>
                    <P>• Assisted with cost and funding issue for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress.</P>
                    <HD SOURCE="HD3">(e) Insurance</HD>
                    <P>CAT LLC did not incur costs related to insurance during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(f) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $340,145 represent the fees paid to Anchin, Exegy and RSM from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in April 2018 through November 15, 2018, Anchin engaged in the following activities with respect to the CAT:
                    </P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         From July 2018 through November 15, 2018, CAT LLC purchased market data from Exegy (as described in more detail above).
                    </P>
                    <P>
                        <E T="03">Security Assessment: RSM.</E>
                         From October 2018 through November 15, 2018, CAT LLC incurred costs for RSM's performance of a security assessment (as described in more detail above).
                    </P>
                    <HD SOURCE="HD3">(g) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $87,325 represent the fees paid to Sloane from November 15, 2017 through November 15, 2018. From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in March 2018 through November 15, 2018, Sloane provided professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, Sloane provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan).
                    </P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        Under the CAT NMS Plan, the Operating Committee is required to reasonably establish the length of the Historical Recovery Period used in calculating each Historical Fee Rate based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment, and to describe the reasons for its length.
                        <SU>69</SU>
                        <FTREF/>
                         The Historical Recovery Period used in calculating the Historical Fee Rate may not be less than 24 months or more than five years.
                        <SU>70</SU>
                        <FTREF/>
                         The Operating Committee has determined to establish a Historical Recovery Period 1 of 24 months for Historical CAT Assessment 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             Section 11.3(b)(i)(D)(I) and Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             Section 11.3(b)(i)(D)(I) of the CAT NMS Plan. In the CAT Funding Model Approval Order, the SEC stated that “[i]n the Commission's view, it is reasonable for the Operating Committee to establish the length of the Historical Recovery Period to be no less than 24 months and no more than five years.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The Operating Committee determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans to the Participants in a timely fashion. The Operating Committee determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>71</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, the Operating Committee recognized that the total costs for Historical CAT Assessment 1 were less than the total costs for 2022 and 2023,
                        <SU>72</SU>
                        <FTREF/>
                         and therefore it would be reasonable and appropriate to recover costs subject to this filing over an approximate two-year period. Furthermore, the Operating Committee notes that 24 months is appropriate because it is not currently proposing that Industry Members be required to pay additional CAT fees with regard to another Historical CAT Assessment or CAT Fees with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. 
                            <E T="03">See</E>
                             CAT Funding Model at 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             The total CAT costs for 2022 were approximately $186 million and the total CAT costs for 2023 are estimated to be approximately $233 million.
                        </P>
                    </FTNT>
                    <P>
                        The length of the Historical Recovery Period 1 and the reasons for its length are provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>73</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             Section 11.3(b)(iii)(B)(II)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <PRTPAGE P="10378"/>
                    <HD SOURCE="HD3">(D) Projected Total Executed Equivalent Share Volume</HD>
                    <P>
                        The calculation of Historical Fee Rate 1 also requires the determination of the projected total executed equivalent share volume of transactions in Eligible Securities for Historical Recovery Period 1. Under the CAT NMS Plan, the Operating Committee is required to “reasonably determine the projected total executed equivalent share volume of all transactions in Eligible Securities for each Historical Recovery Period based on the executed equivalent share volume of all transactions in Eligible Securities for the prior twelve months.” 
                        <SU>74</SU>
                        <FTREF/>
                         The Operating Committee is required to base its projection on the prior twelve months, but it may use its discretion to analyze the likely volume for the upcoming year. Such discretion would allow the Operating Committee to use its judgment when estimating projected total executed equivalent share volume if the volume over the prior twelve months was unusual or otherwise unfit to serve as the basis of a future volume estimate.
                        <SU>75</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             Section 11.3(b)(i)(E) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. The Operating Committee has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. The Operating Committee determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is projected to be 7,685,722,694,558.88 executed equivalent shares.
                        <SU>76</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <P>
                        The projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1 and a description of the calculation of the projection is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             Section 11.3(b)(iii)(B)(II)(D) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Historical Fee Rate 1</HD>
                    <P>
                        Historical Fee Rate 1 would be calculated by dividing Historical CAT Costs 1 by the reasonably projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1, as described in detail above.
                        <SU>78</SU>
                        <FTREF/>
                         Specifically, Historical Fee Rate 1 would be calculated by dividing $337,688,610 by 7,685,722,694,558.88. As a result, the Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. Historical Fee Rate 1 is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide the Historical Fee Rate in a fee filing for a Historical CAT Assessment.
                        <SU>79</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             In approving the CAT Funding Model, the Commission stated that “[t]he calculation of the Historical Fee Rate by dividing the Historical CAT Costs by the projected total executed equivalent share volume of all transactions in Eligible Securities for the Historical Recovery Period is reasonable.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             Section 11.3(b)(iii)(B)(II)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Past CAT Costs and Participants</HD>
                    <P>Participants would not be required to pay any fees associated with Historical CAT Assessment 1 as the Participants previously have paid all Past CAT Costs. The CAT NMS Plan explains that:</P>
                    <EXTRACT>
                        <P>
                            Because Participants previously have paid Past CAT Costs via loans to the Company, Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs and such other additional Past CAT Costs as reasonably determined by the Operating Committee will be paid by the cancellation of loans made to the Company on a pro rata basis based on the outstanding loan amounts due under the loans.
                            <SU>80</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>80</SU>
                                 Section 11.3(b)(ii) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>
                        The CAT NMS Plan further states that “Historical CAT Assessments are designed to recover two-thirds of the Historical CAT Costs.” 
                        <SU>81</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>81</SU>
                             
                            <E T="03">Id.</E>
                             In approving the CAT Funding Model, the Commission stated that “[t]he proposed allocation of the Historical CAT Assessment solely to CEBs and CEBBs, and ultimately Industry Members, is reasonable. The Historical CAT Assessment will still be divided into thirds,” as the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made to the Company. 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62666.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(4) Monthly Fees</HD>
                    <P>
                        CEBBs and CEBSs would be required to pay fees for Historical CAT Assessment 1 on a monthly basis for the period in which Historical CAT Assessment 1 is in effect.
                        <SU>82</SU>
                        <FTREF/>
                         A CEBB or CEBS's fee for each month would be calculated based on the transactions in Eligible Securities executed by the CEBB or CEBS from the prior month.
                        <SU>83</SU>
                        <FTREF/>
                         Proposed paragraph (a)(1)(A) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would state that each CAT Executing Broker would receive its first invoice in April 2024, and “would receive an invoice each month thereafter in which Historical CAT Assessment 1 is in effect.” Proposed paragraph (a)(1)(B) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would state that “Consolidated Audited Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” In addition, proposed paragraph (b)(1) would state that each CEBB and CEBS is required to pay its CAT fees “each month.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             
                            <E T="03">See</E>
                             proposed paragraph (a)(1)(B) under Consolidated Audit Trail Funding Fees section of the Fee Schedule.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(5) Actual Recovery Period for Historical CAT Assessment 1</HD>
                    <P>
                        The CAT NMS Plan states that, “[n]otwithstanding the length of the Historical Recovery Period used in calculating the Historical Fee Rate, each Historical CAT Assessment calculated using the Historical Fee Rate will remain in effect until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                        <SU>84</SU>
                        <FTREF/>
                         Accordingly, Historical CAT Assessment 1 will remain in effect until all Historical CAT Costs 1 have been collected. The actual recovery period for Historical CAT Assessment 1 may be shorter or longer than Historical Recovery Period 1 depending on the actual executed equivalent share volumes during the time that Historical CAT Assessment 1 is in effect.
                        <SU>85</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             Section 11.3(b)(i)(D)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             In approving the CAT Funding Model, the Commission stated that “[i]n the Commission's view, it is reasonable for Industry Members to be charged a Historical CAT Assessment until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62665.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(6) Consolidated Audit Trail Funding Fees</HD>
                    <P>
                        To implement Historical CAT Assessment 1, a “Consolidated Audit Trail Funding Fees” section would be added to the Exchange's Fee Schedule, to include the proposed paragraphs described below.
                        <PRTPAGE P="10379"/>
                    </P>
                    <HD SOURCE="HD3">(A) Fee Schedule for Historical CAT Assessment 1</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Each month in which a Historical CAT Assessment is in effect, each CEBB and each CEBS shall pay a fee for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate reasonably determined pursuant to paragraph (b)(i) of this Section 11.3.
                            <SU>86</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>86</SU>
                                 Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>Accordingly, based on the factors discussed above, the Exchange proposes to add paragraph (a)(1) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule. Proposed paragraph (a)(1) would state the following:</FP>
                    <EXTRACT>
                        <P>(A) Each CAT Executing Broker shall receive its first invoice for Historical CAT Assessment 1 in April 2024, which shall set forth the Historical CAT Assessment 1 fees calculated based on transactions in March 2024, and shall receive an invoice for Historical CAT Assessment 1 for each month thereafter in which Historical CAT Assessment 1 is in effect.</P>
                        <P>(B) Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis. Each month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.</P>
                        <P>(C) Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time. Consolidated Audit Trail, LLC will provide notice when Historical CAT Assessment 1 will no longer be in effect.</P>
                        <P>(D) Each CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).</P>
                    </EXTRACT>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, “as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>87</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 of $0.0000439371316687066 by one-third, and rounding the result to 6 decimal places.
                        <SU>88</SU>
                        <FTREF/>
                         The Operating Committee determined to use six decimal places to balance the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>87</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             Dividing $0.0000439371316687066 by three equals $0.00001464571055623553. Rounding $0.00001464571055623553 to six decimal places equals $0.000015.
                        </P>
                    </FTNT>
                    <P>The proposed language in paragraph (a)(1)(A) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would describe when CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1. Specifically, CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 and the fees set forth in that invoice would be calculated based on transactions executed in the prior month, that is, transactions executed in March 2024. The payment for the first invoice would be required within 30 days after the receipt of the first invoice (unless a longer period is indicated), as described in proposed paragraph (b)(2) of the fee schedule.</P>
                    <P>Proposed paragraph (a)(1)(A) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule also would describe the monthly cadence of the invoices for Historical CAT Assessment 1. Specifically, after the first invoices are provided to CAT Executing Brokers in April 2024, invoices will be sent to CAT Executing Brokers each month thereafter while Historical CAT Assessment 1 is in effect.</P>
                    <P>Proposed paragraph (a)(1)(B) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would describe the invoices for Historical CAT Assessment 1. Proposed paragraph (a)(1)(B) would state that “Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” Proposed paragraph (a)(1)(B) also would describe the fees to be set forth in the invoices for Historical CAT Assessment 1. Specifically, it would state that “[e]ach month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.”</P>
                    <P>
                        Furthermore, proposed paragraph (a)(1)(C) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would describe how long Historical CAT Assessment 1 would remain in effect. It would state that “Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time.” This proposed paragraph would further state that “Consolidated Audit Trail, LLC will be [
                        <E T="03">sic</E>
                        ] provide notice when Historical CAT Assessment 1 will no longer be in effect.”
                    </P>
                    <P>Historical CAT Assessment 1 will be assessed for all transactions executed in each month through the end of the month in which two-thirds of Historical CAT Costs 1 are assessed, and then CAT LLC will provide notice that Historical CAT Assessment 1 is no longer in effect. Since Historical CAT Assessment 1 is a monthly fee based on transaction volume from the prior month, Historical CAT Assessment 1 may collect more than two-thirds of Historical CAT Costs 1. To the extent that occurs, any excess money collected during the final month in which Historical CAT Assessment 1 is in effect will be used to offset future fees and/or to fund the reserve for the CAT.</P>
                    <P>Finally, proposed paragraph (a)(1)(D) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would set forth the requirement for the CAT Executing Brokers to pay the invoices for Historical CAT Assessment 1. It would state that “[e]ach CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).”</P>
                    <HD SOURCE="HD3">(B) Manner of Payment</HD>
                    <P>
                        The Exchange proposes to add paragraph (b)(1) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule to describe the manner of payment of Industry Member CAT fees. The CAT NMS Plan requires the Operating Committee to establish a 
                        <PRTPAGE P="10380"/>
                        system for the collection of CAT fees.
                        <SU>89</SU>
                        <FTREF/>
                         The Plan Processor has established a billing system for CAT fees.
                        <SU>90</SU>
                        <FTREF/>
                         Therefore, the Exchange proposes to require CAT Executing Brokers to pay Historical CAT Assessment 1 in accordance with such system. Accordingly, proposed paragraph (b)(1) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would state that “[e]ach CAT Executing Broker shall pay its CAT fees as required pursuant to paragraph (a) each month to the Consolidated Audit Trail, LLC in the manner prescribed by the Consolidated Audit Trail, LLC.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             Section 11.4 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             The billing process and system are described in CAT Alert 2023-02 as well as the CAT FAQs related to the billing of CAT fees, the Industry Member CAT Reporter Portal User Guide, the FCAT Industry Member Onboarding Guide, the FCAT Connectivity Supplement for Industry Members and the CAT Billing Webinars (dated September 28, 2023 and November 7, 2023), each available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(C) Failure To Pay CAT Fees</HD>
                    <P>The CAT NMS Plan further states that:</P>
                    <EXTRACT>
                        <P>
                            Participants shall require each Industry Member to pay all applicable fees authorized under this Article XI within thirty (30) days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due (as determined in accordance with the preceding sentence), such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of: (a) the Prime Rate plus 300 basis points; or (b) the maximum rate permitted by applicable law.
                            <SU>91</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>91</SU>
                                 Section 11.4 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, the Exchange proposes to add this requirement to the Exchange's Fee Schedule. Proposed paragraph (b)(2) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would state:</P>
                    <EXTRACT>
                        <P>Each CAT Executing Broker shall pay the CAT fees required pursuant to paragraph (a) within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If a CAT Executing Broker fails to pay any such CAT fee when due, such CAT Executing Broker shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of (i) the Prime Rate plus 300 basis points, or (ii) the maximum rate permitted by applicable law.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(7) Historical CAT Assessment Details</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Details regarding the calculation of a CAT Executing Broker's Historical CAT Assessment will be provided upon request to such CAT Executing Broker. At a minimum, such details would include each CAT Executing Broker's executed equivalent share volume and corresponding fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise than on an exchange, and (3) by buy-side transactions and sell-side transactions.
                            <SU>92</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>92</SU>
                                 Section 11.3(a)(iv)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>
                        Such information would provide CEBBs and CEBSs with the ability to understand the details regarding the calculation of their Historical CAT Assessment.
                        <SU>93</SU>
                        <FTREF/>
                         CAT LLC will provide CAT Executing Brokers with these details regarding the calculation of their Historical CAT Assessments on their monthly invoice for the Historical CAT Assessment.
                    </FP>
                    <FTNT>
                        <P>
                            <SU>93</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, providing CAT Execut[ing] Brokers information regarding the calculation of their CAT Fees will aid in transparency and permit CAT Execut[ing] Brokers to confirm the accuracy of their invoices for CAT Fees.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>
                        In addition, CAT LLC will make certain aggregate statistics regarding Historical CAT Assessments publicly available. Specifically, the CAT NMS Plan states that, “[f]or each Historical CAT Assessment, at a minimum, CAT LLC will make publicly available the aggregate executed equivalent share volume and corresponding aggregate fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise on an exchange, and (3) by buy-side transactions and sell-side transactions.” 
                        <SU>94</SU>
                        <FTREF/>
                         Such aggregate statistics will be available on the CAT website.
                    </P>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             Section 11.3(a)(iv)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission stated that “[t]he publication of the aggregate executed equivalent share volume and aggregate fee is appropriate because it would allow Participants and CAT Executing Brokers a high-level validation of executed volume and fees.” 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>Furthermore, CAT LLC will make publicly available on the CAT website the total amount invoiced each month that Historical CAT Assessment 1 is in effect as well as the total amount invoiced for Historical CAT Assessment 1 for all months since its commencement. CAT LLC also will make publicly available on the CAT website the total costs to be collected from Industry Members for Historical CAT Assessment 1. By reviewing statistics regarding how much has been invoiced and how much remains to be invoiced for Historical CAT Assessment 1, Industry Members would have sufficient information to reasonably track how much longer Historical CAT Assessment 1 is likely to be in place.</P>
                    <HD SOURCE="HD3">(8) Implementation Assistance</HD>
                    <P>To assist Industry Members with compliance with the commencement of Historical CAT Assessment 1, CAT LLC will make available to CAT Executing Brokers four months of mock invoices prior to the commencement of Historical CAT Assessment 1. Specifically, CAT Executing Brokers will receive mock invoices based on transaction data from November 2023, December 2023, January 2024 and February 2024. The mock invoices will be in the same form as the actual, payable invoices, including both the relevant transaction data and the corresponding fee. However, no payments will be required in response to such mock invoices; they are to be used solely to assist CAT Executing Brokers with the development of their processes for paying the CAT fees. Such data will provide CAT Executing Brokers with a preview of the transaction data used in creating the invoices for Historical CAT Assessment 1 fees, as the data will be the same as data provided in actual invoices. Such data preview is intended to facilitate the payment of Historical CAT Assessment 1.</P>
                    <HD SOURCE="HD3">(9) Financial Accountability Milestones</HD>
                    <P>
                        The CAT NMS Plan states that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.” 
                        <SU>95</SU>
                        <FTREF/>
                         The CAT NMS Plan further states that “in all filings submitted by the Participants to the Commission under Section 19(b) of the Exchange Act, to establish or implement Post-Amendment Industry Member Fees pursuant to this Article, . . . the Participants shall clearly indicate whether such fees are related to Post-Amendment Expenses incurred during Period 1, Period 2, Period 3, or Period 4.” 
                        <SU>96</SU>
                        <FTREF/>
                         As discussed in detail below, all applicable Financial Accountability Milestones for Historical CAT Assessment 1—that is, Period 1, Period 2 and Period 3 of the Financial Accountability Milestones—have been satisfied. Furthermore, as discussed below, this filing clearly indicates that Historical CAT Assessment 1 relates to Post-Amendment Expenses incurred 
                        <PRTPAGE P="10381"/>
                        during Periods 1, 2 and 3 of the Financial Accountability Milestones.
                    </P>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             Section 11.6(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Period 1 of the Financial Accountability Milestones</HD>
                    <P>
                        In accordance with Section 11.6(b) of the CAT NMS Plan, Historical CAT Assessment 1 seeks to recover costs that are related to “all fees, costs, and expenses (including legal and consulting fees, costs, and expenses) incurred by or for the Company in connection with the development, implementation and operation of the CAT from the effective date of [Section 11.6 of the CAT NMS Plan] until such time as Full Implementation of CAT NMS Plan Requirements has been achieved” 
                        <SU>97</SU>
                        <FTREF/>
                         (“Post-Amendment Expenses”) incurred during FAM Period 1. FAM Period 1 began on June 22, 2020, the effective date of Section 11.6 of the CAT NMS Plan, and concluded on July 31, 2020, the date of Initial Industry Member Core Equity and Options Reporting. Section 1.1 of the CAT NMS Plan defines “Initial Industry Member Core Equity and Options Reporting” as:
                    </P>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             Section 11.6 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>The reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of both: (a) equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information; and (b) options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.</P>
                    </EXTRACT>
                    <FP>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports.
                        <SU>98</SU>
                        <FTREF/>
                         As indicated by the Participants' Quarterly Progress Report for the third quarter of 2020,
                        <SU>99</SU>
                        <FTREF/>
                         Initial Industry Member Core Equity and Option Reporting was completed on schedule on July 22, 2020, which is prior to the July 31, 2020 deadline.
                    </FP>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             The Quarterly Progress Reports are available at 
                            <E T="03">https://www.catnmsplan.com/implementation-plan</E>
                            .
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020) and Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Under the FAM Period 1 requirement of Initial Industry Member Core Equity and Options Reporting, Industry Members—excluding Small Industry Members that are not OATS reporters—were required to report two categories of data to the CAT: equites transaction data and options transaction data (both excluding Customer Account Information, Customer-ID, and Customer Identifying Information) by July 31, 2020. Pursuant to exemptive relief provided by the Commission, the Commission authorized the Participants' Compliance Rules to allow core equity reporting for Industry Members (Phase 2a) to begin on June 22, 2020 and core options reporting for Industry Members (Phase 2b) to begin on July 20, 2020.
                        <SU>100</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order. Under the CAT NMS Plan as adopted, the Participants were required, through their Compliance Rules, to require their Large Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2018, and to require their Small Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2019. Sections 6.7(a)(v) and (vi) of the CAT NMS Plan. The SEC granted exemptive relief from these provisions of the CAT NMS Plan to allow for the phased implementation of Industry Member reporting via five phases addressing the reporting requirements for Phase 2a Industry Member Data, Phase 2b Industry Member Data, Phase 2c Industry Member Data, Phase 2d Industry Member Data and Phase 2e Industry Member Data.
                        </P>
                    </FTNT>
                    <P>
                        In adopting the FAMs, the Commission stated that the equities transaction reporting required for FAM Period 1 “is consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Equities 2a file submission and data integrity validations.' ” 
                        <SU>101</SU>
                        <FTREF/>
                         The Phase 2a Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the following data related to Eligible Securities that are equities:
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 88890, 85 FR 31322, 31330 n.97 (“FAM Adopting Release”).
                        </P>
                    </FTNT>
                    <P>• All events and scenarios covered by OATS, which includes information related to the receipt or origination of orders, order transmittal, and order modifications, cancellations and executions;</P>
                    <P>
                        • Reportable Events for: (1) proprietary orders, including market maker orders, for Eligible Securities that are equities; (2) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) sent to a national securities exchange or FINRA's Alternative Display Facility (“ADF”); (3) electronic quotes in unlisted Eligible Securities (
                        <E T="03">i.e.,</E>
                         OTC Equity Securities) received by an Industry Member operating an interdealer quotation system (“IDQS”); and (4) electronic quotes in unlisted Eligible Securities sent to an IDQS or other quotation system not operated by a Participant or Industry Member;
                    </P>
                    <P>• Firm Designated IDs (“FDIDs”), which Industry Members must report to the CAT as required by Sections 6.3(d)(i)(A) and 6.4(d)(ii)(C) of the CAT NMS Plan.</P>
                    <P>• Industry Members would be required to report all street side representative orders, including both agency and proprietary orders and mark such orders as representative orders, except in certain limited exceptions as described in the Industry Member Technical Specifications;</P>
                    <P>• The link between the street side representative order and the order being represented when: (1) the representative order was originated specifically to represent a single order received either from a customer or another broker-dealer; and (2) there is (a) an existing direct electronic link in the Industry Member's system between the order being represented and the representative order and (b) any resulting executions are immediately and automatically applied to the represented order in the Industry Member's system;</P>
                    <P>• Manual and Electronic Capture Time for Manual Order Events;</P>
                    <P>• Special handling instructions for the original receipt or origination of an order during Phase 2a; and</P>
                    <P>• When routing an order, whether the order was routed as an intermarket sweep order (“ISO”).</P>
                    <P>
                        In Phase 2a, Industry Members were not required to report modifications of a previously routed order in certain limited instances, nor were they required to report a cancellation of an order received from a Customer after the order has been executed.
                        <SU>102</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order at 23076-78.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Equities 2a file submission and data integrity validation (Large Industry Members and Small OATS Reporters)” was completed on June 22, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information” was completed on June 22, 2020.</P>
                    <P>
                        In adopting the FAMs, the Commission stated that the options transaction reporting required for FAM Period 1 is “consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Options 2b file submission and data integrity validations.' ” 
                        <SU>103</SU>
                        <FTREF/>
                         The Phase 2b Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the Industry Member Data related to Eligible Securities that are options and related to simple electronic option orders, 
                        <PRTPAGE P="10382"/>
                        excluding electronic paired option orders. A simple electronic option order is an order to buy or sell a single option that is not related to or dependent on any other transaction for pricing and timing of execution that is either received or routed electronically by an Industry Member. Electronic receipt of an order is defined as the initial receipt of an order by an Industry Member in electronic form in standard format directly into an order handling or execution system. Electronic routing of an order is the routing of an order via electronic medium in standard format from one Industry Member's order handling or execution system to an exchange or another Industry Member. An electronic paired option order is an electronic option order that contains both the buy and sell side that is routed to another Industry Member or exchange for crossing and/or price improvement as a single transaction on an exchange. Responses to auctions of simple orders and paired simple orders would be reportable in Phase 2b. Furthermore, combined orders in options would be treated in Phase 2b in the same way as equity representative orders are treated in Phase 2a. A combined order would mean, as permitted by SRO rules, a single, simple order in Listed Options created by combining individual, simple orders in Listed Options from a customer with the same exchange origin code before routing to an exchange. During Phase 2b, the single combined order sent to an exchange must be reported and marked as a combined order, but the linkage to the underlying orders is not required to be reported until Phase 2d.
                        <SU>104</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             
                            <E T="03">See</E>
                             FAM Adopting Release at 31330, n.98.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order at 23078.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Options 2b file submission and data integrity validations” was completed on July 20, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information” was completed on July 20, 2020.</P>
                    <P>As discussed above, the Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from June 22, 2020 through July 31, 2020. The total costs for this period, as discussed above, are $6,377,343. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781).</P>
                    <HD SOURCE="HD3">(B) Period 2 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 2. FAM Period 2 began on August 1, 2020, and concluded on December 31, 2020, the date of the Full Implementation of Core Equity Reporting. Section 1.1 of the CAT NMS Plan defines “Full Implementation of Core Equity Reporting” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2020,
                        <SU>105</SU>
                        <FTREF/>
                         Full Implementation of Core Equity Reporting was completed on schedule by December 31, 2020.
                    </P>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the Full Implementation of Core Equity Reporting requires the satisfaction of two prongs. The first prong requires Participants to have fully implemented the first phase of equities transaction reporting for Industry Members (excluding Small Industry Members that are not OATS reporters) at an Error Rate of less than 5%. In addition, equities transaction data produced by the CAT at this stage must also be sufficiently interlinked so as to permit full analysis of an order's lifecycle across the national market, excluding full linkage of representative orders. As CAT LLC reported on its Quarterly Progress Reports, Phase 2a was fully implemented as of October 26, 2020, including intra-firm, inter-firm, national securities exchange, and trade reporting facilities linkages.
                        <SU>106</SU>
                        <FTREF/>
                         In addition to the reporting of Phase 2a Industry Member Data as described above with regard to FAM Period 1, the following linkage data was added to the CAT as described in the Quarterly Progress Reports for the third and fourth quarter of 2020:
                    </P>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             For a description of the requirements of Phases 2a, 
                            <E T="03">see</E>
                             Phased Reporting Exemptive Relief Order.
                        </P>
                    </FTNT>
                    <P>
                        • “Production Go-Live for Equities 2a Intrafirm Linkage validations” was completed on 7/27/2020; 
                        <SU>107</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             Q3 2020 Quarterly Progress Report (Oct. 20, 2021).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Firm to Firm Linkage validations for Equities 2a (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020; and</P>
                    <P>• “Production Go-Live for Equities 2a Exchange and TRF Linkage validations (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020.</P>
                    <P>Furthermore, as CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2020, the average overall error rate for Phase 2a Industry Member Data was less than 5% as of December 31, 2020. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The second prong of this FAM requires that the equities transaction data collected by the CAT at this stage be made available to regulators through two basic query tools required by the CAT NMS Plan—a targeted query tool that will enable regulators to retrieve data via an online query screen with a variety of predefined selection criteria, and a user-defined direct query tool that will provide regulators with the ability to query data using all available attributes and data sources.
                        <SU>108</SU>
                        <FTREF/>
                         As CAT LLC reported on its Quarterly Progress 
                        <PRTPAGE P="10383"/>
                        Reports, the query tool functionality incorporating the data from Phase 2a was available to the Participants and the Commission as of December 31, 2020.
                        <SU>109</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>108</SU>
                             Section 6.10(c)(i)(A) of the CAT NMS Plan requires the Plan Processor to “provide Participants and the SEC with access to all CAT Data stored in the Central Repository” via an “online targeted query tool.” Appendix D, Sections 8.1.1-8.1.3 of the CAT NMS Plan describes the required functionality associated with this regulatory tool. Appendix D, Section 8.2.1 describes the required functionality associated with a user-defined direct query tool that will “deliver large sets of data that can then be used in internal surveillance or market analysis applications.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020); Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021); and Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>110</SU>
                        <FTREF/>
                         As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from August 1, 2020 through December 31, 2020. The total costs for this period, as discussed above, are $42,976,478. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($14,325,492.70) and CEBSs paying one-third ($14,325,492.70).
                    </P>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 98848 (November 2, 2023), 88 FR 77128, 77129 n.13 (November 8, 2023) (“Settlement Exemptive Order”).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(C) Period 3 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 3. FAM Period 3 began on January 1, 2021, and concluded on December 31, 2021, the date of the Full Availability and Regulatory Utilization of Transactional Database Functionality. Section 1.1 of the CAT NMS Plan defines “Full Availability and Regulatory Utilization of Transactional Database Functionality” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>111</SU>
                        <FTREF/>
                         Full Availability and Regulatory Utilization of Transactional Database Functionality was completed on schedule by December 31, 2021.
                    </P>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires the satisfaction of five prongs. The first prong requires that reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>112</SU>
                        <FTREF/>
                         FINRA retired OATS effective September 1, 2021.
                        <SU>113</SU>
                        <FTREF/>
                         Accordingly, after the retirement of OATS, reporting to OATS was no longer required.
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 92239 (June 23, 2021), 86 FR 34293 (June 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        In addition to Phase 2a and Phase 2b Industry Member Data, the second and third prongs of “Full Availability and Regulatory Utilization of Transactional Database Functionality” require Industry Member reporting of Phase 2c Industry Member Data and Phase 2d Industry Member Data. The Phase 2c Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. That Order states that “Phase 2c Industry Member Data” is Industry Member Data related to Eligible Securities that are equities other than Phase 2a Industry Member Data, Phase 2d Industry Member Data, or Phase 2e Industry Member Data. Specifically, the Phase 2c Industry Member Data includes Industry Member Data that is related to Eligible Securities that are equities and that is related to: (1) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (2) quotes in unlisted Eligible Securities sent to an IDQS operated by a CAT Reporter (reportable by the Industry Member sending the quotes) (except for quotes reportable in Phase 2d, as discussed below); (3) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) that are not sent to a national securities exchange or FINRA's Alternative Display Facility; (4) reporting changes to client instructions regarding modifications to algorithms; (5) marking as a representative order any order originated to work a customer order in price guarantee scenarios, such as a guaranteed VWAP; (6) flagging rejected external routes to indicate a route was not accepted by the receiving destination; (7) linkage of duplicate electronic messages related to a Manual Order Event between the electronic event and the original manual route; (8) special handling instructions on order route reports (other than the ISO, which is required to be reported in Phase 2a); (9) quote identifier on trade events; (10) reporting of LTIDs (if applicable) for accounts with Reportable Events that are reportable to CAT as of and including Phase 2c; (11) reporting of date account opened or Account Effective Date71 (as applicable) for accounts and reporting of a flag indicating the Firm Designated ID type as account or relationship; (12) order effective time for orders that are received by an Industry Member and do not become effective until a later time; (13) the modification or cancellation of an internal route of an order; and (14) linkages to the customer orders(s) being represented for representative order scenarios, including agency average price trades, net trades, aggregated orders, and disconnected Order Management System (“OMS”)—Execution Management System (“EMS”) scenarios, as required in the Industry Member Technical Specifications.
                        <SU>114</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             
                            <E T="03">See</E>
                             Phase Reporting Exemptive Relief Order at 23078-79.
                        </P>
                    </FTNT>
                    <P>
                        Phase 2c Industry Member Data also includes electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are equities and are provided by an Industry Member to other market participants off a national securities 
                        <PRTPAGE P="10384"/>
                        exchange under the following conditions: (1) an equity bid or offer is displayed publicly or has been communicated (a) for listed securities to the Alternative Display Facility (ADF) operated by FINRA; or (b) for unlisted equity securities to an “interdealer quotation system,” as defined in FINRA Rule 6420(c); or (2) an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing; 
                        <E T="03">i.e.,</E>
                         no further manual or electronic action is required by the responder providing the quote in order to execute or cause a trade to be executed). With respect to OTC Equity Securities, OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter (other than such an IDQS that does not match and execute orders) are reportable by the Industry Member sending them in Phase 2c. Accordingly, any response to a request for quote or other form of solicitation response provided in a standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this quote definition (
                        <E T="03">i.e.,</E>
                         an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing) would be reportable in Phase 2c.
                        <SU>115</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>115</SU>
                             
                            <E T="03">Id.</E>
                             at 23079.
                        </P>
                    </FTNT>
                    <P>
                        The Phase 2d Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. “Phase 2d Industry Member Data” is Industry Member Data that is related to Eligible Securities that are options other than Phase 2b Industry Member Data, Industry Member Data that is related to Eligible Securities that are equities other than Phase 2a Industry Member Data or Phase 2c Industry Member Data, and Industry Member Data other than Phase 2e Industry Member Data. Phase 2d Industry Member Data includes with respect to the Eligible Securities that are options: (1) simple manual orders; (2) electronic and manual paired orders; (3) all complex orders with linkages to all CAT-reportable legs; (4) LTIDs (if applicable) for accounts with Reportable Events for Phase 2d; (5) date account opened or Account Effective Date (as applicable) for accounts with an LTID and flag indicating the Firm Designated ID type as account or relationship for such accounts; (6) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (7) the modification or cancellation of an internal route of an order; and (8) linkage between a combined order and the original customer orders. Phase 2d Industry Member Data also would include electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are options and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: a listed option bid or offer which is accessible electronically by customers or other market participants and is immediately actionable (
                        <E T="03">i.e.,</E>
                         no further action is required by the responder providing the quote in order to execute or cause a trade to be executed). Accordingly, any response to a request for quote or other form of solicitation response provided in standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this definition is reportable in Phase 2d for options.
                        <SU>116</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Phase 2d Industry Member Data also includes with respect to Eligible Securities that are options or equities (1) receipt time of cancellation and modification instructions through Order Cancel Request and Order Modification Request events; (2) modifications of previously routed orders in certain instances; and (3) OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter that does not match and execute orders. In addition, subject to any exemptive or other relief, Phase 2d Industry Member Data will include verbal or manual quotes on an exchange floor or in the over-the-counter market, where verbal quotes and manual quotes are defined as bids or offers in Eligible Securities provided verbally or that are provided or received other than via a CAT Reporter's order handling and execution system (
                        <E T="03">e.g.,</E>
                         quotations provided via email or instant messaging).
                        <SU>117</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             
                            <E T="03">Id.</E>
                             at 23079-80.
                        </P>
                    </FTNT>
                    <P>
                        The Quarterly Progress Report for the fourth quarter of 2021 states that “Phase 2a was fully implemented as of October 26, 2020;” “Phase 2b was fully implemented as of January 4, 2021;” “Phase 2c was implemented as of April 26, 2021;” and “Phase 2d was fully implemented as of December 13, 2021.” 
                        <SU>118</SU>
                        <FTREF/>
                         The Quarterly Progress Reports for 2021 provide additional detail regarding the implementation of these steps including the following:
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (January 17, 2022).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2a, 2b and 2c (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “FCAT Plan Processor creates linkages of the lifecycle of order events based on the received data through Phase 2d Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2b reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2d (Large Industry Members)” was completed on December 13, 2021; and</P>
                    <P>
                        • “LTID Account Information Reporting Go-Live for Phases 2a, 2b, 2c and 2d (Small Industry Members)” was completed on December 13, 2021.
                        <SU>119</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             
                            <E T="03">See</E>
                             Q2 2021 Quarterly Progress Report (July 27, 2021); and Q4 2021 Quarterly Progress Report (January 17, 2022).
                        </P>
                    </FTNT>
                    <P>The third prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” also imposes an Error Rate requirement of 5% or less. The Quarterly Progress Report for the fourth quarter of 2021 states the average overall error rate was less than 5% as of December 31, 2021. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The fourth prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires that the data collected by the CAT at this stage be made available to regulators through an online targeted query tool and a user-defined direct query tool. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021, the query tool functionality incorporating the data from Phases 2a, 2b, 2c and 2d was available to the Participants and to the Commission as of December 31, 2021.
                        <SU>120</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>120</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (January 17, 2022).
                        </P>
                    </FTNT>
                    <PRTPAGE P="10385"/>
                    <P>
                        The fifth prong requires the requirements of Section 6.10(a) of the CAT NMS Plan to have been met. Section 6.10(a) of the CAT NMS Plan requires the Participants to use the tools described in Appendix D to “develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository.” The Exchange implemented a surveillance system, or enhanced existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository as of December 31, 2021 in accordance with Section 6.10(a) of the CAT NMS Plan.
                        <SU>121</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             
                            <E T="03">See</E>
                             Q1 2021 Quarterly Progress Report (April 30, 2021); Q2 2021 Quarterly Progress Report (July 27, 2021); Q3 2021 Quarterly Progress Report (November 1, 2021); Q4 2021 Quarterly Progress Report (January 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>122</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 98848 (November 2, 2023), 88 FR 77128, 77129 n.13 (November. 8, 2023) (“Settlement Exemptive Order”).
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from January 1, 2021 through December 31, 2021. The total costs for this period, as discussed above, are $144,415,268. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($48,138,422.70) and CBSs paying one-third ($48,138,422.70).
                    </P>
                    <HD SOURCE="HD3">2. Statutory Basis</HD>
                    <P>
                        The Exchange believes the proposed rule change is consistent with the requirements of the Exchange Act. The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,
                        <SU>123</SU>
                        <FTREF/>
                         which requires, among other things, that the Exchange's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act,
                        <SU>124</SU>
                        <FTREF/>
                         because it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. The Exchange further believes that the proposed rule change is consistent with Section 6(b)(8) of the Act,
                        <SU>125</SU>
                        <FTREF/>
                         which requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. These provisions also require that the Exchange be “so organized and [have] the capacity to be able to carry out the purposes” of the Act and “to comply, and . . . to enforce compliance by its members and persons associated with its members,” with the provisions of the Exchange Act.
                        <SU>126</SU>
                        <FTREF/>
                         Accordingly, a reasonable reading of the Act indicates that it intended that regulatory funding be sufficient to permit an exchange to fulfill its statutory responsibility under the Act, and contemplated that such funding would be achieved through equitable assessments on the members, issuers, and other users of an exchange's facilities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             15 U.S.C. 78f(b)(6).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             
                            <E T="03">See</E>
                             Section 6(b)(1) of the Exchange Act.
                        </P>
                    </FTNT>
                    <P>
                        The Exchange believes that this proposal is consistent with the Act because it implements provisions of the Plan and is designed to assist the Exchange in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>127</SU>
                        <FTREF/>
                         To the extent that this proposal implements the Plan and applies specific requirements to Industry Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             
                            <E T="03">See</E>
                             CAT NMS Plan Approval Order at 84697.
                        </P>
                    </FTNT>
                    <P>The Exchange believes that the proposed fees paid by the CEBBs and CEBSs are reasonable, equitably allocated and not unfairly discriminatory. First, the Historical CAT Assessment 1 fees to be collected are directly associated with the costs of establishing and maintaining the CAT, where such costs include Plan Processor costs and costs related to technology, legal, consulting, insurance, professional and administration, and public relations costs. The Exchange has already incurred such development and implementation costs and the proposed Historical CAT Assessment 1 fees, therefore, would allow the Exchange to collect certain of such costs in a fair and reasonable manner from Industry Members, as contemplated by the CAT NMS Plan.</P>
                    <P>The proposed Historical CAT Assessment 1 fees would be charged to Industry Members in support of the maintenance of a consolidated audit trail for regulatory purposes. The proposed fees, therefore, are consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business operations. The proposed fees would not cover Exchange services unrelated to the CAT. In addition, any surplus would be used as a reserve to offset future fees. Given the direct relationship between CAT fees and CAT costs, the Exchange believes that the proposed fees are reasonable, equitable and not unfairly discriminatory.</P>
                    <P>As further discussed below, the SEC approved the CAT Funding Model, finding it was reasonable and that it equitably allocates fees among Participants and Industry Members. The Exchange believes that the proposed fees adopted pursuant to the CAT Funding Model approved by the SEC are reasonable, equitably allocated and not unfairly discriminatory.</P>
                    <HD SOURCE="HD3">(1) Implementation of CAT Funding Model in CAT NMS Plan</HD>
                    <P>
                        Section 11.1(b) of the CAT NMS Plan states that “[t]he Participants shall file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves.” Per Section 11.1(b) of the CAT NMS Plan, the Exchange has filed this fee filing to implement the Industry Member CAT fees included in the CAT Funding Model. The Exchange believes that this proposal is consistent with the Exchange Act because it is consistent with, and implements, the CAT Funding Model in the CAT NMS Plan, and is designed to assist the Exchange and its Industry Members in meeting regulatory obligations pursuant to the CAT NMS Plan. In approving the CAT NMS Plan, the SEC noted that the Plan “is necessary and appropriate in the public interest, for the protection of investors 
                        <PRTPAGE P="10386"/>
                        and the maintenance of fair and orderly markets, to remove impediments to, and perfect the mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>128</SU>
                        <FTREF/>
                         Similarly, in approving the CAT Funding Model, the SEC concluded that the CAT Funding Model met this standard.
                        <SU>129</SU>
                        <FTREF/>
                         As this proposal implements the Plan and the CAT Funding Model described therein, and applies specific requirements to Industry Members in compliance with the Plan, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Exchange Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             
                            <E T="03">See</E>
                             CAT NMS Plan Approval Order at 84696.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62686.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(2) Calculation of Fee Rate for Historical CAT Assessment 1 Is Reasonable</HD>
                    <P>
                        The SEC has determined that the CAT Funding Model is reasonable and satisfies the requirements of the Exchange Act. Specifically, the SEC has concluded that the method for determining Historical CAT Assessments as set forth in Section 11.3 of the CAT NMS Plan, including the formula for calculating the Historical Fee Rate, the identification of the parties responsible for payment and the transactions subject to the fee rate for the Historical CAT Assessment, is reasonable and satisfies the Exchange Act.
                        <SU>130</SU>
                        <FTREF/>
                         In each respect, as discussed above, Historical CAT Assessment 1 is calculated, and would be applied, in accordance with the requirements applicable to Historical CAT Assessments as set forth in the CAT NMS Plan. Furthermore, as discussed below, the Exchange believes that each of the figures for the variables in the SEC-approved formula for calculating the fee rate for Historical CAT Assessment 1 is reasonable and consistent with the Exchange Act. Calculation of the Historical Fee Rate for Historical CAT Assessment 1 requires the figures for the Historical CAT Costs 1, the executed equivalent share volume for the prior twelve months, the determination of Historical Recovery Period 1, and the projection of the executed equivalent share volume for Historical Recovery Period 1. Each of these variables is reasonable and satisfies the Exchange Act, as discussed throughout this filing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             
                            <E T="03">Id.</E>
                             at 62662-63.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Historical CAT Costs 1</HD>
                    <P>The formula for calculating a Historical Fee Rate requires the amount of Historical CAT Costs to be recovered. Specifically, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires a fee filing to provide:</P>
                    <EXTRACT>
                        <FP>a brief description of the amount and type of the Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.</FP>
                    </EXTRACT>
                    <FP>In accordance with this requirement, the Exchange has set forth the amount and type of Historical CAT Costs 1 for each of these categories of costs above.</FP>
                    <P>Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan also requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” As discussed below, the Exchange believes that the amounts set forth in this filing for each of these cost categories is “reasonable and appropriate.” Each of the costs included in Historical CAT Costs 1 are reasonable and appropriate because the costs are consistent with standard industry practice, based on the need to comply with the requirements of the CAT NMS Plan, incurred subject to negotiations performed on an arm's length basis, and/or are consistent with the needs of any legal entity, particularly one with no employees.</P>
                    <HD SOURCE="HD3">(i) Technology: Cloud Hosting Services</HD>
                    <P>
                        In approving the CAT Funding Model, the Commission recognized that it is appropriate to recover costs related to cloud hosting services as a part of Historical CAT Assessments.
                        <SU>131</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to cloud hosting services described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. As described above, the cloud hosting services costs reflect, among other things, the breadth of the CAT cloud activities, data volume far in excess of the original volume estimates, the need for specialized cloud services given the volume and unique nature of the CAT, the processing time requirements of the Plan, and regular efforts to seek to minimize costs where permissible under the Plan. CAT LLC determined that use of cloud hosting services is necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT, and that the fees for cloud hosting services negotiated by FCAT were reasonable, taking into consideration a variety of factors, including the expected volume of data and the breadth of services provided and market rates for similar services.
                        <SU>132</SU>
                        <FTREF/>
                         Indeed, the actual costs of the CAT are far in excess of the original estimated costs of the CAT due to various factors, including the higher volumes and greater complexity of the CAT than anticipated when Rule 613 was originally adopted.
                    </P>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             For a discussion of the amount and type of cloud hosting services fees, 
                            <E T="03">see</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>To comply with the requirements of the Plan, the breadth of the cloud activities related to the CAT is substantial. The cloud services not only include the production environment for the CAT, but they also include two industry testing environments, support environments for quality assurance and stress testing and disaster recovery capabilities. Moreover, the cloud storage costs are driven by the requirements of the Plan, which requires the storage of multiple versions of the data, from the original submitted version of the data through various processing steps, to the final version of the data.</P>
                    <P>
                        Data volume is a significant driver of costs for cloud hosting services. When the Commission adopted the CAT NMS Plan in 2016, it estimated that the CAT would need to receive 58 billion records per day 
                        <SU>133</SU>
                        <FTREF/>
                         and that annual operating costs for the CAT would range from $36.5 million to $55 million.
                        <SU>134</SU>
                        <FTREF/>
                         Through 2021, the actual data volumes have been five times that original estimate. The data volumes for each period are set forth in detail above.
                        <SU>135</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             
                            <E T="03">See</E>
                             CAT NMS Plan Approval Order at 84801.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>
                        In addition to the effect of the data volume on the cloud hosting costs, the processing timelines set forth in the Plan contribute to the cloud hosting costs. Although CAT LLC has proactively sought to manage cloud hosting costs while complying with the Plan, including through requests to the Commission for exemptive relief and an amendment to the CAT NMS Plan, stringent CAT NMS Plan requirements do not allow for any material flexibility in cloud architecture design choices, processing timelines (
                        <E T="03">e.g.,</E>
                         the use of non-peak processing windows), or lower-cost storage tiers. As a result, the required CAT processing timelines contribute to the cloud hosting costs of the CAT.
                    </P>
                    <P>
                        The costs for cloud hosting services also reflect the need for specialized cloud hosting services given the data 
                        <PRTPAGE P="10387"/>
                        volume and unique processing needs of the CAT. The data volume as well as the data processing needs of the CAT necessitate the use of cloud hosting services. The equipment, power and services required for an on-premises data model, the alternative to cloud hosting services, would be cost prohibitive. Moreover, as CAT was being developed, there were limited cloud hosting providers that could satisfy all the necessary CAT requirements, including the operational and security criteria. Over time more providers offering cloud hosting services that would satisfy these criteria have entered the market. CAT LLC will continue to evaluate alternative cloud hosting services, recognizing that the time and cost to move to an alternative cloud provider would be substantial.
                    </P>
                    <P>
                        The reasonableness of the cloud hosting services costs is further supported by key cost discipline mechanisms for the CAT—a cost-based funding structure, cost transparency, cost management efforts (including regular efforts to lower compute and storage costs where permitted by the Plan) and oversight. Together, these mechanisms help ensure the ongoing reasonableness of the CAT's costs and the level of fees assessed to support those costs.
                        <SU>136</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 97151 (March 15, 2023), 88 FR 17086, 17117 (March 21, 2023) (describing key cost discipline mechanisms for the CAT).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Technology: Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to operating fees as a part of Historical CAT Assessments.
                        <SU>137</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The operating fees include the negotiated fees paid by CAT LLC to the Plan Processor to operate and maintain the system for order-related information and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the selection of FCAT as the Plan Processor was reasonable and appropriate given its expertise with securities regulatory reporting, after a process of considering other potential candidates.
                        <SU>138</SU>
                        <FTREF/>
                         CAT LLC also determined that the fixed price contract, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, was reasonable and appropriate, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity.
                        <SU>139</SU>
                        <FTREF/>
                         The services performed by FCAT for each period and the costs related to such services are described above.
                        <SU>140</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(b), 3(a)(2)(B)(ii)(b), 3(a)(2)(B)(iii)(b) and 3(a)(2)(B)(iv)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iii) Technology: CAIS Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to CAIS operating fees as a part of Historical CAT Assessments.
                        <SU>141</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to CAIS operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The CAIS operating fees include the fees paid to the Plan Processor to operate and maintain CAIS and to perform the business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the FCAT-negotiated fees for Kingland's CAIS-related services, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity, were reasonable and appropriate.
                        <SU>142</SU>
                        <FTREF/>
                         The services performed by Kingland for each period and the costs for each period are described above.
                        <SU>143</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(c), 3(a)(2)(B)(ii)(c), 3(a)(2)(B)(iii)(c) and 3(a)(2)(B)(iv)(c) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iv) Technology: Change Request Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to change request fees as a part of Historical CAT Assessments.
                        <SU>144</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to change request fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. It is common practice to utilize a change request process to address evolving needs in technology projects. This is particularly true for a project like CAT that is the first of its kind, both in substance and in scale. The substance and costs of each of the change requests are evaluated by the Operating Committee, and approved in accordance with the requirements for Operating Committee meetings. In each case, CAT LLC determined that the change requests were necessary to implement the CAT. As described above, the change requests cover various technology changes, including, for example, changes related to CAT reporting, data feeds and exchange functionality. CAT LLC also determined that the costs for each change request were appropriate for the relevant technology change. A description of the change requests for each FAM Period and their total costs are set described above.
                        <SU>145</SU>
                        <FTREF/>
                         As noted above, the total costs for change requests through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.25% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(d), 3(a)(2)(B)(ii)(d), 3(a)(2)(B)(iii)(d) and 3(a)(2)(B)(iv)(d) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(v) Capitalized Developed Technology Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to capitalized developed technology costs as a part of Historical CAT Assessments.
                        <SU>146</SU>
                        <FTREF/>
                         Capitalized developed technology costs include costs related to certain development costs, costs related to certain modifications, upgrades and other changes to the CAT, CAIS implementation fees and license fees. The amount and type of costs for each period are described in more detail above.
                        <SU>147</SU>
                        <FTREF/>
                         CAT LLC determined that these costs are reasonable and should be included as a part of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(e), 3(a)(2)(B)(ii)(e), 3(a)(2)(B)(iii)(e) and 3(a)(2)(B)(iv)(e) above.
                        </P>
                    </FTNT>
                    <P>
                        These costs involve the activity of both the Initial Plan Processor and FCAT, as the successor Plan Processor.
                        <SU>148</SU>
                        <FTREF/>
                         With regard to the Initial Plan Processor, the Participants utilized an RFP to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants 
                        <PRTPAGE P="10388"/>
                        selected the Initial Plan Processor in accordance with the CAT NMS Plan. CAT LLC entered into an agreement with the Initial Plan Processor in which CAT LLC would pay the Initial Plan Processor a negotiated, fixed price fee.
                        <SU>149</SU>
                        <FTREF/>
                         In addition, as described above, CAT LLC determined that is [
                        <E T="03">sic</E>
                        ] was appropriate to enter into an agreement with FCAT as the successor Plan Processor.
                        <SU>150</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(e) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vi) Legal</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to legal fees as a part of Historical CAT Assessments.
                        <SU>151</SU>
                        <FTREF/>
                         CAT LLC determined that the legal costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Given the unique nature of the CAT, the number of parties involved with the CAT (including, for example, the SEC, Participants, Industry Members, and vendors) and the many regulatory issues associated with the CAT, the scope of the necessary legal services are substantial. CAT LLC determined that the scope of the legal services is necessary to implement and maintain the CAT and that the legal rates reflect the specialized services necessary for such a project. When hiring each law firm for a CAT project, CAT LLC interviewed multiple firms, and determined to hire each firm based on a variety of factors, including the relevant expertise and fees. In each case, CAT LLC determined that the hourly fee rates were in line with market rates for the specialized legal expertise. In addition, CAT LLC determined that the total costs incurred for each CAT project were appropriate given the breadth of services provided. The services performed by each law firm for each period and the costs related to such services are described above.
                        <SU>152</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(2) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(f), 3(a)(2)(B)(ii)(f), 3(a)(2)(B)(iii)(f) and 3(a)(2)(B)(iv)(f) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vii) Consulting</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover consulting costs as a part of Historical CAT Assessments.
                        <SU>153</SU>
                        <FTREF/>
                         CAT LLC determined that the consulting costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees 
                        <SU>154</SU>
                        <FTREF/>
                         and because of the significant number of issues associated with the CAT, the consultants provided assistance in the management of various CAT matters and the processes related to such matters.
                        <SU>155</SU>
                        <FTREF/>
                         CAT LLC considered a variety of factors in choosing a consulting firm and determined to select Deloitte after an interview process.
                        <SU>156</SU>
                        <FTREF/>
                         CAT LLC also determined that the consulting services were provided at reasonable market rates, as the fees were negotiated annually and comparable to the rates charged by other consulting firms for similar work.
                        <SU>157</SU>
                        <FTREF/>
                         Moreover, the total costs for such consulting services were appropriate in light of the breadth of services provided by Deloitte. The services performed by Deloitte and the costs related to such services are described above.
                        <SU>158</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(3) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             As stated in the filing of the proposed CAT NMS Plan, “[i]t is the intent of the Participants that the Company have no employees.” 
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 77724 (April 27, 2016), 81 FR 30614, 30621 (May 17, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             CAT LLC uses certain third parties to perform tasks that may be performed by administrators for other NMS Plans. 
                            <E T="03">See, e.g.,</E>
                             CTA Plan and CQ Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(g), 3(a)(2)(B)(ii)(g), 3(a)(2)(B)(iii)(g) and 3(a)(2)(B)(iv)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(viii) Insurance</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover insurance costs as a part of Historical CAT Assessments.
                        <SU>159</SU>
                        <FTREF/>
                         CAT LLC determined that the insurance costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that it is common practice to have directors' and officers' liability insurance, and errors and omissions liability insurance. CAT LLC further determined that it was important to have cyber security insurance given the nature of the CAT, and such a decision is consistent with the CAT NMS Plan, which states that the cyber incident response plan may include “[i]nsurance against security breaches.” 
                        <SU>160</SU>
                        <FTREF/>
                         In selecting the insurance providers for these policies, CAT LLC engaged in an evaluation of alternative insurers, including a comparison of the pricing offered by the alternative insurers.
                        <SU>161</SU>
                        <FTREF/>
                         Based on this analysis, CAT LLC determined that the selected insurance policies provided appropriate coverage at reasonable market rates.
                        <SU>162</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(4) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             Section 4.1.5 of Appendix D of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(h), 3(a)(2)(B)(ii)(h), 3(a)(2)(B)(iii)(h) and 3(a)(2)(B)(iv)(h) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ix) Professional and Administration</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover professional and administration costs as a part of Historical CAT Assessments.
                        <SU>163</SU>
                        <FTREF/>
                         CAT LLC determined that the professional and administration costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees, all required accounting, financial, tax, cash management and treasury functions for CAT LLC have been outsourced at market rates. In addition, the required annual financial statement audit of CAT LLC is included in professional and administration costs, which costs are also at market rates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(5) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees.
                        <SU>164</SU>
                        <FTREF/>
                         The hourly fee rates for this firm were in line with market rates for the financial advisory services provided.
                        <SU>165</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Anchin. The services performed by Anchin and the costs related to such services are described above.
                        <SU>166</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC also determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the role given the balance of these considerations.
                        <SU>167</SU>
                        <FTREF/>
                         Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services.
                        <SU>168</SU>
                        <FTREF/>
                         Moreover, the total costs for such 
                        <PRTPAGE P="10389"/>
                        financial advisory services was appropriate in light of the breadth of services provided by Grant Thornton. The services performed by Grant Thornton and the costs related to such services are described above.
                        <SU>169</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to the receipt of certain market data from Exegy. After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy. Exegy provided the data elements required by the CAT NMS Plan, and the fees were reasonable and in line with market rates for the market data received.
                        <SU>170</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment.
                        <SU>171</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(x) Public Relations Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover public relations costs as a part of Historical CAT Assessments.
                        <SU>172</SU>
                        <FTREF/>
                         CAT LLC determined that the public relations costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that the types of public relations services utilized were beneficial to the CAT and market participants more generally. Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                        <SU>173</SU>
                        <FTREF/>
                         By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT issues to the benefit of all market participants.
                        <SU>174</SU>
                        <FTREF/>
                         Moreover, CAT LLC determined that the rates charged for such services were in line with market rates.
                        <SU>175</SU>
                        <FTREF/>
                         As noted above, the total public relations costs through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.1% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(6) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(j), 3(a)(2)(B)(ii)(j), 3(a)(2)(B)(iii)(j) and 3(a)(2)(B)(iv)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Total Executed Equivalent Share Volume for the Prior 12 Months</HD>
                    <P>The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. CAT LLC determined the total executed equivalent share volume for the prior twelve months by counting executed equivalent shares in the same manner as it will count executed equivalent shares for CAT billing purposes.</P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to establish a Historical Recovery Period of 24 months for Historical CAT Assessment 1 and that such length is reasonable. CAT LLC determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans notes to the Participants in a timely fashion. CAT LLC determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>176</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, CAT LLC recognized that the total costs for Historical CAT Assessment 1 was less than the total costs for 2022 and 2023, and therefore it would be appropriate to recover those costs in two years. Furthermore, CAT LLC notes 24 months is appropriate because it is not currently proposing that Industry Members be required to pay another Historical CAT Assessment or CAT Fee with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. 
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62682.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Executed Equivalent Share Volume for Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. CAT LLC determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant in recent years. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is 7,685,722,694,558.88 executed equivalent shares.
                        <SU>177</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Actual Fee Rate for Historical CAT Assessment 1</HD>
                    <HD SOURCE="HD3">(i) Decimal Places</HD>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>178</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) to the Consolidated Audit Trail Funding Fees section of the Fee Schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 by one-third, and rounding the result to 6 decimal places. CAT LLC determined that the use of six decimal places is reasonable as it balances the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Reasonable Fee Level</HD>
                    <P>
                        The Exchange believes that imposing Historical CAT Assessment 1 with a fee rate of $0.000015 per executed equivalent share is reasonable because it provides for a revenue stream for the Company that is aligned with Historical CAT Costs 1 and such costs would be spread out over an appropriate recovery period, as discussed above. Moreover, the Exchange believes that the level of the fee rate is reasonable, as it is comparable to other transaction-based fees. Indeed, Historical CAT Assessment 1 is significantly lower than fees 
                        <PRTPAGE P="10390"/>
                        assessed pursuant to Section 31 (
                        <E T="03">e.g.,</E>
                         $0.0009 per share to 0.0004 per share),
                        <SU>179</SU>
                        <FTREF/>
                         and, as a result, the magnitude of Historical CAT Assessment 1 is small, and therefore will mitigate any potential adverse economic effects or inefficiencies.
                        <SU>180</SU>
                        <FTREF/>
                         Furthermore, the reasonable fee rate for Historical CAT Assessment 1 further supports CAT LLC's decision to seek to recover all Historical CAT Costs prior to 2022, rather than establishing separate Historical CAT Assessments for pre-FAM, FAM 1, FAM 2 and FAM 3 costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             CAT Funding Model Approval Order at 62663, 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Historical CAT Assessment 1 Provides for an Equitable Allocation of Fees</HD>
                    <P>
                        Historical CAT Assessment 1 provides for an equitable allocation of fees, as it equitably allocates CAT costs between and among the Participants and Industry Members. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act, including the formula for calculating Historical CAT Assessments as well as the Industry Members to be charged the Historical CAT Assessments.
                        <SU>181</SU>
                        <FTREF/>
                         In approving the CAT Funding Model, the SEC stated that “[t]he Participants have sufficiently demonstrated that the proposed allocation of fees is reasonable.” 
                        <SU>182</SU>
                        <FTREF/>
                         Accordingly, the CAT Funding Model sets forth the requirements for allocating fees related to Historical CAT Costs among Participants and Industry Members, and the fee filings for Historical CAT Assessments must comply with those requirements.
                    </P>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <P>Historical CAT Assessment 1 provides for an equitable allocation of fees as it complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. For example, as described above, the calculation of Historical CAT Assessment 1 complies with the formula set forth in Section 11.3(b) of the CAT NMS Plan. In addition, Historical CAT Assessment 1 would be charged to CEBBs and CEBSs in accordance with Section 11.3(b) of the CAT NMS Plan. Furthermore, the Participants would continue to remain responsible for their designated share of Past CAT Costs through the cancellation of loans made by the Participants to CAT LLC.</P>
                    <P>In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1—Historical CAT Costs 1 (including Excluded Costs), the count for the executed equivalent share volume for the prior 12 months, the length of the Historical Recovery Period, and the projected executed equivalent share volume for the Historical Recovery Period—are reasonable. Moreover, these inputs lead to a reasonable fee rate for Historical CAT Assessment 1 that is lower than other fee rates for transaction-based fees. A reasonable fee rate allocated in accordance with the requirements of the CAT Funding Model provides for an equitable allocation of fees.</P>
                    <HD SOURCE="HD3">(4) Historical CAT Assessment 1 Is Not Unfairly Discriminatory</HD>
                    <P>Historical CAT Assessment 1 is not an unfairly discriminatory fee. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act. In reaching this conclusion, the SEC analyzed the potential effect of Historical CAT Assessments calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Historical CAT Assessment 1 complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 and the resulting fee rate for Historical CAT Assessment 1 is reasonable. Therefore, Historical CAT Assessment 1 does not impose an unfairly discriminatory fee on Industry Members.</P>
                    <P>Finally, the Exchange believes the proposed fees established pursuant to the CAT Funding Model promote just and equitable principles of trade, and, in general, protect investors and the public interest, and are provided in a transparent manner and specificity in the Fee Schedule. The Exchange also believes that the proposed fees are reasonable because they would provide ease of calculation, ease of billing and other administrative functions, and predictability of a fee based on fixed rate per executed equivalent share. Such factors are crucial to estimating a reliable revenue stream for CAT LLC and for permitting Exchange members to reasonably predict their payment obligations for budgeting purposes.</P>
                    <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                    <P>
                        Section 6(b)(8) of the Act 
                        <SU>183</SU>
                        <FTREF/>
                         requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that Historical CAT Assessment 1 implements provisions of the CAT NMS Plan that were approved by the Commission and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>In addition, all Participants (including exchanges and FINRA) are proposing to introduce Historical CAT Assessment 1 on behalf of CAT LLC to implement the requirements of the CAT NMS Plan. Therefore, this is not a competitive fee filing, and, therefore, it does not raise competition issues between and among the Participants.</P>
                    <P>
                        Furthermore, in approving the CAT Funding Model, the SEC analyzed the potential competitive impact of the CAT Funding Model, including competitive issues related to market services, trading services and regulatory services, efficiency concerns, and capital formation.
                        <SU>184</SU>
                        <FTREF/>
                         The SEC also analyzed the potential effect of CAT fees calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Based on this analysis, the SEC approved the CAT Funding Model as compliant with the Exchange Act. Historical CAT Assessment 1 is calculated and implemented in accordance with the CAT Funding Model as approved by the SEC.
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62676-86.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 is reasonable and the resulting fee rate for Historical CAT Assessment 1 calculated in accordance with the CAT Funding Model is reasonable. Therefore, Historical CAT 
                        <PRTPAGE P="10391"/>
                        Assessment 1 would not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act.
                    </P>
                    <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                    <P>No written comments were solicited or received.</P>
                    <HD SOURCE="HD1">III. Suspension of the Proposed Rule Change</HD>
                    <P>
                        Pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>185</SU>
                        <FTREF/>
                         at any time within 60 days of the date of filing of a proposed rule change pursuant to Section 19(b)(1) of the Act,
                        <SU>186</SU>
                        <FTREF/>
                         the Commission summarily may temporarily suspend the change in the rules of an SRO if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. As discussed below, a temporary suspension of the proposed rule change is necessary or appropriate to allow for additional analysis of the proposed rule change's consistency with the Act and the rules thereunder.
                    </P>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <P>
                        When exchanges file their proposed rule changes with the Commission, including fee filings like the Exchange's present proposed rule change, they are required to provide a statement supporting the proposed rule change's basis under the Act and the rules and regulations thereunder applicable to the exchange.
                        <SU>187</SU>
                        <FTREF/>
                         The instructions to Form 19b-4, on which exchanges file their proposed rule changes, specify that such statement “should be sufficiently detailed and specific to support a finding that the proposed rule change is consistent with [those] requirements.” 
                        <SU>188</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.19b-4 (Item 3 entitled “Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>188</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Among other things, the Exchange's proposed rule change is subject to Section 6 of the Act, including Sections 6(b)(4), (5), and (8), which require the rules of an exchange to: (1) provide for the equitable allocation of reasonable fees among members, issuers, and other persons using the exchange's facilities; 
                        <SU>189</SU>
                        <FTREF/>
                         (2) be designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers; 
                        <SU>190</SU>
                        <FTREF/>
                         and (3) not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
                        <SU>191</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>190</SU>
                             15 U.S.C. 78f(b)(5).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>The proposed rule change is also subject to the CAT Funding Model set forth in the CAT NMS Plan. For example, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” In addition, Section 11.3(b)(i)(C) of the CAT NMS Plan provides that the “Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and Section 11.3(b)(i)(D) of the CAT NMS Plan provides that “[t]he length of the Historical Recovery Period used in calculating each Historical Fee Rate will be reasonably established by the Operating Committee based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment . . .” Further, Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan provides that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.”</P>
                    <P>
                        In temporarily suspending the Exchange's fee change, the Commission intends to further consider whether the proposed fees are consistent with the statutory requirements applicable to a national securities exchange under the Act and with the requirements set forth in the CAT Funding Model. Among other things, the Commission will consider whether the proposed rule change provides for reasonable fees that satisfy the standards under the Act and the rules thereunder.
                        <SU>192</SU>
                        <FTREF/>
                         Further, and among other things, the Commission will consider whether the proposed rule change, as required by the CAT Funding Model, provides “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including, but not limited to, whether the Operating Committee has “reasonably determine[d] the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and whether the “length of the Historical Recovery Period used in calculating each Historical Fee Rate [was] reasonably established by the Operating Committee.” 
                        <SU>193</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>192</SU>
                             
                            <E T="03">See</E>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>193</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <P>
                        Therefore, the Commission finds that it is necessary or appropriate in the public interest, for the protection of investors, and otherwise in furtherance of the purposes of the Act, to temporarily suspend the proposed rule change.
                        <SU>194</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>194</SU>
                             For purposes of temporarily suspending the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                            <E T="03">See</E>
                             15 U.S.C. 78c(f).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">IV. Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</HD>
                    <P>
                        In addition to temporarily suspending the proposed rule change, the Commission is instituting proceedings pursuant to Sections 19(b)(3)(C) 
                        <SU>195</SU>
                        <FTREF/>
                         and 19(b)(2)(B) 
                        <SU>196</SU>
                        <FTREF/>
                         of the Act to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change to inform the Commission's analysis of whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>195</SU>
                             15 U.S.C. 78s(b)(3)(C). Once the Commission temporarily suspends a proposed rule change, Section 19(b)(3)(C) of the Act requires that the Commission institute proceedings under Section 19(b)(2)(B) to determine whether a proposed rule change should be approved or disapproved.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>196</SU>
                             15 U.S.C. 78s(b)(2)(B).
                        </P>
                    </FTNT>
                    <P>
                        Pursuant to Section 19(b)(2)(B) of the Act,
                        <SU>197</SU>
                        <FTREF/>
                         the Commission is providing notice of the grounds for possible disapproval under consideration. The 
                        <PRTPAGE P="10392"/>
                        Commission is instituting proceedings to allow for additional consideration and comment on whether the Exchange has sufficiently demonstrated that the proposed rule change is consistent with Section 6(b)(4) 
                        <SU>198</SU>
                        <FTREF/>
                         of the Act, and consistent with the CAT Funding Model. Section 6(b)(4) of the Act, among other things, provides that the dues, fees, and other charges for an exchange's members be reasonable. And the CAT Funding Model, as noted above, requires, among other things, that the proposed rule change provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including whether the Operating Committee has reasonably determined the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee and whether the length of the Historical Recovery Period used in calculating each Historical Fee Rate was reasonably established by the Operating Committee.
                        <SU>199</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>197</SU>
                             15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the Act also provides that proceedings to determine whether to disapprove a proposed rule change must be concluded within 180 days of the date of publication of notice of the filing of the proposed rule change. 
                            <E T="03">See id.</E>
                             The time for conclusion of the proceedings may be extended for up to 60 days if the Commission finds good cause for such extension and publishes its reasons for so finding, or if the exchange consents to the longer period. 
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>198</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>199</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">V. Commission's Solicitation of Comments</HD>
                    <P>
                        The Commission requests that interested persons provide written submission of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they have with the proposed rule change. In particular, the Commission invites the written views of interested persons concerning whether the proposed rule change is consistent with Section 6(b)(4), or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.
                        <SU>200</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>200</SU>
                             15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act grants the Commission flexibility to determine what type of proceeding—either oral or notice and opportunity for written comments—is appropriate for consideration of a particular proposed rule change by an exchange. 
                            <E T="03">See</E>
                             Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975).
                        </P>
                    </FTNT>
                    <P>Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule changes should be approved or disapproved by March 5, 2024. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by March 19, 2024.</P>
                    <P>Comments may be submitted by any of the following methods:</P>
                    <HD SOURCE="HD2">Electronic Comments</HD>
                    <P>
                        • Use the Commission's internet comment form (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ); or
                    </P>
                    <P>
                        • Send an email to 
                        <E T="03">rule-comments@sec.gov.</E>
                         Please include file number SR-NYSENAT-2024-01 on the subject line.
                    </P>
                    <HD SOURCE="HD2">Paper Comments</HD>
                    <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                    <FP>
                        All submissions should refer to file number SR-NYSENAT-2024-01. 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 internet website (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-NYSENAT-2024-01 and should be submitted on or before March 5, 2024. Rebuttal comments should be submitted by March 19, 2024.
                    </FP>
                    <HD SOURCE="HD1">VI. Conclusion</HD>
                    <P>
                        <E T="03">It is therefore ordered,</E>
                         pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>201</SU>
                        <FTREF/>
                         that File No. SR-NYSENAT-2024-01 be, and hereby is, temporarily suspended. In addition, the Commission is instituting proceedings to determine whether the proposed rule change should be approved or disapproved.
                    </P>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <SIG>
                        <P>
                            For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                            <SU>202</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>202</SU>
                                 17 CFR 200.30-3(a)(12), (57) and (58).
                            </P>
                        </FTNT>
                        <NAME>Sherry R. Haywood,</NAME>
                        <TITLE>Assistant Secretary.</TITLE>
                    </SIG>
                </PREAMB>
                <FRDOC>[FR Doc. 2024-01176 Filed 2-12-24; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 8011-01-P</BILCOD>
            </NOTICE>
            <NOTICE>
                <PREAMB>
                    <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                    <DEPDOC>[Release No. 34-99369; File No. SR-CboeBZX-2024-004]</DEPDOC>
                    <SUBJECT>Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail; Suspension of and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</SUBJECT>
                    <DATE>January 17, 2024.</DATE>
                    <P>
                        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act” or the “Exchange Act”),
                        <SU>1</SU>
                        <FTREF/>
                         and Rule 19b-4 thereunder,
                        <SU>2</SU>
                        <FTREF/>
                         notice is hereby given that, on January 2, 2024, Cboe BZX Exchange, Inc. (the “Exchange” or “BZX”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is, pursuant to Section 19(b)(3)(C) of the Act, hereby: (i) temporarily suspending the rule change; and (ii) instituting proceedings to determine whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             17 CFR 240.19b-4.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                    <P>
                        The Exchange proposes to adopt a fee schedule to establish fees for Industry 
                        <PRTPAGE P="10393"/>
                        Members 
                        <SU>3</SU>
                        <FTREF/>
                         related to certain historical costs of the National Market System Plan Governing the Consolidated Audit Trail (the “CAT NMS Plan” or “Plan”) incurred prior to January 1, 2022. These fees will be payable to Consolidated Audit Trail, LLC (“CAT LLC” or “the Company”) 
                        <SU>4</SU>
                        <FTREF/>
                         and referred to as Historical CAT Assessment 1 and would be described in an Exchange fee schedule entitled “Consolidated Audit Trail Funding Fees” (“CAT Fee Schedule”).
                        <SU>5</SU>
                        <FTREF/>
                         The fee rate for Historical CAT Assessment 1 will be $0.000015 per executed equivalent share. CAT Executing Brokers will receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 calculated based on their transactions as CAT Executing Brokers for the Buyer (“CEBB”) and/or CAT Executing Brokers for the Seller (“CEBS”) in March 2024.
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             An “Industry Member” is defined as “a member of a national securities exchange or a member of a national securities association.” 
                            <E T="03">See</E>
                             Exchange Rule 4.5(u). Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth in the CAT Compliance Rule. 
                            <E T="03">See</E>
                             Exchange Rules 4.5-4.17.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             The term “CAT LLC” may be used to refer to Consolidated Audit Trail, LLC or CAT NMS, LLC, depending on the context.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             The Exchange and each of its affiliated exchanges (Cboe BYX Exchange, Inc., Cboe C2 Exchange, Inc., Cboe Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe EDGX Exchange, Inc.) are filing to adopt the CAT Fee Schedule.
                        </P>
                    </FTNT>
                    <P>
                        The text of the proposed rule change is available on the Exchange's website (
                        <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/</E>
                        ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                    </P>
                    <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item V below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                    <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <HD SOURCE="HD3">1. Purpose</HD>
                    <P>
                        On July 11, 2012, the Commission adopted Rule 613 of Regulation NMS, which required the self-regulatory organizations (“SROs”) to submit a national market system (“NMS”) plan to create, implement and maintain a consolidated audit trail that would capture customer and order event information for orders in NMS securities across all markets, from the time of order inception through routing, cancellation, modification or execution.
                        <SU>6</SU>
                        <FTREF/>
                         On November 15, 2016, the Commission approved the CAT NMS Plan.
                        <SU>7</SU>
                        <FTREF/>
                         Under the CAT NMS Plan, the Operating Committee has the discretion to establish funding for CAT LLC to operate the CAT, including establishing fees for Industry Members to be assessed by CAT LLC that would be implemented on behalf of CAT LLC by the Participants.
                        <SU>8</SU>
                        <FTREF/>
                         The Operating Committee adopted a revised funding model to fund the CAT (“CAT Funding Model”). On September 6, 2023, the Commission approved the CAT Funding Model, after concluding that the model was reasonable and that it satisfied the requirements of Section 11A of the Exchange Act and Rule 608 thereunder.
                        <SU>9</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             Securities Exchange Act Rel. No. 67457 (July 18, 2012), 77 FR 45721 (Aug. 1, 2012).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             Securities Exchange Act Rel. No. 79318 (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016) (“CAT NMS Plan Approval Order”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             Securities Exchange Act Rel. No. 98290 (Sept. 6, 2023), 88 FR 62628 (Sept. 12, 2023) (“CAT Funding Model Approval Order”).
                        </P>
                    </FTNT>
                    <P>
                        The CAT Funding Model provides a framework for the recovery of the costs to create, develop and maintain the CAT, including providing a method for allocating costs to fund the CAT among Participants and Industry Members. The CAT Funding Model establishes two categories of fees: (1) CAT fees assessed by CAT LLC and payable by certain Industry Members to recover a portion of historical CAT costs previously paid by the Participants (“Historical CAT Assessment” fees); and (2) CAT fees assessed by CAT LLC and payable by Participants and Industry Members to fund prospective CAT costs (“Prospective CAT Costs” fees).
                        <SU>10</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             Under the CAT Funding Model, the Operating Committee may establish one or more Historical CAT Assessments. Section 11.3(b) of the CAT NMS Plan. This filing only establishes Historical CAT Assessment 1 related to certain Historical CAT Costs as described herein; it does not address any other potential Historical CAT Assessment related to other Historical CAT Costs. In addition, under the CAT Funding Model, the Operating Committee also may establish CAT Fees related to CAT costs going forward. Section 11.3(a) of the CAT NMS Plan. This filing does not address any potential CAT Fees related to CAT costs going forward. Any such other fee for any other Historical CAT Assessment or CAT Fee for Prospective CAT Costs will be subject to a separate fee filing.
                        </P>
                    </FTNT>
                    <P>
                        Under the CAT Funding Model, “[t]he Operating Committee will establish one or more fees (each a `Historical CAT Assessment') to be payable by Industry Members with regard to CAT costs previously paid by the Participants (`Past CAT Costs').” 
                        <SU>11</SU>
                        <FTREF/>
                         In establishing a Historical CAT Assessment, the Operating Committee will determine a “Historical Recovery Period” and calculate a “Historical Fee Rate” for that Historical Recovery Period. Then, for each month in which a Historical CAT Assessment is in effect, each CEBB and CEBS would be required to pay the fee—the Historical CAT Assessment—for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate.
                        <SU>12</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, the proposed recovery of the Past CAT Costs via the Historical CAT Assessment is reasonable.” CAT Funding Model Approval Order at 62662.
                        </P>
                    </FTNT>
                    <P>
                        Each Historical CAT Assessment to be paid by CEBBs and CEBSs is designed to contribute toward the recovery of two-thirds of the Historical CAT Costs. Because the Participants previously have paid Past CAT Costs via loans to the Company, the Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made by the Participants to the Company on a pro rata basis based on the outstanding loan amounts due under the loans, instead of through the payment of a CAT fee.
                        <SU>13</SU>
                        <FTREF/>
                         In addition, Participants also will be 100% responsible for certain Excluded Costs (as discussed below).
                    </P>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             Section 11.3(b)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC proposes to charge CEBBs and CEBSs (as described in more detail below) Historical CAT Assessment 1 to recover certain historical CAT costs incurred prior to January 1, 2022, in accordance with the CAT Funding Model. To implement this fee on behalf of CAT LLC, the CAT NMS Plan requires the Participants to “file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves, and such fees shall be labeled as `Consolidated Audit Trail Funding Fees.' ” 
                        <SU>14</SU>
                        <FTREF/>
                         The Plan further states that “Participants will be required to file with the SEC pursuant to Section 19(b) of the Exchange Act a filing for each 
                        <PRTPAGE P="10394"/>
                        Historical CAT Assessment.” 
                        <SU>15</SU>
                        <FTREF/>
                         Accordingly, the purpose of this filing is to implement a Historical CAT Assessment on behalf of CAT LLC for Industry Members, referred to as Historical CAT Assessment 1, in accordance with the CAT NMS Plan.
                        <SU>16</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             Section 11.3(b)(iii)(B)(I) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             Note that there may be one or more Historical CAT Assessments depending on the timing of the completion of the Financial Accountability Milestones, among other things. Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(1) CAT Executing Brokers</HD>
                    <P>
                        Historical CAT Assessment 1 will be charged to each CEBB and CEBS for each applicable transaction in Eligible Securities.
                        <SU>17</SU>
                        <FTREF/>
                         The CAT NMS Plan defines a “CAT Executing Broker” to mean:
                    </P>
                    <FTNT>
                        <P>
                            <SU>17</SU>
                             In its approval of the CAT Funding Model, the Commission determined that charging CAT fees to CAT Executing Brokers was reasonable. In reaching this conclusion the Commission noted that the use of CAT Executing Brokers is appropriate because the CAT Funding Model is based upon the calculation of 
                            <E T="03">executed</E>
                             equivalent shares, and, therefore, charging CAT Executing Brokers would reflect their executing role in each transaction. Furthermore, the Commission noted that, because CAT Executing Brokers are already identified in transaction reports from the exchanges and FINRA's equity trade reporting facilities recorded in CAT Data, charging CAT Executing Brokers could streamline the billing process. CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) with respect to a transaction in an Eligible Security that is executed on an exchange, the Industry Member identified as the Industry Member responsible for the order on the buy-side of the transaction and the Industry Member responsible for the sell-side of the transaction in the equity order trade event and option trade event in the CAT Data submitted to the CAT by the relevant exchange pursuant to the Participant Technical Specifications; and (b) with respect to a transaction in an Eligible Security that is executed otherwise than on an exchange and required to be reported to an equity trade reporting facility of a registered national securities association, the Industry Member identified as the executing broker and the Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event in the CAT Data submitted to the CAT by FINRA pursuant to the Participant Technical Specifications; provided, however, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.
                            <SU>18</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>18</SU>
                                 Section 1.1 of the CAT NMS Plan. Note that CEBBs and CEBSs may, but are not required to, pass-through their CAT fees to their clients, who may, in turn, pass their fees to their clients until they are imposed ultimately on the account that executed the transaction. 
                                <E T="03">See</E>
                                 CAT Funding Model Approval Order at 62649.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The following fields of the Participant Technical Specifications indicate the CAT Executing Brokers for the transactions executed on an exchange.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>19</SU>
                             
                            <E T="03">See</E>
                             Table 23, Section 4.7 (Order Trade Event) of the CAT Reporting Technical Specifications for Plan Participants, Version 4.1.0-r20 (Sept. 25, 2023), 
                            <E T="03">https://www.catnmsplan.com/sites/default/files/2023-09/9.25.2023-CAT_Reporting_Technical_Specifications_for_Participants_4.1.0-r20.pdf</E>
                             (“CAT Reporting Technical Specifications for Plan Participants”).
                        </P>
                        <P>
                            <SU>20</SU>
                             
                            <E T="03">See</E>
                             Table 51, Section 5.2.5.1 (Simple Option Trade Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="170">
                        <GID>EN13FE24.086</GID>
                    </GPH>
                    <GPH SPAN="3" DEEP="79">
                        <GID>EN13FE24.087</GID>
                    </GPH>
                    <P>In addition, the following fields of the Participant Technical Specifications would indicate the CAT Executing Brokers for the transactions executed otherwise than on an exchange.</P>
                    <GPH SPAN="3" DEEP="107">
                        <PRTPAGE P="10395"/>
                        <GID>EN13FE24.088</GID>
                    </GPH>
                    <HD SOURCE="HD3">
                        (2) Calculation of Historical Fee Rate 1
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             
                            <E T="03">See</E>
                             Table 61, Section 6.1 (TRF/ORF/ADF Transaction Data Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <P>The Operating Committee determined the Historical Fee Rate to be used in calculating Historical CAT Assessment 1 (“Historical Fee Rate 1”) by dividing the Historical CAT Costs for Historical CAT Assessment 1 (“Historical CAT Costs 1”) by the projected total executed share volume of all transactions in Eligible Securities for the Historical Recovery Period for Historical CAT Assessment 1 (“Historical Recovery Period 1”), as discussed in detail below. Based on this calculation, the Operating Committee has determined that Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. This rate is then divided by three and rounded to determine the fee rate of $0.000015 per executed equivalent share that will be assessed to CEBBs and CEBSs, as also discussed in detail below.</P>
                    <HD SOURCE="HD3">(A) Executed Equivalent Shares for Transactions in Eligible Securities</HD>
                    <P>
                        Under the CAT NMS Plan, for purposes of calculating each Historical CAT Assessment, executed equivalent shares in a transaction in Eligible Securities will be reasonably counted as follows: (1) each executed share for a transaction in NMS Stocks will be counted as one executed equivalent share; (2) each executed contract for a transaction in Listed Options will be counted based on the multiplier applicable to the specific Listed Options (
                        <E T="03">i.e.,</E>
                         100 executed equivalent shares or such other applicable multiplier); and (3) each executed share for a transaction in OTC Equity Securities shall be counted as 0.01 executed equivalent share.
                        <SU>22</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             Section 11.3(a)(i)(B) and 11.3(b)(i)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission concluded that “the use of executed equivalent share volume as the basis of the proposed cost allocation methodology is reasonable and consistent with the approach taken by the funding principles of the CAT NMS Plan.” CAT Funding Model Approval Order at 62640.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Historical CAT Costs 1</HD>
                    <P>
                        The CAT NMS Plan states that “[t]he Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee. Each Historical CAT Assessment will seek to recover from CAT Executing Brokers two-thirds of Historical CAT Costs incurred during the period covered by the Historical CAT Assessment.” 
                        <SU>23</SU>
                        <FTREF/>
                         As described in detail below, Historical CAT Costs 1 would be $337,688,610. This figure includes Past CAT Costs of $401,312,909 minus certain Excluded Costs of $63,624,299. Participants collectively will remain responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), plus the Excluded Costs of $63,624,299. CEBBs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), and CEBSs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870).
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             Section 11.3(b)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        The following describes in detail Historical CAT Costs 1 with regard to four separate historical time periods as well as Past CAT Costs excluded from Historical CAT Costs 1 (“Excluded Costs”). The following cost details are provided in accordance with the requirement in the CAT NMS Plan to provide in the fee filing “a brief description of the amount and type of Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.” 
                        <SU>24</SU>
                        <FTREF/>
                         Each of the costs described below are reasonable, appropriate and necessary for the creation, implementation and maintenance of CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             Section 11.3(b)(iii)(B)(II)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(i) Historical CAT Costs Incurred Prior to June 22, 2020 (Pre-FAM Costs)</HD>
                    <P>Historical CAT Costs 1 would include costs incurred by CAT prior to June 22, 2020 (“Pre-FAM Period”) and already funded by the Participants, excluding Excluded Costs (described further below). Historical CAT Costs 1 would include costs for the Pre-FAM Period of $143,919,521. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($47,973,174), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($47,973,174) and CEBSs paying one-third ($47,973,174). These costs do not include Excluded Costs, as discussed further below. The following table breaks down Historical CAT Costs 1 for the Pre-FAM Period into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.</P>
                    <GPH SPAN="3" DEEP="295">
                        <PRTPAGE P="10396"/>
                        <GID>EN13FE24.089</GID>
                    </GPH>
                    <P>
                        The Pre-FAM Period includes a broad range of CAT-related activity from 2012 through June 22, 2020, including the evaluation of the requirements of SEC Rule 613, the development of the CAT NMS Plan, the evaluation and selection of the initial and successor Plan Processors, the commencement of the creation and implementation of the CAT to comply with Rule 613 and the CAT NMS Plan, including technical specifications for transaction reporting and regulatory access, and related technology and the commencement of reporting to the CAT. The following describes the costs for each of the categories for the Pre-FAM Period.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>25</SU>
                             With respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>26</SU>
                             The costs described in this table of costs for the Pre-FAM Period were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website. In addition, in accordance with Section 6.6(a)(i) of the CAT NMS Plan, in 2018 CAT LLC provided the SEC with “an independent audit of fees, costs, and expenses incurred by the Participants on behalf of the Company prior to the Effective Date of the Plan that will be publicly available.” The audit is available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>The $10,268,840 in technology costs for cloud hosting services represent costs incurred for services provided by the cloud services provider for the CAT, Amazon Web Services, Inc. (“AWS”), during the Pre-FAM Period.</P>
                    <P>As part of its proposal for acting as the successor Plan Processor for the CAT, FCAT selected AWS as a subcontractor to provide cloud hosting services. In 2019, after reviewing the capabilities of other cloud services providers, FCAT determined that AWS was the only cloud services provider at that time sufficiently mature and capable of providing the full suite of necessary cloud services for the CAT, including, for example, the security, resiliency and complexity necessary for the CAT computing requirements. The use of cloud hosting services is standard for this type of high-volume data activity and reasonable and necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT the fees incurred by the Plan Processor for cloud hosting services provided by AWS as FCAT's subcontrator on a monthly basis for the cloud hosting services, and FCAT, in turn, pays such fees to AWS. The fees for cloud hosting services were negotiated by FCAT on an arm's length basis with the goals of managing cost and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the expected volume of data, the breadth of services provided and market rates for similar services. The fees for cloud hosting services during the Pre-FAM Period were paid to FCAT by CAT NMS LLC 
                        <SU>27</SU>
                        <FTREF/>
                         and subsequently Consolidated Audit Trail, LLC (as previously noted, both entities are referred to generally as “CAT LLC”),
                        <SU>28</SU>
                        <FTREF/>
                         and FCAT, in turn, paid AWS. CAT LLC was funded via loan contributions by the Participants.
                        <SU>29</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             CAT NMS, LLC was formed by FINRA and the U.S. national securities exchanges to implement the requirements of SEC Rule 613 under the Exchange Act. SEC Rule 613 required the SROs to jointly submit to the SEC the CAT NMS Plan to create, implement and maintain the CAT. The SEC approved the CAT NMS Plan on November 15, 2016. CAT NMS Plan Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             On August 29, 2019, the Participants formed a new Delaware limited liability company named Consolidated Audit Trail, LLC for the purpose of conducting activities related to the CAT from and after the effectiveness of the proposed amendment of the CAT NMS Plan to replace CAT NMS, LLC. 
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 87149 (Sept. 27, 2019), 84 FR 52905 (Oct. 3, 2019).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             For each of the costs paid by CAT NMS, LLC and Consolidated Audit Trail, LLC as discussed throughout this filing, CAT NMS, LLC and Consolidated Audit Trail, LLC paid these costs via loan contributions by the Participants to CAT NMS, 
                            <PRTPAGE/>
                            LLC and Consolidated Audit Trail, LLC, respectively.
                        </P>
                    </FTNT>
                    <PRTPAGE P="10397"/>
                    <P>AWS was engaged by FCAT to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. Services provided by AWS include storage services, databases, compute services and other services (such as networking, management tools and DevOps tools). AWS also was engaged to provide various environments for CAT, such as development, performance testing, test and production environments.</P>
                    <P>
                        The cost for AWS services for the CAT is a function of the volume of CAT Data. The greater the amount of CAT Data, the greater the cost of AWS services to the CAT. During the Pre-FAM Period from the engagement of AWS in February 2019 through June 2020, AWS provided cloud hosting services for volumes of CAT Data far in excess of the volume predictions set forth in the CAT NMS Plan. The CAT NMS Plan states, when all CAT Reporters are submitting their data to the CAT, it “must be sized to receive[,] process and load more than 58 billion records per day,” 
                        <SU>30</SU>
                        <FTREF/>
                         and that “[i]t is expected that the Central Repository will grow to more than 29 petabytes of raw, uncompressed data.” 
                        <SU>31</SU>
                        <FTREF/>
                         However, the volume of CAT Data for the Pre-FAM Period was far in excess of these predicted levels. By the end of this period, data submitted to the CAT included options and equities Participant Data,
                        <SU>32</SU>
                        <FTREF/>
                         Phase 2a and Phase 2b Industry Member Data 
                        <SU>33</SU>
                        <FTREF/>
                         (including certain linkages), as well as SIP Data,
                        <SU>34</SU>
                        <FTREF/>
                         reference data and other types of Other Data.
                        <SU>35</SU>
                        <FTREF/>
                         The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during the Pre-FAM Period.
                        <SU>36</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             Appendix D-5 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             
                            <E T="03">See</E>
                             Section 6.3(d) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Rel. No. 88702 (Apr. 20, 2020), 85 FR 23075 (Apr. 24, 2020) (“Phased Reporting Exemptive Relief Order”) for a description of Phase 2a and Phase 2b Industry Member Data.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             
                            <E T="03">See</E>
                             Appendix C-108 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="350">
                        <GID>EN13FE24.090</GID>
                    </GPH>
                    <HD SOURCE="HD3">
                        (b) Technology Costs—Operating Fees
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             Note that, although there were compute hours during this period, data related to such compute hours are no longer available in current data.
                        </P>
                    </FTNT>
                    <P>
                        The $21,085,485 in technology costs related to operating fees represent costs incurred with regard to activities of FCAT as the Plan Processor. Operating fees are those fees paid by CAT LLC to FCAT as the Plan Processor to operate and maintain the CAT and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management as required by the CAT NMS Plan.
                    </P>
                    <P>
                        FCAT was selected to assume the role of the successor Plan Processor. Prior to this selection, the Participants engaged 
                        <PRTPAGE P="10398"/>
                        in discussions with two prior Bidders 
                        <SU>38</SU>
                        <FTREF/>
                         for the successor Plan Processor role. The Operating Committee formed a Selection Subcommittee in accordance with Section 4.12 of the CAT NMS Plan to evaluate and review Bids and to make a recommendation to the Operating Committee with respect to the selection of the successor Plan Processor. In an April 9, 2019 letter to the Commission, the Participants described the reasons for its selection of the successor Plan Processor:
                    </P>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             The term “Bidder” is defined in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>The Selection Subcommittee considered factors including, but not limited to, the following, in recommending FINRA to the Operating Committee as the successor Plan Processor:</P>
                    <EXTRACT>
                        <P>a. FINRA's specialized technical expertise and capabilities in the area of broker-dealer technology;</P>
                        <P>b. The need to appoint a successor Plan Processor with specialized expertise to develop, implement, and maintain the CAT System in accordance with the CAT NMS Plan and SEC Rule 613;</P>
                        <P>c. FINRA's detailed proposal in response to CATLLC's recent inquiries; and</P>
                        <P>d. FINRA's data query and analytics systems demonstration to the Participants.</P>
                        <P>
                            Based on these and other factors, the Selection Subcommittee determined that FINRA was the most appropriate Bidder to become the successor Plan Processor.
                            <SU>39</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>39</SU>
                                 Letter from Michael J. Simon, Chair, CAT NMS, LLC Operating Committee, to Brent J. Fields, Secretary, SEC (Apr. 9, 2019), 
                                <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection-040919.pdf.</E>
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        On February 26, 2019, the Operating Committee (with FINRA recusing itself) voted to select FINRA as the successor Plan Processor pursuant to Section 6.1(t) of the CAT NMS Plan.
                        <SU>40</SU>
                        <FTREF/>
                         On March 29, 2019, CAT LLC and FCAT (a wholly owned subsidiary of FINRA) entered into a Plan Processor Agreement pursuant to which FCAT would perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT a negotiated monthly fixed price for the operation of the CAT. This fixed price contract was negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity. The operating fees during the Pre-FAM Period were paid to FCAT by CAT LLC.</P>
                    <P>From March 29, 2019 (the commencement of the Plan Processor Agreement with FCAT) through June 22, 2020 (the end of the Pre-FAM Period), the Plan Processor's activities with respect to the CAT included the following:</P>
                    <P>
                        • Commenced user acceptance testing with market data provided by Exegy Incorporated (“Exegy”), a market data provider; 
                        <SU>41</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             The use of Exegy to provide market data, including the costs and market data provided, is discussed below in Section 3(a)(2)(B)(i)(i).
                        </P>
                    </FTNT>
                    <P>• Published Technical Specifications and related reporting scenarios documents for Phase 2a, 2b and 2c reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated testing for Phase 2a and 2b reporting for Industry Members;</P>
                    <P>• Began developing Technical Specifications and related reporting scenarios documents for Phase 2d reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published Central Repository Access Technical Specifications, and provided regulator access to test data from Industry Members;</P>
                    <P>• Facilitated Participant exchanges that support options market makers sending Quote Sent Time to the CAT;</P>
                    <P>• Facilitated the introduction of OPRA and Options NBBO Other Data to CAT;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing requirements under Regulation SCI;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants, SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk, which is the primary source for answers to questions about CAT, including questions regarding: clock synchronization, firm reporting responsibilities, interpretive questions, technical specifications for reporting to CAT and more;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>
                        • Administered the CAT website and all of its content; 
                        <SU>42</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             The CAT website is 
                            <E T="03">https://www.catnmsplan.com.</E>
                        </P>
                    </FTNT>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>The $2,072,908 in technology costs related to CAIS operating fees represent the fees paid for FCAT's subcontractor charged with the development and operation of CAT's Customer and Account Information System (“CAIS”). The CAT is required under the CAT NMS Plan to capture and store Customer Identifying Information and Customer Account Information in a database separate from the transactional database and to create a CAT-Customer-ID for each Customer.</P>
                    <P>During the Pre-FAM Period, the CAIS-related services were provided by the Plan Processor through the Plan Processor's subcontractor, Kingland Systems Incorporation (“Kingland”). Kingland had experience operating in the securities regulatory technology space, and as a part of its proposal for acting as the Plan Processor for the CAT, FCAT selected Kingland as a subcontractor to provide certain CAIS-related services.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay to the Plan Processor the fees incurred by the FCAT for CAIS-related services provided by FCAT through Kingland on a monthly basis. FCAT negotiated the fees for Kingland's CAIS-related services on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity. The fees for CAIS-related services during the Pre-FAM Period were paid by CAT LLC to FCAT. FCAT, in turn, paid Kingland. During the Pre-FAM Period, Kingland began development of the CAIS Technical Specifications and the building of CAIS. In addition, Kingland also worked on the build related to the CCID Alternative, an alternative approach to customer information that was not included in the CAT NMS Plan as 
                        <PRTPAGE P="10399"/>
                        originally adopted.
                        <SU>43</SU>
                        <FTREF/>
                         Furthermore, Kingland also worked on the acceleration of the reporting of large trader identifiers (“LTID”) earlier than originally contemplated during this period, in accordance with exemptive relief granted by the SEC.
                        <SU>44</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             For a discussion of the CCID Alternative, 
                            <E T="03">see</E>
                             Securities Exchange Act Rel. No. 88393 (Mar. 17, 2020), 85 FR 16152 (Mar. 20, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             Phased Reporting Exemptive Relief Order at 23079-80.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        The technology costs related to change request fees include costs related to certain modifications, upgrades or other changes to the CAT. Change requests are standard practice and necessary to reflect operational changes, including changes related to new market developments, such as new market participants. In general, if CAT LLC determines that a modification, upgrade or other changes to the functionality or service is necessary and appropriate, CAT LLC will submit a request for such a change to the Plan Processor. The Plan Processor will then respond to the request with a proposal for implementing the change, including the cost (if any) of such a change. CAT LLC then determines whether to approve the proposed change. The change request costs were paid by CAT LLC to FCAT. During the Pre-FAM Period, CAT LLC incurred costs of $141,346 related to change requests implemented by FCAT. Such change requests related to a development fee regarding the OPRA and SIP data feeds, and the reprocessing of certain exchange data.
                        <SU>45</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             Note that CAT LLC also has incurred costs related to specific Industry Members (
                            <E T="03">e.g.,</E>
                             reprocessing costs related to Industry Member reporting errors).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>This category of costs includes capitalizable application development costs incurred in the development of the CAT. The capitalized developed technology costs for the Pre-FAM Period of $71,475,941 relate to technology provided by the Initial Plan Processor and the successor Plan Processor.</P>
                    <P>
                        <E T="03">Initial Plan Processor: Thesys CAT, LLC.</E>
                         The capitalized developed technology costs related to the Initial Plan Processor include costs incurred with regard to testing for Participant reporting, Participant reporting to the CAT, a security assessment of the CAT, the development of the billing function for the CAT, and a Plan Processor transition fee.
                    </P>
                    <P>
                        On January 17, 2017, the Selection Committee of the CAT NMS Plan selected the Initial Plan Processor, Thesys Technologies, LLC, for the CAT NMS Plan pursuant to Article V of the CAT NMS Plan.
                        <SU>46</SU>
                        <FTREF/>
                         The Participants utilized a request for proposal (“RFP”) to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan, taking into consideration that the Initial Plan Processor had experience operating in the securities regulatory technology space, among other considerations. On April 6, 2017, CAT LLC entered into an agreement with Thesys CAT LLC (“Thesys CAT”), a Thesys affiliate, to perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT. Under the agreement, CAT LLC would pay Thesys CAT a negotiated, fixed price fee for its role as the Initial Plan Processor. Effective January 30, 2019, the Plan Processor Agreement with Thesys CAT was terminated, and FCAT was subsequently selected as the successor Plan Processor.
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             Letter from the Participants to Brent J. Fields, Secretary, SEC (Jan. 18, 2017), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection.pdf.</E>
                        </P>
                    </FTNT>
                    <P>From January 17, 2017 through January 30, 2019, the time in which the Thesys CAT was engaged for the CAT, but excluding the period from November 15, 2017 through November 15, 2018, the Initial Plan Processor engaged in various activities with respect to the CAT, including preparing iterative drafts of Participant Technical Specifications, Industry Member Technical Specifications and the Central Repository Access Technical Specifications. Thesys CAT initiated and maintained the Participant reporting per the Participant Technical Specifications. In addition, Thesys CAT also developed CAT technology, addressed compliance items, including drafting CAT policies and procedures, addressing Regulation SCI requirements, establishing a CAT Compliance Officer and a Chief Information Security Officer, and addressed security-related matters for the CAT. Furthermore, Thesys CAT performed transition services related to the transition from Thesys CAT to FCAT as the successor Plan Processor from January 30, 2019 through April 15, 2019.</P>
                    <P>
                        <E T="03">Successor Plan Processor: FCAT.</E>
                         The capitalized developed technology costs related to FCAT include: (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, including the completion of go-live functionality related to options ingestion and validation, equities regulatory services agreement query tool updates and unlinked options data query, options linkages release, Industry Member Phase 2a file submission and data integrity (including error corrections), and Industry Member testing, including reporting relationships, ATS order type management, basic reporting statistics, SFTP data integrity feedback and error correction; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including a one-time development fee for a secure analytics workspace, a one-time development fee of an Industry Member connectivity solution, and a one-time development fee for the acceleration of multi-factor authentication; (3) CAIS implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $19,674,463 represent the fees paid for legal services provided by two law firms, Wilmer Cutler Pickering Hale and Dorr LLP (“WilmerHale”) and Pillsbury Winthrop Shaw Pittman LLP (“Pillsbury”), during the Pre-FAM Period. The legal costs exclude those costs incurred from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         Following the adoption of Rule 613, the Participants determined it was necessary to engage external legal counsel to advise the Participants with respect to corporate and regulatory legal matters related to the CAT, including drafting and developing the CAT NMS Plan. The Participants considered a variety of factors in their analysis of prospective law firms, including (1) the firm's qualifications, resources and expertise, (2) the firm's relevant experience and understanding of the regulatory matters raised by the CAT and in advising on matters of similar scope, (3) the composition of the legal team, and (4) professional fees. Following a series of interviews, the Participants acting as a consortium determined that WilmerHale was well qualified given the balance of 
                        <PRTPAGE P="10400"/>
                        these considerations and engaged WilmerHale in February 2013.
                    </P>
                    <P>WilmerHale's billing rates are negotiated on an annual basis and are determined with reference to the rates charged by other leading law firms for similar work. The Participants assess WilmerHale's performance and review prospective budgets and staffing plans submitted by WilmerHale on an annual basis. WilmerHale's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading law firms for similar work.</P>
                    <P>The legal costs for WilmerHale during the Pre-FAM Period included costs incurred from 2013 until June 22, 2020 to address corporate and regulatory legal matters related to the CAT. The legal fees for this law firm during the period from February 2013 until the formation of the CAT NMS, LLC on November 15, 2016 were paid directly by the exchanges and FINRA to WilmerHale. After the formation of CAT NMS LLC, the legal fees were paid by CAT LLC to WilmerHale.</P>
                    <P>After WilmerHale was engaged in 2013 through the end of the Pre-FAM Period on June 22, 2020 (excluding the legal costs from November 15, 2017 through November 15, 2018), WilmerHale provided legal assistance to the CAT on a variety of matters, including with regard to the following:</P>
                    <EXTRACT>
                        <P>• Analyzed various legal matters associated with the Selection Plan, and drafted an amendment to Selection Plan;</P>
                        <P>• Assisted with the RFP and bidding process for the CAT Plan Processor;</P>
                        <P>• Analyzed legal matters related to the Development Advisory Group (“DAG”);</P>
                        <P>• Drafted the CAT NMS Plan, analyzed various items related to the CAT NMS Plan, and responded to comment letters on CAT NMS Plan;</P>
                        <P>
                            • Provided legal support for the formation of the legal entity, the governance of the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                            <E T="03">e.g.,</E>
                             Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan; and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                        </P>
                        <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan and related filings;</P>
                        <P>• Negotiated and drafted the plan processor agreements with the Initial Plan Processor and the successor Plan Processor;</P>
                        <P>• Provided assistance with compliance with Regulation SCI;</P>
                        <P>• Assisted with clock synchronization study;</P>
                        <P>• Provided assistance with respect to the establishment of CAT security;</P>
                        <P>• Drafted exemptive requests from CAT NMS Plan requirements, including with regard to options market maker quotes, Customer IDs, CAT Reporter IDs, linking allocations to executions, CAT reporting timeline, FDIDs, customer and account information, timestamp granularity, small industry members, data facility reporting and linkage, allocation reports, SRO-assigned market participant identifiers and cancelled trade indicators, thereby seeking to implement changes that would be cost effective and benefit Industry Members and Participants;</P>
                        <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                        <P>• Provided advice regarding CAT policies and procedures;</P>
                        <P>• Analyzed the SEC's amendment of the CAT NMS Plan regarding financial accountability;</P>
                        <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                        <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues; and</P>
                        <P>• Assisted with third party vendor agreements.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         The legal costs for CAT during the Pre-FAM Period include costs related to the legal services performed by Pillsbury. The Participants interviewed this law firm as well as other potential law firms to provide legal assistance regarding certain liability matters. After considering a variety of factors in its analysis, including the relevant expertise and fees of the firm, CAT LLC determined to hire Pillsbury in April 2019. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees were paid by CAT LLC to Pillsbury. The legal costs for Pillsbury during the Pre-FAM Period included costs incurred from April 2019 until June 22, 2020 to address legal matters regarding the agreements between CAT Reporters and CAT LLC concerning certain terms associated with CAT Reporting (the “Reporter Agreement”). During that period, Pillsbury advised CAT LLC regarding applicable legal matters, participated in negotiations between the Participants and Industry Members, participated in meetings with senior SEC staff, the Chairman, and Commissioners, represented CAT LLC and the Participants in an SEC administrative proceeding, and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, litigation involving CAT LLC is an expense of operating the CAT, and, therefore, is appropriately an obligation of both Participants and Industry Members under the CAT Funding Model.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $17,013,414 represent the fees paid to the consulting firm Deloitte &amp; Touche LLP (“Deloitte”) as project manager during the Pre-FAM Period, from October 2012 until June 22, 2020. These consulting costs include costs for advisory services related to the operation of the CAT, and meeting facilitation and communications coordination, vendor support and financial analyses.</P>
                    <P>To help facilitate project management given the unprecedented complexity and scope of the CAT project, the Participants determined it was necessary to engage a consulting firm to assist with the CAT project in 2012, following the adoption of Rule 613. A variety of factors were considered in the analysis of prospective consulting firms, including (1) the firm's qualifications, resources, and expertise, (2) the firm's relevant experience and understanding of the regulatory issues raised by the CAT and in coordinating matters of similar scope, (3) the composition of the consulting team, and (4) professional fees. Following a series of interviews, the exchanges and FINRA as a consortium determined that Deloitte was well qualified given the balance of these considerations and engaged Deloitte on October 1, 2012.</P>
                    <P>Deloitte's fee rates are negotiated on an annual basis and are in line with market rates for this type of specialized consulting work. CAT LLC assesses Deloitte's performance and reviews prospective budgets and staffing plans submitted by Deloitte on an annual basis. Deloitte's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading consulting firms for similar work.</P>
                    <P>The consulting costs for CAT during the period from 2012 until the formation of the CAT NMS, LLC were paid directly by the Participants to Deloitte. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC to Deloitte. CAT LLC reviewed the consulting fees each month and approved the invoices.</P>
                    <P>
                        After Deloitte was hired in 2012 through the end of the Pre-FAM Period 
                        <PRTPAGE P="10401"/>
                        on June 22, 2020 (excluding the consulting costs from November 15, 2017 through November 15, 2018), Deloitte provided a variety of consulting services, including the following:
                    </P>
                    <EXTRACT>
                        <P>• Established and implemented program operations for the CAT project, including the program managment office and workstream design;</P>
                        <P>• Assisted with the Plan Processor selection process, including but not limited to, the development of the RFP and the bidder evaluation process, and facilitation and consolidation of the Participant's independent reviews;</P>
                        <P>• Assisted with the development and drafting of the CAT NMS Plan, including conducting cost-benefit studies, analyzing OATS and CAT requirements, and drafting appendices to the Plan;</P>
                        <P>• Assisted with cost and funding-related activities for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                        <P>
                            • Provided governance support to the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                            <E T="03">e.g.,</E>
                             Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                        </P>
                        <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                        <P>• Assisted with industry outreach and communications regarding the CAT, including assistance with industry outreach events, the development of the CAT website, frequently asked questions, and coordinating with the CAT LLC's public relations firm;</P>
                        <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                        <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress;</P>
                        <P>• Coordinated efforts regarding the selection of the successor Plan Processor;</P>
                        <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor, including support for the Operating Committee and successor Plan Processor for the new role; and</P>
                        <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $880,419 represent the cost incurred for insurance for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT insurance policies, which included engaging in discussions with different insurance companies and conducting cost comparisons of various alternative approaches to insurance. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance from USI Insurance Services LLC (“USI”). Such policies are standard for corporate entities, and cyber security liability insurance is important for the CAT System. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        In adopting the CAT NMS Plan, the Commission amended the Plan to add a requirement that CAT LLC's financial statements be prepared in compliance with GAAP, audited by an independent public accounting firm, and made publicly available.
                        <SU>47</SU>
                        <FTREF/>
                         The professional and administration costs include costs related to accounting and accounting advisory services to support the operating and financial functions of CAT, financial statement audit services by an independent accounting firm, preparation of tax returns, and various cash management and treasury functions. In addition, professional and administration costs for the Pre-FAM Period include costs related to the receipt of market data and a security assessment. The costs for these professional and administration services were $1,082,036 for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             Section 9.2 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin Accountants &amp; Advisors (“Anchin”).</E>
                         CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT in April 2018. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services were paid by CAT LLC to Anchin.
                    </P>
                    <P>After Anchin was hired in April 2018 through the end of the Pre-FAM Period on June 22, 2020 (excluding the period from April 2018 through November 15, 2018), Anchin provided a variety of services, including the following:</P>
                    <EXTRACT>
                        <P>• Developed, updated and maintained internal controls;</P>
                        <P>• Provided cash management and treasury functions;</P>
                        <P>• Facilitated bill payments;</P>
                        <P>• Provided monthly bookkeeping;</P>
                        <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                        <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                        <P>• Addressed not-for-profit tax and accounting considerations;</P>
                        <P>• Prepared tax returns;</P>
                        <P>• Addressed various accounting, financial and operating inquiries from Participants;</P>
                        <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                        <P>• Addressed accounting and financial reporting matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                        <P>• Supported compliance with the CAT NMS Plan;</P>
                        <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                        <P>• Prepared monthly, quarterly and annual financial statements;</P>
                        <P>• Supported the annual financial statement audits by an independent auditor;</P>
                        <P>• Reviewed historical costs from inception; and</P>
                        <P>• Provided accounting and financial information in support of SEC filings.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton LLP (“Grant Thornton”).</E>
                         In February 2020, CAT LLC determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the proposed role given the balance of these considerations. Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services. The fees for these services were paid by CAT LLC to Grant Thornton.
                    </P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         The professional and administrative costs for the Pre-FAM Period included costs related to the receipt of certain market data for the CAT pursuant to an 
                        <PRTPAGE P="10402"/>
                        agreement with the CAT LLC, and then with FCAT. Exegy provided SIP Data required by the CAT NMS Plan.
                    </P>
                    <P>
                        After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy from July 2018 through March 2019. CAT LLC determined that, unlike certain other vendors, Exegy provided market data that included all data elements required by the CAT NMS Plan.
                        <SU>48</SU>
                        <FTREF/>
                         In addition, the fees were reasonable and in line with market rates for the market data received. Accordingly, the professional and administrative costs for the Pre-FAM Period include the Exegy costs from November 2018 through March 2019. The cost of the market data was reasonable for the market data received. The fees for the market data were paid directly by CAT LLC to Exegy.
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>Upon the termination of the contract between CAT LLC and Exegy, FCAT entered into a contract with Exegy to purchase the required market data from Exegy in July 2019. All costs under the contract were treated as a direct pass through cost to CAT LLC. Therefore, the fees for the market data were paid by CAT LLC to FCAT, who, in turn, paid Exegy for the market data.</P>
                    <P>
                        <E T="03">Security Assessment: RSM US LLP (“RSM”).</E>
                         The operating costs for the Pre-FAM Period include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation, and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment. RSM performed the assessment from October 2018 through December 2018. Accordingly, the costs for the Pre-FAM Period include the costs incurred in November and December 2018. The cost for the security assessment were paid directly to RSM by CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $224,669 represent the fees paid to public relations firms during the Pre-FAM Period for professional communications services to CAT, including media relations consulting, strategy and execution. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants. Specifically, the public relations firms provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                    </P>
                    <P>The services performed by each of the public relations firms were comparable. The fees for such services were reasonable and in line with market rates. Only one public relations firm was engaged at a time; the three firms were engaged sequentially as the primary public relations contact moved among the three firms during this time period.</P>
                    <P>
                        <E T="03">Public Relations Firm: Peppercomm, Inc. (“Peppercomm”).</E>
                         The national securities exchanges and FINRA, acting as a consortium, determined to hire the public relations firm Peppercomm in October 2014 and continued to engage this firm through September 2017. The exchanges and FINRA made this engagement decision after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fee rates for this public relations firm were negotiated on an arm's length basis and were in line with market rates for these types of services. The public relations costs during the period from October 2014 until the formation of the CAT NMS LLC were paid directly by the exchanges and FINRA to the public relations firm. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Sloane &amp; Company (“Sloane”).</E>
                         CAT LLC determined to hire a new public relations firm, Sloane, in March 2018, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Sloane. CAT LLC continued the engagement with Sloane until February 2020.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Peak Strategies.</E>
                         CAT LLC determined to hire a new public relations firm, Peak Strategies, in March 2020, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Peak Strategies.
                    </P>
                    <HD SOURCE="HD3">(ii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 1</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 1 of the Financial Accountability Milestones (“FAM Period 1”),
                        <SU>49</SU>
                        <FTREF/>
                         which covers the period from June 22, 2020-July 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 1 of $6,377,343. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($2,125,781), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781). The following table breaks down Historical CAT Costs 1 for FAM Period 1 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             Section 11.6(a)(i)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10403"/>
                        <GID>EN13FE24.091</GID>
                    </GPH>
                    <P>
                        By the completion 
                        <FTREF/>
                        of FAM Period 1, CAT LLC was required to implement the reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of equities transaction data and options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.
                        <SU>52</SU>
                        <FTREF/>
                         CAT LLC completed the requirements of FAM Period 1 by July 31, 2020. The following describes the costs for each of the categories for FAM Period 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>50</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>51</SU>
                             The costs described in this table of costs for FAM Period 1 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             
                            <E T="03">See</E>
                             definition of “Initial Industry Member Core Equity and Options Reporting” in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 1 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 1 Period. Accordingly, the $2,642,122 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 1. The fee arrangement for AWS described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. Moreover, CAT LLC continued to believe that AWS's maturity in the cloud services space as well as the significant cost and time necessary to move the CAT to a different cloud services provider supported the continued engagement of AWS.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 1 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, reference data and other types of Other Data. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 1.
                        <SU>53</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="298">
                        <PRTPAGE P="10404"/>
                        <GID>EN13FE24.092</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 1. Accordingly, the $1,099,680 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 1. The fee arrangement for FCAT described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, FCAT's activities with respect to the CAT included the following: </P>
                    <EXTRACT>
                        <P>• Published iterative drafts of draft Technical Specifications for Phase 2d, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                        <P>• Published iterative drafts of CAIS Technical Specifications, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                        <P>• Facilitated Industry Member reporting of Quote Sent Time on Options Market Maker quotes;</P>
                        <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                        <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                        <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                        <P>• Oversaw the security of the CAT;</P>
                        <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                        <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                        <P>• Provided support in discussions with Participants and the SEC and its staff;</P>
                        <P>• Operated the FINRA CAT Helpdesk;</P>
                        <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                        <P>• Administered the CAT website and all of its content; and</P>
                        <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 1. Accordingly, the $254,998 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 1. The fee arrangement for Kingland described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>CAT LLC did not incur costs related to change requests during FAM Period 1.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 1 of $1,684,870 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include: (1) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including separate production and industry test entitlements, and reprocessing of exchange event timestamps; (2) implementation fees; and (3) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>
                        The legal costs of $481,687 represent the fees paid for legal services provided 
                        <PRTPAGE P="10405"/>
                        by two law firms, WilmerHale and Pillsbury during FAM Period 1.
                    </P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 1 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to WilmerHale. During FAM Period 1, WilmerHale provided legal assistance to the CAT including with regard to the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments and fee filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, verbal activity, options market maker quote sent time, TRF linkages, and allocations;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including the Financial Accountability Milestone amendment;</P>
                    <P>• Assisted with compliance with Regulation SCI;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the drafting of the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Assisted with communications and presentations for the industry regarding CAIS;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding CAT technical specifications;</P>
                    <P>• Assisted with third party vendor agreements; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to Pillsbury. During FAM Period 1, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD2">(g) Consulting Costs</HD>
                    <P>The consulting costs of $137,209 represent the fees paid to Deloitte as project manager during FAM Period 1. CAT LLC continued to employ Deloitte during FAM Period 1 based on, among other things, their expertise and cumulative experience with the CAT. The fee rates for Deloitte during FAM Period 1 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 1 were paid by CAT LLC to the consulting firm. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 1, Deloitte's CAT-related activities included the following:</P>
                    <EXTRACT>
                        <P>• Implemented program operations for the CAT project;</P>
                        <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                        <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                        <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                        <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor; and</P>
                        <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>Although insurance was in effect during FAM Period 1, CAT LLC did not incur costs related to insurance during FAM Period 1.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         The professional and administration costs of $69,077 represent the fees paid to Anchin during FAM Period 1. CAT LLC continued to employ Anchin during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these type of financial advisory services. The fees for these services during FAM Period 1 were paid by CAT LLC to Anchin. During FAM Period 1, Anchin provided a variety of services, including the following:
                    </P>
                    <EXTRACT>
                        <P>• Maintained internal controls;</P>
                        <P>• Provided cash management and treasury functions;</P>
                        <P>• Facilitated bill payments;</P>
                        <P>• Provided monthly bookkeeping;</P>
                        <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                        <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                        <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                        <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                        <P>• Supported compliance with the CAT NMS Plan;</P>
                        <P>• Worked with and provided support to the Operating Committee and various CAT working groups; and</P>
                        <P>• Prepared monthly and quarterly financial statements.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $7,700 represent the fees paid to Peak Strategies during FAM Period 1. CAT LLC continued to employ Peak Strategies during FAM Period 1 based on, among other things, their expertise and history with the project. The fee rates for this firm were reasonable and in line with market rates for these types of services. The fees for these services during FAM Period 1 were paid by CAT LLC to Peak Strategies. During FAM Period 1, Peak Strategies continued to provide professional communications services to CAT LLC, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address 
                        <PRTPAGE P="10406"/>
                        CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 2</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT LLC and already funded by Participants during Period 2 of the Financial Accountability Milestones (“FAM Period 2”),
                        <SU>54</SU>
                        <FTREF/>
                         which covers the period from August 1, 2020-December 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 2 of $42,976,478. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($14,325,493), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($14,325,493) and CEBSs paying one-third ($14,325,493). The following table breaks down Historical CAT Costs 1 for FAM Period 2 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             Section 11.6(a)(i)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <GID>EN13FE24.093</GID>
                    </GPH>
                    <P>
                        By the
                        <FTREF/>
                         completion of FAM Period 2, CAT LLC was required to implement the following with regard to the CAT:
                    </P>
                    <FTNT>
                        <P>
                            <SU>55</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>56</SU>
                             The costs described in this table of costs for FAM Period 2 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, CustomerID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission.
                            <SU>57</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>57</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Implementation of Core Equity Reporting Requirements” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 2 by December 31, 2020. The following describes the costs for each of the categories for FAM Period 2.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 2 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 2 Period. Accordingly, the $20,709,212 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 2. The fee arrangement for AWS described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 2 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, and Other Data, including reference data. In addition, Industry Members began reporting LTID account information. The following chart provides data regarding the average 
                        <PRTPAGE P="10407"/>
                        daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 2.
                        <SU>58</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="301">
                        <GID>EN13FE24.094</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 2. Accordingly, the $9,108,700 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 2. The fee arrangement for FCAT described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, FCAT's activities with respect to the CAT included publishing the Technical Specifications for Phase 2d and overseeing the reporting of firm to firm and intrafirm linkages by Industry Members. In addition, FCAT also continued to engage in the following activities during FAM Period 2:</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the development and implementation of the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <PRTPAGE P="10408"/>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 2. Accordingly, the $1,590,298 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 2. The fee arrangement for Kingland described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 2, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 2, CAT incurred costs of $51,823 related to a change request regarding the addition of functionality for exchange Participants to report rejected messages to the CAT.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 2 of $6,761,094 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to separate production and industry test entitlements, market maker reference data, and back-processing of exchange exception logic; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $2,766,644 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 2.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 2 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to WilmerHale. During FAM Period 1 [
                        <E T="03">sic</E>
                        ], the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <EXTRACT>
                        <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                        <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, allocations, exchange activity, OTQT, initial data validation, error corrections and recordkeeping;</P>
                        <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs and technical specifications;</P>
                        <P>• Provided support for the Operating Committee, Compliance Subcommittees, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                        <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6 of the CAT NMS Plan;</P>
                        <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                        <P>• Provided support for the Compliance Subcommittee, including with regard to responses to OCIE examinations and the annual assessment;</P>
                        <P>• Provided guidance regarding the SEC's proposed security amendments to the CAT NMS Plan;</P>
                        <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                        <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                        <P>
                            • Assisted with third party vendor agreements (
                            <E T="03">e.g.,</E>
                             with regard to Anchin, Grant Thornton and insurance policies);
                        </P>
                        <P>• Assisted with change requests; and</P>
                        <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to Pillsbury. During FAM Period 2, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted and filed a proposed amendment to the CAT NMS plan regarding liability matters. As discussed above, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $532,146 represent the fees paid to Deloitte as project manager during FAM Period 2. CAT LLC continued to employ Deloitte during FAM Period 2 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 2 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 2 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 2, Deloitte's CAT-related activities included the following:</P>
                    <EXTRACT>
                        <P>• Implemented program operations for the CAT project;</P>
                        <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                        <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                        <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                        <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $976,098 represent the fees paid for insurance during FAM Period 2. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        The professional and administration costs of $438,523 represent the fees paid to Anchin and Grant Thornton for 
                        <PRTPAGE P="10409"/>
                        financial services provided during FAM Period 2.
                    </P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to engage Anchin during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these types of financial advisory services. The fees for these services during FAM Period 2 were paid by CAT LLC to Anchin. During FAM Period 2, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from the Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audit by an independent auditor; and</P>
                    <P>• Reviewed historical costs from inception.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 2 based on, among other things, its expertise and cumulative knowledge of CAT LLC. CAT LLC continued to believe that Grant Thornton was well qualified for its role and its fee rates were in line with with market rates for these accounting services. The fees for these services during FAM Period 2 were paid by CAT LLC to Grant Thornton. During FAM Period 2, Grant Thornton performed a financial statement audit for CAT LLC as an independent accounting firm.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $41,940 represent the fees paid to Peak Strategies during FAM Period 2. CAT LLC continued to employ Peak Strategies during FAM Period 2 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 2 were paid by CAT LLC to Peak Strategies. During FAM Period 2, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iv) Historical CAT Costs Incurred in Financial Accountability Milestone Period 3</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 3 of the Financial Accountability Milestones (“FAM Period 3”),
                        <SU>59</SU>
                        <FTREF/>
                         which covers the period from January 1, 2021-December 31, 2021. Historical CAT Costs 1 would include costs for FAM Period 3 of $144,415,268. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($48,138,423), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($48,138,423) and CEBSs paying one-third ($48,138,423). The following table breaks down Historical CAT Costs 1 for FAM Period 3 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             Section 11.6(a)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10410"/>
                        <GID>EN13FE24.095</GID>
                    </GPH>
                    <P>
                        By the completion of FAM Period 3, CAT LLC was required to implement the following requirements with regard the CAT:
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>60</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>61</SU>
                             The costs described in this table of costs for FAM Period 3 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met.
                            <SU>62</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>62</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Availability and Regulatory Utilization of Transactional Database Functionality” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 3 by December 31, 2021. The following describes the costs for each of the categories for FAM Period 3.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 3 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 3 Period. Accordingly, the $94,574,759 in technology costs for cloud hosting services represents costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 3. The fee arrangement for AWS described above for the earlier periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During FAM Period 3, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a, Phase 2b, Phase 2c and Phase 2d Industry Member Data (including certain linkages), SIP Data, Other Data, including reference data, and LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 3.
                        <SU>63</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="325">
                        <PRTPAGE P="10411"/>
                        <GID>EN13FE24.096</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 3. Accordingly, the $23,106,091 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 3. The fee arrangement for FCAT described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, FCAT's activities with respect to the CAT included the following:</P>
                    <EXTRACT>
                        <P>• Facilitated Phase 2c and Phase 2d testing for Industry Members;</P>
                        <P>• Oversaw creation of linkages of the lifecycle of order events based on the received data through Phase 2d;</P>
                        <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                        <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                        <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                        <P>• Oversaw the security of the CAT;</P>
                        <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                        <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                        <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                        <P>• Operated the FINRA CAT Helpdesk;</P>
                        <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                        <P>• Administered the CAT website and all of its content; and</P>
                        <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement with FCAT discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 3. Accordingly, the $5,562,383 in technology costs for CAIS operating fees represents costs incurred for services provided by Kingland during FAM Period 3. The fee arrangement for Kingland described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs. The full CAIS Technical Specifications were published during FAM Period 3.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 3, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 3, CAT incurred costs of $396,169 related to change requests, including the following: (1) the addition of functionality for exchange Participants to report rejected messages to the CAT; (2) the migration of MIRS query engine to AWS to reduce operational costs and increase resiliency; and (3) updating the Participant Technical Specifications to allow for two-sided Participant option quote reporting.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>
                        Capitalized developed technology costs for FAM Period 3 of $10,763,372 include capitalizable application development costs incurred in the 
                        <PRTPAGE P="10412"/>
                        development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor, including the transition from equity data received by FINRA pursuant to various regulatory services agreements between FINRA and Participant exchanges to the equity CAT Data, and the completion of the Industry Member Phase 2d options manual and complex orders go-live requirements; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to off-exchange volume concentration, Participant 24-hour trading and an external metastore; (3) implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $6,333,248 represent the fees paid for legal services provided by three law firms, WilmerHale, Pillsbury and Covington &amp; Burling LLP (“Covington”) during FAM Period 3.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 3 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to WilmerHale. During FAM Period 3, the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <EXTRACT>
                        <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                        <P>• Drafted exemptive requests from CAT NMS Plan requirements, including, for example, verbal activity regarding Phase 2c cutover, error reports, error corrections, Phase 2d Reporting, unique Order-ID on internal route events, reporting addresses, recordkeeping, and unique CCID for foreign customers;</P>
                        <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs, CAIS requirements, ADF, and technical specifications;</P>
                        <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                        <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6(c) of the CAT NMS Plan;</P>
                        <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                        <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                        <P>• Provided guidance regarding SEC's proposed security amendments to CAT NMS Plan;</P>
                        <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                        <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                        <P>• Provided assistance with change requests;</P>
                        <P>• Provided guidance and regulatory support for litigation regarding the response to SEC's exemptive orders;</P>
                        <P>• Assisted with communications with the industry, includng CAT Alerts and presentations;</P>
                        <P>• Provided guidance regarding the confidentiality of CAT Data, including third-party information requests;</P>
                        <P>• Assisted with cost management analysis and proposals; and</P>
                        <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to Pillsbury. During FAM Period 3, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During this period, Pillsbury advised CAT LLC regarding applicable legal matters, reviewed and responded to comment letters regarding the proposed Plan amendment, participated in meetings with senior SEC staff, responded to comments submitted following the SEC's April 6, 2021 order instituting proceedings,
                        <SU>64</SU>
                        <FTREF/>
                         and assessed legal matters regarding the SEC's October 29, 2021 order denying the proposed Plan amendment.
                        <SU>65</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             Securities Exchange Act Rel. No. 91487 (Apr. 6, 2021), 86 FR 19054 (Apr. 12, 2021).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             Securities Exchange Act Rel. No. 93484 (Oct. 29, 2021), 86 FR 60933 (Nov. 4, 2021).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Law Firm: Covington.</E>
                         CAT LLC hired Covington for litigation with the SEC regarding certain exemptive orders related to the CAT, including orders issued in December 2020.
                        <SU>66</SU>
                        <FTREF/>
                         CAT LLC interviewed this law firm as well as other potential law firms, considering a variety of factors in its analysis for choosing legal assistance, including the relevant expertise and fees of the potential lawyers. CAT LLC approved the engagement of Covington in January 2021. The fee rates for this law firm, which were calculated based on hourly rates, were in line with market rates for specialized services. The legal fees for FAM Period 3 for this firm were paid by CAT LLC to Covington.
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 90688 (Dec. 16, 2020), 85 FR 83634 (Dec. 22, 2020); and Securities Exchange Act Rel. No. 90689 (Dec. 16, 2020), 85 FR 83667 (Dec. 22, 2020) (collectively, the “2020 Orders”).
                        </P>
                    </FTNT>
                    <P>After Covington was hired in 2021 through the end of 2021, the firm provided legal assistance regarding the litigation with the SEC regarding the 2020 Orders. These services included researching, drafting, and filing motions to stay the 2020 orders and related materials in proceedings before the SEC, as well as researching, drafting, and filing petitions for judicial review of the 2020 Orders in proceedings before the U.S. Court of Appeals for the D.C. Circuit. Covington oversaw ongoing litigation proceedings on these matters, and also supported WilmerHale with respect to settlement negotiations with the SEC staff regarding the 2020 Orders.</P>
                    <P>
                        In addition to these services, CAT LLC engaged Covington in November 2021 to provide assistance with respect to the SEC's disapproval of CAT NMS Plan amendments concerning a proposed limitation on liability in the event of a data breach or similar event. Covington provided advice concerning CAT's response to the SEC's disapproval order. This work accounted for a minority of Covington's fees in 2021.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             As discussed above with regard to Pillsbury's work on liability matters, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, such activity is a necessary part of the operation of the CAT.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $1,408,209 represent the fees paid to Deloitte as project manager during FAM Period 3. CAT LLC continued to employ Deloitte during FAM Period 3 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 3 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 3 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 3, Deloitte's CAT-related activities included the following:</P>
                    <EXTRACT>
                        <P>• Implemented program operations for the CAT project;</P>
                        <P>
                            • Provided support to the Operating Committee, the Chair of the Operating 
                            <PRTPAGE P="10413"/>
                            Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;
                        </P>
                        <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                        <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                        <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $1,582,714 represent the fees paid for insurance FAM Period 3. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $595,923 represent the fees paid to Anchin and Grant Thornton for financial services during FAM Period 3.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to employ Anchin during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services during FAM Period 3 were paid by CAT LLC to Anchin. During FAM Period 3, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 3 based on, among other things, their expertise and cumulative knowledge of CAT LLC. CAT LLC determined that Grant Thornton was well qualified for its role and that its fixed fee rates were in line with market rates for these accountant services. The fees for these services during FAM Period 3 were paid by CAT LLC to Grant Thornton. During FAM Period 3, Grant Thornton provided audited financial statements for CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $92,400 represent the fees paid to Peak Strategies during FAM Period 3. CAT LLC continued to employ Peak Strategies during FAM Period 3 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 3 were paid by CAT LLC to Peak Strategies. During FAM Period 3, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(v) Excluded Costs</HD>
                    <P>
                        Historical CAT Costs 1 would not include two categories of CAT costs (“Excluded Costs”): (1) $48,874,937, which are all CAT costs incurred from November 15, 2017 through November 15, 2018; and (2) $14,749,362 of costs related to the termination of the relationship with the Initial Plan Processor. The Participants would remain responsible for 100% of these costs, which total $63,624,299. CAT LLC determined that it was reasonable to exclude these Excluded Costs from Historical CAT Costs 1 because the excluded costs relate to the delay in the start of reporting to the CAT and the conclusion of the relationship with the Initial Plan Processor.
                        <SU>68</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             In approving the CAT Funding Model, the Commission states that “the proposed exclusion of the `Excluded Costs' from Past CAT Costs is reasonable in the Commission's view because it would not require all costs incurred by the Participants to be recovered from Industry Members through the Historical CAT Assessment, specifically excluding those costs related to the delay in the start of reporting to the CAT and costs related to the conclusion of the relationship with the Initial Plan Processor.” CAT Funding Model Approval Order at 62663.
                        </P>
                    </FTNT>
                    <P>First, Historical CAT Costs 1 would not include $14,749,362 of costs related to the conclusion of the relationship with the Initial Plan Processor. Such costs include costs related to the American Arbitration Association, the legal assistance of Pillsbury with regard to the arbitration with Thesys CAT, and the settlement costs related to the arbitration with Thesys CAT. The Participants would remain responsible for 100% of these $14,749,362 in costs.</P>
                    <P>Second, the Historical CAT Costs would exclude all CAT costs incurred from November 15, 2017 through November 15, 2018. CAT LLC determined to exclude all costs during this one-year period of $48,874,937 from fees charged to Industry Members due to the delay in the start of reporting to the CAT. The Participants would remain responsible for 100% of these $48,874,937 in costs. The following table breaks down these costs into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.</P>
                    <GPH SPAN="3" DEEP="239">
                        <PRTPAGE P="10414"/>
                        <GID>EN13FE24.097</GID>
                    </GPH>
                    <P>
                        The following provides additional detail regarding the Excluded Costs.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             The costs described in this table of Excluded Costs were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services, Operating Fees, CAIS Operating Fees and Change Request Fees</HD>
                    <P>CAT LLC did not incur technology costs related to the categories of cloud hosting services, operating fees, CAIS operating fees or change requests during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(b) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for the period from November 15, 2017 through November 15, 2018 include capitalizable application development costs of $37,852,083 incurred in the development of the CAT by the Initial Plan Processor. Such costs include development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Initial Plan Processor. Such costs include costs related to Industry Member technical specifications for orders and transactions, the system security plan, testing and production for Participant CAT reporting, third-party security assessment and response, query portal, onboarding of the Chief Information Security Officer, and ingestion of FINRA TRF data and FINRA data related to halts and corporate actions.</P>
                    <HD SOURCE="HD3">(c) Legal Costs</HD>
                    <P>The legal costs of $6,143,278 represent the fees paid to WilmerHale for legal services from November 15, 2017 through November 15, 2018. During this period, WilmerHale provided legal assistance to the CAT including with regard to the following:</P>
                    <EXTRACT>
                        <P>• Provided legal support for the governance of the CAT, including governance support for the Operating Committee, Advisory Committee, Compliance Subcommittee, and CAT working groups;</P>
                        <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan;</P>
                        <P>• Provided assistance related to CAT security;</P>
                        <P>• Drafted exemptive requests, including requests related to PII;</P>
                        <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                        <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                        <P>• Provided advice with regard to regulator access to the CAT;</P>
                        <P>• Assisted with the Plan Processor transition;</P>
                        <P>• Provided assistance regarding communications with the industry regarding the CAT;</P>
                        <P>• Provided advice regarding Customer Account Information and PII;</P>
                        <P>• Provided support for litigation related to SEC exemptive orders; and</P>
                        <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretative and implementation issues.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(d) Consulting Costs</HD>
                    <P>The consulting costs of $4,452,106 represent the fees paid to Deloitte for their role as project manager for the CAT from November 15, 2017 through November 15, 2018. During this period, Deloitte engaged in the following activities with respect to the CAT:</P>
                    <EXTRACT>
                        <P>• Implemented program operations for the CAT project;</P>
                        <P>
                            • Provided governance support to the Operating Committee, including support for Subcommittees and working groups of the Operating Committee (
                            <E T="03">e.g.,</E>
                             Compliance Subcommittee, Cost and Funding Working Group, Technical Working Group, Industry Outreach Working Group, Security Working Group and Steering Committee);
                        </P>
                        <P>• Assisted with cost and funding issue for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                        <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                        <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(e) Insurance</HD>
                    <P>CAT LLC did not incur costs related to insurance during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(f) Professional and Administration Costs</HD>
                    <P>
                        The professional and administration costs of $340,145 represent the fees paid to Anchin, Exegy and RSM from 
                        <PRTPAGE P="10415"/>
                        November 15, 2017 through November 15, 2018.
                    </P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in April 2018 through November 15, 2018, Anchin engaged in the following activities with respect to the CAT:
                    </P>
                    <EXTRACT>
                        <P>• Developed, updated and maintained internal controls;</P>
                        <P>• Provided cash management and treasury functions;</P>
                        <P>• Facilitated bill payments;</P>
                        <P>• Provided monthly bookkeeping;</P>
                        <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                        <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                        <P>• Addressed not-for-profit tax and accounting considerations;</P>
                        <P>• Prepared tax returns;</P>
                        <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                        <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                        <P>• Addressed accounting and financial matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                        <P>• Supported compliance with the CAT NMS Plan;</P>
                        <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                        <P>• Prepared monthly, quarterly and annual financial statements;</P>
                        <P>• Supported the annual financial statement audits by an independent auditor;</P>
                        <P>• Reviewed historical costs from inception; and</P>
                        <P>• Provided accounting and financial information in support of SEC filings.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         From July 2018 through November 15, 2018, CAT LLC purchased market data from Exegy (as described in more detail above).
                    </P>
                    <P>
                        <E T="03">Security Assessment: RSM.</E>
                         From October 2018 through November 15, 2018, CAT LLC incurred costs for RSM's performance of a security assessment (as described in more detail above).
                    </P>
                    <HD SOURCE="HD3">(g) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $87,325 represent the fees paid to Sloane from November 15, 2017 through November 15, 2018. From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in March 2018 through November 15, 2018, Sloane provided professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, Sloane provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan).
                    </P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        Under the CAT NMS Plan, the Operating Committee is required to reasonably establish the length of the Historical Recovery Period used in calculating each Historical Fee Rate based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment, and to describe the reasons for its length.
                        <SU>70</SU>
                        <FTREF/>
                         The Historical Recovery Period used in calculating the Historical Fee Rate may not be less than 24 months or more than five years.
                        <SU>71</SU>
                        <FTREF/>
                         The Operating Committee has determined to establish a Historical Recovery Period 1 of 24 months for Historical CAT Assessment 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             Section 11.3(b)(i)(D)(I) and Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             Section 11.3(b)(i)(D)(I) of the CAT NMS Plan. In the CAT Funding Model Approval Order, the SEC stated that “[i]n the Commission's view, it is reasonable for the Operating Committee to establish the length of the Historical Recovery Period to be no less than 24 months and no more than five years.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The Operating Committee determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans to the Participants in a timely fashion. The Operating Committee determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>72</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, the Operating Committee recognized that the total costs for Historical CAT Assessment 1 were less than the total costs for 2022 and 2023,
                        <SU>73</SU>
                        <FTREF/>
                         and therefore it would be reasonable and appropriate to recover costs subject to this filing over an approximate two-year period. Furthermore, the Operating Committee notes that 24 months is appropriate because it is not currently proposing that Industry Members be required to pay additional CAT fees with regard to another Historical CAT Assessment or CAT Fees with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model at 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             The total CAT costs for 2022 were approximately $186 million and the total CAT costs for 2023 are estimated to be approximately $233 million.
                        </P>
                    </FTNT>
                    <P>
                        The length of the Historical Recovery Period 1 and the reasons for its length are provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>74</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             Section 11.3(b)(iii)(B)(II)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Total Executed Equivalent Share Volume</HD>
                    <P>
                        The calculation of Historical Fee Rate 1 also requires the determination of the projected total executed equivalent share volume of transactions in Eligible Securities for Historical Recovery Period 1. Under the CAT NMS Plan, the Operating Committee is required to “reasonably determine the projected total executed equivalent share volume of all transactions in Eligible Securities for each Historical Recovery Period based on the executed equivalent share volume of all transactions in Eligible Securities for the prior twelve months.” 
                        <SU>75</SU>
                        <FTREF/>
                         The Operating Committee is required to base its projection on the prior twelve months, but it may use its discretion to analyze the likely volume for the upcoming year. Such discretion would allow the Operating Committee to use its judgment when estimating projected total executed equivalent share volume if the volume over the prior twelve months was unusual or otherwise unfit to serve as the basis of a future volume estimate.
                        <SU>76</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             Section 11.3(b)(i)(E) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. The Operating Committee has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. The Operating Committee determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed 
                        <PRTPAGE P="10416"/>
                        equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is projected to be 7,685,722,694,558.88 executed equivalent shares.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <P>
                        The projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1 and a description of the calculation of the projection is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>78</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             Section 11.3(b)(iii)(B)(II)(D) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Historical Fee Rate 1</HD>
                    <P>
                        Historical Fee Rate 1 would be calculated by dividing Historical CAT Costs 1 by the reasonably projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1, as described in detail above.
                        <SU>79</SU>
                        <FTREF/>
                         Specifically, Historical Fee Rate 1 would be calculated by dividing $337,688,610 by 7,685,722,694,558.88. As a result, the Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. Historical Fee Rate 1 is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide the Historical Fee Rate in a fee filing for a Historical CAT Assessment.
                        <SU>80</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             In approving the CAT Funding Model, the Commission stated that “[t]he calculation of the Historical Fee Rate by dividing the Historical CAT Costs by the projected total executed equivalent share volume of all transactions in Eligible Securities for the Historical Recovery Period is reasonable.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>80</SU>
                             Section 11.3(b)(iii)(B)(II)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Past CAT Costs and Participants</HD>
                    <P>Participants would not be required to pay any fees associated with Historical CAT Assessment 1 as the Participants previously have paid all Past CAT Costs. The CAT NMS Plan explains that:</P>
                    <EXTRACT>
                        <P>
                            Because Participants previously have paid Past CAT Costs via loans to the Company, Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs and such other additional Past CAT Costs as reasonably determined by the Operating Committee will be paid by the cancellation of loans made to the Company on a pro rata basis based on the outstanding loan amounts due under the loans.
                            <SU>81</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>81</SU>
                                 Section 11.3(b)(ii) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The CAT NMS Plan further states that “Historical CAT Assessments are designed to recover two-thirds of the Historical CAT Costs.” 
                        <SU>82</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             
                            <E T="03">Id.</E>
                             In approving the CAT Funding Model, the Commission stated that “[t]he proposed allocation of the Historical CAT Assessment solely to CEBs and CEBBs, and ultimately Industry Members, is reasonable. The Historical CAT Assessment will still be divided into thirds,” as the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made to the Company. CAT Funding Model Approval Order at 62666.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(4) Monthly Fees</HD>
                    <P>
                        CEBBs and CEBSs would be required to pay fees for Historical CAT Assessment 1 on a monthly basis for the period in which Historical CAT Assessment 1 is in effect.
                        <SU>83</SU>
                        <FTREF/>
                         A CEBB or CEBS's fee for each month would be calculated based on the transactions in Eligible Securities executed by the CEBB or CEBS from the prior month.
                        <SU>84</SU>
                        <FTREF/>
                         Proposed paragraph (a)(1)(A) of the CAT Fee Schedule would state that each CAT Executing Broker would receive its first invoice in April 2024, and “would receive an invoice each month thereafter in which Historical CAT Assessment 1 is in effect.” Proposed paragraph (a)(1)(B) of the CAT Fee Schedule would state that “Consolidated Audited Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” In addition, proposed paragraph (b)(1) of the CAT Fee Schedule states that each CEBB and CEBS is required to pay its CAT fees “each month.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             See proposed paragraph (a)(1)(B) of the CAT Fee Schedule.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(5) Actual Recovery Period for Historical CAT Assessment 1</HD>
                    <P>
                        The CAT NMS Plan states that, “[n]otwithstanding the length of the Historical Recovery Period used in calculating the Historical Fee Rate, each Historical CAT Assessment calculated using the Historical Fee Rate will remain in effect until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                        <SU>85</SU>
                        <FTREF/>
                         Accordingly, Historical CAT Assessment 1 will remain in effect until all Historical CAT Costs 1 have been collected. The actual recovery period for Historical CAT Assessment 1 may be shorter or longer than Historical Recovery Period 1 depending on the actual executed equivalent share volumes during the time that Historical CAT Assessment 1 is in effect.
                        <SU>86</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             Section 11.3(b)(i)(D)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>86</SU>
                             In approving the CAT Funding Model, the Commission stated that “[i]n the Commission's view, it is reasonable for Industry Members to be charged a Historical CAT Assessment until all Historical CAT Costs for the Historical CAT Assessment are collected.” CAT Funding Model Approval Order at 62665.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(6) Consolidated Audit Trail Funding Fees</HD>
                    <P>To implement Historical CAT Assessment 1, the Exchange proposes to adopt CAT Fee Schedule to include the proposed paragraphs described below.</P>
                    <HD SOURCE="HD3">(A) Fee Schedule for Historical CAT Assessment 1</HD>
                    <P>The CAT NMS Plan states that: </P>
                    <EXTRACT>
                        <P>
                            Each month in which a Historical CAT Assessment is in effect, each CEBB and each CEBS shall pay a fee for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate reasonably determined pursuant to paragraph (b)(i) of this Section 11.3.
                            <SU>87</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>87</SU>
                                 Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, based on the factors discussed above, the Exchange proposes to add paragraph (a)(1) to the CAT Fee Schedule. Proposed paragraph (a)(1) would state the following:</P>
                    <EXTRACT>
                        <P>(A) Each CAT Executing Broker shall receive its first invoice for Historical CAT Assessment 1 in April 2024, which shall set forth the Historical CAT Assessment 1 fees calculated based on transactions in March 2024, and shall receive an invoice for Historical CAT Assessment 1 for each month thereafter in which Historical CAT Assessment 1 is in effect.</P>
                        <P>(B) Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis. Each month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.</P>
                        <P>(C) Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time. Consolidated Audit Trail, LLC will provide notice when Historical CAT Assessment 1 will no longer be in effect.</P>
                        <P>(D) Each CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).</P>
                    </EXTRACT>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, “as a practical 
                        <PRTPAGE P="10417"/>
                        matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>88</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of the CAT Fee Schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 of $0.0000439371316687066 by one-third, and rounding the result to 6 decimal places.
                        <SU>89</SU>
                        <FTREF/>
                         The Operating Committee determined to use six decimal places to balance the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             Dividing $0.0000439371316687066 by three equals $0.00001464571055623553. Rounding $$0.00001464571055623553 to six decimal places equals $0.000015.
                        </P>
                    </FTNT>
                    <P>The proposed language in paragraph (a)(1)(A) of the CAT Fee Schedule would describe when CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1. Specifically, CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 and the fees set forth in that invoice would be calculated based on transactions executed in the prior month, that is, transactions executed in March 2024. The payment for the first invoice would be required within 30 days after the receipt of the first invoice (unless a longer period is indicated), as described in proposed paragraph (b)(2) of the CAT Fee Schedule.</P>
                    <P>Proposed paragraph (a)(1)(A) of the CAT Fee Schedule also would describe the monthly cadence of the invoices for Historical CAT Assessment 1. Specifically, after the first invoices are provided to CAT Executing Brokers in April 2024, invoices will be sent to CAT Executing Brokers each month thereafter while Historical CAT Assessment 1 is in effect.</P>
                    <P>Proposed paragraph (a)(1)(B) of the CAT Fee Schedule would describe the invoices for Historical CAT Assessment 1. Proposed paragraph (a)(1)(B) of the CAT Fee Schedule would state that “Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” Proposed paragraph (a)(1)(B) of the CAT Fee Schedule also would describe the fees to be set forth in the invoices for Historical CAT Assessment 1. Specifically, it would state that “[e]ach month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.”</P>
                    <P>
                        Furthermore, proposed paragraph (a)(1)(C) of the CAT Fee Schedule would describe how long Historical CAT Assessment 1 would remain in effect. It would state that “Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time.” This proposed paragraph would further state that “Consolidated Audit Trail, LLC will be [
                        <E T="03">sic</E>
                        ] provide notice when Historical CAT Assessment 1 will no longer be in effect.”
                    </P>
                    <P>Historical CAT Assessment 1 will be assessed for all transactions executed in each month through the end of the month in which two-thirds of Historical CAT Costs 1 are assessed, and then CAT LLC will provide notice that Historical CAT Assessment 1 is no longer in effect. Since Historical CAT Assessment 1 is a monthly fee based on transaction volume from the prior month, Historical CAT Assessment 1 may collect more than two-thirds of Historical CAT Costs 1. To the extent that occurs, any excess money collected during the final month in which Historical CAT Assessment 1 is in effect will be used to offset future fees and/or to fund the reserve for the CAT.</P>
                    <P>Finally, proposed paragraph (a)(1)(D) of the CAT Fee Schedule sets forth the requirement for the CAT Executing Brokers to pay the invoices for Historical CAT Assessment 1. It would state that “[e]ach CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).”</P>
                    <HD SOURCE="HD3">(B) Manner of Payment</HD>
                    <P>
                        The Exchange proposes to add paragraph (b)(1) to the “Consolidated Audit Trail Funding Fees” section of its CAT Fee Schedule to describe the manner of payment of Industry Member CAT fees. The CAT NMS Plan requires the Operating Committee to establish a system for the collection of CAT fees.
                        <SU>90</SU>
                        <FTREF/>
                         The Plan Processor has established a billing system for CAT fees.
                        <SU>91</SU>
                        <FTREF/>
                         Therefore, the Exchange proposes to require CAT Executing Brokers to pay Historical CAT Assessment 1 in accordance with such system. Accordingly, proposed paragraph (b)(1) would state that “[e]ach CAT Executing Broker shall pay its CAT fees as required pursuant to paragraph (a) each month to the Consolidated Audit Trail, LLC in the manner prescribed by the Consolidated Audit Trail, LLC.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             Section 11.4 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>91</SU>
                             The billing process and system are described in CAT Alert 2023-02 as well as the CAT FAQs related to the billing of CAT fees, the Industry Member CAT Reporter Portal User Guide, the FCAT Industry Member Onboarding Guide, the FCAT Connectivity Supplement for Industry Members and the CAT Billing Webinars (dated September 28, 2023 and November 7, 2023), each available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(C) Failure To Pay CAT Fees</HD>
                    <P>The CAT NMS Plan further states that:</P>
                    <EXTRACT>
                        <P>
                            Participants shall require each Industry Member to pay all applicable fees authorized under this Article XI within thirty (30) days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due (as determined in accordance with the preceding sentence), such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of: (a) the Prime Rate plus 300 basis points; or (b) the maximum rate permitted by applicable law.
                            <SU>92</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>92</SU>
                                 Section 11.4 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, the Exchange proposes to add this requirement to the Exchange's CAT Fee Schedule. Proposed paragraph (b)(2) of the CAT Fee Schedule would state:</P>
                    <EXTRACT>
                        <P>Each CAT Executing Broker shall pay the CAT fees required pursuant to paragraph (a) within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If a CAT Executing Broker fails to pay any such CAT fee when due, such CAT Executing Broker shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of (A) the Prime Rate plus 300 basis points, or (B) the maximum rate permitted by applicable law.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(7) Historical CAT Assessment Details</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Details regarding the calculation of a CAT Executing Broker's Historical CAT Assessment will be provided upon request to such CAT Executing Broker. At a minimum, such details would include each CAT Executing Broker's executed equivalent share volume and corresponding fee by (1) Listed 
                            <PRTPAGE P="10418"/>
                            Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise than on an exchange, and (3) by buy-side transactions and sell-side transactions.
                            <SU>93</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>93</SU>
                                 Section 11.3(a)(iv)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        Such information would provide CEBBs and CEBSs with the ability to understand the details regarding the calculation of their Historical CAT Assessment.
                        <SU>94</SU>
                        <FTREF/>
                         CAT LLC will provide CAT Executing Brokers with these details regarding the calculation of their Historical CAT Assessments on their monthly invoice for the Historical CAT Assessment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, providing CAT Execut[ing] Brokers information regarding the calculation of their CAT Fees will aid in transparency and permit CAT Execut[ing] Brokers to confirm the accuracy of their invoices for CAT Fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>
                        In addition, CAT LLC will make certain aggregate statistics regarding Historical CAT Assessments publicly available. Specifically, the CAT NMS Plan states that, “[f]or each Historical CAT Assessment, at a minimum, CAT LLC will make publicly available the aggregate executed equivalent share volume and corresponding aggregate fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise on an exchange, and (3) by buy-side transactions and sell-side transactions.” 
                        <SU>95</SU>
                        <FTREF/>
                         Such aggregate statistics will be available on the CAT website.
                    </P>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             Section 11.3(a)(iv)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission stated that “[t]he publication of the aggregate executed equivalent share volume and aggregate fee is appropriate because it would allow Participants and CAT Executing Brokers a high-level validation of executed volume and fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>Furthermore, CAT LLC will make publicly available on the CAT website the total amount invoiced each month that Historical CAT Assessment 1 is in effect as well as the total amount invoiced for Historical CAT Assessment 1 for all months since its commencement. CAT LLC also will make publicly available on the CAT website the total costs to be collected from Industry Members for Historical CAT Assessment 1. By reviewing statistics regarding how much has been invoiced and how much remains to be invoiced for Historical CAT Assessment 1, Industry Members would have sufficient information to reasonably track how much longer Historical CAT Assessment 1 is likely to be in place.</P>
                    <HD SOURCE="HD3">(8) Implementation Assistance</HD>
                    <P>To assist Industry Members with compliance with the commencement of Historical CAT Assessment 1, CAT LLC will make available to CAT Executing Brokers four months of mock invoices prior to the commencement of Historical CAT Assessment 1. Specifically, CAT Executing Brokers will receive mock invoices based on transaction data from November 2023, December 2023, January 2024 and February 2024. The mock invoices will be in the same form as the actual, payable invoices, including both the relevant transaction data and the corresponding fee. However, no payments will be required in response to such mock invoices; they are to be used solely to assist CAT Executing Brokers with the development of their processes for paying the CAT fees. Such data will provide CAT Executing Brokers with a preview of the transaction data used in creating the invoices for Historical CAT Assessment 1 fees, as the data will be the same as data provided in actual invoices. Such data preview is intended to facilitate the payment of Historical CAT Assessment 1.</P>
                    <HD SOURCE="HD3">(9) Financial Accountability Milestones</HD>
                    <P>
                        The CAT NMS Plan states that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.” 
                        <SU>96</SU>
                        <FTREF/>
                         The CAT NMS Plan further states that “in all filings submitted by the Participants to the Commission under Section 19(b) of the Exchange Act, to establish or implement Post-Amendment Industry Member Fees pursuant to this Article, . . . the Participants shall clearly indicate whether such fees are related to Post-Amendment Expenses incurred during Period 1, Period 2, Period 3, or Period 4.” 
                        <SU>97</SU>
                        <FTREF/>
                         As discussed in detail below, all applicable Financial Accountability Milestones for Historical CAT Assessment 1—that is, Period 1, Period 2 and Period 3 of the Financial Accountability Milestones—have been satisfied. Furthermore, as discussed below, this filing clearly indicates that Historical CAT Assessment 1 relates to Post-Amendment Expenses incurred during Periods 1, 2 and 3 of the Financial Accountability Milestones.
                    </P>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             Section 11.6(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Period 1 of the Financial Accountability Milestones</HD>
                    <P>
                        In accordance with Section 11.6(b) of the CAT NMS Plan, Historical CAT Assessment 1 seeks to recover costs that are related to “all fees, costs, and expenses (including legal and consulting fees, costs, and expenses) incurred by or for the Company in connection with the development, implementation and operation of the CAT from the effective date of [Section 11.6 of the CAT NMS Plan] until such time as Full Implementation of CAT NMS Plan Requirements has been achieved” 
                        <SU>98</SU>
                        <FTREF/>
                         (“Post-Amendment Expenses”) incurred during FAM Period 1. FAM Period 1 began on June 22, 2020, the effective date of Section 11.6 of the CAT NMS Plan, and concluded on July 31, 2020, the date of Initial Industry Member Core Equity and Options Reporting. Section 1.1 of the CAT NMS Plan defines “Initial Industry Member Core Equity and Options Reporting” as:
                    </P>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             Section 11.6 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>The reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of both: (a) equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information; and (b) options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.</P>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports.
                        <SU>99</SU>
                        <FTREF/>
                         As indicated by the Participants' Quarterly Progress Report for the third quarter of 2020,
                        <SU>100</SU>
                        <FTREF/>
                         Initial Industry Member Core Equity and Option Reporting was completed on schedule on July 22, 2020, which is prior to the July 31, 2020 deadline.
                    </P>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             The Quarterly Progress Reports are available at 
                            <E T="03">https://www.catnmsplan.com/implementation-plan.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020) and Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Under the FAM Period 1 requirement of Initial Industry Member Core Equity and Options Reporting, Industry Members—excluding Small Industry Members that are not OATS reporters—were required to report two categories of data to the CAT: equites transaction data and options transaction data (both excluding Customer Account Information, Customer-ID, and Customer Identifying Information) by July 31, 2020. Pursuant to exemptive relief provided by the Commission, the Commission authorized the 
                        <PRTPAGE P="10419"/>
                        Participants' Compliance Rules to allow core equity reporting for Industry Members (Phase 2a) to begin on June 22, 2020 and core options reporting for Industry Members (Phase 2b) to begin on July 20, 2020.
                        <SU>101</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order. Under the CAT NMS Plan as adopted, the Participants were required, through their Compliance Rules, to require their Large Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2018, and to require their Small Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2019. Sections 6.7(a)(v) and (vi) of the CAT NMS Plan. The SEC granted exemptive relief from these provisions of the CAT NMS Plan to allow for the phased implementation of Industry Member reporting via five phases addressing the reporting requirements for Phase 2a Industry Member Data, Phase 2b Industry Member Data, Phase 2c Industry Member Data, Phase 2d Industry Member Data and Phase 2e Industry Member Data.
                        </P>
                    </FTNT>
                    <P>
                        In adopting the FAMs, the Commission stated that the equities transaction reporting required for FAM Period 1 “is consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Equities 2a file submission and data integrity validations.' ” 
                        <SU>102</SU>
                        <FTREF/>
                         The Phase 2a Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the following data related to Eligible Securities that are equities:
                    </P>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             Securities Exchange Act Rel. No. 88890, 85 FR 31322, 31330 n.97 (“FAM Adopting Release”).
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>• All events and scenarios covered by OATS, which includes information related to the receipt or origination of orders, order transmittal, and order modifications, cancellations and executions;</P>
                        <P>
                            • Reportable Events for: (1) proprietary orders, including market maker orders, for Eligible Securities that are equities; (2) electronic quotes in listed equity Eligible Securities (
                            <E T="03">i.e.,</E>
                             NMS stocks) sent to a national securities exchange or FINRA's Alternative Display Facility (“ADF”); (3) electronic quotes in unlisted Eligible Securities (
                            <E T="03">i.e.,</E>
                             OTC Equity Securities) received by an Industry Member operating an interdealer quotation system (“IDQS”); and (4) electronic quotes in unlisted Eligible Securities sent to an IDQS or other quotation system not operated by a Participant or Industry Member;
                        </P>
                        <P>• Firm Designated IDs (“FDIDs”), which Industry Members must report to the CAT as required by Sections 6.3(d)(i)(A) and 6.4(d)(ii)(C) of the CAT NMS Plan.</P>
                        <P>• Industry Members would be required to report all street side representative orders, including both agency and proprietary orders and mark such orders as representative orders, except in certain limited exceptions as described in the Industry Member Technical Specifications;</P>
                        <P>• The link between the street side representative order and the order being represented when: (1) the representative order was originated specifically to represent a single order received either from a customer or another broker-dealer; and (2) there is (a) an existing direct electronic link in the Industry Member's system between the order being represented and the representative order and (b) any resulting executions are immediately and automatically applied to the represented order in the Industry Member's system;</P>
                        <P>• Manual and Electronic Capture Time for Manual Order Events;</P>
                        <P>• Special handling instructions for the original receipt or origination of an order during Phase 2a; and</P>
                        <P>• When routing an order, whether the order was routed as an intermarket sweep order (“ISO”).</P>
                    </EXTRACT>
                    <P>
                        In Phase 2a, Industry Members were not required to report modifications of a previously routed order in certain limited instances, nor were they required to report a cancellation of an order received from a Customer after the order has been executed.
                        <SU>103</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             Phased Reporting Exemptive Relief Order at 23076-78.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Equities 2a file submission and data integrity validation (Large Industry Members and Small OATS Reporters)” was completed on June 22, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information” was completed on June 22, 2020.</P>
                    <P>
                        In adopting the FAMs, the Commission stated that the options transaction reporting required for FAM Period 1 is “consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Options 2b file submission and data integrity validations.' ” 
                        <SU>104</SU>
                        <FTREF/>
                         The Phase 2b Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the Industry Member Data related to Eligible Securities that are options and related to simple electronic option orders, excluding electronic paired option orders. A simple electronic option order is an order to buy or sell a single option that is not related to or dependent on any other transaction for pricing and timing of execution that is either received or routed electronically by an Industry Member. Electronic receipt of an order is defined as the initial receipt of an order by an Industry Member in electronic form in standard format directly into an order handling or execution system. Electronic routing of an order is the routing of an order via electronic medium in standard format from one Industry Member's order handling or execution system to an exchange or another Industry Member. An electronic paired option order is an electronic option order that contains both the buy and sell side that is routed to another Industry Member or exchange for crossing and/or price improvement as a single transaction on an exchange. Responses to auctions of simple orders and paired simple orders would be reportable in Phase 2b. Furthermore, combined orders in options would be treated in Phase 2b in the same way as equity representative orders are treated in Phase 2a. A combined order would mean, as permitted by SRO rules, a single, simple order in Listed Options created by combining individual, simple orders in Listed Options from a customer with the same exchange origin code before routing to an exchange. During Phase 2b, the single combined order sent to an exchange must be reported and marked as a combined order, but the linkage to the underlying orders is not required to be reported until Phase 2d.
                        <SU>105</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             FAM Adopting Release at 31330, n.98.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             Phased Reporting Exemptive Relief Order at 23078.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Options 2b file submission and data integrity validations” was completed on July 20, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information” was completed on July 20, 2020.</P>
                    <P>
                        As discussed above, the Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from June 22, 2020 through July 31, 2020. The total costs for this period, as discussed above, are $6,377,343. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781).
                        <PRTPAGE P="10420"/>
                    </P>
                    <HD SOURCE="HD3">(B) Period 2 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 2. FAM Period 2 began on August 1, 2020, and concluded on December 31, 2020, the date of the Full Implementation of Core Equity Reporting. Section 1.1 of the CAT NMS Plan defines “Full Implementation of Core Equity Reporting” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2020,
                        <SU>106</SU>
                        <FTREF/>
                         Full Implementation of Core Equity Reporting was completed on schedule by December 31, 2020.
                    </P>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the Full Implementation of Core Equity Reporting requires the satisfaction of two prongs. The first prong requires Participants to have fully implemented the first phase of equities transaction reporting for Industry Members (excluding Small Industry Members that are not OATS reporters) at an Error Rate of less than 5%. In addition, equities transaction data produced by the CAT at this stage must also be sufficiently interlinked so as to permit full analysis of an order's lifecycle across the national market, excluding full linkage of representative orders. As CAT LLC reported on its Quarterly Progress Reports, Phase 2a was fully implemented as of October 26, 2020, including intra-firm, inter-firm, national securities exchange, and trade reporting facilities linkages.
                        <SU>107</SU>
                        <FTREF/>
                         In addition to the reporting of Phase 2a Industry Member Data as described above with regard to FAM Period 1, the following linkage data was added to the CAT as described in the Quarterly Progress Reports for the third and fourth quarter of 2020:
                    </P>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             For a description of the requirements of Phases 2a, 
                            <E T="03">see</E>
                             Phased Reporting Exemptive Relief Order.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            • “Production Go-Live for Equities 2a Intrafirm Linkage validations” was completed on 7/27/2020; 
                            <SU>108</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>108</SU>
                                 Q3 2020 Quarterly Progress Report (Oct. 20, 2021).
                            </P>
                        </FTNT>
                        <P>• “Production Go-Live for Firm to Firm Linkage validations for Equities 2a (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020; and</P>
                        <P>• “Production Go-Live for Equities 2a Exchange and TRF Linkage validations (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020.</P>
                    </EXTRACT>
                    <P>Furthermore, as CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2020, the average overall error rate for Phase 2a Industry Member Data was less than 5% as of December 31, 2020. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The second prong of this FAM requires that the equities transaction data collected by the CAT at this stage be made available to regulators through two basic query tools required by the CAT NMS Plan—a targeted query tool that will enable regulators to retrieve data via an online query screen with a variety of predefined selection criteria, and a user-defined direct query tool that will provide regulators with the ability to query data using all available attributes and data sources.
                        <SU>109</SU>
                        <FTREF/>
                         As CAT LLC reported on its Quarterly Progress Reports, the query tool functionality incorporating the data from Phase 2a was available to the Participants and the Commission as of December 31, 2020.
                        <SU>110</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             Section 6.10(c)(i)(A) of the CAT NMS Plan requires the Plan Processor to “provide Participants and the SEC with access to all CAT Data stored in the Central Repository” via an “online targeted query tool.” Appendix D, Sections 8.1.1-8.1.3 of the CAT NMS Plan describes the required functionality associated with this regulatory tool. Appendix D, Section 8.2.1 describes the required functionality associated with a user-defined direct query tool that will “deliver large sets of data that can then be used in internal surveillance or market analysis applications.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020); Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021); and Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>111</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             Securities Exchange Act Rel. No. 98848 (Nov. 2, 2023), 88 FR 77128, 77129 n.13 (Nov. 8, 2023) (“Settlement Exemptive Order”).
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from August 1, 2020 through December 31, 2020. The total costs for this period, as discussed above, are $42,976,478. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($14,325,492.70) and CEBSs paying one-third ($14,325,492.70).
                    </P>
                    <HD SOURCE="HD3">(C) Period 3 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 3. FAM Period 3 began on January 1, 2021, and concluded on December 31, 2021, the date of the Full Availability and Regulatory Utilization of Transactional Database Functionality. Section 1.1 of the CAT NMS Plan defines “Full Availability and Regulatory Utilization of Transactional Database Functionality” as: </P>
                    <EXTRACT>
                        <FP>
                            the point at which: (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or 
                            <PRTPAGE P="10421"/>
                            order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).
                        </FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>112</SU>
                        <FTREF/>
                         Full Availability and Regulatory Utilization of Transactional Database Functionality was completed on schedule by December 31, 2021.
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires the satisfaction of five prongs. The first prong requires that reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>113</SU>
                        <FTREF/>
                         FINRA retired OATS effective September 1, 2021.
                        <SU>114</SU>
                        <FTREF/>
                         Accordingly, after the retirement of OATS, reporting to OATS was no longer required.
                    </P>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             Securities Exchange Act Rel. No. 92239 (June 23, 2021), 86 FR 34293 (June 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        In addition to Phase 2a and Phase 2b Industry Member Data, the second and third prongs of “Full Availability and Regulatory Utilization of Transactional Database Functionality” require Industry Member reporting of Phase 2c Industry Member Data and Phase 2d Industry Member Data. The Phase 2c Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. That Order states that “Phase 2c Industry Member Data” is Industry Member Data related to Eligible Securities that are equities other than Phase 2a Industry Member Data, Phase 2d Industry Member Data, or Phase 2e Industry Member Data. Specifically, the Phase 2c Industry Member Data includes Industry Member Data that is related to Eligible Securities that are equities and that is related to: (1) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (2) quotes in unlisted Eligible Securities sent to an IDQS operated by a CAT Reporter (reportable by the Industry Member sending the quotes) (except for quotes reportable in Phase 2d, as discussed below); (3) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) that are not sent to a national securities exchange or FINRA's Alternative Display Facility; (4) reporting changes to client instructions regarding modifications to algorithms; (5) marking as a representative order any order originated to work a customer order in price guarantee scenarios, such as a guaranteed VWAP; (6) flagging rejected external routes to indicate a route was not accepted by the receiving destination; (7) linkage of duplicate electronic messages related to a Manual Order Event between the electronic event and the original manual route; (8) special handling instructions on order route reports (other than the ISO, which is required to be reported in Phase 2a); (9) quote identifier on trade events; (10) reporting of LTIDs (if applicable) for accounts with Reportable Events that are reportable to CAT as of and including Phase 2c; (11) reporting of date account opened or Account Effective Date71 (as applicable) for accounts and reporting of a flag indicating the Firm Designated ID type as account or relationship; (12) order effective time for orders that are received by an Industry Member and do not become effective until a later time; (13) the modification or cancellation of an internal route of an order; and (14) linkages to the customer orders(s) being represented for representative order scenarios, including agency average price trades, net trades, aggregated orders, and disconnected Order Management System (“OMS”)—Execution Management System (“EMS”) scenarios, as required in the Industry Member Technical Specifications.
                        <SU>115</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>115</SU>
                             Phase Reporting Exemptive Relief Order at 23078-79.
                        </P>
                    </FTNT>
                    <P>
                        Phase 2c Industry Member Data also includes electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are equities and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: (1) an equity bid or offer is displayed publicly or has been communicated (a) for listed securities to the Alternative Display Facility (ADF) operated by FINRA; or (b) for unlisted equity securities to an “interdealer quotation system,” as defined in FINRA Rule 6420(c); or (2) an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing; 
                        <E T="03">i.e.,</E>
                         no further manual or electronic action is required by the responder providing the quote in order to execute or cause a trade to be executed). With respect to OTC Equity Securities, OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter (other than such an IDQS that does not match and execute orders) are reportable by the Industry Member sending them in Phase 2c. Accordingly, any response to a request for quote or other form of solicitation response provided in a standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this quote definition (
                        <E T="03">i.e.,</E>
                         an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing) would be reportable in Phase 2c.
                        <SU>116</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             
                            <E T="03">Id.</E>
                             at 23079.
                        </P>
                    </FTNT>
                    <P>
                        The Phase 2d Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. “Phase 2d Industry Member Data” is Industry Member Data that is related to Eligible Securities that are options other than Phase 2b Industry Member Data, Industry Member Data that is related to Eligible Securities that are equities other than Phase 2a Industry Member Data or Phase 2c Industry Member Data, and Industry Member Data other than Phase 2e Industry Member Data. Phase 2d Industry Member Data includes with respect to the Eligible Securities that are options: (1) simple manual orders; (2) electronic and manual paired orders; (3) all complex orders with linkages to all CAT-reportable legs; (4) LTIDs (if applicable) for accounts with Reportable Events for Phase 2d; (5) date account opened or Account Effective Date (as applicable) for accounts with an LTID and flag indicating the Firm Designated ID type as account or relationship for such accounts; (6) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (7) the modification or cancellation of an internal route of an order; and (8) linkage between a combined order and the original customer orders. Phase 2d Industry Member Data also would include electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are options and are provided by an Industry Member to other market participants off a national 
                        <PRTPAGE P="10422"/>
                        securities exchange under the following conditions: a listed option bid or offer which is accessible electronically by customers or other market participants and is immediately actionable (
                        <E T="03">i.e.,</E>
                         no further action is required by the responder providing the quote in order to execute or cause a trade to be executed). Accordingly, any response to a request for quote or other form of solicitation response provided in standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this definition is reportable in Phase 2d for options.
                        <SU>117</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Phase 2d Industry Member Data also includes with respect to Eligible Securities that are options or equities (1) receipt time of cancellation and modification instructions through Order Cancel Request and Order Modification Request events; (2) modifications of previously routed orders in certain instances; and (3) OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter that does not match and execute orders. In addition, subject to any exemptive or other relief, Phase 2d Industry Member Data will include verbal or manual quotes on an exchange floor or in the over-the-counter market, where verbal quotes and manual quotes are defined as bids or offers in Eligible Securities provided verbally or that are provided or received other than via a CAT Reporter's order handling and execution system (
                        <E T="03">e.g.,</E>
                         quotations provided via email or instant messaging).
                        <SU>118</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             
                            <E T="03">Id.</E>
                             at 23079-80.
                        </P>
                    </FTNT>
                    <P>
                        The Quarterly Progress Report for the fourth quarter of 2021 states that “Phase 2a was fully implemented as of October 26, 2020;” “Phase 2b was fully implemented as of January 4, 2021;” “Phase 2c was implemented as of April 26, 2021;” and “Phase 2d was fully implemented as of December 13, 2021.” 
                        <SU>119</SU>
                        <FTREF/>
                         The Quarterly Progress Reports for 2021 provide additional detail regarding the implementation of these steps including the following:
                    </P>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>• “Production Go-Live for Equities 2c reporting requirements (Large Industry Members)” was completed on April 26, 2021;</P>
                        <P>• “LTID Account Information Reporting Go-Live for Phases 2a, 2b and 2c (Large Industry Members)” was completed on April 26, 2021;</P>
                        <P>• “FCAT Plan Processor creates linkages of the lifecycle of order events based on the received data through Phase 2d Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                        <P>• “Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                        <P>• “Production Go-Live for Options 2b reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                        <P>• “Production Go-Live for Equities 2c reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                        <P>• “Production Go-Live for Options 2d reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                        <P>• “LTID Account Information Reporting Go-Live for Phases 2d (Large Industry Members)” was completed on December 13, 2021; and</P>
                        <P>
                            • “LTID Account Information Reporting Go-Live for Phases 2a, 2b, 2c and 2d (Small Industry Members)” was completed on December 13, 2021.
                            <SU>120</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>120</SU>
                                 
                                <E T="03">See</E>
                                 Q2 2021 Quarterly Progress Report (July 27, 2021); and Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>The third prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” also imposes an Error Rate requirement of 5% or less. The Quarterly Progress Report for the fourth quarter of 2021 states the average overall error rate was less than 5% as of December 31, 2021. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The fourth prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires that the data collected by the CAT at this stage be made available to regulators through an online targeted query tool and a user-defined direct query tool. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021, the query tool functionality incorporating the data from Phases 2a, 2b, 2c and 2d was available to the Participants and to the Commission as of December 31, 2021.
                        <SU>121</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The fifth prong requires the requirements of Section 6.10(a) of the CAT NMS Plan to have been met. Section 6.10(a) of the CAT NMS Plan requires the Participants to use the tools described in Appendix D to “develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository.” The Exchange implemented a surveillance system, or enhanced existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository as of December 31, 2021 in accordance with Section 6.10(a) of the CAT NMS Plan.
                        <SU>122</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             
                            <E T="03">See</E>
                             Q1 2021 Quarterly Progress Report (April 30, 2021); Q2 2021 Quarterly Progress Report (July 27, 2021); Q3 2021 Quarterly Progress Report (Nov. 1, 2021); Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>123</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             Settlement Exemptive Order at 77129 n.13.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from January 1, 2021 through December 31, 2021. The total costs for this period, as discussed above, are $144,415,268. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($48,138,422.70) and CBSs paying one-third ($48,138,422.70).
                    </P>
                    <HD SOURCE="HD3">2. Statutory Basis</HD>
                    <P>
                        The Exchange believes the proposed rule change is consistent with the requirements of the Exchange Act. The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,
                        <SU>124</SU>
                        <FTREF/>
                         which requires, among other things, that the Exchange's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act,
                        <SU>125</SU>
                        <FTREF/>
                         because it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using its facilities. The Exchange further believes that the proposed rule change is consistent with Section 6(b)(8) of the Act,
                        <SU>126</SU>
                        <FTREF/>
                         which requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. These 
                        <PRTPAGE P="10423"/>
                        provisions also require that the Exchange be “so organized and [have] the capacity to be able to carry out the purposes” of the Act and “to comply, and . . . to enforce compliance by its members and persons associated with its members,” with the provisions of the Exchange Act.
                        <SU>127</SU>
                        <FTREF/>
                         Accordingly, a reasonable reading of the Act indicates that it intended that regulatory funding be sufficient to permit an exchange to fulfill its statutory responsibility under the Act, and contemplated that such funding would be achieved through equitable assessments on the members, issuers, and other users of an exchange's facilities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             15 U.S.C. 78f(b)(6).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             
                            <E T="03">See</E>
                             Section 6(b)(1) of the Exchange Act.
                        </P>
                    </FTNT>
                    <P>
                        The Exchange believes that this proposal is consistent with the Act because it implements provisions of the Plan and is designed to assist the Exchange in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>128</SU>
                        <FTREF/>
                         To the extent that this proposal implements the Plan and applies specific requirements to Industry Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             CAT NMS Plan Approval Order at 84697.
                        </P>
                    </FTNT>
                    <P>The Exchange believes that the proposed fees paid by the CEBBs and CEBSs are reasonable, equitably allocated and not unfairly discriminatory. First, the Historical CAT Assessment 1 fees to be collected are directly associated with the costs of establishing and maintaining the CAT, where such costs include Plan Processor costs and costs related to technology, legal, consulting, insurance, professional and administration, and public relations costs. The Exchange has already incurred such development and implementation costs and the proposed Historical CAT Assessment 1 fees, therefore, would allow the Exchange to collect certain of such costs in a fair and reasonable manner from Industry Members, as contemplated by the CAT NMS Plan.</P>
                    <P>The proposed Historical CAT Assessment 1 fees would be charged to Industry Members in support of the maintenance of a consolidated audit trail for regulatory purposes. The proposed fees, therefore, are consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business operations. The proposed fees would not cover Exchange services unrelated to the CAT. In addition, any surplus would be used as a reserve to offset future fees. Given the direct relationship between CAT fees and CAT costs, the Exchange believes that the proposed fees are reasonable, equitable and not unfairly discriminatory.</P>
                    <P>As further discussed below, the SEC approved the CAT Funding Model, finding it was reasonable and that it equitably allocates fees among Participants and Industry Members. The Exchange believes that the proposed fees adopted pursuant to the CAT Funding Model approved by the SEC are reasonable, equitably allocated and not unfairly discriminatory.</P>
                    <HD SOURCE="HD3">(1) Implementation of CAT Funding Model in CAT NMS Plan</HD>
                    <P>
                        Section 11.1(b) of the CAT NMS Plan states that “[t]he Participants shall file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves.” Per Section 11.1(b) of the CAT NMS Plan, the Exchange has filed this fee filing to implement the Industry Member CAT fees included in the CAT Funding Model. The Exchange believes that this proposal is consistent with the Exchange Act because it is consistent with, and implements, the CAT Funding Model in the CAT NMS Plan, and is designed to assist the Exchange and its Industry Members in meeting regulatory obligations pursuant to the CAT NMS Plan. In approving the CAT NMS Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>129</SU>
                        <FTREF/>
                         Similarly, in approving the CAT Funding Model, the SEC concluded that the CAT Funding Model met this standard.
                        <SU>130</SU>
                        <FTREF/>
                         As this proposal implements the Plan and the CAT Funding Model described therein, and applies specific requirements to Industry Members in compliance with the Plan, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Exchange Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             CAT NMS Plan Approval Order at 84696.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             CAT Funding Model Approval Order at 62686.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(2) Calculation of Fee Rate for Historical CAT Assessment 1 Is Reasonable</HD>
                    <P>
                        The SEC has determined that the CAT Funding Model is reasonable and satisfies the requirements of the Exchange Act. Specifically, the SEC has concluded that the method for determining Historical CAT Assessments as set forth in Section 11.3 of the CAT NMS Plan, including the formula for calculating the Historical Fee Rate, the identification of the parties responsible for payment and the transactions subject to the fee rate for the Historical CAT Assessment, is reasonable and satisfies the Exchange Act.
                        <SU>131</SU>
                        <FTREF/>
                         In each respect, as discussed above, Historical CAT Assessment 1 is calculated, and would be applied, in accordance with the requirements applicable to Historical CAT Assessments as set forth in the CAT NMS Plan. Furthermore, as discussed below, the Exchange believes that each of the figures for the variables in the SEC-approved formula for calculating the fee rate for Historical CAT Assessment 1 is reasonable and consistent with the Exchange Act. Calculation of the Historical Fee Rate for Historical CAT Assessment 1 requires the figures for the Historical CAT Costs 1, the executed equivalent share volume for the prior twelve months, the determination of Historical Recovery Period 1, and the projection of the executed equivalent share volume for Historical Recovery Period 1. Each of these variables is reasonable and satisfies the Exchange Act, as discussed throughout this filing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             
                            <E T="03">Id.</E>
                             at 62662-63.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Historical CAT Costs 1</HD>
                    <P>The formula for calculating a Historical Fee Rate requires the amount of Historical CAT Costs to be recovered. Specifically, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires a fee filing to provide:</P>
                    <EXTRACT>
                        <FP>a brief description of the amount and type of the Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.</FP>
                    </EXTRACT>
                    <P>In accordance with this requirement, the Exchange has set forth the amount and type of Historical CAT Costs 1 for each of these categories of costs above.</P>
                    <P>
                        Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan also requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” 
                        <PRTPAGE P="10424"/>
                        As discussed below, the Exchange believes that the amounts set forth in this filing for each of these cost categories is “reasonable and appropriate.” Each of the costs included in Historical CAT Costs 1 are reasonable and appropriate because the costs are consistent with standard industry practice, based on the need to comply with the requirements of the CAT NMS Plan, incurred subject to negotiations performed on an arm's length basis, and/or are consistent with the needs of any legal entity, particularly one with no employees.
                    </P>
                    <HD SOURCE="HD3">(i) Technology: Cloud Hosting Services</HD>
                    <P>
                        In approving the CAT Funding Model, the Commission recognized that it is appropriate to recover costs related to cloud hosting services as a part of Historical CAT Assessments.
                        <SU>132</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to cloud hosting services described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. As described above, the cloud hosting services costs reflect, among other things, the breadth of the CAT cloud activities, data volume far in excess of the original volume estimates, the need for specialized cloud services given the volume and unique nature of the CAT, the processing time requirements of the Plan, and regular efforts to seek to minimize costs where permissible under the Plan. CAT LLC determined that use of cloud hosting services is necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT, and that the fees for cloud hosting services negotiated by FCAT were reasonable, taking into consideration a variety of factors, including the expected volume of data and the breadth of services provided and market rates for similar services.
                        <SU>133</SU>
                        <FTREF/>
                         Indeed, the actual costs of the CAT are far in excess of the original estimated costs of the CAT due to various factors, including the higher volumes and greater complexity of the CAT than anticipated when Rule 613 was originally adopted.
                    </P>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             For a discussion of the amount and type of cloud hosting services fees, 
                            <E T="03">see</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>To comply with the requirements of the Plan, the breadth of the cloud activities related to the CAT is substantial. The cloud services not only include the production environment for the CAT, but they also include two industry testing environments, support environments for quality assurance and stress testing and disaster recovery capabilities. Moreover, the cloud storage costs are driven by the requirements of the Plan, which requires the storage of multiple versions of the data, from the original submitted version of the data through various processing steps, to the final version of the data.</P>
                    <P>
                        Data volume is a significant driver of costs for cloud hosting services. When the Commission adopted the CAT NMS Plan in 2016, it estimated that the CAT would need to receive 58 billion records per day 
                        <SU>134</SU>
                        <FTREF/>
                         and that annual operating costs for the CAT would range from $36.5 million to $55 million.
                        <SU>135</SU>
                        <FTREF/>
                         Through 2021, the actual data volumes have been five times that original estimate. The data volumes for each period are set forth in detail above.
                        <SU>136</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             CAT NMS Plan Approval Order at 84801.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>
                        In addition to the effect of the data volume on the cloud hosting costs, the processing timelines set forth in the Plan contribute to the cloud hosting costs. Although CAT LLC has proactively sought to manage cloud hosting costs while complying with the Plan, including through requests to the Commission for exemptive relief and an amendment to the CAT NMS Plan, stringent CAT NMS Plan requirements do not allow for any material flexibility in cloud architecture design choices, processing timelines (
                        <E T="03">e.g.,</E>
                         the use of non-peak processing windows), or lower-cost storage tiers. As a result, the required CAT processing timelines contribute to the cloud hosting costs of the CAT.
                    </P>
                    <P>The costs for cloud hosting services also reflect the need for specialized cloud hosting services given the data volume and unique processing needs of the CAT. The data volume as well as the data processing needs of the CAT necessitate the use of cloud hosting services. The equipment, power and services required for an on-premises data model, the alternative to cloud hosting services, would be cost prohibitive. Moreover, as CAT was being developed, there were limited cloud hosting providers that could satisfy all the necessary CAT requirements, including the operational and security criteria. Over time more providers offering cloud hosting services that would satisfy these criteria have entered the market. CAT LLC will continue to evaluate alternative cloud hosting services, recognizing that the time and cost to move to an alternative cloud provider would be substantial.</P>
                    <P>
                        The reasonableness of the cloud hosting services costs is further supported by key cost discipline mechanisms for the CAT—a cost-based funding structure, cost transparency, cost management efforts (including regular efforts to lower compute and storage costs where permitted by the Plan) and oversight. Together, these mechanisms help ensure the ongoing reasonableness of the CAT's costs and the level of fees assessed to support those costs.
                        <SU>137</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 97151 (Mar. 15, 2023), 88 FR 17086, 17117 (Mar. 21, 2023) (describing key cost discipline mechanisms for the CAT).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Technology: Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to operating fees as a part of Historical CAT Assessments.
                        <SU>138</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The operating fees include the negotiated fees paid by CAT LLC to the Plan Processor to operate and maintain the system for order-related information and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the selection of FCAT as the Plan Processor was reasonable and appropriate given its expertise with securities regulatory reporting, after a process of considering other potential candidates.
                        <SU>139</SU>
                        <FTREF/>
                         CAT LLC also determined that the fixed price contract, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, was reasonable and appropriate, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity.
                        <SU>140</SU>
                        <FTREF/>
                         The services performed by FCAT for each period and the costs related to such services are described above.
                        <SU>141</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(b), 3(a)(2)(B)(ii)(b), 3(a)(2)(B)(iii)(b) and 3(a)(2)(B)(iv)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iii) Technology: CAIS Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to CAIS 
                        <PRTPAGE P="10425"/>
                        operating fees as a part of Historical CAT Assessments.
                        <SU>142</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to CAIS operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The CAIS operating fees include the fees paid to the Plan Processor to operate and maintain CAIS and to perform the business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the FCAT-negotiated fees for Kingland's CAIS-related services, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity, were reasonable and appropriate.
                        <SU>143</SU>
                        <FTREF/>
                         The services performed by Kingland for each period and the costs for each period are described above.
                        <SU>144</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(c), 3(a)(2)(B)(ii)(c), 3(a)(2)(B)(iii)(c) and 3(a)(2)(B)(iv)(c) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iv) Technology: Change Request Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to change request fees as a part of Historical CAT Assessments.
                        <SU>145</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to change request fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. It is common practice to utilize a change request process to address evolving needs in technology projects. This is particularly true for a project like CAT that is the first of its kind, both in substance and in scale. The substance and costs of each of the change requests are evaluated by the Operating Committee, and approved in accordance with the requirements for Operating Committee meetings. In each case, CAT LLC determined that the change requests were necessary to implement the CAT. As described above, the change requests cover various technology changes, including, for example, changes related to CAT reporting, data feeds and exchange functionality. CAT LLC also determined that the costs for each change request were appropriate for the relevant technology change. A description of the change requests for each FAM Period and their total costs are set described above.
                        <SU>146</SU>
                        <FTREF/>
                         As noted above, the total costs for change requests through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.25% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(d), 3(a)(2)(B)(ii)(d), 3(a)(2)(B)(iii)(d) and 3(a)(2)(B)(iv)(d) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(v) Capitalized Developed Technology Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to capitalized developed technology costs as a part of Historical CAT Assessments.
                        <SU>147</SU>
                        <FTREF/>
                         Capitalized developed technology costs include costs related to certain development costs, costs related to certain modifications, upgrades and other changes to the CAT, CAIS implementation fees and license fees. The amount and type of costs for each period are described in more detail above.
                        <SU>148</SU>
                        <FTREF/>
                         CAT LLC determined that these costs are reasonable and should be included as a part of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(e), 3(a)(2)(B)(ii)(e), 3(a)(2)(B)(iii)(e) and 3(a)(2)(B)(iv)(e) above.
                        </P>
                    </FTNT>
                    <P>
                        These costs involve the activity of both the Initial Plan Processor and FCAT, as the successor Plan Processor.
                        <SU>149</SU>
                        <FTREF/>
                         With regard to the Initial Plan Processor, the Participants utilized an RFP to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan. CAT LLC entered into an agreement with the Initial Plan Processor in which CAT LLC would pay the Initial Plan Processor a negotiated, fixed price fee.
                        <SU>150</SU>
                        <FTREF/>
                         In addition, as described above, CAT LLC determined that is [
                        <E T="03">sic</E>
                        ] was appropriate to enter into an agreement with FCAT as the successor Plan Processor.
                        <SU>151</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(e) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vi) Legal</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to legal fees as a part of Historical CAT Assessments.
                        <SU>152</SU>
                        <FTREF/>
                         CAT LLC determined that the legal costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Given the unique nature of the CAT, the number of parties involved with the CAT (including, for example, the SEC, Participants, Industry Members, and vendors) and the many regulatory issues associated with the CAT, the scope of the necessary legal services are substantial. CAT LLC determined that the scope of the legal services is necessary to implement and maintain the CAT and that the legal rates reflect the specialized services necessary for such a project. When hiring each law firm for a CAT project, CAT LLC interviewed multiple firms, and determined to hire each firm based on a variety of factors, including the relevant expertise and fees. In each case, CAT LLC determined that the hourly fee rates were in line with market rates for the specialized legal expertise. In addition, CAT LLC determined that the total costs incurred for each CAT project were appropriate given the breadth of services provided. The services performed by each law firm for each period and the costs related to such services are described above.
                        <SU>153</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(2) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(f), 3(a)(2)(B)(ii)(f), 3(a)(2)(B)(iii)(f) and 3(a)(2)(B)(iv)(f) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vii) Consulting</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover consulting costs as a part of Historical CAT Assessments.
                        <SU>154</SU>
                        <FTREF/>
                         CAT LLC determined that the consulting costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees 
                        <SU>155</SU>
                        <FTREF/>
                         and because of the significant number of issues associated with the CAT, the consultants provided assistance in the management of various CAT matters and the processes related to such matters.
                        <SU>156</SU>
                        <FTREF/>
                         CAT LLC considered a variety of factors in choosing a consulting firm and determined to select Deloitte after an interview process.
                        <SU>157</SU>
                        <FTREF/>
                         CAT LLC also determined that the consulting services were provided at reasonable market rates, as the fees were negotiated annually and comparable to the rates charged by other consulting 
                        <PRTPAGE P="10426"/>
                        firms for similar work.
                        <SU>158</SU>
                        <FTREF/>
                         Moreover, the total costs for such consulting services were appropriate in light of the breadth of services provided by Deloitte. The services performed by Deloitte and the costs related to such services are described above.
                        <SU>159</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(3) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             As stated in the filing of the proposed CAT NMS Plan, “[i]t is the intent of the Participants that the Company have no employees.” Securities Exchange Act Rel. No. 77724 (Apr. 27, 2016), 81 FR 30614, 30621 (May 17, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             CAT LLC uses certain third parties to perform tasks that may be performed by administrators for other NMS Plans. 
                            <E T="03">See, e.g.,</E>
                             CTA Plan and CQ Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(g), 3(a)(2)(B)(ii)(g), 3(a)(2)(B)(iii)(g) and 3(a)(2)(B)(iv)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(viii) Insurance</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover insurance costs as a part of Historical CAT Assessments.
                        <SU>160</SU>
                        <FTREF/>
                         CAT LLC determined that the insurance costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that it is common practice to have directors' and officers' liability insurance, and errors and omissions liability insurance. CAT LLC further determined that it was important to have cyber security insurance given the nature of the CAT, and such a decision is consistent with the CAT NMS Plan, which states that the cyber incident response plan may include “[i]nsurance against security breaches.” 
                        <SU>161</SU>
                        <FTREF/>
                         In selecting the insurance providers for these policies, CAT LLC engaged in an evaluation of alternative insurers, including a comparison of the pricing offered by the alternative insurers.
                        <SU>162</SU>
                        <FTREF/>
                         Based on this analysis, CAT LLC determined that the selected insurance policies provided appropriate coverage at reasonable market rates.
                        <SU>163</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(4) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             Section 4.1.5 of Appendix D of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(h), 3(a)(2)(B)(ii)(h), 3(a)(2)(B)(iii)(h) and 3(a)(2)(B)(iv)(h) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ix) Professional and Administration</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover professional and administration costs as a part of Historical CAT Assessments.
                        <SU>164</SU>
                        <FTREF/>
                         CAT LLC determined that the professional and administration costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees, all required accounting, financial, tax, cash management and treasury functions for CAT LLC have been outsourced at market rates. In addition, the required annual financial statement audit of CAT LLC is included in professional and administration costs, which costs are also at market rates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(5) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees.
                        <SU>165</SU>
                        <FTREF/>
                         The hourly fee rates for this firm were in line with market rates for the financial advisory services provided.
                        <SU>166</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Anchin. The services performed by Anchin and the costs related to such services are described above.
                        <SU>167</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC also determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the role given the balanace [
                        <E T="03">sic</E>
                        ] of these considerations.
                        <SU>168</SU>
                        <FTREF/>
                         Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services.
                        <SU>169</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Grant Thornton. The services performed by Grant Thornton and the costs related to such services are described above.
                        <SU>170</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to the receipt of certain market data from Exegy. After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy. Exegy provided the data elements required by the CAT NMS Plan, and the fees were reasonable and in line with market rates for the market data received.
                        <SU>171</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment.
                        <SU>172</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(x) Public Relations Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover public relations costs as a part of Historical CAT Assessments.
                        <SU>173</SU>
                        <FTREF/>
                         CAT LLC determined that the public relations costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that the types of public relations services utilized were beneficial to the CAT and market participants more generally. Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                        <SU>174</SU>
                        <FTREF/>
                         By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT issues to the benefit of all market participants.
                        <SU>175</SU>
                        <FTREF/>
                         Moreover, CAT LLC determined that the rates charged for such services were in line with market rates.
                        <SU>176</SU>
                        <FTREF/>
                         As noted above, the total public relations costs through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.1% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(6) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(j), 3(a)(2)(B)(ii)(j), 3(a)(2)(B)(iii)(j) and 3(a)(2)(B)(iv)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Total Executed Equivalent Share Volume for the Prior 12 Months</HD>
                    <P>
                        The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. CAT LLC determined 
                        <PRTPAGE P="10427"/>
                        the total executed equivalent share volume for the prior twelve months by counting executed equivalent shares in the same manner as it will count executed equivalent shares for CAT billing purposes.
                    </P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to establish a Historical Recovery Period of 24 months for Historical CAT Assessment 1 and that such length is reasonable. CAT LLC determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans notes to the Participants in a timely fashion. CAT LLC determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>177</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, CAT LLC recognized that the total costs for Historical CAT Assessment 1 was less than the total costs for 2022 and 2023, and therefore it would be appropriate to recover those costs in two years. Furthermore, CAT LLC notes 24 months is appropriate because it is not currently proposing that Industry Members be required to pay another Historical CAT Assessment or CAT Fee with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model Approval Order at 62682.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Executed Equivalent Share Volume for Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. CAT LLC determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant in recent years. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is 7,685,722,694,558.88 executed equivalent shares.
                        <SU>178</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Actual Fee Rate for Historical CAT Assessment 1</HD>
                    <HD SOURCE="HD3">(i) Decimal Places</HD>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>179</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of CAT Fee Schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 by one-third, and rounding the result to 6 decimal places. CAT LLC determined that the use of six decimal places is reasonable as it balances the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Reasonable Fee Level</HD>
                    <P>
                        The Exchange believes that imposing Historical CAT Assessment 1 with a fee rate of $0.000015 per executed equivalent share is reasonable because it provides for a revenue stream for the Company that is aligned with Historical CAT Costs 1 and such costs would be spread out over an appropriate recovery period, as discussed above. Moreover, the Exchange believes that the level of the fee rate is reasonable, as it is comparable to other transaction-based fees. Indeed, Historical CAT Assessment 1 is significantly lower than fees assessed pursuant to Section 31 (
                        <E T="03">e.g.,</E>
                         $0.0009 per share to 0.0004 per share),
                        <SU>180</SU>
                        <FTREF/>
                         and, as a result, the magnitude of Historical CAT Assessment 1 is small, and therefore will mitigate any potential adverse economic effects or inefficiencies.
                        <SU>181</SU>
                        <FTREF/>
                         Furthermore, the reasonable fee rate for Historical CAT Assessment 1 further supports CAT LLC's decision to seek to recover all Historical CAT Costs prior to 2022, rather than establishing separate Historical CAT Assessments for pre-FAM, FAM 1, FAM 2 and FAM 3 costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             CAT Funding Model Approval Order at 62663, 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Historical CAT Assessment 1 Provides for an Equitable Allocation of Fees</HD>
                    <P>
                        Historical CAT Assessment 1 provides for an equitable allocation of fees, as it equitably allocates CAT costs between and among the Participants and Industry Members. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act, including the formula for calculating Historical CAT Assessments as well as the Industry Members to be charged the Historical CAT Assessments.
                        <SU>182</SU>
                        <FTREF/>
                         In approving the CAT Funding Model, the SEC stated that “[t]he Participants have sufficiently demonstrated that the proposed allocation of fees is reasonable.” 
                        <SU>183</SU>
                        <FTREF/>
                         Accordingly, the CAT Funding Model sets forth the requirements for allocating fees related to Historical CAT Costs among Participants and Industry Members, and the fee filings for Historical CAT Assessments must comply with those requirements.
                    </P>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <P>Historical CAT Assessment 1 provides for an equitable allocation of fees as it complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. For example, as described above, the calculation of Historical CAT Assessment 1 complies with the formula set forth in Section 11.3(b) of the CAT NMS Plan. In addition, Historical CAT Assessment 1 would be charged to CEBBs and CEBSs in accordance with Section 11.3(b) of the CAT NMS Plan. Furthermore, the Participants would continue to remain responsible for their designated share of Past CAT Costs through the cancellation of loans made by the Participants to CAT LLC.</P>
                    <P>In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1—Historical CAT Costs 1 (including Excluded Costs), the count for the executed equivalent share volume for the prior 12 months, the length of the Historical Recovery Period, and the projected executed equivalent share volume for the Historical Recovery Period—are reasonable. Moreover, these inputs lead to a reasonable fee rate for Historical CAT Assessment 1 that is lower than other fee rates for transaction-based fees. A reasonable fee rate allocated in accordance with the requirements of the CAT Funding Model provides for an equitable allocation of fees.</P>
                    <HD SOURCE="HD3">(4) Historical CAT Assessment 1 Is Not Unfairly Discriminatory</HD>
                    <P>
                        Historical CAT Assessment 1 is not an unfairly discriminatory fee. The SEC approved the CAT Funding Model, finding that each aspect of the CAT 
                        <PRTPAGE P="10428"/>
                        Funding Model satisfied the requirements of the Exchange Act. In reaching this conclusion, the SEC analyzed the potential effect of Historical CAT Assessments calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Historical CAT Assessment 1 complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 and the resulting fee rate for Historical CAT Assessment 1 is reasonable. Therefore, Historical CAT Assessment 1 does not impose an unfairly discriminatory fee on Industry Members.
                    </P>
                    <P>Finally, the Exchange believes the proposed fees established pursuant to the CAT Funding Model promote just and equitable principles of trade, and, in general, protect investors and the public interest, and are provided in a transparent manner and specificity in CAT Fee Schedule. The Exchange also believes that the proposed fees are reasonable because they would provide ease of calculation, ease of billing and other administrative functions, and predictability of a fee based on fixed rate per executed equivalent share. Such factors are crucial to estimating a reliable revenue stream for CAT LLC and for permitting Exchange members to reasonably predict their payment obligations for budgeting purposes.</P>
                    <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                    <P>
                        Section 6(b)(8) of the Act 
                        <SU>184</SU>
                        <FTREF/>
                         requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that Historical CAT Assessment 1 implements provisions of the CAT NMS Plan that were approved by the Commission and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>In addition, all Participants (including exchanges and FINRA) are proposing to introduce Historical CAT Assessment 1 on behalf of CAT LLC to implement the requirements of the CAT NMS Plan. Therefore, this is not a competitive fee filing, and, therefore, it does not raise competition issues between and among the Participants.</P>
                    <P>
                        Furthermore, in approving the CAT Funding Model, the SEC analyzed the potential competitive impact of the CAT Funding Model, including competitive issues related to market services, trading services and regulatory services, efficiency concerns, and capital formation.
                        <SU>185</SU>
                        <FTREF/>
                         The SEC also analyzed the potential effect of CAT fees calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Based on this analysis, the SEC approved the CAT Funding Model as compliant with the Exchange Act. Historical CAT Assessment 1 is calculated and implemented in accordance with the CAT Funding Model as approved by the SEC.
                    </P>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             CAT Funding Model Approval Order at 62676-86.
                        </P>
                    </FTNT>
                    <P>As discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 is reasonable and the resulting fee rate for Historical CAT Assessment 1 calculated in accordance with the CAT Funding Model is reasonable. Therefore, Historical CAT Assessment 1 would not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act.</P>
                    <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                    <P>The Exchange neither solicited nor received written comments on the proposed rule change.</P>
                    <HD SOURCE="HD1">III. Suspension of the Proposed Rule Change</HD>
                    <P>
                        Pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>186</SU>
                        <FTREF/>
                         at any time within 60 days of the date of filing of a proposed rule change pursuant to Section 19(b)(1) of the Act,
                        <SU>187</SU>
                        <FTREF/>
                         the Commission summarily may temporarily suspend the change in the rules of an SRO if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. As discussed below, a temporary suspension of the proposed rule change is necessary or appropriate to allow for additional analysis of the proposed rule change's consistency with the Act and the rules thereunder.
                    </P>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <P>
                        When exchanges file their proposed rule changes with the Commission, including fee filings like the Exchange's present proposed rule change, they are required to provide a statement supporting the proposed rule change's basis under the Act and the rules and regulations thereunder applicable to the exchange.
                        <SU>188</SU>
                        <FTREF/>
                         The instructions to Form 19b-4, on which exchanges file their proposed rule changes, specify that such statement “should be sufficiently detailed and specific to support a finding that the proposed rule change is consistent with [those] requirements.” 
                        <SU>189</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>188</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.19b-4 (Item 3 entitled “Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Among other things, the Exchange's proposed rule change is subject to Section 6 of the Act, including Sections 6(b)(4), (5), and (8), which require the rules of an exchange to: (1) provide for the equitable allocation of reasonable fees among members, issuers, and other persons using the exchange's facilities; 
                        <SU>190</SU>
                        <FTREF/>
                         (2) be designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers; 
                        <SU>191</SU>
                        <FTREF/>
                         and (3) not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
                        <SU>192</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>190</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             15 U.S.C. 78f(b)(5).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>192</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>
                        The proposed rule change is also subject to the CAT Funding Model set forth in the CAT NMS Plan. For example, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” 
                        <PRTPAGE P="10429"/>
                        In addition, Section 11.3(b)(i)(C) of the CAT NMS Plan provides that the “Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and Section 11.3(b)(i)(D) of the CAT NMS Plan provides that “[t]he length of the Historical Recovery Period used in calculating each Historical Fee Rate will be reasonably established by the Operating Committee based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment . . .” Further, Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan provides that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.”
                    </P>
                    <P>
                        In temporarily suspending the Exchange's fee change, the Commission intends to further consider whether the proposed fees are consistent with the statutory requirements applicable to a national securities exchange under the Act and with the requirements set forth in the CAT Funding Model. Among other things, the Commission will consider whether the proposed rule change provides for reasonable fees that satisfy the standards under the Act and the rules thereunder.
                        <SU>193</SU>
                        <FTREF/>
                         Further, and among other things, the Commission will consider whether the proposed rule change, as required by the CAT Funding Model, provides “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including, but not limited to, whether the Operating Committee has “reasonably determine[d] the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and whether the “length of the Historical Recovery Period used in calculating each Historical Fee Rate [was] reasonably established by the Operating Committee.” 
                        <SU>194</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>193</SU>
                             
                            <E T="03">See</E>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>194</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <P>
                        Therefore, the Commission finds that it is necessary or appropriate in the public interest, for the protection of investors, and otherwise in furtherance of the purposes of the Act, to temporarily suspend the proposed rule change.
                        <SU>195</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>195</SU>
                             For purposes of temporarily suspending the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                            <E T="03">See</E>
                             15 U.S.C. 78c(f).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">IV. Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</HD>
                    <P>
                        In addition to temporarily suspending the proposed rule change, the Commission is instituting proceedings pursuant to Sections 19(b)(3)(C) 
                        <SU>196</SU>
                        <FTREF/>
                         and 19(b)(2)(B) 
                        <SU>197</SU>
                        <FTREF/>
                         of the Act to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change to inform the Commission's analysis of whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>196</SU>
                             15 U.S.C. 78s(b)(3)(C). Once the Commission temporarily suspends a proposed rule change, Section 19(b)(3)(C) of the Act requires that the Commission institute proceedings under Section 19(b)(2)(B) to determine whether a proposed rule change should be approved or disapproved.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>197</SU>
                             15 U.S.C. 78s(b)(2)(B).
                        </P>
                    </FTNT>
                    <P>
                        Pursuant to Section 19(b)(2)(B) of the Act,
                        <SU>198</SU>
                        <FTREF/>
                         the Commission is providing notice of the grounds for possible disapproval under consideration. The Commission is instituting proceedings to allow for additional consideration and comment on whether the Exchange has sufficiently demonstrated that the proposed rule change is consistent with Section 6(b)(4) 
                        <SU>199</SU>
                        <FTREF/>
                         of the Act, and consistent with the CAT Funding Model. Section 6(b)(4) of the Act, among other things, provides that the dues, fees, and other charges for an exchange's members be reasonable. And the CAT Funding Model, as noted above, requires, among other things, that the proposed rule change provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including whether the Operating Committee has reasonably determined the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee and whether the length of the Historical Recovery Period used in calculating each Historical Fee Rate was reasonably established by the Operating Committee.
                        <SU>200</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>198</SU>
                             15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the Act also provides that proceedings to determine whether to disapprove a proposed rule change must be concluded within 180 days of the date of publication of notice of the filing of the proposed rule change. 
                            <E T="03">See id.</E>
                             The time for conclusion of the proceedings may be extended for up to 60 days if the Commission finds good cause for such extension and publishes its reasons for so finding, or if the exchange consents to the longer period. 
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>199</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>200</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">V. Commission's Solicitation of Comments</HD>
                    <P>
                        The Commission requests that interested persons provide written submission of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they have with the proposed rule change. In particular, the Commission invites the written views of interested persons concerning whether the proposed rule change is consistent with Section 6(b)(4), or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.
                        <SU>201</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act grants the Commission flexibility to determine what type of proceeding—either oral or notice and opportunity for written comments—is appropriate for consideration of a particular proposed rule change by an exchange. 
                            <E T="03">See</E>
                             Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975).
                        </P>
                    </FTNT>
                    <P>Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule changes should be approved or disapproved by March 5, 2024. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by March 19, 2024.</P>
                    <P>Comments may be submitted by any of the following methods:</P>
                    <HD SOURCE="HD2">Electronic Comments</HD>
                    <P>
                        • Use the Commission's internet comment form (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ); or
                    </P>
                    <P>
                        • Send an email to 
                        <E T="03">rule-comments@sec.gov.</E>
                         Please include file number SR-CboeBZX-2024-004 on the subject line.
                    </P>
                    <HD SOURCE="HD2">Paper Comments</HD>
                    <P>
                        • Send paper comments in triplicate to Secretary, Securities and Exchange 
                        <PRTPAGE P="10430"/>
                        Commission, 100 F Street NE, Washington, DC 20549-1090.
                    </P>
                    <FP>
                        All submissions should refer to file number SR-CboeBZX-2024-004. 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 internet website (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-CboeBZX-2024-004 and should be submitted on or before March 5, 2024. Rebuttal comments should be submitted by March 19, 2024.
                    </FP>
                    <HD SOURCE="HD1">VI. Conclusion</HD>
                    <P>
                        <E T="03">It is therefore ordered,</E>
                         pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>202</SU>
                        <FTREF/>
                         that File No. SR-CboeBZX-2024-004 be, and hereby is, temporarily suspended. In addition, the Commission is instituting proceedings to determine whether the proposed rule change should be approved or disapproved.
                    </P>
                    <FTNT>
                        <P>
                            <SU>202</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <SIG>
                        <P>
                            For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                            <SU>203</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>203</SU>
                                 17 CFR 200.30-3(a)(12), (57) and (58).
                            </P>
                        </FTNT>
                        <NAME>Sherry R. Haywood,</NAME>
                        <TITLE>Assistant Secretary.</TITLE>
                    </SIG>
                </PREAMB>
                <FRDOC>[FR Doc. 2024-01177 Filed 2-12-24; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 8011-01-P</BILCOD>
            </NOTICE>
            <NOTICE>
                <PREAMB>
                    <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                    <DEPDOC>[Release No. 34-99370; File No. SR-C2-2024-002]</DEPDOC>
                    <SUBJECT>Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail; Suspension of and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</SUBJECT>
                    <DATE>January 17, 2024.</DATE>
                    <P>
                        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act” or the “Exchange Act”),
                        <SU>1</SU>
                        <FTREF/>
                         and Rule 19b-4 thereunder,
                        <SU>2</SU>
                        <FTREF/>
                         notice is hereby given that, on January 2, 2024, Cboe C2 Exchange, Inc. (the “Exchange” or “C2”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is, pursuant to Section 19(b)(3)(C) of the Act, hereby: (i) temporarily suspending the rule change; and (ii) instituting proceedings to determine whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             17 CFR 240.19b-4.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                    <P>
                        The Exchange proposes to adopt a fee schedule to establish fees for Industry Members 
                        <SU>3</SU>
                        <FTREF/>
                         related to certain historical costs of the National Market System Plan Governing the Consolidated Audit Trail (the “CAT NMS Plan” or “Plan”) incurred prior to January 1, 2022. These fees will be payable to Consolidated Audit Trail, LLC (“CAT LLC” or “the Company”) 
                        <SU>4</SU>
                        <FTREF/>
                         and referred to as Historical CAT Assessment 1 and would be described in an Exchange fee schedule entitled “Consolidated Audit Trail Funding Fees” (“CAT Fee Schedule”).
                        <SU>5</SU>
                        <FTREF/>
                         The fee rate for Historical CAT Assessment 1 will be $0.000015 per executed equivalent share. CAT Executing Brokers will receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 calculated based on their transactions as CAT Executing Brokers for the Buyer (“CEBB”) and/or CAT Executing Brokers for the Seller (“CEBS”) in March 2024.
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             An “Industry Member” is defined as “a member of a national securities exchange or a member of a national securities association.” 
                            <E T="03">See</E>
                             Exchange Rule 7.20(u) (which incorporates by reference Cboe Options, Inc. (“Cboe Options”) Rule 7.20(u)). Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth in the CAT Compliance Rule. 
                            <E T="03">See</E>
                             Chapter 7, Section B of the Exchange's Rulebook (which incorporates by reference Cboe Options Chapter 7, Section B).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             The term “CAT LLC” may be used to refer to Consolidated Audit Trail, LLC or CAT NMS, LLC, depending on the context.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             The Exchange and each of its affiliated exchanges (Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe Exchange, Cboe EDGA Exchange, Inc., and Cboe EDGX Exchange, Inc.) are filing to adopt the CAT Fee Schedule.
                        </P>
                    </FTNT>
                    <P>
                        The text of the proposed rule change is available on the Exchange's website (
                        <E T="03">http://markets.cboe.com/us/options/regulation/rule_filings/ctwo/</E>
                        ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                    </P>
                    <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item V below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                    <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <HD SOURCE="HD3">1. Purpose</HD>
                    <P>
                        On July 11, 2012, the Commission adopted Rule 613 of Regulation NMS, which required the self-regulatory organizations (“SROs”) to submit a national market system (“NMS”) plan to create, implement and maintain a consolidated audit trail that would capture customer and order event information for orders in NMS securities across all markets, from the time of order inception through routing, cancellation, modification or execution.
                        <SU>6</SU>
                        <FTREF/>
                         On November 15, 2016, the Commission approved the CAT NMS Plan.
                        <SU>7</SU>
                        <FTREF/>
                         Under the CAT NMS Plan, the Operating Committee has the discretion to establish funding for CAT LLC to 
                        <PRTPAGE P="10431"/>
                        operate the CAT, including establishing fees for Industry Members to be assessed by CAT LLC that would be implemented on behalf of CAT LLC by the Participants.
                        <SU>8</SU>
                        <FTREF/>
                         The Operating Committee adopted a revised funding model to fund the CAT (“CAT Funding Model”). On September 6, 2023, the Commission approved the CAT Funding Model, after concluding that the model was reasonable and that it satisfied the requirements of Section 11A of the Exchange Act and Rule 608 thereunder.
                        <SU>9</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             Securities Exchange Act Rel. No. 67457 (July 18, 2012), 77 FR 45721 (Aug. 1, 2012).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             Securities Exchange Act Rel. No. 79318 (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016) (“CAT NMS Plan Approval Order”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             Securities Exchange Act Rel. No. 98290 (Sept. 6, 2023), 88 FR 62628 (Sept. 12, 2023) (“CAT Funding Model Approval Order”).
                        </P>
                    </FTNT>
                    <P>
                        The CAT Funding Model provides a framework for the recovery of the costs to create, develop and maintain the CAT, including providing a method for allocating costs to fund the CAT among Participants and Industry Members. The CAT Funding Model establishes two categories of fees: (1) CAT fees assessed by CAT LLC and payable by certain Industry Members to recover a portion of historical CAT costs previously paid by the Participants (“Historical CAT Assessment” fees); and (2) CAT fees assessed by CAT LLC and payable by Participants and Industry Members to fund prospective CAT costs (“Prospective CAT Costs” fees).
                        <SU>10</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             Under the CAT Funding Model, the Operating Committee may establish one or more Historical CAT Assessments. Section 11.3(b) of the CAT NMS Plan. This filing only establishes Historical CAT Assessment 1 related to certain Historical CAT Costs as described herein; it does not address any other potential Historical CAT Assessment related to other Historical CAT Costs. In addition, under the CAT Funding Model, the Operating Committee also may establish CAT Fees related to CAT costs going forward. Section 11.3(a) of the CAT NMS Plan. This filing does not address any potential CAT Fees related to CAT costs going forward. Any such other fee for any other Historical CAT Assessment or CAT Fee for Prospective CAT Costs will be subject to a separate fee filing.
                        </P>
                    </FTNT>
                    <P>
                        Under the CAT Funding Model, “[t]he Operating Committee will establish one or more fees (each a `Historical CAT Assessment') to be payable by Industry Members with regard to CAT costs previously paid by the Participants (`Past CAT Costs').” 
                        <SU>11</SU>
                        <FTREF/>
                         In establishing a Historical CAT Assessment, the Operating Committee will determine a “Historical Recovery Period” and calculate a “Historical Fee Rate” for that Historical Recovery Period. Then, for each month in which a Historical CAT Assessment is in effect, each CEBB and CEBS would be required to pay the fee—the Historical CAT Assessment—for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate.
                        <SU>12</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, the proposed recovery of the Past CAT Costs via the Historical CAT Assessment is reasonable.” CAT Funding Model Approval Order at 62662.
                        </P>
                    </FTNT>
                    <P>
                        Each Historical CAT Assessment to be paid by CEBBs and CEBSs is designed to contribute toward the recovery of two-thirds of the Historical CAT Costs. Because the Participants previously have paid Past CAT Costs via loans to the Company, the Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made by the Participants to the Company on a pro rata basis based on the outstanding loan amounts due under the loans, instead of through the payment of a CAT fee.
                        <SU>13</SU>
                        <FTREF/>
                         In addition, Participants also will be 100% responsible for certain Excluded Costs (as discussed below).
                    </P>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             Section 11.3(b)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC proposes to charge CEBBs and CEBSs (as described in more detail below) Historical CAT Assessment 1 to recover certain historical CAT costs incurred prior to January 1, 2022, in accordance with the CAT Funding Model. To implement this fee on behalf of CAT LLC, the CAT NMS Plan requires the Participants to “file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves, and such fees shall be labeled as `Consolidated Audit Trail Funding Fees.' ” 
                        <SU>14</SU>
                        <FTREF/>
                         The Plan further states that “Participants will be required to file with the SEC pursuant to Section 19(b) of the Exchange Act a filing for each Historical CAT Assessment.” 
                        <SU>15</SU>
                        <FTREF/>
                         Accordingly, the purpose of this filing is to implement a Historical CAT Assessment on behalf of CAT LLC for Industry Members, referred to as Historical CAT Assessment 1, in accordance with the CAT NMS Plan.
                        <SU>16</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             Section 11.3(b)(iii)(B)(I) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             Note that there may be one or more Historical CAT Assessments depending on the timing of the completion of the Financial Accountability Milestones, among other things. Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(1) CAT Executing Brokers</HD>
                    <P>
                        Historical CAT Assessment 1 will be charged to each CEBB and CEBS for each applicable transaction in Eligible Securities.
                        <SU>17</SU>
                        <FTREF/>
                         The CAT NMS Plan defines a “CAT Executing Broker” to mean:
                    </P>
                    <FTNT>
                        <P>
                            <SU>17</SU>
                             In its approval of the CAT Funding Model, the Commission determined that charging CAT fees to CAT Executing Brokers was reasonable. In reaching this conclusion the Commission noted that the use of CAT Executing Brokers is appropriate because the CAT Funding Model is based upon the calculation of 
                            <E T="03">executed</E>
                             equivalent shares, and, therefore, charging CAT Executing Brokers would reflect their executing role in each transaction. Furthermore, the Commission noted that, because CAT Executing Brokers are already identified in transaction reports from the exchanges and FINRA's equity trade reporting facilities recorded in CAT Data, charging CAT Executing Brokers could streamline the billing process. CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) with respect to a transaction in an Eligible Security that is executed on an exchange, the Industry Member identified as the Industry Member responsible for the order on the buy-side of the transaction and the Industry Member responsible for the sell-side of the transaction in the equity order trade event and option trade event in the CAT Data submitted to the CAT by the relevant exchange pursuant to the Participant Technical Specifications; and (b) with respect to a transaction in an Eligible Security that is executed otherwise than on an exchange and required to be reported to an equity trade reporting facility of a registered national securities association, the Industry Member identified as the executing broker and the Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event in the CAT Data submitted to the CAT by FINRA pursuant to the Participant Technical Specifications; provided, however, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.
                            <SU>18</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>18</SU>
                                 Section 1.1 of the CAT NMS Plan. Note that CEBBs and CEBSs may, but are not required to, pass-through their CAT fees to their clients, who may, in turn, pass their fees to their clients until they are imposed ultimately on the account that executed the transaction. 
                                <E T="03">See</E>
                                 CAT Funding Model Approval Order at 62649.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>The following fields of the Participant Technical Specifications indicate the CAT Executing Brokers for the transactions executed on an exchange.</P>
                    <GPH SPAN="3" DEEP="190">
                        <PRTPAGE P="10432"/>
                        <GID>EN13FE24.098</GID>
                    </GPH>
                    <GPH SPAN="3" DEEP="79">
                        <GID>EN13FE24.099</GID>
                    </GPH>
                    <P>
                        In addition, the following fields of the Participant Technical Specifications would indicate the CAT Executing Brokers for the transactions executed otherwise than on an exchange.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>19</SU>
                             
                            <E T="03">See</E>
                             Table 23, Section 4.7 (Order Trade Event) of the CAT Reporting Technical Specifications for Plan Participants, Version 4.1.0-r20 (Sept. 25, 2023), 
                            <E T="03">https://www.catnmsplan.com/sites/default/files/2023-09/9.25.2023-CAT_Reporting_Technical_Specifications_for_Participants_4.1.0-r20.pdf</E>
                             (“CAT Reporting Technical Specifications for Plan Participants”).
                        </P>
                        <P>
                            <SU>20</SU>
                             
                            <E T="03">See</E>
                             Table 51, Section 5.2.5.1 (Simple Option Trade Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                        <P>
                            <SU>21</SU>
                             
                            <E T="03">See</E>
                             Table 61, Section 6.1 (TRF/ORF/ADF Transaction Data Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="107">
                        <GID>EN13FE24.100</GID>
                    </GPH>
                    <HD SOURCE="HD3">(2) Calculation of Historical Fee Rate 1</HD>
                    <P>The Operating Committee determined the Historical Fee Rate to be used in calculating Historical CAT Assessment 1 (“Historical Fee Rate 1”) by dividing the Historical CAT Costs for Historical CAT Assessment 1 (“Historical CAT Costs 1”) by the projected total executed share volume of all transactions in Eligible Securities for the Historical Recovery Period for Historical CAT Assessment 1 (“Historical Recovery Period 1”), as discussed in detail below. Based on this calculation, the Operating Committee has determined that Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. This rate is then divided by three and rounded to determine the fee rate of $0.000015 per executed equivalent share that will be assessed to CEBBs and CEBSs, as also discussed in detail below.</P>
                    <HD SOURCE="HD3">(A) Executed Equivalent Shares for Transactions in Eligible Securities</HD>
                    <P>
                        Under the CAT NMS Plan, for purposes of calculating each Historical CAT Assessment, executed equivalent shares in a transaction in Eligible Securities will be reasonably counted as follows: (1) each executed share for a transaction in NMS Stocks will be counted as one executed equivalent share; (2) each executed contract for a transaction in Listed Options will be counted based on the multiplier 
                        <PRTPAGE P="10433"/>
                        applicable to the specific Listed Options (
                        <E T="03">i.e.,</E>
                         100 executed equivalent shares or such other applicable multiplier); and (3) each executed share for a transaction in OTC Equity Securities shall be counted as 0.01 executed equivalent share.
                        <SU>22</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             Section 11.3(a)(i)(B) and 11.3(b)(i)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission concluded that “the use of executed equivalent share volume as the basis of the proposed cost allocation methodology is reasonable and consistent with the approach taken by the funding principles of the CAT NMS Plan.” CAT Funding Model Approval Order at 62640.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Historical CAT Costs 1</HD>
                    <P>
                        The CAT NMS Plan states that “[t]he Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee. Each Historical CAT Assessment will seek to recover from CAT Executing Brokers two-thirds of Historical CAT Costs incurred during the period covered by the Historical CAT Assessment.” 
                        <SU>23</SU>
                        <FTREF/>
                         As described in detail below, Historical CAT Costs 1 would be $337,688,610. This figure includes Past CAT Costs of $401,312,909 minus certain Excluded Costs of $63,624,299. Participants collectively will remain responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), plus the Excluded Costs of $63,624,299. CEBBs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), and CEBSs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870).
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             Section 11.3(b)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        The following describes in detail Historical CAT Costs 1 with regard to four separate historical time periods as well as Past CAT Costs excluded from Historical CAT Costs 1 (“Excluded Costs”). The following cost details are provided in accordance with the requirement in the CAT NMS Plan to provide in the fee filing “a brief description of the amount and type of Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.” 
                        <SU>24</SU>
                        <FTREF/>
                         Each of the costs described below are reasonable, appropriate and necessary for the creation, implementation and maintenance of CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             Section 11.3(b)(iii)(B)(II)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(i) Historical CAT Costs Incurred Prior to June 22, 2020 (Pre-FAM Costs)</HD>
                    <P>Historical CAT Costs 1 would include costs incurred by CAT prior to June 22, 2020 (“Pre-FAM Period”) and already funded by the Participants, excluding Excluded Costs (described further below). Historical CAT Costs 1 would include costs for the Pre-FAM Period of $143,919,521. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($47,973,174), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($47,973,174) and CEBSs paying one-third ($47,973,174). These costs do not include Excluded Costs, as discussed further below. The following table breaks down Historical CAT Costs 1 for the Pre-FAM Period into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.</P>
                    <GPH SPAN="3" DEEP="294">
                        <PRTPAGE P="10434"/>
                        <GID>EN13FE24.101</GID>
                    </GPH>
                    <P>
                        The Pre-FAM Period includes a broad range of CAT-related activity from 2012 through June 22, 2020, including the evaluation of the requirements of SEC Rule 613, the development of the CAT NMS Plan, the evaluation and selection of the initial and successor Plan Processors, the commencement of the creation and implementation of the CAT to comply with Rule 613 and the CAT NMS Plan, including technical specifications for transaction reporting and regulatory access, and related technology and the commencement of reporting to the CAT. The following describes the costs for each of the categories for the Pre-FAM Period.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>25</SU>
                             With respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>26</SU>
                             The costs described in this table of costs for the Pre-FAM Period were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website. In addition, in accordance with Section 6.6(a)(i) of the CAT NMS Plan, in 2018 CAT LLC provided the SEC with “an independent audit of fees, costs, and expenses incurred by the Participants on behalf of the Company prior to the Effective Date of the Plan that will be publicly available.” The audit is available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>The $10,268,840 in technology costs for cloud hosting services represent costs incurred for services provided by the cloud services provider for the CAT, Amazon Web Services, Inc. (“AWS”), during the Pre-FAM Period.</P>
                    <P>As part of its proposal for acting as the successor Plan Processor for the CAT, FCAT selected AWS as a subcontractor to provide cloud hosting services. In 2019, after reviewing the capabilities of other cloud services providers, FCAT determined that AWS was the only cloud services provider at that time sufficiently mature and capable of providing the full suite of necessary cloud services for the CAT, including, for example, the security, resiliency and complexity necessary for the CAT computing requirements. The use of cloud hosting services is standard for this type of high-volume data activity and reasonable and necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT the fees incurred by the Plan Processor for cloud hosting services provided by AWS as FCAT's subcontrator on a monthly basis for the cloud hosting services, and FCAT, in turn, pays such fees to AWS. The fees for cloud hosting services were negotiated by FCAT on an arm's length basis with the goals of managing cost and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the expected volume of data, the breadth of services provided and market rates for similar services. The fees for cloud hosting services during the Pre-FAM Period were paid to FCAT by CAT NMS LLC 
                        <SU>27</SU>
                        <FTREF/>
                         and subsequently Consolidated Audit Trail, LLC (as previously noted, both entities are referred to generally as “CAT LLC”),
                        <SU>28</SU>
                        <FTREF/>
                         and FCAT, in turn, paid AWS. CAT LLC was funded via loan contributions by the Participants.
                        <SU>29</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             CAT NMS, LLC was formed by FINRA and the U.S. national securities exchanges to implement the requirements of SEC Rule 613 under the Exchange Act. SEC Rule 613 required the SROs to jointly submit to the SEC the CAT NMS Plan to create, implement and maintain the CAT. The SEC approved the CAT NMS Plan on November 15, 2016. CAT NMS Plan Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             On August 29, 2019, the Participants formed a new Delaware limited liability company named Consolidated Audit Trail, LLC for the purpose of conducting activities related to the CAT from and after the effectiveness of the proposed amendment of the CAT NMS Plan to replace CAT NMS, LLC. 
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 87149 (Sept. 27, 2019), 84 FR 52905 (Oct. 3, 2019).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             For each of the costs paid by CAT NMS, LLC and Consolidated Audit Trail, LLC as discussed throughout this filing, CAT NMS, LLC and Consolidated Audit Trail, LLC paid these costs via loan contributions by the Participants to CAT NMS, LLC and Consolidated Audit Trail, LLC, respectively.
                        </P>
                    </FTNT>
                    <PRTPAGE P="10435"/>
                    <P>AWS was engaged by FCAT to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. Services provided by AWS include storage services, databases, compute services and other services (such as networking, management tools and DevOps tools). AWS also was engaged to provide various environments for CAT, such as development, performance testing, test and production environments.</P>
                    <P>
                        The cost for AWS services for the CAT is a function of the volume of CAT Data. The greater the amount of CAT Data, the greater the cost of AWS services to the CAT. During the Pre-FAM Period from the engagement of AWS in February 2019 through June 2020, AWS provided cloud hosting services for volumes of CAT Data far in excess of the volume predictions set forth in the CAT NMS Plan. The CAT NMS Plan states, when all CAT Reporters are submitting their data to the CAT, it “must be sized to receive[,] process and load more than 58 billion records per day,” 
                        <SU>30</SU>
                        <FTREF/>
                         and that “[i]t is expected that the Central Repository will grow to more than 29 petabytes of raw, uncompressed data.” 
                        <SU>31</SU>
                        <FTREF/>
                         However, the volume of CAT Data for the Pre-FAM Period was far in excess of these predicted levels. By the end of this period, data submitted to the CAT included options and equities Participant Data,
                        <SU>32</SU>
                        <FTREF/>
                         Phase 2a and Phase 2b Industry Member Data 
                        <SU>33</SU>
                        <FTREF/>
                         (including certain linkages), as well as SIP Data,
                        <SU>34</SU>
                        <FTREF/>
                         reference data and other types of Other Data.
                        <SU>35</SU>
                        <FTREF/>
                         The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during the Pre-FAM Period.
                        <SU>36</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             Appendix D-5 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             
                            <E T="03">See</E>
                             Section 6.3(d) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Rel. No. 88702 (Apr. 20, 2020), 85 FR 23075 (Apr. 24, 2020) (“Phased Reporting Exemptive Relief Order”) for a description of Phase 2a and Phase 2b Industry Member Data.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             
                            <E T="03">See</E>
                             Appendix C-108 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="350">
                        <GID>EN13FE24.102</GID>
                    </GPH>
                    <HD SOURCE="HD3">
                        (b) Technology Costs—Operating Fees
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             Note that, although there were compute hours during this period, data related to such compute hours are no longer available in current data.
                        </P>
                    </FTNT>
                    <P>
                        The $21,085,485 in technology costs related to operating fees represent costs incurred with regard to activities of FCAT as the Plan Processor. Operating fees are those fees paid by CAT LLC to FCAT as the Plan Processor to operate and maintain the CAT and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management as required by the CAT NMS Plan.
                    </P>
                    <P>
                        FCAT was selected to assume the role of the successor Plan Processor. Prior to this selection, the Participants engaged in discussions with two prior Bidders 
                        <SU>38</SU>
                        <FTREF/>
                         for the successor Plan Processor role. 
                        <PRTPAGE P="10436"/>
                        The Operating Committee formed a Selection Subcommittee in accordance with Section 4.12 of the CAT NMS Plan to evaluate and review Bids and to make a recommendation to the Operating Committee with respect to the selection of the successor Plan Processor. In an April 9, 2019 letter to the Commission, the Participants described the reasons for its selection of the successor Plan Processor:
                    </P>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             The term “Bidder” is defined in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>The Selection Subcommittee considered factors including, but not limited to, the following, in recommending FINRA to the Operating Committee as the successor Plan Processor:</P>
                        <P>a. FINRA's specialized technical expertise and capabilities in the area of broker-dealer technology;</P>
                        <P>b. The need to appoint a successor Plan Processor with specialized expertise to develop, implement, and maintain the CAT System in accordance with the CAT NMS Plan and SEC Rule 613;</P>
                        <P>c. FINRA's detailed proposal in response to CATLLC's recent inquiries; and</P>
                        <P>d. FINRA's data query and analytics systems demonstration to the Participants.</P>
                        <P>
                            Based on these and other factors, the Selection Subcommittee determined that FINRA was the most appropriate Bidder to become the successor Plan Processor.
                            <SU>39</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>39</SU>
                                 Letter from Michael J. Simon, Chair, CAT NMS, LLC Operating Committee, to Brent J. Fields, Secretary, SEC (Apr. 9, 2019), 
                                <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection-040919.pdf</E>
                                .
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>
                        On February 26, 2019, the Operating Committee (with FINRA recusing itself) voted to select FINRA as the successor Plan Processor pursuant to Section 6.1(t) of the CAT NMS Plan.
                        <SU>40</SU>
                        <FTREF/>
                         On March 29, 2019, CAT LLC and FCAT (a wholly owned subsidiary of FINRA) entered into a Plan Processor Agreement pursuant to which FCAT would perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT.
                    </FP>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT a negotiated monthly fixed price for the operation of the CAT. This fixed price contract was negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity. The operating fees during the Pre-FAM Period were paid to FCAT by CAT LLC.</P>
                    <P>From March 29, 2019 (the commencement of the Plan Processor Agreement with FCAT) through June 22, 2020 (the end of the Pre-FAM Period), the Plan Processor's activities with respect to the CAT included the following:</P>
                    <P>
                        • Commenced user acceptance testing with market data provided by Exegy Incorporated (“Exegy”), a market data provider; 
                        <SU>41</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             The use of Exegy to provide market data, including the costs and market data provided, is discussed below in Section 3(a)(2)(B)(i)(i).
                        </P>
                    </FTNT>
                    <P>• Published Technical Specifications and related reporting scenarios documents for Phase 2a, 2b and 2c reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated testing for Phase 2a and 2b reporting for Industry Members;</P>
                    <P>• Began developing Technical Specifications and related reporting scenarios documents for Phase 2d reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published Central Repository Access Technical Specifications, and provided regulator access to test data from Industry Members;</P>
                    <P>• Facilitated Participant exchanges that support options market makers sending Quote Sent Time to the CAT;</P>
                    <P>• Facilitated the introduction of OPRA and Options NBBO Other Data to CAT;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing requirements under Regulation SCI;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants, SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk, which is the primary source for answers to questions about CAT, including questions regarding: clock synchronization, firm reporting responsibilities, interpretive questions, technical specifications for reporting to CAT and more;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>
                        • Administered the CAT website and all of its content; 
                        <SU>42</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             The CAT website is 
                            <E T="03">https://www.catnmsplan.com</E>
                            .
                        </P>
                    </FTNT>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>The $2,072,908 in technology costs related to CAIS operating fees represent the fees paid for FCAT's subcontractor charged with the development and operation of CAT's Customer and Account Information System (“CAIS”). The CAT is required under the CAT NMS Plan to capture and store Customer Identifying Information and Customer Account Information in a database separate from the transactional database and to create a CAT-Customer-ID for each Customer.</P>
                    <P>During the Pre-FAM Period, the CAIS-related services were provided by the Plan Processor through the Plan Processor's subcontractor, Kingland Systems Incorporation (“Kingland”). Kingland had experience operating in the securities regulatory technology space, and as a part of its proposal for acting as the Plan Processor for the CAT, FCAT selected Kingland as a subcontractor to provide certain CAIS-related services.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay to the Plan Processor the fees incurred by the FCAT for CAIS-related services provided by FCAT through Kingland on a monthly basis. FCAT negotiated the fees for Kingland's CAIS-related services on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity. The fees for CAIS-related services during the Pre-FAM Period were paid by CAT LLC to FCAT. FCAT, in turn, paid Kingland. During the Pre-FAM Period, Kingland began development of the CAIS Technical Specifications and the building of CAIS. In addition, Kingland also worked on the build related to the CCID Alternative, an alternative approach to customer information that was not included in the CAT NMS Plan as originally adopted.
                        <SU>43</SU>
                        <FTREF/>
                         Furthermore, Kingland also worked on the acceleration of the reporting of large trader identifiers (“LTID”) earlier than 
                        <PRTPAGE P="10437"/>
                        originally contemplated during this period, in accordance with exemptive relief granted by the SEC.
                        <SU>44</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             For a discussion of the CCID Alternative, 
                            <E T="03">see</E>
                             Securities Exchange Act Rel. No. 88393 (Mar. 17, 2020), 85 FR 16152 (Mar. 20, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             Phased Reporting Exemptive Relief Order at 23079-80.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        The technology costs related to change request fees include costs related to certain modifications, upgrades or other changes to the CAT. Change requests are standard practice and necessary to reflect operational changes, including changes related to new market developments, such as new market participants. In general, if CAT LLC determines that a modification, upgrade or other changes to the functionality or service is necessary and appropriate, CAT LLC will submit a request for such a change to the Plan Processor. The Plan Processor will then respond to the request with a proposal for implementing the change, including the cost (if any) of such a change. CAT LLC then determines whether to approve the proposed change. The change request costs were paid by CAT LLC to FCAT. During the Pre-FAM Period, CAT LLC incurred costs of $141,346 related to change requests implemented by FCAT. Such change requests related to a development fee regarding the OPRA and SIP data feeds, and the reprocessing of certain exchange data.
                        <SU>45</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             Note that CAT LLC also has incurred costs related to specific Industry Members (
                            <E T="03">e.g.,</E>
                             reprocessing costs related to Industry Member reporting errors).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>This category of costs includes capitalizable application development costs incurred in the development of the CAT. The capitalized developed technology costs for the Pre-FAM Period of $71,475,941 relate to technology provided by the Initial Plan Processor and the successor Plan Processor.</P>
                    <P>
                        <E T="03">Initial Plan Processor: Thesys CAT, LLC.</E>
                         The capitalized developed technology costs related to the Initial Plan Processor include costs incurred with regard to testing for Participant reporting, Participant reporting to the CAT, a security assessment of the CAT, the development of the billing function for the CAT, and a Plan Processor transition fee.
                    </P>
                    <P>
                        On January 17, 2017, the Selection Committee of the CAT NMS Plan selected the Initial Plan Processor, Thesys Technologies, LLC, for the CAT NMS Plan pursuant to Article V of the CAT NMS Plan.
                        <SU>46</SU>
                        <FTREF/>
                         The Participants utilized a request for proposal (“RFP”) to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan, taking into consideration that the Initial Plan Processor had experience operating in the securities regulatory technology space, among other considerations. On April 6, 2017, CAT LLC entered into an agreement with Thesys CAT LLC (“Thesys CAT”), a Thesys affiliate, to perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT. Under the agreement, CAT LLC would pay Thesys CAT a negotiated, fixed price fee for its role as the Initial Plan Processor. Effective January 30, 2019, the Plan Processor Agreement with Thesys CAT was terminated, and FCAT was subsequently selected as the successor Plan Processor.
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             Letter from the Participants to Brent J. Fields, Secretary, SEC (Jan. 18, 2017), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection.pdf</E>
                            .
                        </P>
                    </FTNT>
                    <P>From January 17, 2017 through January 30, 2019, the time in which the Thesys CAT was engaged for the CAT, but excluding the period from November 15, 2017 through November 15, 2018, the Initial Plan Processor engaged in various activities with respect to the CAT, including preparing iterative drafts of Participant Technical Specifications, Industry Member Technical Specifications and the Central Repository Access Technical Specifications. Thesys CAT initiated and maintained the Participant reporting per the Participant Technical Specifications. In addition, Thesys CAT also developed CAT technology, addressed compliance items, including drafting CAT policies and procedures, addressing Regulation SCI requirements, establishing a CAT Compliance Officer and a Chief Information Security Officer, and addressed security-related matters for the CAT. Furthermore, Thesys CAT performed transition services related to the transition from Thesys CAT to FCAT as the successor Plan Processor from January 30, 2019 through April 15, 2019.</P>
                    <P>
                        <E T="03">Successor Plan Processor: FCAT.</E>
                         The capitalized developed technology costs related to FCAT include: (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, including the completion of go-live functionality related to options ingestion and validation, equities regulatory services agreement query tool updates and unlinked options data query, options linkages release, Industry Member Phase 2a file submission and data integrity (including error corrections), and Industry Member testing, including reporting relationships, ATS order type management, basic reporting statistics, SFTP data integrity feedback and error correction; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including a one-time development fee for a secure analytics workspace, a one-time development fee of an Industry Member connectivity solution, and a one-time development fee for the acceleration of multi-factor authentication; (3) CAIS implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $19,674,463 represent the fees paid for legal services provided by two law firms, Wilmer Cutler Pickering Hale and Dorr LLP (“WilmerHale”) and Pillsbury Winthrop Shaw Pittman LLP (“Pillsbury”), during the Pre-FAM Period. The legal costs exclude those costs incurred from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         Following the adoption of Rule 613, the Participants determined it was necessary to engage external legal counsel to advise the Participants with respect to corporate and regulatory legal matters related to the CAT, including drafting and developing the CAT NMS Plan. The Participants considered a variety of factors in their analysis of prospective law firms, including (1) the firm's qualifications, resources and expertise, (2) the firm's relevant experience and understanding of the regulatory matters raised by the CAT and in advising on matters of similar scope, (3) the composition of the legal team, and (4) professional fees. Following a series of interviews, the Participants acting as a consortium determined that WilmerHale was well qualified given the balance of these considerations and engaged WilmerHale in February 2013.
                    </P>
                    <P>
                        WilmerHale's billing rates are negotiated on an annual basis and are determined with reference to the rates charged by other leading law firms for similar work. The Participants assess WilmerHale's performance and review prospective budgets and staffing plans submitted by WilmerHale on an annual 
                        <PRTPAGE P="10438"/>
                        basis. WilmerHale's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading law firms for similar work.
                    </P>
                    <P>The legal costs for WilmerHale during the Pre-FAM Period included costs incurred from 2013 until June 22, 2020 to address corporate and regulatory legal matters related to the CAT. The legal fees for this law firm during the period from February 2013 until the formation of the CAT NMS, LLC on November 15, 2016 were paid directly by the exchanges and FINRA to WilmerHale. After the formation of CAT NMS LLC, the legal fees were paid by CAT LLC to WilmerHale.</P>
                    <P>After WilmerHale was engaged in 2013 through the end of the Pre-FAM Period on June 22, 2020 (excluding the legal costs from November 15, 2017 through November 15, 2018), WilmerHale provided legal assistance to the CAT on a variety of matters, including with regard to the following:</P>
                    <P>• Analyzed various legal matters associated with the Selection Plan, and drafted an amendment to Selection Plan;</P>
                    <P>• Assisted with the RFP and bidding process for the CAT Plan Processor;</P>
                    <P>• Analyzed legal matters related to the Development Advisory Group (“DAG”);</P>
                    <P>• Drafted the CAT NMS Plan, analyzed various items related to the CAT NMS Plan, and responded to comment letters on CAT NMS Plan;</P>
                    <P>
                        • Provided legal support for the formation of the legal entity, the governance of the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan; and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan and related filings;</P>
                    <P>• Negotiated and drafted the plan processor agreements with the Initial Plan Processor and the successor Plan Processor;</P>
                    <P>• Provided assistance with compliance with Regulation SCI;</P>
                    <P>• Assisted with clock synchronization study;</P>
                    <P>• Provided assistance with respect to the establishment of CAT security;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including with regard to options market maker quotes, Customer IDs, CAT Reporter IDs, linking allocations to executions, CAT reporting timeline, FDIDs, customer and account information, timestamp granularity, small industry members, data facility reporting and linkage, allocation reports, SRO-assigned market participant identifiers and cancelled trade indicators, thereby seeking to implement changes that would be cost effective and benefit Industry Members and Participants;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided advice regarding CAT policies and procedures;</P>
                    <P>• Analyzed the SEC's amendment of the CAT NMS Plan regarding financial accountability;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues; and</P>
                    <P>• Assisted with third party vendor agreements.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         The legal costs for CAT during the Pre-FAM Period include costs related to the legal services performed by Pillsbury. The Participants interviewed this law firm as well as other potential law firms to provide legal assistance regarding certain liability matters. After considering a variety of factors in its analysis, including the relevant expertise and fees of the firm, CAT LLC determined to hire Pillsbury in April 2019. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees were paid by CAT LLC to Pillsbury. The legal costs for Pillsbury during the Pre-FAM Period included costs incurred from April 2019 until June 22, 2020 to address legal matters regarding the agreements between CAT Reporters and CAT LLC concerning certain terms associated with CAT Reporting (the “Reporter Agreement”). During that period, Pillsbury advised CAT LLC regarding applicable legal matters, participated in negotiations between the Participants and Industry Members, participated in meetings with senior SEC staff, the Chairman, and Commissioners, represented CAT LLC and the Participants in an SEC administrative proceeding, and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, litigation involving CAT LLC is an expense of operating the CAT, and, therefore, is appropriately an obligation of both Participants and Industry Members under the CAT Funding Model.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $17,013,414 represent the fees paid to the consulting firm Deloitte &amp; Touche LLP (“Deloitte”) as project manager during the Pre-FAM Period, from October 2012 until June 22, 2020. These consulting costs include costs for advisory services related to the operation of the CAT, and meeting facilitation and communications coordination, vendor support and financial analyses.</P>
                    <P>To help facilitate project management given the unprecedented complexity and scope of the CAT project, the Participants determined it was necessary to engage a consulting firm to assist with the CAT project in 2012, following the adoption of Rule 613. A variety of factors were considered in the analysis of prospective consulting firms, including (1) the firm's qualifications, resources, and expertise, (2) the firm's relevant experience and understanding of the regulatory issues raised by the CAT and in coordinating matters of similar scope, (3) the composition of the consulting team, and (4) professional fees. Following a series of interviews, the exchanges and FINRA as a consortium determined that Deloitte was well qualified given the balance of these considerations and engaged Deloitte on October 1, 2012.</P>
                    <P>Deloitte's fee rates are negotiated on an annual basis and are in line with market rates for this type of specialized consulting work. CAT LLC assesses Deloitte's performance and reviews prospective budgets and staffing plans submitted by Deloitte on an annual basis. Deloitte's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading consulting firms for similar work.</P>
                    <P>
                        The consulting costs for CAT during the period from 2012 until the formation of the CAT NMS, LLC were paid directly by the Participants to Deloitte. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC to Deloitte. CAT LLC reviewed the 
                        <PRTPAGE P="10439"/>
                        consulting fees each month and approved the invoices.
                    </P>
                    <P>After Deloitte was hired in 2012 through the end of the Pre-FAM Period on June 22, 2020 (excluding the consulting costs from November 15, 2017 through November 15, 2018), Deloitte provided a variety of consulting services, including the following:</P>
                    <P>• Established and implemented program operations for the CAT project, including the program managment office and workstream design;</P>
                    <P>• Assisted with the Plan Processor selection process, including but not limited to, the development of the RFP and the bidder evaluation process, and facilitation and consolidation of the Participant's independent reviews;</P>
                    <P>• Assisted with the development and drafting of the CAT NMS Plan, including conducting cost-benefit studies, analyzing OATS and CAT requirements, and drafting appendices to the Plan;</P>
                    <P>• Assisted with cost and funding-related activities for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>
                        • Provided governance support to the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with industry outreach and communications regarding the CAT, including assistance with industry outreach events, the development of the CAT website, frequently asked questions, and coordinating with the CAT LLC's public relations firm;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress;</P>
                    <P>• Coordinated efforts regarding the selection of the successor Plan Processor;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor, including support for the Operating Committee and successor Plan Processor for the new role; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $880,419 represent the cost incurred for insurance for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT insurance policies, which included engaging in discussions with different insurance companies and conducting cost comparisons of various alternative approaches to insurance. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance from USI Insurance Services LLC (“USI”). Such policies are standard for corporate entities, and cyber security liability insurance is important for the CAT System. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        In adopting the CAT NMS Plan, the Commission amended the Plan to add a requirement that CAT LLC's financial statements be prepared in compliance with GAAP, audited by an independent public accounting firm, and made publicly available.
                        <SU>47</SU>
                        <FTREF/>
                         The professional and administration costs include costs related to accounting and accounting advisory services to support the operating and financial functions of CAT, financial statement audit services by an independent accounting firm, preparation of tax returns, and various cash management and treasury functions. In addition, professional and administration costs for the Pre-FAM Period include costs related to the receipt of market data and a security assessment. The costs for these professional and administration services were $1,082,036 for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             Section 9.2 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin Accountants &amp; Advisors (“Anchin”).</E>
                         CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT in April 2018. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services were paid by CAT LLC to Anchin.
                    </P>
                    <P>After Anchin was hired in April 2018 through the end of the Pre-FAM Period on June 22, 2020 (excluding the period from April 2018 through November 15, 2018), Anchin provided a variety of services, including the following:</P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial reporting matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton LLP (“Grant Thornton”).</E>
                         In February 2020, CAT LLC determined to engage an independent accounting firm, Grant 
                        <PRTPAGE P="10440"/>
                        Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the proposed role given the balance of these considerations. Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services. The fees for these services were paid by CAT LLC to Grant Thornton.
                    </P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         The professional and administrative costs for the Pre-FAM Period included costs related to the receipt of certain market data for the CAT pursuant to an agreement with the CAT LLC, and then with FCAT. Exegy provided SIP Data required by the CAT NMS Plan.
                    </P>
                    <P>
                        After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy from July 2018 through March 2019. CAT LLC determined that, unlike certain other vendors, Exegy provided market data that included all data elements required by the CAT NMS Plan.
                        <SU>48</SU>
                        <FTREF/>
                         In addition, the fees were reasonable and in line with market rates for the market data received. Accordingly, the professional and administrative costs for the Pre-FAM Period include the Exegy costs from November 2018 through March 2019. The cost of the market data was reasonable for the market data received. The fees for the market data were paid directly by CAT LLC to Exegy.
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>Upon the termination of the contract between CAT LLC and Exegy, FCAT entered into a contract with Exegy to purchase the required market data from Exegy in July 2019. All costs under the contract were treated as a direct pass through cost to CAT LLC. Therefore, the fees for the market data were paid by CAT LLC to FCAT, who, in turn, paid Exegy for the market data.</P>
                    <P>
                        <E T="03">Security Assessment: RSM US LLP (“RSM”).</E>
                         The operating costs for the Pre-FAM Period include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation, and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment. RSM performed the assessment from October 2018 through December 2018. Accordingly, the costs for the Pre-FAM Period include the costs incurred in November and December 2018. The cost for the security assessment were paid directly to RSM by CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $224,669 represent the fees paid to public relations firms during the Pre-FAM Period for professional communications services to CAT, including media relations consulting, strategy and execution. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants. Specifically, the public relations firms provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                    </P>
                    <P>The services performed by each of the public relations firms were comparable. The fees for such services were reasonable and in line with market rates. Only one public relations firm was engaged at a time; the three firms were engaged sequentially as the primary public relations contact moved among the three firms during this time period.</P>
                    <P>
                        <E T="03">Public Relations Firm: Peppercomm, Inc. (“Peppercomm”).</E>
                         The national securities exchanges and FINRA, acting as a consortium, determined to hire the public relations firm Peppercomm in October 2014 and continued to engage this firm through September 2017. The exchanges and FINRA made this engagement decision after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fee rates for this public relations firm were negotiated on an arm's length basis and were in line with market rates for these types of services. The public relations costs during the period from October 2014 until the formation of the CAT NMS LLC were paid directly by the exchanges and FINRA to the public relations firm. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Sloane &amp; Company (“Sloane”).</E>
                         CAT LLC determined to hire a new public relations firm, Sloane, in March 2018, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Sloane. CAT LLC continued the engagement with Sloane until February 2020.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Peak Strategies.</E>
                         CAT LLC determined to hire a new public relations firm, Peak Strategies, in March 2020, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Peak Strategies.
                    </P>
                    <HD SOURCE="HD3">(ii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 1</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 1 of the Financial Accountability Milestones (“FAM Period 1”),
                        <SU>49</SU>
                        <FTREF/>
                         which covers the period from June 22, 2020-July 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 1 of $6,377,343. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($2,125,781), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781). The following table breaks down Historical CAT Costs 1 for FAM Period 1 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             Section 11.6(a)(i)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10441"/>
                        <GID>EN13FE24.103</GID>
                    </GPH>
                    <P>
                        By the completion
                        <FTREF/>
                         of FAM Period 1, CAT LLC was required to implement the reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of equities transaction data and options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.
                        <SU>52</SU>
                        <FTREF/>
                         CAT LLC completed the requirements of FAM Period 1 by July 31, 2020. The following describes the costs for each of the categories for FAM Period 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>50</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>51</SU>
                             The costs described in this table of costs for FAM Period 1 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             
                            <E T="03">See</E>
                             definition of “Initial Industry Member Core Equity and Options Reporting” in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 1 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 1 Period. Accordingly, the $2,642,122 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 1. The fee arrangement for AWS described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. Moreover, CAT LLC continued to believe that AWS's maturity in the cloud services space as well as the significant cost and time necessary to move the CAT to a different cloud services provider supported the continued engagement of AWS.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 1 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, reference data and other types of Other Data. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 1.
                        <SU>53</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="298">
                        <PRTPAGE P="10442"/>
                        <GID>EN13FE24.104</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 1. Accordingly, the $1,099,680 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 1. The fee arrangement for FCAT described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Published iterative drafts of draft Technical Specifications for Phase 2d, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published iterative drafts of CAIS Technical Specifications, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated Industry Member reporting of Quote Sent Time on Options Market Maker quotes;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 1. Accordingly, the $254,998 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 1. The fee arrangement for Kingland described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>CAT LLC did not incur costs related to change requests during FAM Period 1.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>
                        Capitalized developed technology costs for FAM Period 1 of $1,684,870 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include: (1) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including separate production and industry test entitlements, and reprocessing of exchange event 
                        <PRTPAGE P="10443"/>
                        timestamps; (2) implementation fees; and (3) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $481,687 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 1.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 1 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to WilmerHale. During FAM Period 1, WilmerHale provided legal assistance to the CAT including with regard to the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments and fee filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, verbal activity, options market maker quote sent time, TRF linkages, and allocations;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including the Financial Accountability Milestone amendment;</P>
                    <P>• Assisted with compliance with Regulation SCI;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the drafting of the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Assisted with communications and presentations for the industry regarding CAIS;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding CAT technical specifications;</P>
                    <P>• Assisted with third party vendor agreements; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to Pillsbury. During FAM Period 1, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $137,209 represent the fees paid to Deloitte as project manager during FAM Period 1. CAT LLC continued to employ Deloitte during FAM Period 1 based on, among other things, their expertise and cumulative experience with the CAT. The fee rates for Deloitte during FAM Period 1 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 1 were paid by CAT LLC to the consulting firm. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 1, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>Although insurance was in effect during FAM Period 1, CAT LLC did not incur costs related to insurance during FAM Period 1.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         The professional and administration costs of $69,077 represent the fees paid to Anchin during FAM Period 1. CAT LLC continued to employ Anchin during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these type of financial advisory services. The fees for these services during FAM Period 1 were paid by CAT LLC to Anchin. During FAM Period 1, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups; and</P>
                    <P>• Prepared monthly and quarterly financial statements.</P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $7,700 represent the fees paid to Peak Strategies during FAM Period 1. CAT LLC continued to employ Peak Strategies during FAM Period 1 based on, among other things, their expertise and history with the project. The fee rates for this firm were reasonable and in line with market rates for these types of services. The fees for these services during FAM Period 1 were paid by CAT LLC to Peak Strategies. During FAM Period 1, Peak Strategies continued to provide professional communications services to CAT LLC, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT 
                        <PRTPAGE P="10444"/>
                        (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 2</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT LLC and already funded by Participants during Period 2 of the Financial Accountability Milestones (“FAM Period 2”),
                        <SU>54</SU>
                        <FTREF/>
                         which covers the period from August 1, 2020-December 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 2 of $42,976,478. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($14,325,493), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($14,325,493) and CEBSs paying one-third ($14,325,493). The following table breaks down Historical CAT Costs 1 for FAM Period 2 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             Section 11.6(a)(i)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>55</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>56</SU>
                             The costs described in this table of costs for FAM Period 2 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <GID>EN13FE24.105</GID>
                    </GPH>
                    <P>By the completion of FAM Period 2, CAT LLC was required to implement the following with regard to the CAT:</P>
                    <EXTRACT>
                        <P>
                            (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, CustomerID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission.
                            <SU>57</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>57</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Implementation of Core Equity Reporting Requirements” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 2 by December 31, 2020. The following describes the costs for each of the categories for FAM Period 2.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 2 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 2 Period. Accordingly, the $20,709,212 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 2. The fee arrangement for AWS described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 2 Period, the volume of CAT Data 
                        <PRTPAGE P="10445"/>
                        continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, and Other Data, including reference data. In addition, Industry Members began reporting LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 2.
                        <SU>58</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="311">
                        <GID>EN13FE24.106</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 2. Accordingly, the $9,108,700 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 2. The fee arrangement for FCAT described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, FCAT's activities with respect to the CAT included publishing the Technical Specifications for Phase 2d and overseeing the reporting of firm to firm and intrafirm linkages by Industry Members. In addition, FCAT also continued to engage in the following activities during FAM Period 2:</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the development and implementation of the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>
                        Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 2. Accordingly, the $1,590,298 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 2. The fee arrangement for Kingland described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 
                        <PRTPAGE P="10446"/>
                        2 pursuant to the Plan Processor Agreement. During FAM Period 2, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs.
                    </P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 2, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 2, CAT incurred costs of $51,823 related to a change request regarding the addition of functionality for exchange Participants to report rejected messages to the CAT.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 2 of $6,761,094 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to separate production and industry test entitlements, market maker reference data, and back-processing of exchange exception logic; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $2,766,644 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 2.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 2 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to WilmerHale. During FAM Period 1 [
                        <E T="03">sic</E>
                        ], the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, allocations, exchange activity, OTQT, initial data validation, error corrections and recordkeeping;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittees, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6 of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for the Compliance Subcommittee, including with regard to responses to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding the SEC's proposed security amendments to the CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>
                        • Assisted with third party vendor agreements (
                        <E T="03">e.g.,</E>
                         with regard to Anchin, Grant Thornton and insurance policies);
                    </P>
                    <P>• Assisted with change requests; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to Pillsbury. During FAM Period 2, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted and filed a proposed amendment to the CAT NMS plan regarding liability matters. As discussed above, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $532,146 represent the fees paid to Deloitte as project manager during FAM Period 2. CAT LLC continued to employ Deloitte during FAM Period 2 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 2 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 2 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 2, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $976,098 represent the fees paid for insurance during FAM Period 2. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $438,523 represent the fees paid to Anchin and Grant Thornton for financial services provided during FAM Period 2.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to engage Anchin during FAM Period 2 based on, among other things, their expertise and history 
                        <PRTPAGE P="10447"/>
                        with the project. The hourly fee rates for this firm were in line with market rates for these types of financial advisory services. The fees for these services during FAM Period 2 were paid by CAT LLC to Anchin. During FAM Period 2, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from the Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audit by an independent auditor; and</P>
                    <P>• Reviewed historical costs from inception.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 2 based on, among other things, its expertise and cumulative knowledge of CAT LLC. CAT LLC continued to believe that Grant Thornton was well qualified for its role and its fee rates were in line with with market rates for these accounting services. The fees for these services during FAM Period 2 were paid by CAT LLC to Grant Thornton. During FAM Period 2, Grant Thornton performed a financial statement audit for CAT LLC as an independent accounting firm.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $41,940 represent the fees paid to Peak Strategies during FAM Period 2. CAT LLC continued to employ Peak Strategies during FAM Period 2 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 2 were paid by CAT LLC to Peak Strategies. During FAM Period 2, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iv) Historical CAT Costs Incurred in Financial Accountability Milestone Period 3</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 3 of the Financial Accountability Milestones (“FAM Period 3”),
                        <SU>59</SU>
                        <FTREF/>
                         which covers the period from January 1, 2021-December 31, 2021. Historical CAT Costs 1 would include costs for FAM Period 3 of $144,415,268. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($48,138,423), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($48,138,423) and CEBSs paying one-third ($48,138,423). The following table breaks down Historical CAT Costs 1 for FAM Period 3 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             Section 11.6(a)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10448"/>
                        <GID>EN13FE24.107</GID>
                    </GPH>
                    <P>
                        By the completion of FAM Period 3, CAT LLC was required to implement the following requirements with regard the CAT:
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>60</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>61</SU>
                             The costs described in this table of costs for FAM Period 3 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met.
                            <SU>62</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>62</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Availability and Regulatory Utilization of Transactional Database Functionality” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 3 by December 31, 2021. The following describes the costs for each of the categories for FAM Period 3.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 3 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 3 Period. Accordingly, the $94,574,759 in technology costs for cloud hosting services represents costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 3. The fee arrangement for AWS described above for the earlier periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During FAM Period 3, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a, Phase 2b, Phase 2c and Phase 2d Industry Member Data (including certain linkages), SIP Data, Other Data, including reference data, and LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 3.
                        <SU>63</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="325">
                        <PRTPAGE P="10449"/>
                        <GID>EN13FE24.108</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 3. Accordingly, the $23,106,091 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 3. The fee arrangement for FCAT described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Facilitated Phase 2c and Phase 2d testing for Industry Members;</P>
                    <P>• Oversaw creation of linkages of the lifecycle of order events based on the received data through Phase 2d;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement with FCAT discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 3. Accordingly, the $5,562,383 in technology costs for CAIS operating fees represents costs incurred for services provided by Kingland during FAM Period 3. The fee arrangement for Kingland described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs. The full CAIS Technical Specifications were published during FAM Period 3.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        During FAM Period 3, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 3, CAT incurred costs of $396,169 related to change requests, including the following: (1) the addition of functionality for exchange Participants to report rejected messages to the CAT; (2) the migration of MIRS query engine to AWS to reduce operational costs and increase resiliency; and (3) updating the Participant Technical Specifications to allow for two-sided Participant option quote reporting.
                        <PRTPAGE P="10450"/>
                    </P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 3 of $10,763,372 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor, including the transition from equity data received by FINRA pursuant to various regulatory services agreements between FINRA and Participant exchanges to the equity CAT Data, and the completion of the Industry Member Phase 2d options manual and complex orders go-live requirements; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to off-exchange volume concentration, Participant 24-hour trading and an external metastore; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $6,333,248 represent the fees paid for legal services provided by three law firms, WilmerHale, Pillsbury and Covington &amp; Burling LLP (“Covington”) during FAM Period 3.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 3 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to WilmerHale. During FAM Period 3, the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including, for example, verbal activity regarding Phase 2c cutover, error reports, error corrections, Phase 2d Reporting, unique Order-ID on internal route events, reporting addresses, recordkeeping, and unique CCID for foreign customers;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs, CAIS requirements, ADF, and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6(c) of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding SEC's proposed security amendments to CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>• Provided assistance with change requests;</P>
                    <P>• Provided guidance and regulatory support for litigation regarding the response to SEC's exemptive orders;</P>
                    <P>• Assisted with communications with the industry, including CAT Alerts and presentations;</P>
                    <P>• Provided guidance regarding the confidentiality of CAT Data, including third-party information requests;</P>
                    <P>• Assisted with cost management analysis and proposals; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to Pillsbury. During FAM Period 3, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During this period, Pillsbury advised CAT LLC regarding applicable legal matters, reviewed and responded to comment letters regarding the proposed Plan amendment, participated in meetings with senior SEC staff, responded to comments submitted following the SEC's April 6, 2021 order instituting proceedings,
                        <SU>64</SU>
                        <FTREF/>
                         and assessed legal matters regarding the SEC's October 29, 2021 order denying the proposed Plan amendment.
                        <SU>65</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             Securities Exchange Act Rel. No. 91487 (Apr. 6, 2021), 86 FR 19054 (Apr. 12, 2021).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             Securities Exchange Act Rel. No. 93484 (Oct. 29, 2021), 86 FR 60933 (Nov. 4, 2021).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Law Firm: Covington.</E>
                         CAT LLC hired Covington for litigation with the SEC regarding certain exemptive orders related to the CAT, including orders issued in December 2020.
                        <SU>66</SU>
                        <FTREF/>
                         CAT LLC interviewed this law firm as well as other potential law firms, considering a variety of factors in its analysis for choosing legal assistance, including the relevant expertise and fees of the potential lawyers. CAT LLC approved the engagement of Covington in January 2021. The fee rates for this law firm, which were calculated based on hourly rates, were in line with market rates for specialized services. The legal fees for FAM Period 3 for this firm were paid by CAT LLC to Covington.
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 90688 (Dec. 16, 2020), 85 FR 83634 (Dec. 22, 2020); and Securities Exchange Act Rel. No. 90689 (Dec. 16, 2020), 85 FR 83667 (Dec. 22, 2020) (collectively, the “2020 Orders”).
                        </P>
                    </FTNT>
                    <P>After Covington was hired in 2021 through the end of 2021, the firm provided legal assistance regarding the litigation with the SEC regarding the 2020 Orders. These services included researching, drafting, and filing motions to stay the 2020 orders and related materials in proceedings before the SEC, as well as researching, drafting, and filing petitions for judicial review of the 2020 Orders in proceedings before the U.S. Court of Appeals for the D.C. Circuit. Covington oversaw ongoing litigation proceedings on these matters, and also supported WilmerHale with respect to settlement negotiations with the SEC staff regarding the 2020 Orders.</P>
                    <P>
                        In addition to these services, CAT LLC engaged Covington in November 2021 to provide assistance with respect to the SEC's disapproval of CAT NMS Plan amendments concerning a proposed limitation on liability in the event of a data breach or similar event. Covington provided advice concerning CAT's response to the SEC's disapproval order. This work accounted for a minority of Covington's fees in 2021.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             As discussed above with regard to Pillsbury's work on liability matters, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, such activity is a necessary part of the operation of the CAT.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>
                        The consulting costs of $1,408,209 represent the fees paid to Deloitte as project manager during FAM Period 3. CAT LLC continued to employ Deloitte during FAM Period 3 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 3 were negotiated and in line with market rates 
                        <PRTPAGE P="10451"/>
                        for this type of specialized consulting work. The consulting fees during FAM Period 3 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 3, Deloitte's CAT-related activities included the following:
                    </P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $1,582,714 represent the fees paid for insurance FAM Period 3. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $595,923 represent the fees paid to Anchin and Grant Thornton for financial services during FAM Period 3.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to employ Anchin during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services during FAM Period 3 were paid by CAT LLC to Anchin. During FAM Period 3, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ]bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 3 based on, among other things, their expertise and cumulative knowledge of CAT LLC. CAT LLC determined that Grant Thornton was well qualified for its role and that its fixed fee rates were in line with market rates for these accountant services. The fees for these services during FAM Period 3 were paid by CAT LLC to Grant Thornton. During FAM Period 3, Grant Thornton provided audited financial statements for CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $92,400 represent the fees paid to Peak Strategies during FAM Period 3. CAT LLC continued to employ Peak Strategies during FAM Period 3 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 3 were paid by CAT LLC to Peak Strategies. During FAM Period 3, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(v) Excluded Costs</HD>
                    <P>
                        Historical CAT Costs 1 would not include two categories of CAT costs (“Excluded Costs”): (1) $48,874,937, which are all CAT costs incurred from November 15, 2017 through November 15, 2018; and (2) $14,749,362 of costs related to the termination of the relationship with the Initial Plan Processor. The Participants would remain responsible for 100% of these costs, which total $63,624,299. CAT LLC determined that it was reasonable to exclude these Excluded Costs from Historical CAT Costs 1 because the excluded costs relate to the delay in the start of reporting to the CAT and the conclusion of the relationship with the Initial Plan Processor.
                        <SU>68</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             In approving the CAT Funding Model, the Commission states that “the proposed exclusion of the `Excluded Costs' from Past CAT Costs is reasonable in the Commission's view because it would not require all costs incurred by the Participants to be recovered from Industry Members through the Historical CAT Assessment, specifically excluding those costs related to the delay in the start of reporting to the CAT and costs related to the conclusion of the relationship with the Initial Plan Processor.” CAT Funding Model Approval Order at 62663.
                        </P>
                    </FTNT>
                    <P>First, Historical CAT Costs 1 would not include $14,749,362 of costs related to the conclusion of the relationship with the Initial Plan Processor. Such costs include costs related to the American Arbitration Association, the legal assistance of Pillsbury with regard to the arbitration with Thesys CAT, and the settlement costs related to the arbitration with Thesys CAT. The Participants would remain responsible for 100% of these $14,749,362 in costs.</P>
                    <P>
                        Second, the Historical CAT Costs would exclude all CAT costs incurred from November 15, 2017 through November 15, 2018. CAT LLC determined to exclude all costs during 
                        <PRTPAGE P="10452"/>
                        this one-year period of $48,874,937 from fees charged to Industry Members due to the delay in the start of reporting to the CAT. The Participants would remain responsible for 100% of these $48,874,937 in costs. The following table breaks down these costs into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <GPH SPAN="3" DEEP="239">
                        <GID>EN13FE24.109</GID>
                    </GPH>
                    <P>
                        The following provides additional detail regarding the Excluded Costs.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             The costs described in this table of Excluded Costs were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services, Operating Fees, CAIS Operating Fees and Change Request Fees</HD>
                    <P>CAT LLC did not incur technology costs related to the categories of cloud hosting services, operating fees, CAIS operating fees or change requests during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(b) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for the period from November 15, 2017 through November 15, 2018 include capitalizable application development costs of $37,852,083 incurred in the development of the CAT by the Initial Plan Processor. Such costs include development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Initial Plan Processor. Such costs include costs related to Industry Member technical specifications for orders and transactions, the system security plan, testing and production for Participant CAT reporting, third-party security assessment and response, query portal, onboarding of the Chief Information Security Officer, and ingestion of FINRA TRF data and FINRA data related to halts and corporate actions.</P>
                    <HD SOURCE="HD3">(c) Legal Costs</HD>
                    <P>The legal costs of $6,143,278 represent the fees paid to WilmerHale for legal services from November 15, 2017 through November 15, 2018. During this period, WilmerHale provided legal assistance to the CAT including with regard to the following:</P>
                    <P>• Provided legal support for the governance of the CAT, including governance support for the Operating Committee, Advisory Committee, Compliance Subcommittee, and CAT working groups;</P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan;</P>
                    <P>• Provided assistance related to CAT security;</P>
                    <P>• Drafted exemptive requests, including requests related to PII;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided advice with regard to regulator access to the CAT;</P>
                    <P>• Assisted with the Plan Processor transition;</P>
                    <P>• Provided assistance regarding communications with the industry regarding the CAT;</P>
                    <P>• Provided advice regarding Customer Account Information and PII;</P>
                    <P>• Provided support for litigation related to SEC exemptive orders; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretative and implementation issues.</P>
                    <HD SOURCE="HD3">(d) Consulting Costs</HD>
                    <P>The consulting costs of $4,452,106 represent the fees paid to Deloitte for their role as project manager for the CAT from November 15, 2017 through November 15, 2018. During this period, Deloitte engaged in the following activities with respect to the CAT:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>
                        • Provided governance support to the Operating Committee, including support for Subcommittees and working groups of the Operating Committee (
                        <E T="03">e.g.,</E>
                         Compliance Subcommittee, Cost and Funding Working Group, Technical Working Group, Industry Outreach Working Group, Security Working Group and Steering Committee);
                    </P>
                    <P>
                        • Assisted with cost and funding issue for the CAT, including the development of the CAT funding model 
                        <PRTPAGE P="10453"/>
                        and assistance with loans and the CAT bank account for CAT funding;
                    </P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress.</P>
                    <HD SOURCE="HD3">(e) Insurance</HD>
                    <P>CAT LLC did not incur costs related to insurance during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(f) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $340,145 represent the fees paid to Anchin, Exegy and RSM from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in April 2018 through November 15, 2018, Anchin engaged in the following activities with respect to the CAT:
                    </P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         From July 2018 through November 15, 2018, CAT LLC purchased market data from Exegy (as described in more detail above).
                    </P>
                    <P>
                        <E T="03">Security Assessment: RSM.</E>
                         From October 2018 through November 15, 2018, CAT LLC incurred costs for RSM's performance of a security assessment (as described in more detail above).
                    </P>
                    <HD SOURCE="HD3">(g) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $87,325 represent the fees paid to Sloane from November 15, 2017 through November 15, 2018. From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in March 2018 through November 15, 2018, Sloane provided professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, Sloane provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan).
                    </P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        Under the CAT NMS Plan, the Operating Committee is required to reasonably establish the length of the Historical Recovery Period used in calculating each Historical Fee Rate based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment, and to describe the reasons for its length.
                        <SU>70</SU>
                        <FTREF/>
                         The Historical Recovery Period used in calculating the Historical Fee Rate may not be less than 24 months or more than five years.
                        <SU>71</SU>
                        <FTREF/>
                         The Operating Committee has determined to establish a Historical Recovery Period 1 of 24 months for Historical CAT Assessment 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             Section 11.3(b)(i)(D)(I) and Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             Section 11.3(b)(i)(D)(I) of the CAT NMS Plan. In the CAT Funding Model Approval Order, the SEC stated that “[i]n the Commission's view, it is reasonable for the Operating Committee to establish the length of the Historical Recovery Period to be no less than 24 months and no more than five years.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The Operating Committee determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans to the Participants in a timely fashion. The Operating Committee determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>72</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, the Operating Committee recognized that the total costs for Historical CAT Assessment 1 were less than the total costs for 2022 and 2023,
                        <SU>73</SU>
                        <FTREF/>
                         and therefore it would be reasonable and appropriate to recover costs subject to this filing over an approximate two-year period. Furthermore, the Operating Committee notes that 24 months is appropriate because it is not currently proposing that Industry Members be required to pay additional CAT fees with regard to another Historical CAT Assessment or CAT Fees with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model at 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             The total CAT costs for 2022 were approximately $186 million and the total CAT costs for 2023 are estimated to be approximately $233 million.
                        </P>
                    </FTNT>
                    <P>
                        The length of the Historical Recovery Period 1 and the reasons for its length are provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>74</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             Section 11.3(b)(iii)(B)(II)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Total Executed Equivalent Share Volume</HD>
                    <P>
                        The calculation of Historical Fee Rate 1 also requires the determination of the projected total executed equivalent share volume of transactions in Eligible Securities for Historical Recovery Period 1. Under the CAT NMS Plan, the Operating Committee is required to “reasonably determine the projected total executed equivalent share volume of all transactions in Eligible Securities for each Historical Recovery Period based on the executed equivalent share volume of all transactions in Eligible Securities for the prior twelve months.” 
                        <SU>75</SU>
                        <FTREF/>
                         The Operating Committee is required to base its projection on the prior twelve months, but it may use its discretion to analyze the likely volume for the upcoming year. Such discretion would allow the Operating Committee to use its judgment when estimating projected total executed equivalent share volume if the volume over the prior twelve months was unusual or 
                        <PRTPAGE P="10454"/>
                        otherwise unfit to serve as the basis of a future volume estimate.
                        <SU>76</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             Section 11.3(b)(i)(E) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. The Operating Committee has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. The Operating Committee determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is projected to be 7,685,722,694,558.88 executed equivalent shares.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <P>
                        The projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1 and a description of the calculation of the projection is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>78</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             Section 11.3(b)(iii)(B)(II)(D) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Historical Fee Rate 1</HD>
                    <P>
                        Historical Fee Rate 1 would be calculated by dividing Historical CAT Costs 1 by the reasonably projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1, as described in detail above.
                        <SU>79</SU>
                        <FTREF/>
                         Specifically, Historical Fee Rate 1 would be calculated by dividing $337,688,610 by 7,685,722,694,558.88. As a result, the Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. Historical Fee Rate 1 is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide the Historical Fee Rate in a fee filing for a Historical CAT Assessment.
                        <SU>80</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             In approving the CAT Funding Model, the Commission stated that “[t]he calculation of the Historical Fee Rate by dividing the Historical CAT Costs by the projected total executed equivalent share volume of all transactions in Eligible Securities for the Historical Recovery Period is reasonable.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>80</SU>
                             Section 11.3(b)(iii)(B)(II)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Past CAT Costs and Participants</HD>
                    <P>Participants would not be required to pay any fees associated with Historical CAT Assessment 1 as the Participants previously have paid all Past CAT Costs. The CAT NMS Plan explains that:</P>
                    <EXTRACT>
                        <P>
                            Because Participants previously have paid Past CAT Costs via loans to the Company, Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs and such other additional Past CAT Costs as reasonably determined by the Operating Committee will be paid by the cancellation of loans made to the Company on a pro rata basis based on the outstanding loan amounts due under the loans.
                            <SU>81</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>81</SU>
                                 Section 11.3(b)(ii) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The CAT NMS Plan further states that “Historical CAT Assessments are designed to recover two-thirds of the Historical CAT Costs.” 
                        <SU>82</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             
                            <E T="03">Id.</E>
                             In approving the CAT Funding Model, the Commission stated that “[t]he proposed allocation of the Historical CAT Assessment solely to CEBs and CEBBs, and ultimately Industry Members, is reasonable. The Historical CAT Assessment will still be divided into thirds,” as the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made to the Company. CAT Funding Model Approval Order at 62666.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(4) Monthly Fees</HD>
                    <P>
                        CEBBs and CEBSs would be required to pay fees for Historical CAT Assessment 1 on a monthly basis for the period in which Historical CAT Assessment 1 is in effect.
                        <SU>83</SU>
                        <FTREF/>
                         A CEBB or CEBS's fee for each month would be calculated based on the transactions in Eligible Securities executed by the CEBB or CEBS from the prior month.
                        <SU>84</SU>
                        <FTREF/>
                         Proposed paragraph (a)(1)(A) of the CAT Fee Schedule would state that each CAT Executing Broker would receive its first invoice in April 2024, and “would receive an invoice each month thereafter in which Historical CAT Assessment 1 is in effect.” Proposed paragraph (a)(1)(B) of the CAT Fee Schedule would state that “Consolidated Audited Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” In addition, proposed paragraph (b)(1) of the CAT Fee Schedule states that each CEBB and CEBS is required to pay its CAT fees “each month.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             See proposed paragraph (a)(1)(B) of the CAT Fee Schedule.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(5) Actual Recovery Period for Historical CAT Assessment 1</HD>
                    <P>
                        The CAT NMS Plan states that, “[n]otwithstanding the length of the Historical Recovery Period used in calculating the Historical Fee Rate, each Historical CAT Assessment calculated using the Historical Fee Rate will remain in effect until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                        <SU>85</SU>
                        <FTREF/>
                         Accordingly, Historical CAT Assessment 1 will remain in effect until all Historical CAT Costs 1 have been collected. The actual recovery period for Historical CAT Assessment 1 may be shorter or longer than Historical Recovery Period 1 depending on the actual executed equivalent share volumes during the time that Historical CAT Assessment 1 is in effect.
                        <SU>86</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             Section 11.3(b)(i)(D)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>86</SU>
                             In approving the CAT Funding Model, the Commission stated that “[i]n the Commission's view, it is reasonable for Industry Members to be charged a Historical CAT Assessment until all Historical CAT Costs for the Historical CAT Assessment are collected.” CAT Funding Model Approval Order at 62665.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(6) Consolidated Audit Trail Funding Fees</HD>
                    <P>To implement Historical CAT Assessment 1, the Exchange proposes to adopt CAT Fee Schedule to include the proposed paragraphs described below.</P>
                    <HD SOURCE="HD3">(A) Fee Schedule for Historical CAT Assessment 1</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Each month in which a Historical CAT Assessment is in effect, each CEBB and each CEBS shall pay a fee for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate reasonably determined pursuant to paragraph (b)(i) of this Section 11.3.
                            <SU>87</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>87</SU>
                                 Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, based on the factors discussed above, the Exchange proposes to add paragraph (a)(1) to the CAT Fee Schedule. Proposed paragraph (a)(1) would state the following:</P>
                    <EXTRACT>
                        <P>(A) Each CAT Executing Broker shall receive its first invoice for Historical CAT Assessment 1 in April 2024, which shall set forth the Historical CAT Assessment 1 fees calculated based on transactions in March 2024, and shall receive an invoice for Historical CAT Assessment 1 for each month thereafter in which Historical CAT Assessment 1 is in effect.</P>
                        <P>
                            (B) Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on 
                            <PRTPAGE P="10455"/>
                            a monthly basis. Each month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.
                        </P>
                        <P>(C) Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time. Consolidated Audit Trail, LLC will provide notice when Historical CAT Assessment 1 will no longer be in effect.</P>
                        <P>(D) Each CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).</P>
                    </EXTRACT>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, “as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>88</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of the CAT Fee Schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 of $0.0000439371316687066 by one-third, and rounding the result to 6 decimal places.
                        <SU>89</SU>
                        <FTREF/>
                         The Operating Committee determined to use six decimal places to balance the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             Dividing $0.0000439371316687066 by three equals $0.00001464571055623553. Rounding $$0.00001464571055623553 to six decimal places equals $0.000015.
                        </P>
                    </FTNT>
                    <P>The proposed language in paragraph (a)(1)(A) of the CAT Fee Schedule would describe when CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1. Specifically, CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 and the fees set forth in that invoice would be calculated based on transactions executed in the prior month, that is, transactions executed in March 2024. The payment for the first invoice would be required within 30 days after the receipt of the first invoice (unless a longer period is indicated), as described in proposed paragraph (b)(2) of the CAT Fee Schedule.</P>
                    <P>Proposed paragraph (a)(1)(A) of the CAT Fee Schedule also would describe the monthly cadence of the invoices for Historical CAT Assessment 1. Specifically, after the first invoices are provided to CAT Executing Brokers in April 2024, invoices will be sent to CAT Executing Brokers each month thereafter while Historical CAT Assessment 1 is in effect.</P>
                    <P>Proposed paragraph (a)(1)(B) of the CAT Fee Schedule would describe the invoices for Historical CAT Assessment 1. Proposed paragraph (a)(1)(B) of the CAT Fee Schedule would state that “Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” Proposed paragraph (a)(1)(B) of the CAT Fee Schedule also would describe the fees to be set forth in the invoices for Historical CAT Assessment 1. Specifically, it would state that “[e]ach month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.”</P>
                    <P>
                        Furthermore, proposed paragraph (a)(1)(C) of the CAT Fee Schedule would describe how long Historical CAT Assessment 1 would remain in effect. It would state that “Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time.” This proposed paragraph would further state that “Consolidated Audit Trail, LLC will be [
                        <E T="03">sic</E>
                        ] provide notice when Historical CAT Assessment 1 will no longer be in effect.”
                    </P>
                    <P>Historical CAT Assessment 1 will be assessed for all transactions executed in each month through the end of the month in which two-thirds of Historical CAT Costs 1 are assessed, and then CAT LLC will provide notice that Historical CAT Assessment 1 is no longer in effect. Since Historical CAT Assessment 1 is a monthly fee based on transaction volume from the prior month, Historical CAT Assessment 1 may collect more than two-thirds of Historical CAT Costs 1. To the extent that occurs, any excess money collected during the final month in which Historical CAT Assessment 1 is in effect will be used to offset future fees and/or to fund the reserve for the CAT.</P>
                    <P>Finally, proposed paragraph (a)(1)(D) of the CAT Fee Schedule sets forth the requirement for the CAT Executing Brokers to pay the invoices for Historical CAT Assessment 1. It would state that “[e]ach CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).”</P>
                    <HD SOURCE="HD3">(B) Manner of Payment</HD>
                    <P>
                        The Exchange proposes to add paragraph (b)(1) to the “Consolidated Audit Trail Funding Fees” section of its CAT Fee Schedule to describe the manner of payment of Industry Member CAT fees. The CAT NMS Plan requires the Operating Committee to establish a system for the collection of CAT fees.
                        <SU>90</SU>
                        <FTREF/>
                         The Plan Processor has established a billing system for CAT fees.
                        <SU>91</SU>
                        <FTREF/>
                         Therefore, the Exchange proposes to require CAT Executing Brokers to pay Historical CAT Assessment 1 in accordance with such system. Accordingly, proposed paragraph (b)(1) would state that “[e]ach CAT Executing Broker shall pay its CAT fees as required pursuant to paragraph (a) each month to the Consolidated Audit Trail, LLC in the manner prescribed by the Consolidated Audit Trail, LLC.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             Section 11.4 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>91</SU>
                             The billing process and system are described in CAT Alert 2023-02 as well as the CAT FAQs related to the billing of CAT fees, the Industry Member CAT Reporter Portal User Guide, the FCAT Industry Member Onboarding Guide, the FCAT Connectivity Supplement for Industry Members and the CAT Billing Webinars (dated September 28, 2023 and November 7, 2023), each available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(C) Failure To Pay CAT Fees</HD>
                    <P>The CAT NMS Plan further states that:</P>
                    <EXTRACT>
                        <P>
                            Participants shall require each Industry Member to pay all applicable fees authorized under this Article XI within thirty (30) days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due (as determined in accordance with the preceding sentence), such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of: (a) the Prime Rate plus 300 basis points; 
                            <PRTPAGE P="10456"/>
                            or (b) the maximum rate permitted by applicable law.
                            <SU>92</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>92</SU>
                                 Section 11.4 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, the Exchange proposes to add this requirement to the Exchange's CAT Fee Schedule. Proposed paragraph (b)(2) of the CAT Fee Schedule would state:</P>
                    <EXTRACT>
                        <P>Each CAT Executing Broker shall pay the CAT fees required pursuant to paragraph (a) within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If a CAT Executing Broker fails to pay any such CAT fee when due, such CAT Executing Broker shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of (A) the Prime Rate plus 300 basis points, or (B) the maximum rate permitted by applicable law.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(7) Historical CAT Assessment Details</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Details regarding the calculation of a CAT Executing Broker's Historical CAT Assessment will be provided upon request to such CAT Executing Broker. At a minimum, such details would include each CAT Executing Broker's executed equivalent share volume and corresponding fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise than on an exchange, and (3) by buy-side transactions and sell-side transactions.
                            <SU>93</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>93</SU>
                                 Section 11.3(a)(iv)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        Such information would provide CEBBs and CEBSs with the ability to understand the details regarding the calculation of their Historical CAT Assessment.
                        <SU>94</SU>
                        <FTREF/>
                         CAT LLC will provide CAT Executing Brokers with these details regarding the calculation of their Historical CAT Assessments on their monthly invoice for the Historical CAT Assessment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, providing CAT Execut[ing] Brokers information regarding the calculation of their CAT Fees will aid in transparency and permit CAT Execut[ing] Brokers to confirm the accuracy of their invoices for CAT Fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>
                        In addition, CAT LLC will make certain aggregate statistics regarding Historical CAT Assessments publicly available. Specifically, the CAT NMS Plan states that, “[f]or each Historical CAT Assessment, at a minimum, CAT LLC will make publicly available the aggregate executed equivalent share volume and corresponding aggregate fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise on an exchange, and (3) by buy-side transactions and sell-side transactions.” 
                        <SU>95</SU>
                        <FTREF/>
                         Such aggregate statistics will be available on the CAT website.
                    </P>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             Section 11.3(a)(iv)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission stated that “[t]he publication of the aggregate executed equivalent share volume and aggregate fee is appropriate because it would allow Participants and CAT Executing Brokers a high-level validation of executed volume and fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>Furthermore, CAT LLC will make publicly available on the CAT website the total amount invoiced each month that Historical CAT Assessment 1 is in effect as well as the total amount invoiced for Historical CAT Assessment 1 for all months since its commencement. CAT LLC also will make publicly available on the CAT website the total costs to be collected from Industry Members for Historical CAT Assessment 1. By reviewing statistics regarding how much has been invoiced and how much remains to be invoiced for Historical CAT Assessment 1, Industry Members would have sufficient information to reasonably track how much longer Historical CAT Assessment 1 is likely to be in place.</P>
                    <HD SOURCE="HD3">(8) Implementation Assistance</HD>
                    <P>To assist Industry Members with compliance with the commencement of Historical CAT Assessment 1, CAT LLC will make available to CAT Executing Brokers four months of mock invoices prior to the commencement of Historical CAT Assessment 1. Specifically, CAT Executing Brokers will receive mock invoices based on transaction data from November 2023, December 2023, January 2024 and February 2024. The mock invoices will be in the same form as the actual, payable invoices, including both the relevant transaction data and the corresponding fee. However, no payments will be required in response to such mock invoices; they are to be used solely to assist CAT Executing Brokers with the development of their processes for paying the CAT fees. Such data will provide CAT Executing Brokers with a preview of the transaction data used in creating the invoices for Historical CAT Assessment 1 fees, as the data will be the same as data provided in actual invoices. Such data preview is intended to facilitate the payment of Historical CAT Assessment 1.</P>
                    <HD SOURCE="HD3">(9) Financial Accountability Milestones</HD>
                    <P>
                        The CAT NMS Plan states that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.” 
                        <SU>96</SU>
                        <FTREF/>
                         The CAT NMS Plan further states that “in all filings submitted by the Participants to the Commission under Section 19(b) of the Exchange Act, to establish or implement Post-Amendment Industry Member Fees pursuant to this Article, . . . the Participants shall clearly indicate whether such fees are related to Post-Amendment Expenses incurred during Period 1, Period 2, Period 3, or Period 4.” 
                        <SU>97</SU>
                        <FTREF/>
                         As discussed in detail below, all applicable Financial Accountability Milestones for Historical CAT Assessment 1—that is, Period 1, Period 2 and Period 3 of the Financial Accountability Milestones—have been satisfied. Furthermore, as discussed below, this filing clearly indicates that Historical CAT Assessment 1 relates to Post-Amendment Expenses incurred during Periods 1, 2 and 3 of the Financial Accountability Milestones.
                    </P>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             Section 11.6(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Period 1 of the Financial Accountability Milestones</HD>
                    <P>
                        In accordance with Section 11.6(b) of the CAT NMS Plan, Historical CAT Assessment 1 seeks to recover costs that are related to “all fees, costs, and expenses (including legal and consulting fees, costs, and expenses) incurred by or for the Company in connection with the development, implementation and operation of the CAT from the effective date of [Section 11.6 of the CAT NMS Plan] until such time as Full Implementation of CAT NMS Plan Requirements has been achieved” 
                        <SU>98</SU>
                        <FTREF/>
                         (“Post-Amendment Expenses”) incurred during FAM Period 1. FAM Period 1 began on June 22, 2020, the effective date of Section 11.6 of the CAT NMS Plan, and concluded on July 31, 2020, the date of Initial Industry Member Core Equity and Options Reporting. Section 1.1 of the CAT NMS Plan defines “Initial Industry Member Core Equity and Options Reporting” as:
                    </P>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             Section 11.6 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>The reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of both: (a) equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information; and (b) options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.</P>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' 
                        <PRTPAGE P="10457"/>
                        Quarterly Progress Reports.
                        <SU>99</SU>
                        <FTREF/>
                         As indicated by the Participants' Quarterly Progress Report for the third quarter of 2020,
                        <SU>100</SU>
                        <FTREF/>
                         Initial Industry Member Core Equity and Option Reporting was completed on schedule on July 22, 2020, which is prior to the July 31, 2020 deadline.
                    </P>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             The Quarterly Progress Reports are available at 
                            <E T="03">https://www.catnmsplan.com/implementation-plan.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020) and Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Under the FAM Period 1 requirement of Initial Industry Member Core Equity and Options Reporting, Industry Members—excluding Small Industry Members that are not OATS reporters—were required to report two categories of data to the CAT: equites transaction data and options transaction data (both excluding Customer Account Information, Customer-ID, and Customer Identifying Information) by July 31, 2020. Pursuant to exemptive relief provided by the Commission, the Commission authorized the Participants' Compliance Rules to allow core equity reporting for Industry Members (Phase 2a) to begin on June 22, 2020 and core options reporting for Industry Members (Phase 2b) to begin on July 20, 2020.
                        <SU>101</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order. Under the CAT NMS Plan as adopted, the Participants were required, through their Compliance Rules, to require their Large Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2018, and to require their Small Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2019. Sections 6.7(a)(v) and (vi) of the CAT NMS Plan. The SEC granted exemptive relief from these provisions of the CAT NMS Plan to allow for the phased implementation of Industry Member reporting via five phases addressing the reporting requirements for Phase 2a Industry Member Data, Phase 2b Industry Member Data, Phase 2c Industry Member Data, Phase 2d Industry Member Data and Phase 2e Industry Member Data.
                        </P>
                    </FTNT>
                    <P>
                        In adopting the FAMs, the Commission stated that the equities transaction reporting required for FAM Period 1 “is consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Equities 2a file submission and data integrity validations.' ” 
                        <SU>102</SU>
                        <FTREF/>
                         The Phase 2a Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the following data related to Eligible Securities that are equities:
                    </P>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             Securities Exchange Act Rel. No. 88890, 85 FR 31322, 31330 n.97 (“FAM Adopting Release”).
                        </P>
                    </FTNT>
                    <P>• All events and scenarios covered by OATS, which includes information related to the receipt or origination of orders, order transmittal, and order modifications, cancellations and executions;</P>
                    <P>
                        • Reportable Events for: (1) proprietary orders, including market maker orders, for Eligible Securities that are equities; (2) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) sent to a national securities exchange or FINRA's Alternative Display Facility (“ADF”); (3) electronic quotes in unlisted Eligible Securities (
                        <E T="03">i.e.,</E>
                         OTC Equity Securities) received by an Industry Member operating an interdealer quotation system (“IDQS”); and (4) electronic quotes in unlisted Eligible Securities sent to an IDQS or other quotation system not operated by a Participant or Industry Member;
                    </P>
                    <P>• Firm Designated IDs (“FDIDs”), which Industry Members must report to the CAT as required by Sections 6.3(d)(i)(A) and 6.4(d)(ii)(C) of the CAT NMS Plan.</P>
                    <P>• Industry Members would be required to report all street side representative orders, including both agency and proprietary orders and mark such orders as representative orders, except in certain limited exceptions as described in the Industry Member Technical Specifications;</P>
                    <P>• The link between the street side representative order and the order being represented when: (1) the representative order was originated specifically to represent a single order received either from a customer or another broker-dealer; and (2) there is (a) an existing direct electronic link in the Industry Member's system between the order being represented and the representative order and (b) any resulting executions are immediately and automatically applied to the represented order in the Industry Member's system;</P>
                    <P>• Manual and Electronic Capture Time for Manual Order Events;</P>
                    <P>• Special handling instructions for the original receipt or origination of an order during Phase 2a; and</P>
                    <P>• When routing an order, whether the order was routed as an intermarket sweep order (“ISO”).</P>
                    <P>
                        In Phase 2a, Industry Members were not required to report modifications of a previously routed order in certain limited instances, nor were they required to report a cancellation of an order received from a Customer after the order has been executed.
                        <SU>103</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             Phased Reporting Exemptive Relief Order at 23076-78.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Equities 2a file submission and data integrity validation (Large Industry Members and Small OATS Reporters)” was completed on June 22, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information” was completed on June 22, 2020.</P>
                    <P>
                        In adopting the FAMs, the Commission stated that the options transaction reporting required for FAM Period 1 is “consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Options 2b file submission and data integrity validations.' ” 
                        <SU>104</SU>
                        <FTREF/>
                         The Phase 2b Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the Industry Member Data related to Eligible Securities that are options and related to simple electronic option orders, excluding electronic paired option orders. A simple electronic option order is an order to buy or sell a single option that is not related to or dependent on any other transaction for pricing and timing of execution that is either received or routed electronically by an Industry Member. Electronic receipt of an order is defined as the initial receipt of an order by an Industry Member in electronic form in standard format directly into an order handling or execution system. Electronic routing of an order is the routing of an order via electronic medium in standard format from one Industry Member's order handling or execution system to an exchange or another Industry Member. An electronic paired option order is an electronic option order that contains both the buy and sell side that is routed to another Industry Member or exchange for crossing and/or price improvement as a single transaction on an exchange. Responses to auctions of simple orders and paired simple orders would be reportable in Phase 2b. Furthermore, combined orders in options would be treated in Phase 2b in the same way as equity representative orders are treated in Phase 2a. A combined order would mean, as permitted by SRO rules, a single, simple order in Listed Options created by combining individual, simple orders in Listed Options from a customer with the same exchange origin code before routing to an exchange. During Phase 2b, the single combined order sent to an exchange must be reported and marked as a combined order, but the linkage to the underlying 
                        <PRTPAGE P="10458"/>
                        orders is not required to be reported until Phase 2d.
                        <SU>105</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             FAM Adopting Release at 31330, n.98.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             Phased Reporting Exemptive Relief Order at 23078.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Options 2b file submission and data integrity validations” was completed on July 20, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information” was completed on July 20, 2020.</P>
                    <P>As discussed above, the Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from June 22, 2020 through July 31, 2020. The total costs for this period, as discussed above, are $6,377,343. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781).</P>
                    <HD SOURCE="HD3">(B) Period 2 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 2. FAM Period 2 began on August 1, 2020, and concluded on December 31, 2020, the date of the Full Implementation of Core Equity Reporting. Section 1.1 of the CAT NMS Plan defines “Full Implementation of Core Equity Reporting” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2020,
                        <SU>106</SU>
                        <FTREF/>
                         Full Implementation of Core Equity Reporting was completed on schedule by December 31, 2020.
                    </P>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the Full Implementation of Core Equity Reporting requires the satisfaction of two prongs. The first prong requires Participants to have fully implemented the first phase of equities transaction reporting for Industry Members (excluding Small Industry Members that are not OATS reporters) at an Error Rate of less than 5%. In addition, equities transaction data produced by the CAT at this stage must also be sufficiently interlinked so as to permit full analysis of an order's lifecycle across the national market, excluding full linkage of representative orders. As CAT LLC reported on its Quarterly Progress Reports, Phase 2a was fully implemented as of October 26, 2020, including intra-firm, inter-firm, national securities exchange, and trade reporting facilities linkages.
                        <SU>107</SU>
                        <FTREF/>
                         In addition to the reporting of Phase 2a Industry Member Data as described above with regard to FAM Period 1, the following linkage data was added to the CAT as described in the Quarterly Progress Reports for the third and fourth quarter of 2020:
                    </P>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             For a description of the requirements of Phases 2a, 
                            <E T="03">see</E>
                             Phased Reporting Exemptive Relief Order.
                        </P>
                    </FTNT>
                    <P>
                        • “Production Go-Live for Equities 2a Intrafirm Linkage validations” was completed on 7/27/2020; 
                        <SU>108</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>108</SU>
                             Q3 2020 Quarterly Progress Report (Oct. 20, 2021).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Firm to Firm Linkage validations for Equities 2a (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020; and</P>
                    <P>• “Production Go-Live for Equities 2a Exchange and TRF Linkage validations (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020.</P>
                    <P>Furthermore, as CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2020, the average overall error rate for Phase 2a Industry Member Data was less than 5% as of December 31, 2020. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The second prong of this FAM requires that the equities transaction data collected by the CAT at this stage be made available to regulators through two basic query tools required by the CAT NMS Plan—a targeted query tool that will enable regulators to retrieve data via an online query screen with a variety of predefined selection criteria, and a user-defined direct query tool that will provide regulators with the ability to query data using all available attributes and data sources.
                        <SU>109</SU>
                        <FTREF/>
                         As CAT LLC reported on its Quarterly Progress Reports, the query tool functionality incorporating the data from Phase 2a was available to the Participants and the Commission as of December 31, 2020.
                        <SU>110</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             Section 6.10(c)(i)(A) of the CAT NMS Plan requires the Plan Processor to “provide Participants and the SEC with access to all CAT Data stored in the Central Repository” via an “online targeted query tool.” Appendix D, Sections 8.1.1-8.1.3 of the CAT NMS Plan describes the required functionality associated with this regulatory tool. Appendix D, Section 8.2.1 describes the required functionality associated with a user-defined direct query tool that will “deliver large sets of data that can then be used in internal surveillance or market analysis applications.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020); Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021); and Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>111</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             Securities Exchange Act Rel. No. 98848 (Nov. 2, 2023), 88 FR 77128, 77129 n.13 (Nov. 8, 2023) (“Settlement Exemptive Order”).
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from August 1, 2020 through December 31, 2020. The total costs for this period, as discussed above, are $42,976,478. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($14,325,492.70) and CEBSs paying one-third ($14,325,492.70).
                    </P>
                    <HD SOURCE="HD3">(C) Period 3 of the Financial Accountability Milestones</HD>
                    <P>
                        Historical CAT Assessment 1 seeks to recover costs that are related to Post-
                        <PRTPAGE P="10459"/>
                        Amendment Expenses incurred during FAM Period 3. FAM Period 3 began on January 1, 2021, and concluded on December 31, 2021, the date of the Full Availability and Regulatory Utilization of Transactional Database Functionality. Section 1.1 of the CAT NMS Plan defines “Full Availability and Regulatory Utilization of Transactional Database Functionality” as:
                    </P>
                    <EXTRACT>
                        <FP>the point at which: (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>112</SU>
                        <FTREF/>
                         Full Availability and Regulatory Utilization of Transactional Database Functionality was completed on schedule by December 31, 2021.
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires the satisfaction of five prongs. The first prong requires that reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>113</SU>
                        <FTREF/>
                         FINRA retired OATS effective September 1, 2021.
                        <SU>114</SU>
                        <FTREF/>
                         Accordingly, after the retirement of OATS, reporting to OATS was no longer required.
                    </P>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             Securities Exchange Act Rel. No. 92239 (June 23, 2021), 86 FR 34293 (June 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        In addition to Phase 2a and Phase 2b Industry Member Data, the second and third prongs of “Full Availability and Regulatory Utilization of Transactional Database Functionality” require Industry Member reporting of Phase 2c Industry Member Data and Phase 2d Industry Member Data. The Phase 2c Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. That Order states that “Phase 2c Industry Member Data” is Industry Member Data related to Eligible Securities that are equities other than Phase 2a Industry Member Data, Phase 2d Industry Member Data, or Phase 2e Industry Member Data. Specifically, the Phase 2c Industry Member Data includes Industry Member Data that is related to Eligible Securities that are equities and that is related to: (1) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (2) quotes in unlisted Eligible Securities sent to an IDQS operated by a CAT Reporter (reportable by the Industry Member sending the quotes) (except for quotes reportable in Phase 2d, as discussed below); (3) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) that are not sent to a national securities exchange or FINRA's Alternative Display Facility; (4) reporting changes to client instructions regarding modifications to algorithms; (5) marking as a representative order any order originated to work a customer order in price guarantee scenarios, such as a guaranteed VWAP; (6) flagging rejected external routes to indicate a route was not accepted by the receiving destination; (7) linkage of duplicate electronic messages related to a Manual Order Event between the electronic event and the original manual route; (8) special handling instructions on order route reports (other than the ISO, which is required to be reported in Phase 2a); (9) quote identifier on trade events; (10) reporting of LTIDs (if applicable) for accounts with Reportable Events that are reportable to CAT as of and including Phase 2c; (11) reporting of date account opened or Account Effective Date71 (as applicable) for accounts and reporting of a flag indicating the Firm Designated ID type as account or relationship; (12) order effective time for orders that are received by an Industry Member and do not become effective until a later time; (13) the modification or cancellation of an internal route of an order; and (14) linkages to the customer orders(s) being represented for representative order scenarios, including agency average price trades, net trades, aggregated orders, and disconnected Order Management System (“OMS”)—Execution Management System (“EMS”) scenarios, as required in the Industry Member Technical Specifications.
                        <SU>115</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>115</SU>
                             Phase Reporting Exemptive Relief Order at 23078-79.
                        </P>
                    </FTNT>
                    <P>
                        Phase 2c Industry Member Data also includes electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are equities and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: (1) an equity bid or offer is displayed publicly or has been communicated (a) for listed securities to the Alternative Display Facility (ADF) operated by FINRA; or (b) for unlisted equity securities to an “interdealer quotation system,” as defined in FINRA Rule 6420(c); or (2) an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing; 
                        <E T="03">i.e.,</E>
                         no further manual or electronic action is required by the responder providing the quote in order to execute or cause a trade to be executed). With respect to OTC Equity Securities, OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter (other than such an IDQS that does not match and execute orders) are reportable by the Industry Member sending them in Phase 2c. Accordingly, any response to a request for quote or other form of solicitation response provided in a standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this quote definition (
                        <E T="03">i.e.,</E>
                         an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing) would be reportable in Phase 2c.
                        <SU>116</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             
                            <E T="03">Id.</E>
                             at 23079.
                        </P>
                    </FTNT>
                    <P>
                        The Phase 2d Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. “Phase 2d Industry Member Data” is Industry Member Data that is related to Eligible Securities that are 
                        <PRTPAGE P="10460"/>
                        options other than Phase 2b Industry Member Data, Industry Member Data that is related to Eligible Securities that are equities other than Phase 2a Industry Member Data or Phase 2c Industry Member Data, and Industry Member Data other than Phase 2e Industry Member Data. Phase 2d Industry Member Data includes with respect to the Eligible Securities that are options: (1) simple manual orders; (2) electronic and manual paired orders; (3) all complex orders with linkages to all CAT-reportable legs; (4) LTIDs (if applicable) for accounts with Reportable Events for Phase 2d; (5) date account opened or Account Effective Date (as applicable) for accounts with an LTID and flag indicating the Firm Designated ID type as account or relationship for such accounts; (6) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (7) the modification or cancellation of an internal route of an order; and (8) linkage between a combined order and the original customer orders. Phase 2d Industry Member Data also would include electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are options and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: a listed option bid or offer which is accessible electronically by customers or other market participants and is immediately actionable (
                        <E T="03">i.e.,</E>
                         no further action is required by the responder providing the quote in order to execute or cause a trade to be executed). Accordingly, any response to a request for quote or other form of solicitation response provided in standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this definition is reportable in Phase 2d for options.
                        <SU>117</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Phase 2d Industry Member Data also includes with respect to Eligible Securities that are options or equities (1) receipt time of cancellation and modification instructions through Order Cancel Request and Order Modification Request events; (2) modifications of previously routed orders in certain instances; and (3) OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter that does not match and execute orders. In addition, subject to any exemptive or other relief, Phase 2d Industry Member Data will include verbal or manual quotes on an exchange floor or in the over-the-counter market, where verbal quotes and manual quotes are defined as bids or offers in Eligible Securities provided verbally or that are provided or received other than via a CAT Reporter's order handling and execution system (
                        <E T="03">e.g.,</E>
                         quotations provided via email or instant messaging).
                        <SU>118</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             
                            <E T="03">Id.</E>
                             at 23079-80.
                        </P>
                    </FTNT>
                    <P>
                        The Quarterly Progress Report for the fourth quarter of 2021 states that “Phase 2a was fully implemented as of October 26, 2020;” “Phase 2b was fully implemented as of January 4, 2021;” “Phase 2c was implemented as of April 26, 2021;” and “Phase 2d was fully implemented as of December 13, 2021.” 
                        <SU>119</SU>
                        <FTREF/>
                         The Quarterly Progress Reports for 2021 provide additional detail regarding the implementation of these steps including the following:
                    </P>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2a, 2b and 2c (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “FCAT Plan Processor creates linkages of the lifecycle of order events based on the received data through Phase 2d Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2b reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2d (Large Industry Members)” was completed on December 13, 2021; and</P>
                    <P>
                        • “LTID Account Information Reporting Go-Live for Phases 2a, 2b, 2c and 2d (Small Industry Members)” was completed on December 13, 2021.
                        <SU>120</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>120</SU>
                             
                            <E T="03">See</E>
                             Q2 2021 Quarterly Progress Report (July 27, 2021); and Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>The third prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” also imposes an Error Rate requirement of 5% or less. The Quarterly Progress Report for the fourth quarter of 2021 states the average overall error rate was less than 5% as of December 31, 2021. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The fourth prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires that the data collected by the CAT at this stage be made available to regulators through an online targeted query tool and a user-defined direct query tool. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021, the query tool functionality incorporating the data from Phases 2a, 2b, 2c and 2d was available to the Participants and to the Commission as of December 31, 2021.
                        <SU>121</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The fifth prong requires the requirements of Section 6.10(a) of the CAT NMS Plan to have been met. Section 6.10(a) of the CAT NMS Plan requires the Participants to use the tools described in Appendix D to “develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository.” The Exchange implemented a surveillance system, or enhanced existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository as of December 31, 2021 in accordance with Section 6.10(a) of the CAT NMS Plan.
                        <SU>122</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             
                            <E T="03">See</E>
                             Q1 2021 Quarterly Progress Report (April 30, 2021); Q2 2021 Quarterly Progress Report (July 27, 2021); Q3 2021 Quarterly Progress Report (Nov. 1, 2021); Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>123</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             Settlement Exemptive Order at 77129 n.13.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from January 1, 2021 through December 31, 2021. The total costs for this period, 
                        <PRTPAGE P="10461"/>
                        as discussed above, are $144,415,268. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($48,138,422.70) and CBSs paying one-third ($48,138,422.70).
                    </P>
                    <HD SOURCE="HD3">2. Statutory Basis</HD>
                    <P>
                        The Exchange believes the proposed rule change is consistent with the requirements of the Exchange Act. The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,
                        <SU>124</SU>
                        <FTREF/>
                         which requires, among other things, that the Exchange's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act,
                        <SU>125</SU>
                        <FTREF/>
                         because it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using its facilities. The Exchange further believes that the proposed rule change is consistent with Section 6(b)(8) of the Act,
                        <SU>126</SU>
                        <FTREF/>
                         which requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. These provisions also require that the Exchange be “so organized and [have] the capacity to be able to carry out the purposes” of the Act and “to comply, and . . . to enforce compliance by its members and persons associated with its members,” with the provisions of the Exchange Act.
                        <SU>127</SU>
                        <FTREF/>
                         Accordingly, a reasonable reading of the Act indicates that it intended that regulatory funding be sufficient to permit an exchange to fulfill its statutory responsibility under the Act, and contemplated that such funding would be achieved through equitable assessments on the members, issuers, and other users of an exchange's facilities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             15 U.S.C. 78f(b)(6).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             
                            <E T="03">See</E>
                             Section 6(b)(1) of the Exchange Act.
                        </P>
                    </FTNT>
                    <P>
                        The Exchange believes that this proposal is consistent with the Act because it implements provisions of the Plan and is designed to assist the Exchange in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>128</SU>
                        <FTREF/>
                         To the extent that this proposal implements the Plan and applies specific requirements to Industry Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             CAT NMS Plan Approval Order at 84697.
                        </P>
                    </FTNT>
                    <P>The Exchange believes that the proposed fees paid by the CEBBs and CEBSs are reasonable, equitably allocated and not unfairly discriminatory. First, the Historical CAT Assessment 1 fees to be collected are directly associated with the costs of establishing and maintaining the CAT, where such costs include Plan Processor costs and costs related to technology, legal, consulting, insurance, professional and administration, and public relations costs. The Exchange has already incurred such development and implementation costs and the proposed Historical CAT Assessment 1 fees, therefore, would allow the Exchange to collect certain of such costs in a fair and reasonable manner from Industry Members, as contemplated by the CAT NMS Plan.</P>
                    <P>The proposed Historical CAT Assessment 1 fees would be charged to Industry Members in support of the maintenance of a consolidated audit trail for regulatory purposes. The proposed fees, therefore, are consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business operations. The proposed fees would not cover Exchange services unrelated to the CAT. In addition, any surplus would be used as a reserve to offset future fees. Given the direct relationship between CAT fees and CAT costs, the Exchange believes that the proposed fees are reasonable, equitable and not unfairly discriminatory.</P>
                    <P>As further discussed below, the SEC approved the CAT Funding Model, finding it was reasonable and that it equitably allocates fees among Participants and Industry Members. The Exchange believes that the proposed fees adopted pursuant to the CAT Funding Model approved by the SEC are reasonable, equitably allocated and not unfairly discriminatory.</P>
                    <HD SOURCE="HD3">(1) Implementation of CAT Funding Model in CAT NMS Plan</HD>
                    <P>
                        Section 11.1(b) of the CAT NMS Plan states that “[t]he Participants shall file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves.” Per Section 11.1(b) of the CAT NMS Plan, the Exchange has filed this fee filing to implement the Industry Member CAT fees included in the CAT Funding Model. The Exchange believes that this proposal is consistent with the Exchange Act because it is consistent with, and implements, the CAT Funding Model in the CAT NMS Plan, and is designed to assist the Exchange and its Industry Members in meeting regulatory obligations pursuant to the CAT NMS Plan. In approving the CAT NMS Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>129</SU>
                        <FTREF/>
                         Similarly, in approving the CAT Funding Model, the SEC concluded that the CAT Funding Model met this standard.
                        <SU>130</SU>
                        <FTREF/>
                         As this proposal implements the Plan and the CAT Funding Model described therein, and applies specific requirements to Industry Members in compliance with the Plan, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Exchange Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             CAT NMS Plan Approval Order at 84696.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             CAT Funding Model Approval Order at 62686.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(2) Calculation of Fee Rate for Historical CAT Assessment 1 Is Reasonable</HD>
                    <P>
                        The SEC has determined that the CAT Funding Model is reasonable and satisfies the requirements of the Exchange Act. Specifically, the SEC has concluded that the method for determining Historical CAT Assessments as set forth in Section 11.3 of the CAT NMS Plan, including the formula for calculating the Historical Fee Rate, the identification of the parties responsible for payment and the transactions subject to the fee rate for the Historical CAT Assessment, is reasonable and satisfies the Exchange Act.
                        <SU>131</SU>
                        <FTREF/>
                         In each respect, as discussed above, Historical CAT Assessment 1 is calculated, and would be applied, in accordance with the requirements applicable to Historical CAT Assessments as set forth in the CAT NMS Plan. Furthermore, as discussed 
                        <PRTPAGE P="10462"/>
                        below, the Exchange believes that each of the figures for the variables in the SEC-approved formula for calculating the fee rate for Historical CAT Assessment 1 is reasonable and consistent with the Exchange Act. Calculation of the Historical Fee Rate for Historical CAT Assessment 1 requires the figures for the Historical CAT Costs 1, the executed equivalent share volume for the prior twelve months, the determination of Historical Recovery Period 1, and the projection of the executed equivalent share volume for Historical Recovery Period 1. Each of these variables is reasonable and satisfies the Exchange Act, as discussed throughout this filing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             
                            <E T="03">Id.</E>
                             at 62662-63.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Historical CAT Costs 1</HD>
                    <P>The formula for calculating a Historical Fee Rate requires the amount of Historical CAT Costs to be recovered. Specifically, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires a fee filing to provide:</P>
                    <EXTRACT>
                        <FP>a brief description of the amount and type of the Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.</FP>
                    </EXTRACT>
                    <P>In accordance with this requirement, the Exchange has set forth the amount and type of Historical CAT Costs 1 for each of these categories of costs above.</P>
                    <P>Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan also requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” As discussed below, the Exchange believes that the amounts set forth in this filing for each of these cost categories is “reasonable and appropriate.” Each of the costs included in Historical CAT Costs 1 are reasonable and appropriate because the costs are consistent with standard industry practice, based on the need to comply with the requirements of the CAT NMS Plan, incurred subject to negotiations performed on an arm's length basis, and/or are consistent with the needs of any legal entity, particularly one with no employees.</P>
                    <HD SOURCE="HD3">(i) Technology: Cloud Hosting Services</HD>
                    <P>
                        In approving the CAT Funding Model, the Commission recognized that it is appropriate to recover costs related to cloud hosting services as a part of Historical CAT Assessments.
                        <SU>132</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to cloud hosting services described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. As described above, the cloud hosting services costs reflect, among other things, the breadth of the CAT cloud activities, data volume far in excess of the original volume estimates, the need for specialized cloud services given the volume and unique nature of the CAT, the processing time requirements of the Plan, and regular efforts to seek to minimize costs where permissible under the Plan. CAT LLC determined that use of cloud hosting services is necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT, and that the fees for cloud hosting services negotiated by FCAT were reasonable, taking into consideration a variety of factors, including the expected volume of data and the breadth of services provided and market rates for similar services.
                        <SU>133</SU>
                        <FTREF/>
                         Indeed, the actual costs of the CAT are far in excess of the original estimated costs of the CAT due to various factors, including the higher volumes and greater complexity of the CAT than anticipated when Rule 613 was originally adopted.
                    </P>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             For a discussion of the amount and type of cloud hosting services fees, 
                            <E T="03">see</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>To comply with the requirements of the Plan, the breadth of the cloud activities related to the CAT is substantial. The cloud services not only include the production environment for the CAT, but they also include two industry testing environments, support environments for quality assurance and stress testing and disaster recovery capabilities. Moreover, the cloud storage costs are driven by the requirements of the Plan, which requires the storage of multiple versions of the data, from the original submitted version of the data through various processing steps, to the final version of the data.</P>
                    <P>
                        Data volume is a significant driver of costs for cloud hosting services. When the Commission adopted the CAT NMS Plan in 2016, it estimated that the CAT would need to receive 58 billion records per day 
                        <SU>134</SU>
                        <FTREF/>
                         and that annual operating costs for the CAT would range from $36.5 million to $55 million.
                        <SU>135</SU>
                        <FTREF/>
                         Through 2021, the actual data volumes have been five times that original estimate. The data volumes for each period are set forth in detail above.
                        <SU>136</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             CAT NMS Plan Approval Order at 84801.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>
                        In addition to the effect of the data volume on the cloud hosting costs, the processing timelines set forth in the Plan contribute to the cloud hosting costs. Although CAT LLC has proactively sought to manage cloud hosting costs while complying with the Plan, including through requests to the Commission for exemptive relief and an amendment to the CAT NMS Plan, stringent CAT NMS Plan requirements do not allow for any material flexibility in cloud architecture design choices, processing timelines (
                        <E T="03">e.g.,</E>
                         the use of non-peak processing windows), or lower-cost storage tiers. As a result, the required CAT processing timelines contribute to the cloud hosting costs of the CAT.
                    </P>
                    <P>The costs for cloud hosting services also reflect the need for specialized cloud hosting services given the data volume and unique processing needs of the CAT. The data volume as well as the data processing needs of the CAT necessitate the use of cloud hosting services. The equipment, power and services required for an on-premises data model, the alternative to cloud hosting services, would be cost prohibitive. Moreover, as CAT was being developed, there were limited cloud hosting providers that could satisfy all the necessary CAT requirements, including the operational and security criteria. Over time more providers offering cloud hosting services that would satisfy these criteria have entered the market. CAT LLC will continue to evaluate alternative cloud hosting services, recognizing that the time and cost to move to an alternative cloud provider would be substantial.</P>
                    <P>
                        The reasonableness of the cloud hosting services costs is further supported by key cost discipline mechanisms for the CAT—a cost-based funding structure, cost transparency, cost management efforts (including regular efforts to lower compute and storage costs where permitted by the Plan) and oversight. Together, these mechanisms help ensure the ongoing reasonableness of the CAT's costs and the level of fees assessed to support those costs.
                        <SU>137</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 97151 (Mar. 15, 2023), 88 FR 17086, 17117 (Mar. 21, 2023) (describing key cost discipline mechanisms for the CAT).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Technology: Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to operating fees as a part of Historical CAT Assessments.
                        <SU>138</SU>
                        <FTREF/>
                         CAT LLC determined 
                        <PRTPAGE P="10463"/>
                        that the costs related to operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The operating fees include the negotiated fees paid by CAT LLC to the Plan Processor to operate and maintain the system for order-related information and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the selection of FCAT as the Plan Processor was reasonable and appropriate given its expertise with securities regulatory reporting, after a process of considering other potential candidates.
                        <SU>139</SU>
                        <FTREF/>
                         CAT LLC also determined that the fixed price contract, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, was reasonable and appropriate, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity.
                        <SU>140</SU>
                        <FTREF/>
                         The services performed by FCAT for each period and the costs related to such services are described above.
                        <SU>141</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(b), 3(a)(2)(B)(ii)(b), 3(a)(2)(B)(iii)(b) and 3(a)(2)(B)(iv)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iii) Technology: CAIS Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to CAIS operating fees as a part of Historical CAT Assessments.
                        <SU>142</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to CAIS operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The CAIS operating fees include the fees paid to the Plan Processor to operate and maintain CAIS and to perform the business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the FCAT-negotiated fees for Kingland's CAIS-related services, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity, were reasonable and appropriate.
                        <SU>143</SU>
                        <FTREF/>
                         The services performed by Kingland for each period and the costs for each period are described above.
                        <SU>144</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(c), 3(a)(2)(B)(ii)(c), 3(a)(2)(B)(iii)(c) and 3(a)(2)(B)(iv)(c) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iv) Technology: Change Request Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to change request fees as a part of Historical CAT Assessments.
                        <SU>145</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to change request fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. It is common practice to utilize a change request process to address evolving needs in technology projects. This is particularly true for a project like CAT that is the first of its kind, both in substance and in scale. The substance and costs of each of the change requests are evaluated by the Operating Committee, and approved in accordance with the requirements for Operating Committee meetings. In each case, CAT LLC determined that the change requests were necessary to implement the CAT. As described above, the change requests cover various technology changes, including, for example, changes related to CAT reporting, data feeds and exchange functionality. CAT LLC also determined that the costs for each change request were appropriate for the relevant technology change. A description of the change requests for each FAM Period and their total costs are set described above.
                        <SU>146</SU>
                        <FTREF/>
                         As noted above, the total costs for change requests through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.25% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(d), 3(a)(2)(B)(ii)(d), 3(a)(2)(B)(iii)(d) and 3(a)(2)(B)(iv)(d) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(v) Capitalized Developed Technology Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to capitalized developed technology costs as a part of Historical CAT Assessments.
                        <SU>147</SU>
                        <FTREF/>
                         Capitalized developed technology costs include costs related to certain development costs, costs related to certain modifications, upgrades and other changes to the CAT, CAIS implementation fees and license fees. The amount and type of costs for each period are described in more detail above.
                        <SU>148</SU>
                        <FTREF/>
                         CAT LLC determined that these costs are reasonable and should be included as a part of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(e), 3(a)(2)(B)(ii)(e), 3(a)(2)(B)(iii)(e) and 3(a)(2)(B)(iv)(e) above.
                        </P>
                    </FTNT>
                    <P>
                        These costs involve the activity of both the Initial Plan Processor and FCAT, as the successor Plan Processor.
                        <SU>149</SU>
                        <FTREF/>
                         With regard to the Initial Plan Processor, the Participants utilized an RFP to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan. CAT LLC entered into an agreement with the Initial Plan Processor in which CAT LLC would pay the Initial Plan Processor a negotiated, fixed price fee.
                        <SU>150</SU>
                        <FTREF/>
                         In addition, as described above, CAT LLC determined that is [
                        <E T="03">sic</E>
                        ] was appropriate to enter into an agreement with FCAT as the successor Plan Processor.
                        <SU>151</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(e) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vi) Legal</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to legal fees as a part of Historical CAT Assessments.
                        <SU>152</SU>
                        <FTREF/>
                         CAT LLC determined that the legal costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Given the unique nature of the CAT, the number of parties involved with the CAT (including, for example, the SEC, Participants, Industry Members, and vendors) and the many regulatory issues associated with the CAT, the scope of the necessary legal services are substantial. CAT LLC determined that the scope of the legal services is necessary to implement and maintain the CAT and that the legal rates reflect the specialized services necessary for such a project. When hiring each law firm for a CAT project, CAT LLC interviewed multiple firms, and determined to hire each firm based on a variety of factors, including the relevant expertise and fees. In each case, CAT LLC determined that the hourly fee rates were in line with market rates for the specialized legal expertise. In 
                        <PRTPAGE P="10464"/>
                        addition, CAT LLC determined that the total costs incurred for each CAT project were appropriate given the breadth of services provided. The services performed by each law firm for each period and the costs related to such services are described above.
                        <SU>153</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(2) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(f), 3(a)(2)(B)(ii)(f), 3(a)(2)(B)(iii)(f) and 3(a)(2)(B)(iv)(f) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vii) Consulting</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover consulting costs as a part of Historical CAT Assessments.
                        <SU>154</SU>
                        <FTREF/>
                         CAT LLC determined that the consulting costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees 
                        <SU>155</SU>
                        <FTREF/>
                         and because of the significant number of issues associated with the CAT, the consultants provided assistance in the management of various CAT matters and the processes related to such matters.
                        <SU>156</SU>
                        <FTREF/>
                         CAT LLC considered a variety of factors in choosing a consulting firm and determined to select Deloitte after an interview process.
                        <SU>157</SU>
                        <FTREF/>
                         CAT LLC also determined that the consulting services were provided at reasonable market rates, as the fees were negotiated annually and comparable to the rates charged by other consulting firms for similar work.
                        <SU>158</SU>
                        <FTREF/>
                         Moreover, the total costs for such consulting services were appropriate in light of the breadth of services provided by Deloitte. The services performed by Deloitte and the costs related to such services are described above.
                        <SU>159</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(3) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             As stated in the filing of the proposed CAT NMS Plan, “[i]t is the intent of the Participants that the Company have no employees.” Securities Exchange Act Rel. No. 77724 (Apr. 27, 2016), 81 FR 30614, 30621 (May 17, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             CAT LLC uses certain third parties to perform tasks that may be performed by administrators for other NMS Plans. 
                            <E T="03">See, e.g.,</E>
                             CTA Plan and CQ Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(g), 3(a)(2)(B)(ii)(g), 3(a)(2)(B)(iii)(g) and 3(a)(2)(B)(iv)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(viii) Insurance</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover insurance costs as a part of Historical CAT Assessments.
                        <SU>160</SU>
                        <FTREF/>
                         CAT LLC determined that the insurance costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that it is common practice to have directors' and officers' liability insurance, and errors and omissions liability insurance. CAT LLC further determined that it was important to have cyber security insurance given the nature of the CAT, and such a decision is consistent with the CAT NMS Plan, which states that the cyber incident response plan may include “[i]nsurance against security breaches.” 
                        <SU>161</SU>
                        <FTREF/>
                         In selecting the insurance providers for these policies, CAT LLC engaged in an evaluation of alternative insurers, including a comparison of the pricing offered by the alternative insurers.
                        <SU>162</SU>
                        <FTREF/>
                         Based on this analysis, CAT LLC determined that the selected insurance policies provided appropriate coverage at reasonable market rates.
                        <SU>163</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(4) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             Section 4.1.5 of Appendix D of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(h), 3(a)(2)(B)(ii)(h), 3(a)(2)(B)(iii)(h) and 3(a)(2)(B)(iv)(h) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ix) Professional and Administration</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover professional and administration costs as a part of Historical CAT Assessments.
                        <SU>164</SU>
                        <FTREF/>
                         CAT LLC determined that the professional and administration costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees, all required accounting, financial, tax, cash management and treasury functions for CAT LLC have been outsourced at market rates. In addition, the required annual financial statement audit of CAT LLC is included in professional and administration costs, which costs are also at market rates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(5) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees.
                        <SU>165</SU>
                        <FTREF/>
                         The hourly fee rates for this firm were in line with market rates for the financial advisory services provided.
                        <SU>166</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Anchin. The services performed by Anchin and the costs related to such services are described above.
                        <SU>167</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC also determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the role given the balanace [
                        <E T="03">sic</E>
                        ] of these considerations.
                        <SU>168</SU>
                        <FTREF/>
                         Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services.
                        <SU>169</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Grant Thornton. The services performed by Grant Thornton and the costs related to such services are described above.
                        <SU>170</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to the receipt of certain market data from Exegy. After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy. Exegy provided the data elements required by the CAT NMS Plan, and the fees were reasonable and in line with market rates for the market data received.
                        <SU>171</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment.
                        <SU>172</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <PRTPAGE P="10465"/>
                    <HD SOURCE="HD3">(x) Public Relations Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover public relations costs as a part of Historical CAT Assessments.
                        <SU>173</SU>
                        <FTREF/>
                         CAT LLC determined that the public relations costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that the types of public relations services utilized were beneficial to the CAT and market participants more generally. Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                        <SU>174</SU>
                        <FTREF/>
                         By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT issues to the benefit of all market participants.
                        <SU>175</SU>
                        <FTREF/>
                         Moreover, CAT LLC determined that the rates charged for such services were in line with market rates.
                        <SU>176</SU>
                        <FTREF/>
                         As noted above, the total public relations costs through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.1% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(6) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(j), 3(a)(2)(B)(ii)(j), 3(a)(2)(B)(iii)(j) and 3(a)(2)(B)(iv)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Total Executed Equivalent Share Volume for the Prior 12 Months</HD>
                    <P>The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. CAT LLC determined the total executed equivalent share volume for the prior twelve months by counting executed equivalent shares in the same manner as it will count executed equivalent shares for CAT billing purposes.</P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to establish a Historical Recovery Period of 24 months for Historical CAT Assessment 1 and that such length is reasonable. CAT LLC determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans notes to the Participants in a timely fashion. CAT LLC determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>177</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, CAT LLC recognized that the total costs for Historical CAT Assessment 1 was less than the total costs for 2022 and 2023, and therefore it would be appropriate to recover those costs in two years. Furthermore, CAT LLC notes 24 months is appropriate because it is not currently proposing that Industry Members be required to pay another Historical CAT Assessment or CAT Fee with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model Approval Order at 62682.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Executed Equivalent Share Volume for Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. CAT LLC determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant in recent years. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is 7,685,722,694,558.88 executed equivalent shares.
                        <SU>178</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Actual Fee Rate for Historical CAT Assessment 1</HD>
                    <HD SOURCE="HD3">(i) Decimal Places</HD>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>179</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of CAT Fee Schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 by one-third, and rounding the result to 6 decimal places. CAT LLC determined that the use of six decimal places is reasonable as it balances the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Reasonable Fee Level</HD>
                    <P>
                        The Exchange believes that imposing Historical CAT Assessment 1 with a fee rate of $0.000015 per executed equivalent share is reasonable because it provides for a revenue stream for the Company that is aligned with Historical CAT Costs 1 and such costs would be spread out over an appropriate recovery period, as discussed above. Moreover, the Exchange believes that the level of the fee rate is reasonable, as it is comparable to other transaction-based fees. Indeed, Historical CAT Assessment 1 is significantly lower than fees assessed pursuant to Section 31 (
                        <E T="03">e.g.,</E>
                         $0.0009 per share to 0.0004 per share),
                        <SU>180</SU>
                        <FTREF/>
                         and, as a result, the magnitude of Historical CAT Assessment 1 is small, and therefore will mitigate any potential adverse economic effects or inefficiencies.
                        <SU>181</SU>
                        <FTREF/>
                         Furthermore, the reasonable fee rate for Historical CAT Assessment 1 further supports CAT LLC's decision to seek to recover all Historical CAT Costs prior to 2022, rather than establishing separate Historical CAT Assessments for pre-FAM, FAM 1, FAM 2 and FAM 3 costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             CAT Funding Model Approval Order at 62663, 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Historical CAT Assessment 1 Provides for an Equitable Allocation of Fees</HD>
                    <P>
                        Historical CAT Assessment 1 provides for an equitable allocation of fees, as it equitably allocates CAT costs between and among the Participants and Industry Members. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act, including the formula for calculating Historical CAT Assessments as well as the Industry Members to be charged the Historical CAT Assessments.
                        <SU>182</SU>
                        <FTREF/>
                         In approving the CAT Funding Model, the SEC stated that “[t]he Participants have sufficiently demonstrated that the proposed allocation of fees is reasonable.” 
                        <SU>183</SU>
                        <FTREF/>
                         Accordingly, the CAT Funding Model sets forth the requirements for allocating fees related to Historical CAT Costs among Participants and Industry Members, and the fee filings for 
                        <PRTPAGE P="10466"/>
                        Historical CAT Assessments must comply with those requirements.
                    </P>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <P>Historical CAT Assessment 1 provides for an equitable allocation of fees as it complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. For example, as described above, the calculation of Historical CAT Assessment 1 complies with the formula set forth in Section 11.3(b) of the CAT NMS Plan. In addition, Historical CAT Assessment 1 would be charged to CEBBs and CEBSs in accordance with Section 11.3(b) of the CAT NMS Plan. Furthermore, the Participants would continue to remain responsible for their designated share of Past CAT Costs through the cancellation of loans made by the Participants to CAT LLC.</P>
                    <P>In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1—Historical CAT Costs 1 (including Excluded Costs), the count for the executed equivalent share volume for the prior 12 months, the length of the Historical Recovery Period, and the projected executed equivalent share volume for the Historical Recovery Period—are reasonable. Moreover, these inputs lead to a reasonable fee rate for Historical CAT Assessment 1 that is lower than other fee rates for transaction-based fees. A reasonable fee rate allocated in accordance with the requirements of the CAT Funding Model provides for an equitable allocation of fees.</P>
                    <HD SOURCE="HD3">(4) Historical CAT Assessment 1 Is Not Unfairly Discriminatory</HD>
                    <P>Historical CAT Assessment 1 is not an unfairly discriminatory fee. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act. In reaching this conclusion, the SEC analyzed the potential effect of Historical CAT Assessments calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Historical CAT Assessment 1 complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 and the resulting fee rate for Historical CAT Assessment 1 is reasonable. Therefore, Historical CAT Assessment 1 does not impose an unfairly discriminatory fee on Industry Members.</P>
                    <P>Finally, the Exchange believes the proposed fees established pursuant to the CAT Funding Model promote just and equitable principles of trade, and, in general, protect investors and the public interest, and are provided in a transparent manner and specificity in CAT Fee Schedule. The Exchange also believes that the proposed fees are reasonable because they would provide ease of calculation, ease of billing and other administrative functions, and predictability of a fee based on fixed rate per executed equivalent share. Such factors are crucial to estimating a reliable revenue stream for CAT LLC and for permitting Exchange members to reasonably predict their payment obligations for budgeting purposes.</P>
                    <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                    <P>
                        Section 6(b)(8) of the Act 
                        <SU>184</SU>
                        <FTREF/>
                         requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that Historical CAT Assessment 1 implements provisions of the CAT NMS Plan that were approved by the Commission and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>In addition, all Participants (including exchanges and FINRA) are proposing to introduce Historical CAT Assessment 1 on behalf of CAT LLC to implement the requirements of the CAT NMS Plan. Therefore, this is not a competitive fee filing, and, therefore, it does not raise competition issues between and among the Participants.</P>
                    <P>
                        Furthermore, in approving the CAT Funding Model, the SEC analyzed the potential competitive impact of the CAT Funding Model, including competitive issues related to market services, trading services and regulatory services, efficiency concerns, and capital formation.
                        <SU>185</SU>
                        <FTREF/>
                         The SEC also analyzed the potential effect of CAT fees calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Based on this analysis, the SEC approved the CAT Funding Model as compliant with the Exchange Act. Historical CAT Assessment 1 is calculated and implemented in accordance with the CAT Funding Model as approved by the SEC.
                    </P>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             CAT Funding Model Approval Order at 62676-86.
                        </P>
                    </FTNT>
                    <P>As discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 is reasonable and the resulting fee rate for Historical CAT Assessment 1 calculated in accordance with the CAT Funding Model is reasonable. Therefore, Historical CAT Assessment 1 would not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act.</P>
                    <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                    <P>The Exchange neither solicited nor received written comments on the proposed rule change.</P>
                    <HD SOURCE="HD1">III. Suspension of the Proposed Rule Change</HD>
                    <P>
                        Pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>186</SU>
                        <FTREF/>
                         at any time within 60 days of the date of filing of a proposed rule change pursuant to Section 19(b)(1) of the Act,
                        <SU>187</SU>
                        <FTREF/>
                         the Commission summarily may temporarily suspend the change in the rules of an SRO if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. As discussed below, a temporary suspension of the proposed rule change is necessary or appropriate to allow for additional analysis of the proposed rule change's consistency with the Act and the rules thereunder.
                    </P>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <P>
                        When exchanges file their proposed rule changes with the Commission, including fee filings like the Exchange's present proposed rule change, they are required to provide a statement supporting the proposed rule change's basis under the Act and the rules and regulations thereunder applicable to the 
                        <PRTPAGE P="10467"/>
                        exchange.
                        <SU>188</SU>
                        <FTREF/>
                         The instructions to Form 19b-4, on which exchanges file their proposed rule changes, specify that such statement “should be sufficiently detailed and specific to support a finding that the proposed rule change is consistent with [those] requirements.” 
                        <SU>189</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>188</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.19b-4 (Item 3 entitled “Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Among other things, the Exchange's proposed rule change is subject to Section 6 of the Act, including Sections 6(b)(4), (5), and (8), which require the rules of an exchange to: (1) provide for the equitable allocation of reasonable fees among members, issuers, and other persons using the exchange's facilities; 
                        <SU>190</SU>
                        <FTREF/>
                         (2) be designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers; 
                        <SU>191</SU>
                        <FTREF/>
                         and (3) not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
                        <SU>192</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>190</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             15 U.S.C. 78f(b)(5).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>192</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>The proposed rule change is also subject to the CAT Funding Model set forth in the CAT NMS Plan. For example, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” In addition, Section 11.3(b)(i)(C) of the CAT NMS Plan provides that the “Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and Section 11.3(b)(i)(D) of the CAT NMS Plan provides that “[t]he length of the Historical Recovery Period used in calculating each Historical Fee Rate will be reasonably established by the Operating Committee based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment . . .” Further, Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan provides that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.”</P>
                    <P>
                        In temporarily suspending the Exchange's fee change, the Commission intends to further consider whether the proposed fees are consistent with the statutory requirements applicable to a national securities exchange under the Act and with the requirements set forth in the CAT Funding Model. Among other things, the Commission will consider whether the proposed rule change provides for reasonable fees that satisfy the standards under the Act and the rules thereunder.
                        <SU>193</SU>
                        <FTREF/>
                         Further, and among other things, the Commission will consider whether the proposed rule change, as required by the CAT Funding Model, provides “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including, but not limited to, whether the Operating Committee has “reasonably determine[d] the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and whether the “length of the Historical Recovery Period used in calculating each Historical Fee Rate [was] reasonably established by the Operating Committee.” 
                        <SU>194</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>193</SU>
                             
                            <E T="03">See</E>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>194</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <P>
                        Therefore, the Commission finds that it is necessary or appropriate in the public interest, for the protection of investors, and otherwise in furtherance of the purposes of the Act, to temporarily suspend the proposed rule change.
                        <SU>195</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>195</SU>
                             For purposes of temporarily suspending the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                            <E T="03">See</E>
                             15 U.S.C. 78c(f).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">IV. Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</HD>
                    <P>
                        In addition to temporarily suspending the proposed rule change, the Commission is instituting proceedings pursuant to Sections 19(b)(3)(C) 
                        <SU>196</SU>
                        <FTREF/>
                         and 19(b)(2)(B) 
                        <SU>197</SU>
                        <FTREF/>
                         of the Act to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change to inform the Commission's analysis of whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>196</SU>
                             15 U.S.C. 78s(b)(3)(C). Once the Commission temporarily suspends a proposed rule change, Section 19(b)(3)(C) of the Act requires that the Commission institute proceedings under Section 19(b)(2)(B) to determine whether a proposed rule change should be approved or disapproved.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>197</SU>
                             15 U.S.C. 78s(b)(2)(B).
                        </P>
                    </FTNT>
                    <P>
                        Pursuant to Section 19(b)(2)(B) of the Act,
                        <SU>198</SU>
                        <FTREF/>
                         the Commission is providing notice of the grounds for possible disapproval under consideration. The Commission is instituting proceedings to allow for additional consideration and comment on whether the Exchange has sufficiently demonstrated that the proposed rule change is consistent with Section 6(b)(4) 
                        <SU>199</SU>
                        <FTREF/>
                         of the Act, and consistent with the CAT Funding Model. Section 6(b)(4) of the Act, among other things, provides that the dues, fees, and other charges for an exchange's members be reasonable. And the CAT Funding Model, as noted above, requires, among other things, that the proposed rule change provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including whether the Operating Committee has reasonably determined the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee and whether the length of the Historical Recovery Period used in calculating each Historical Fee Rate was reasonably established by the Operating Committee.
                        <SU>200</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>198</SU>
                             15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the Act also provides that proceedings to determine whether to disapprove a proposed rule change must be concluded within 180 days of the date of publication of notice of the filing of the proposed rule change. 
                            <E T="03">See id.</E>
                             The time for conclusion of the proceedings may be extended for up to 60 days if the Commission finds good cause for such extension and publishes its reasons for so finding, or if the exchange consents to the longer period. 
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>199</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>200</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">V. Commission's Solicitation of Comments</HD>
                    <P>
                        The Commission requests that interested persons provide written submission of their views, data, and arguments with respect to the issues identified above, as well as any other 
                        <PRTPAGE P="10468"/>
                        concerns they have with the proposed rule change. In particular, the Commission invites the written views of interested persons concerning whether the proposed rule change is consistent with Section 6(b)(4), or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.
                        <SU>201</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act grants the Commission flexibility to determine what type of proceeding—either oral or notice and opportunity for written comments—is appropriate for consideration of a particular proposed rule change by an exchange. 
                            <E T="03">See</E>
                             Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975).
                        </P>
                    </FTNT>
                    <P>Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule changes should be approved or disapproved by March 5, 2024. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by March 19, 2024.</P>
                    <P>Comments may be submitted by any of the following methods:</P>
                    <HD SOURCE="HD2">Electronic Comments</HD>
                    <P>
                        • Use the Commission's internet comment form (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ); or
                    </P>
                    <P>
                        • Send an email to 
                        <E T="03">rule-comments@sec.gov.</E>
                         Please include file number SR-C2-2024-002 on the subject line.
                    </P>
                    <HD SOURCE="HD2">Paper Comments</HD>
                    <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                    <FP>
                        All submissions should refer to file number SR-C2-2024-002. 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 internet website (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-C2-2024-002 and should be submitted on or before March 5, 2024. Rebuttal comments should be submitted by March 19, 2024.
                    </FP>
                    <HD SOURCE="HD1">VI. Conclusion</HD>
                    <P>
                        <E T="03">It is therefore ordered,</E>
                         pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>202</SU>
                        <FTREF/>
                         that File No. SR-C2-2024-002 be, and hereby is, temporarily suspended. In addition, the Commission is instituting proceedings to determine whether the proposed rule change should be approved or disapproved.
                    </P>
                    <FTNT>
                        <P>
                            <SU>202</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <SIG>
                        <P>
                            For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                            <SU>203</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>203</SU>
                                 17 CFR 200.30-3(a)(12), (57) and (58).
                            </P>
                        </FTNT>
                        <NAME>Sherry R. Haywood,</NAME>
                        <TITLE>Assistant Secretary.</TITLE>
                    </SIG>
                </PREAMB>
                <FRDOC>[FR Doc. 2024-01178 Filed 2-12-24; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 8011-01-P</BILCOD>
            </NOTICE>
            <NOTICE>
                <PREAMB>
                    <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                    <DEPDOC>[Release No. 34-99374; File No. SR-CboeEDGA-2024-002]</DEPDOC>
                    <SUBJECT>Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail; Suspension of and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</SUBJECT>
                    <DATE>January 17, 2024.</DATE>
                    <P>
                        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act” or the “Exchange Act”) 
                        <SU>1</SU>
                        <FTREF/>
                         and Rule 19b-4 thereunder,
                        <SU>2</SU>
                        <FTREF/>
                         notice is hereby given that, on January 2, 2024, Cboe EDGA Exchange, Inc. (the “Exchange” or “EDGA”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is, pursuant to Section 19(b)(3)(C) of the Act, hereby: (i) temporarily suspending the rule change; and (ii) instituting proceedings to determine whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             15 U.S.C. 78a.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             17 CFR 240.19b-4.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                    <P>
                        The Exchange proposes to adopt a fee schedule to establish fees for Industry Members 
                        <SU>3</SU>
                        <FTREF/>
                         related to certain historical costs of the National Market System Plan Governing the Consolidated Audit Trail (the “CAT NMS Plan” or “Plan”) incurred prior to January 1, 2022. These fees will be payable to Consolidated Audit Trail, LLC (“CAT LLC” or “the Company”) 
                        <SU>4</SU>
                        <FTREF/>
                         and referred to as Historical CAT Assessment 1 and would be described in an Exchange fee schedule entitled “Consolidated Audit Trail Funding Fees” (“CAT Fee Schedule”).
                        <SU>5</SU>
                        <FTREF/>
                         The fee rate for Historical CAT Assessment 1 will be $0.000015 per executed equivalent share. CAT Executing Brokers will receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 calculated based on their transactions as CAT Executing Brokers for the Buyer (“CEBB”) and/or CAT Executing Brokers for the Seller (“CEBS”) in March 2024.
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             An “Industry Member” is defined as “a member of a national securities exchange or a member of a national securities association.” 
                            <E T="03">See</E>
                             Exchange Rule 4.5(u). Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth in the CAT Compliance Rule. 
                            <E T="03">See</E>
                             Exchange Rules 4.5-4.17.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             The term “CAT LLC” may be used to refer to Consolidated Audit Trail, LLC or CAT NMS, LLC, depending on the context.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             The Exchange and each of its affiliated exchanges (Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe C2 Exchange, Inc., Cboe Exchange, Inc., and Cboe EDGX Exchange, Inc.) are filing to adopt the CAT Fee Schedule.
                        </P>
                    </FTNT>
                    <P>
                        The text of the proposed rule change is available on the Exchange's website (
                        <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/edga/</E>
                        ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                        <PRTPAGE P="10469"/>
                    </P>
                    <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item V below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                    <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <HD SOURCE="HD3">1. Purpose</HD>
                    <P>
                        On July 11, 2012, the Commission adopted Rule 613 of Regulation NMS, which required the self-regulatory organizations (“SROs”) to submit a national market system (“NMS”) plan to create, implement and maintain a consolidated audit trail that would capture customer and order event information for orders in NMS securities across all markets, from the time of order inception through routing, cancellation, modification or execution.
                        <SU>6</SU>
                        <FTREF/>
                         On November 15, 2016, the Commission approved the CAT NMS Plan.
                        <SU>7</SU>
                        <FTREF/>
                         Under the CAT NMS Plan, the Operating Committee has the discretion to establish funding for CAT LLC to operate the CAT, including establishing fees for Industry Members to be assessed by CAT LLC that would be implemented on behalf of CAT LLC by the Participants.
                        <SU>8</SU>
                        <FTREF/>
                         The Operating Committee adopted a revised funding model to fund the CAT (“CAT Funding Model”). On September 6, 2023, the Commission approved the CAT Funding Model, after concluding that the model was reasonable and that it satisfied the requirements of Section 11A of the Exchange Act and Rule 608 thereunder.
                        <SU>9</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             Securities Exchange Act Rel. No. 67457 (July 18, 2012), 77 FR 45721 (Aug. 1, 2012).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             Securities Exchange Act Rel. No. 79318 (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016) (“CAT NMS Plan Approval Order”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             Securities Exchange Act Rel. No. 98290 (Sept. 6, 2023), 88 FR 62628 (Sept. 12, 2023) (“CAT Funding Model Approval Order”).
                        </P>
                    </FTNT>
                    <P>
                        The CAT Funding Model provides a framework for the recovery of the costs to create, develop and maintain the CAT, including providing a method for allocating costs to fund the CAT among Participants and Industry Members. The CAT Funding Model establishes two categories of fees: (1) CAT fees assessed by CAT LLC and payable by certain Industry Members to recover a portion of historical CAT costs previously paid by the Participants (“Historical CAT Assessment” fees); and (2) CAT fees assessed by CAT LLC and payable by Participants and Industry Members to fund prospective CAT costs (“Prospective CAT Costs” fees).
                        <SU>10</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             Under the CAT Funding Model, the Operating Committee may establish one or more Historical CAT Assessments. Section 11.3(b) of the CAT NMS Plan. This filing only establishes Historical CAT Assessment 1 related to certain Historical CAT Costs as described herein; it does not address any other potential Historical CAT Assessment related to other Historical CAT Costs. In addition, under the CAT Funding Model, the Operating Committee also may establish CAT Fees related to CAT costs going forward. Section 11.3(a) of the CAT NMS Plan. This filing does not address any potential CAT Fees related to CAT costs going forward. Any such other fee for any other Historical CAT Assessment or CAT Fee for Prospective CAT Costs will be subject to a separate fee filing.
                        </P>
                    </FTNT>
                    <P>
                        Under the CAT Funding Model, “[t]he Operating Committee will establish one or more fees (each a `Historical CAT Assessment') to be payable by Industry Members with regard to CAT costs previously paid by the Participants (`Past CAT Costs').” 
                        <SU>11</SU>
                        <FTREF/>
                         In establishing a Historical CAT Assessment, the Operating Committee will determine a “Historical Recovery Period” and calculate a “Historical Fee Rate” for that Historical Recovery Period. Then, for each month in which a Historical CAT Assessment is in effect, each CEBB and CEBS would be required to pay the fee—the Historical CAT Assessment—for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate.
                        <SU>12</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, the proposed recovery of the Past CAT Costs via the Historical CAT Assessment is reasonable.” CAT Funding Model Approval Order at 62662.
                        </P>
                    </FTNT>
                    <P>
                        Each Historical CAT Assessment to be paid by CEBBs and CEBSs is designed to contribute toward the recovery of two-thirds of the Historical CAT Costs. Because the Participants previously have paid Past CAT Costs via loans to the Company, the Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made by the Participants to the Company on a pro rata basis based on the outstanding loan amounts due under the loans, instead of through the payment of a CAT fee.
                        <SU>13</SU>
                        <FTREF/>
                         In addition, Participants also will be 100% responsible for certain Excluded Costs (as discussed below).
                    </P>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             Section 11.3(b)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC proposes to charge CEBBs and CEBSs (as described in more detail below) Historical CAT Assessment 1 to recover certain historical CAT costs incurred prior to January 1, 2022, in accordance with the CAT Funding Model. To implement this fee on behalf of CAT LLC, the CAT NMS Plan requires the Participants to “file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves, and such fees shall be labeled as `Consolidated Audit Trail Funding Fees.' ” 
                        <SU>14</SU>
                        <FTREF/>
                         The Plan further states that “Participants will be required to file with the SEC pursuant to Section 19(b) of the Exchange Act a filing for each Historical CAT Assessment.” 
                        <SU>15</SU>
                        <FTREF/>
                         Accordingly, the purpose of this filing is to implement a Historical CAT Assessment on behalf of CAT LLC for Industry Members, referred to as Historical CAT Assessment 1, in accordance with the CAT NMS Plan.
                        <SU>16</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             Section 11.3(b)(iii)(B)(I) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             Note that there may be one or more Historical CAT Assessments depending on the timing of the completion of the Financial Accountability Milestones, among other things. Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(1) CAT Executing Brokers</HD>
                    <P>
                        Historical CAT Assessment 1 will be charged to each CEBB and CEBS for each applicable transaction in Eligible Securities.
                        <SU>17</SU>
                        <FTREF/>
                         The CAT NMS Plan defines a “CAT Executing Broker” to mean:
                    </P>
                    <FTNT>
                        <P>
                            <SU>17</SU>
                             In its approval of the CAT Funding Model, the Commission determined that charging CAT fees to CAT Executing Brokers was reasonable. In reaching this conclusion the Commission noted that the use of CAT Executing Brokers is appropriate because the CAT Funding Model is based upon the calculation of 
                            <E T="03">executed</E>
                             equivalent shares, and, therefore, charging CAT Executing Brokers would reflect their executing role in each transaction. Furthermore, the Commission noted that, because CAT Executing Brokers are already identified in transaction reports from the exchanges and FINRA's equity trade reporting facilities recorded in CAT Data, charging CAT Executing Brokers could streamline the billing process. CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) with respect to a transaction in an Eligible Security that is executed on an exchange, the Industry Member identified as the Industry Member responsible for the order on the buy-side of the transaction and the Industry Member responsible for the sell-side of the transaction in the equity order trade event and option trade event in the CAT Data submitted to the CAT by the relevant exchange pursuant to the Participant Technical Specifications; and (b) with respect to a transaction in an Eligible 
                            <PRTPAGE P="10470"/>
                            Security that is executed otherwise than on an exchange and required to be reported to an equity trade reporting facility of a registered national securities association, the Industry Member identified as the executing broker and the Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event in the CAT Data submitted to the CAT by FINRA pursuant to the Participant Technical Specifications; provided, however, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.
                            <SU>18</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>18</SU>
                                 Section 1.1 of the CAT NMS Plan. Note that CEBBs and CEBSs may, but are not required to, pass-through their CAT fees to their clients, who may, in turn, pass their fees to their clients until they are imposed ultimately on the account that executed the transaction. 
                                <E T="03">See</E>
                                 CAT Funding Model Approval Order at 62649.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>The following fields of the Participant Technical Specifications indicate the CAT Executing Brokers for the transactions executed on an exchange.</P>
                    <GPH SPAN="3" DEEP="189">
                        <GID>EN13FE24.110</GID>
                    </GPH>
                    <GPH SPAN="3" DEEP="79">
                        <GID>EN13FE24.111</GID>
                    </GPH>
                    <P>
                        In addition, the following fields of the Participant Technical Specifications would indicate the CAT Executing Brokers for the transactions executed otherwise than on an exchange.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>19</SU>
                             
                            <E T="03">See</E>
                             Table 23, Section 4.7 (Order Trade Event) of the CAT Reporting Technical Specifications for Plan Participants, Version 4.1.0-r20 (Sept. 25, 2023), 
                            <E T="03">https://www.catnmsplan.com/sites/default/files/2023-09/9.25.2023-CAT_Reporting_Technical_Specifications_for_Participants_4.1.0-r20.pdf</E>
                             (“CAT Reporting Technical Specifications for Plan Participants”).
                        </P>
                        <P>
                            <SU>20</SU>
                             
                            <E T="03">See</E>
                             Table 51, Section 5.2.5.1 (Simple Option Trade Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="107">
                        <GID>EN13FE24.112</GID>
                    </GPH>
                    <PRTPAGE P="10471"/>
                    <HD SOURCE="HD3">
                        (2) Calculation of Historical Fee Rate 1
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             
                            <E T="03">See</E>
                             Table 61, Section 6.1 (TRF/ORF/ADF Transaction Data Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <P>The Operating Committee determined the Historical Fee Rate to be used in calculating Historical CAT Assessment 1 (“Historical Fee Rate 1”) by dividing the Historical CAT Costs for Historical CAT Assessment 1 (“Historical CAT Costs 1”) by the projected total executed share volume of all transactions in Eligible Securities for the Historical Recovery Period for Historical CAT Assessment 1 (“Historical Recovery Period 1”), as discussed in detail below. Based on this calculation, the Operating Committee has determined that Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. This rate is then divided by three and rounded to determine the fee rate of $0.000015 per executed equivalent share that will be assessed to CEBBs and CEBSs, as also discussed in detail below.</P>
                    <HD SOURCE="HD3">(A) Executed Equivalent Shares for Transactions in Eligible Securities</HD>
                    <P>
                        Under the CAT NMS Plan, for purposes of calculating each Historical CAT Assessment, executed equivalent shares in a transaction in Eligible Securities will be reasonably counted as follows: (1) each executed share for a transaction in NMS Stocks will be counted as one executed equivalent share; (2) each executed contract for a transaction in Listed Options will be counted based on the multiplier applicable to the specific Listed Options (
                        <E T="03">i.e.,</E>
                         100 executed equivalent shares or such other applicable multiplier); and (3) each executed share for a transaction in OTC Equity Securities shall be counted as 0.01 executed equivalent share.
                        <SU>22</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             Section 11.3(a)(i)(B) and 11.3(b)(i)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission concluded that “the use of executed equivalent share volume as the basis of the proposed cost allocation methodology is reasonable and consistent with the approach taken by the funding principles of the CAT NMS Plan.” CAT Funding Model Approval Order at 62640.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Historical CAT Costs 1</HD>
                    <P>
                        The CAT NMS Plan states that “[t]he Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee. Each Historical CAT Assessment will seek to recover from CAT Executing Brokers two-thirds of Historical CAT Costs incurred during the period covered by the Historical CAT Assessment.” 
                        <SU>23</SU>
                        <FTREF/>
                         As described in detail below, Historical CAT Costs 1 would be $337,688,610. This figure includes Past CAT Costs of $401,312,909 minus certain Excluded Costs of $63,624,299. Participants collectively will remain responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), plus the Excluded Costs of $63,624,299. CEBBs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), and CEBSs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870).
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             Section 11.3(b)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        The following describes in detail Historical CAT Costs 1 with regard to four separate historical time periods as well as Past CAT Costs excluded from Historical CAT Costs 1 (“Excluded Costs”). The following cost details are provided in accordance with the requirement in the CAT NMS Plan to provide in the fee filing “a brief description of the amount and type of Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.” 
                        <SU>24</SU>
                        <FTREF/>
                         Each of the costs described below are reasonable, appropriate and necessary for the creation, implementation and maintenance of CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             Section 11.3(b)(iii)(B)(II)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(i) Historical CAT Costs Incurred Prior to June 22, 2020 (Pre-FAM Costs)</HD>
                    <P>Historical CAT Costs 1 would include costs incurred by CAT prior to June 22, 2020 (“Pre-FAM Period”) and already funded by the Participants, excluding Excluded Costs (described further below). Historical CAT Costs 1 would include costs for the Pre-FAM Period of $143,919,521. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($47,973,174), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($47,973,174) and CEBSs paying one-third ($47,973,174). These costs do not include Excluded Costs, as discussed further below. The following table breaks down Historical CAT Costs 1 for the Pre-FAM Period into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.</P>
                    <GPH SPAN="3" DEEP="295">
                        <PRTPAGE P="10472"/>
                        <GID>EN13FE24.113</GID>
                    </GPH>
                    <P>
                        The Pre-FAM Period includes a broad range of CAT-related activity from 2012 through June 22, 2020, including the evaluation of the requirements of SEC Rule 613, the development of the CAT NMS Plan, the evaluation and selection of the initial and successor Plan Processors, the commencement of the creation and implementation of the CAT to comply with Rule 613 and the CAT NMS Plan, including technical specifications for transaction reporting and regulatory access, and related technology and the commencement of reporting to the CAT. The following describes the costs for each of the categories for the Pre-FAM Period.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>25</SU>
                             With respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>26</SU>
                             The costs described in this table of costs for the Pre-FAM Period were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website. In addition, in accordance with Section 6.6(a)(i) of the CAT NMS Plan, in 2018 CAT LLC provided the SEC with “an independent audit of fees, costs, and expenses incurred by the Participants on behalf of the Company prior to the Effective Date of the Plan that will be publicly available.” The audit is available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>The $10,268,840 in technology costs for cloud hosting services represent costs incurred for services provided by the cloud services provider for the CAT, Amazon Web Services, Inc. (“AWS”), during the Pre-FAM Period.</P>
                    <P>As part of its proposal for acting as the successor Plan Processor for the CAT, FCAT selected AWS as a subcontractor to provide cloud hosting services. In 2019, after reviewing the capabilities of other cloud services providers, FCAT determined that AWS was the only cloud services provider at that time sufficiently mature and capable of providing the full suite of necessary cloud services for the CAT, including, for example, the security, resiliency and complexity necessary for the CAT computing requirements. The use of cloud hosting services is standard for this type of high-volume data activity and reasonable and necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT the fees incurred by the Plan Processor for cloud hosting services provided by AWS as FCAT's subcontrator on a monthly basis for the cloud hosting services, and FCAT, in turn, pays such fees to AWS. The fees for cloud hosting services were negotiated by FCAT on an arm's length basis with the goals of managing cost and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the expected volume of data, the breadth of services provided and market rates for similar services. The fees for cloud hosting services during the Pre-FAM Period were paid to FCAT by CAT NMS LLC 
                        <SU>27</SU>
                        <FTREF/>
                         and subsequently Consolidated Audit Trail, LLC (as previously noted, both entities are referred to generally as “CAT LLC”),
                        <SU>28</SU>
                        <FTREF/>
                         and FCAT, in turn, paid AWS. CAT LLC was funded via loan contributions by the Participants.
                        <SU>29</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             CAT NMS, LLC was formed by FINRA and the U.S. national securities exchanges to implement the requirements of SEC Rule 613 under the Exchange Act. SEC Rule 613 required the SROs to jointly submit to the SEC the CAT NMS Plan to create, implement and maintain the CAT. The SEC approved the CAT NMS Plan on November 15, 2016. CAT NMS Plan Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             On August 29, 2019, the Participants formed a new Delaware limited liability company named Consolidated Audit Trail, LLC for the purpose of conducting activities related to the CAT from and after the effectiveness of the proposed amendment of the CAT NMS Plan to replace CAT NMS, LLC. 
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 87149 (Sept. 27, 2019), 84 FR 52905 (Oct. 3, 2019).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             For each of the costs paid by CAT NMS, LLC and Consolidated Audit Trail, LLC as discussed throughout this filing, CAT NMS, LLC and Consolidated Audit Trail, LLC paid these costs via loan contributions by the Participants to CAT NMS, 
                            <PRTPAGE/>
                            LLC and Consolidated Audit Trail, LLC, respectively.
                        </P>
                    </FTNT>
                    <PRTPAGE P="10473"/>
                    <P>AWS was engaged by FCAT to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. Services provided by AWS include storage services, databases, compute services and other services (such as networking, management tools and DevOps tools). AWS also was engaged to provide various environments for CAT, such as development, performance testing, test and production environments.</P>
                    <P>
                        The cost for AWS services for the CAT is a function of the volume of CAT Data. The greater the amount of CAT Data, the greater the cost of AWS services to the CAT. During the Pre-FAM Period from the engagement of AWS in February 2019 through June 2020, AWS provided cloud hosting services for volumes of CAT Data far in excess of the volume predictions set forth in the CAT NMS Plan. The CAT NMS Plan states, when all CAT Reporters are submitting their data to the CAT, it “must be sized to receive[,] process and load more than 58 billion records per day,” 
                        <SU>30</SU>
                        <FTREF/>
                         and that “[i]t is expected that the Central Repository will grow to more than 29 petabytes of raw, uncompressed data.” 
                        <SU>31</SU>
                        <FTREF/>
                         However, the volume of CAT Data for the Pre-FAM Period was far in excess of these predicted levels. By the end of this period, data submitted to the CAT included options and equities Participant Data,
                        <SU>32</SU>
                        <FTREF/>
                         Phase 2a and Phase 2b Industry Member Data 
                        <SU>33</SU>
                        <FTREF/>
                         (including certain linkages), as well as SIP Data,
                        <SU>34</SU>
                        <FTREF/>
                         reference data and other types of Other Data.
                        <SU>35</SU>
                        <FTREF/>
                         The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during the Pre-FAM Period.
                        <SU>36</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             Appendix D-5 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             
                            <E T="03">See</E>
                             Section 6.3(d) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Rel. No. 88702 (Apr. 20, 2020), 85 FR 23075 (Apr. 24, 2020) (“Phased Reporting Exemptive Relief Order”) for a description of Phase 2a and Phase 2b Industry Member Data.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             
                            <E T="03">See</E>
                             Appendix C-108 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="350">
                        <GID>EN13FE24.114</GID>
                    </GPH>
                    <HD SOURCE="HD3">
                        (b) Technology Costs—Operating Fees
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             Note that, although there were compute hours during this period, data related to such compute hours are no longer available in current data.
                        </P>
                    </FTNT>
                    <P>
                        The $21,085,485 in technology costs related to operating fees represent costs incurred with regard to activities of FCAT as the Plan Processor. Operating fees are those fees paid by CAT LLC to FCAT as the Plan Processor to operate and maintain the CAT and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management as required by the CAT NMS Plan.
                    </P>
                    <P>
                        FCAT was selected to assume the role of the successor Plan Processor. Prior to this selection, the Participants engaged 
                        <PRTPAGE P="10474"/>
                        in discussions with two prior Bidders 
                        <SU>38</SU>
                        <FTREF/>
                         for the successor Plan Processor role. The Operating Committee formed a Selection Subcommittee in accordance with Section 4.12 of the CAT NMS Plan to evaluate and review Bids and to make a recommendation to the Operating Committee with respect to the selection of the successor Plan Processor. In an April 9, 2019 letter to the Commission, the Participants described the reasons for its selection of the successor Plan Processor:
                    </P>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             The term “Bidder” is defined in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>The Selection Subcommittee considered factors including, but not limited to, the following, in recommending FINRA to the Operating Committee as the successor Plan Processor:</P>
                    <EXTRACT>
                        <P>a. FINRA's specialized technical expertise and capabilities in the area of broker-dealer technology;</P>
                        <P>b. The need to appoint a successor Plan Processor with specialized expertise to develop, implement, and maintain the CAT System in accordance with the CAT NMS Plan and SEC Rule 613;</P>
                        <P>c. FINRA's detailed proposal in response to CATLLC's recent inquiries; and</P>
                        <P>d. FINRA's data query and analytics systems demonstration to the Participants.</P>
                        <P>
                            Based on these and other factors, the Selection Subcommittee determined that FINRA was the most appropriate Bidder to become the successor Plan Processor.
                            <SU>39</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>39</SU>
                                 Letter from Michael J. Simon, Chair, CAT NMS, LLC Operating Committee, to Brent J. Fields, Secretary, SEC (Apr. 9, 2019), 
                                <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection-040919.pdf.</E>
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        On February 26, 2019, the Operating Committee (with FINRA recusing itself) voted to select FINRA as the successor Plan Processor pursuant to Section 6.1(t) of the CAT NMS Plan.
                        <SU>40</SU>
                        <FTREF/>
                         On March 29, 2019, CAT LLC and FCAT (a wholly owned subsidiary of FINRA) entered into a Plan Processor Agreement pursuant to which FCAT would perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT a negotiated monthly fixed price for the operation of the CAT. This fixed price contract was negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity. The operating fees during the Pre-FAM Period were paid to FCAT by CAT LLC.</P>
                    <P>From March 29, 2019 (the commencement of the Plan Processor Agreement with FCAT) through June 22, 2020 (the end of the Pre-FAM Period), the Plan Processor's activities with respect to the CAT included the following:</P>
                    <P>
                        • Commenced user acceptance testing with market data provided by Exegy Incorporated (“Exegy”), a market data provider; 
                        <SU>41</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             The use of Exegy to provide market data, including the costs and market data provided, is discussed below in Section 3(a)(2)(B)(i)(i).
                        </P>
                    </FTNT>
                    <P>• Published Technical Specifications and related reporting scenarios documents for Phase 2a, 2b and 2c reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated testing for Phase 2a and 2b reporting for Industry Members;</P>
                    <P>• Began developing Technical Specifications and related reporting scenarios documents for Phase 2d reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published Central Repository Access Technical Specifications, and provided regulator access to test data from Industry Members;</P>
                    <P>• Facilitated Participant exchanges that support options market makers sending Quote Sent Time to the CAT;</P>
                    <P>• Facilitated the introduction of OPRA and Options NBBO Other Data to CAT;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing requirements under Regulation SCI;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants, SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk, which is the primary source for answers to questions about CAT, including questions regarding: clock synchronization, firm reporting responsibilities, interpretive questions, technical specifications for reporting to CAT and more;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>
                        • Administered the CAT website and all of its content; 
                        <SU>42</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             The CAT website is 
                            <E T="03">https://www.catnmsplan.com.</E>
                        </P>
                    </FTNT>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>The $2,072,908 in technology costs related to CAIS operating fees represent the fees paid for FCAT's subcontractor charged with the development and operation of CAT's Customer and Account Information System (“CAIS”). The CAT is required under the CAT NMS Plan to capture and store Customer Identifying Information and Customer Account Information in a database separate from the transactional database and to create a CAT-Customer-ID for each Customer.</P>
                    <P>During the Pre-FAM Period, the CAIS-related services were provided by the Plan Processor through the Plan Processor's subcontractor, Kingland Systems Incorporation (“Kingland”). Kingland had experience operating in the securities regulatory technology space, and as a part of its proposal for acting as the Plan Processor for the CAT, FCAT selected Kingland as a subcontractor to provide certain CAIS-related services.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay to the Plan Processor the fees incurred by the FCAT for CAIS-related services provided by FCAT through Kingland on a monthly basis. FCAT negotiated the fees for Kingland's CAIS-related services on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity. The fees for CAIS-related services during the Pre-FAM Period were paid by CAT LLC to FCAT. FCAT, in turn, paid Kingland. During the Pre-FAM Period, Kingland began development of the CAIS Technical Specifications and the building of CAIS. In addition, Kingland also worked on the build related to the CCID Alternative, an alternative approach to customer information that was not included in the CAT NMS Plan as 
                        <PRTPAGE P="10475"/>
                        originally adopted.
                        <SU>43</SU>
                        <FTREF/>
                         Furthermore, Kingland also worked on the acceleration of the reporting of large trader identifiers (“LTID”) earlier than originally contemplated during this period, in accordance with exemptive relief granted by the SEC.
                        <SU>44</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             For a discussion of the CCID Alternative, 
                            <E T="03">see</E>
                             Securities Exchange Act Rel. No. 88393 (Mar. 17, 2020), 85 FR 16152 (Mar. 20, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             Phased Reporting Exemptive Relief Order at 23079-80.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        The technology costs related to change request fees include costs related to certain modifications, upgrades or other changes to the CAT. Change requests are standard practice and necessary to reflect operational changes, including changes related to new market developments, such as new market participants. In general, if CAT LLC determines that a modification, upgrade or other changes to the functionality or service is necessary and appropriate, CAT LLC will submit a request for such a change to the Plan Processor. The Plan Processor will then respond to the request with a proposal for implementing the change, including the cost (if any) of such a change. CAT LLC then determines whether to approve the proposed change. The change request costs were paid by CAT LLC to FCAT. During the Pre-FAM Period, CAT LLC incurred costs of $141,346 related to change requests implemented by FCAT. Such change requests related to a development fee regarding the OPRA and SIP data feeds, and the reprocessing of certain exchange data.
                        <SU>45</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             Note that CAT LLC also has incurred costs related to specific Industry Members (
                            <E T="03">e.g.,</E>
                             reprocessing costs related to Industry Member reporting errors).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>This category of costs includes capitalizable application development costs incurred in the development of the CAT. The capitalized developed technology costs for the Pre-FAM Period of $71,475,941 relate to technology provided by the Initial Plan Processor and the successor Plan Processor.</P>
                    <P>
                        <E T="03">Initial Plan Processor: Thesys CAT, LLC.</E>
                         The capitalized developed technology costs related to the Initial Plan Processor include costs incurred with regard to testing for Participant reporting, Participant reporting to the CAT, a security assessment of the CAT, the development of the billing function for the CAT, and a Plan Processor transition fee.
                    </P>
                    <P>
                        On January 17, 2017, the Selection Committee of the CAT NMS Plan selected the Initial Plan Processor, Thesys Technologies, LLC, for the CAT NMS Plan pursuant to Article V of the CAT NMS Plan.
                        <SU>46</SU>
                        <FTREF/>
                         The Participants utilized a request for proposal (“RFP”) to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan, taking into consideration that the Initial Plan Processor had experience operating in the securities regulatory technology space, among other considerations. On April 6, 2017, CAT LLC entered into an agreement with Thesys CAT LLC (“Thesys CAT”), a Thesys affiliate, to perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT. Under the agreement, CAT LLC would pay Thesys CAT a negotiated, fixed price fee for its role as the Initial Plan Processor. Effective January 30, 2019, the Plan Processor Agreement with Thesys CAT was terminated, and FCAT was subsequently selected as the successor Plan Processor.
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             Letter from the Participants to Brent J. Fields, Secretary, SEC (Jan. 18, 2017), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection.pdf.</E>
                        </P>
                    </FTNT>
                    <P>From January 17, 2017 through January 30, 2019, the time in which the Thesys CAT was engaged for the CAT, but excluding the period from November 15, 2017 through November 15, 2018, the Initial Plan Processor engaged in various activities with respect to the CAT, including preparing iterative drafts of Participant Technical Specifications, Industry Member Technical Specifications and the Central Repository Access Technical Specifications. Thesys CAT initiated and maintained the Participant reporting per the Participant Technical Specifications. In addition, Thesys CAT also developed CAT technology, addressed compliance items, including drafting CAT policies and procedures, addressing Regulation SCI requirements, establishing a CAT Compliance Officer and a Chief Information Security Officer, and addressed security-related matters for the CAT. Furthermore, Thesys CAT performed transition services related to the transition from Thesys CAT to FCAT as the successor Plan Processor from January 30, 2019 through April 15, 2019.</P>
                    <P>
                        <E T="03">Successor Plan Processor: FCAT.</E>
                         The capitalized developed technology costs related to FCAT include: (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, including the completion of go-live functionality related to options ingestion and validation, equities regulatory services agreement query tool updates and unlinked options data query, options linkages release, Industry Member Phase 2a file submission and data integrity (including error corrections), and Industry Member testing, including reporting relationships, ATS order type management, basic reporting statistics, SFTP data integrity feedback and error correction; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including a one-time development fee for a secure analytics workspace, a one-time development fee of an Industry Member connectivity solution, and a one-time development fee for the acceleration of multi-factor authentication; (3) CAIS implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $19,674,463 represent the fees paid for legal services provided by two law firms, Wilmer Cutler Pickering Hale and Dorr LLP (“WilmerHale”) and Pillsbury Winthrop Shaw Pittman LLP (“Pillsbury”), during the Pre-FAM Period. The legal costs exclude those costs incurred from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         Following the adoption of Rule 613, the Participants determined it was necessary to engage external legal counsel to advise the Participants with respect to corporate and regulatory legal matters related to the CAT, including drafting and developing the CAT NMS Plan. The Participants considered a variety of factors in their analysis of prospective law firms, including (1) the firm's qualifications, resources and expertise, (2) the firm's relevant experience and understanding of the regulatory matters raised by the CAT and in advising on matters of similar scope, (3) the composition of the legal team, and (4) professional fees. Following a series of interviews, the Participants acting as a consortium determined that WilmerHale was well qualified given the balance of 
                        <PRTPAGE P="10476"/>
                        these considerations and engaged WilmerHale in February 2013.
                    </P>
                    <P>WilmerHale's billing rates are negotiated on an annual basis and are determined with reference to the rates charged by other leading law firms for similar work. The Participants assess WilmerHale's performance and review prospective budgets and staffing plans submitted by WilmerHale on an annual basis. WilmerHale's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading law firms for similar work.</P>
                    <P>The legal costs for WilmerHale during the Pre-FAM Period included costs incurred from 2013 until June 22, 2020 to address corporate and regulatory legal matters related to the CAT. The legal fees for this law firm during the period from February 2013 until the formation of the CAT NMS, LLC on November 15, 2016 were paid directly by the exchanges and FINRA to WilmerHale. After the formation of CAT NMS LLC, the legal fees were paid by CAT LLC to WilmerHale.</P>
                    <P>After WilmerHale was engaged in 2013 through the end of the Pre-FAM Period on June 22, 2020 (excluding the legal costs from November 15, 2017 through November 15, 2018), WilmerHale provided legal assistance to the CAT on a variety of matters, including with regard to the following:</P>
                    <P>• Analyzed various legal matters associated with the Selection Plan, and drafted an amendment to Selection Plan;</P>
                    <P>• Assisted with the RFP and bidding process for the CAT Plan Processor;</P>
                    <P>• Analyzed legal matters related to the Development Advisory Group (“DAG”);</P>
                    <P>• Drafted the CAT NMS Plan, analyzed various items related to the CAT NMS Plan, and responded to comment letters on CAT NMS Plan;</P>
                    <P>
                        • Provided legal support for the formation of the legal entity, the governance of the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan; and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan and related filings;</P>
                    <P>• Negotiated and drafted the plan processor agreements with the Initial Plan Processor and the successor Plan Processor;</P>
                    <P>• Provided assistance with compliance with Regulation SCI;</P>
                    <P>• Assisted with clock synchronization study;</P>
                    <P>• Provided assistance with respect to the establishment of CAT security;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including with regard to options market maker quotes, Customer IDs, CAT Reporter IDs, linking allocations to executions, CAT reporting timeline, FDIDs, customer and account information, timestamp granularity, small industry members, data facility reporting and linkage, allocation reports, SRO-assigned market participant identifiers and cancelled trade indicators, thereby seeking to implement changes that would be cost effective and benefit Industry Members and Participants;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided advice regarding CAT policies and procedures;</P>
                    <P>• Analyzed the SEC's amendment of the CAT NMS Plan regarding financial accountability;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues; and</P>
                    <P>• Assisted with third party vendor agreements.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         The legal costs for CAT during the Pre-FAM Period include costs related to the legal services performed by Pillsbury. The Participants interviewed this law firm as well as other potential law firms to provide legal assistance regarding certain liability matters. After considering a variety of factors in its analysis, including the relevant expertise and fees of the firm, CAT LLC determined to hire Pillsbury in April 2019. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees were paid by CAT LLC to Pillsbury. The legal costs for Pillsbury during the Pre-FAM Period included costs incurred from April 2019 until June 22, 2020 to address legal matters regarding the agreements between CAT Reporters and CAT LLC concerning certain terms associated with CAT Reporting (the “Reporter Agreement”). During that period, Pillsbury advised CAT LLC regarding applicable legal matters, participated in negotiations between the Participants and Industry Members, participated in meetings with senior SEC staff, the Chairman, and Commissioners, represented CAT LLC and the Participants in an SEC administrative proceeding, and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, litigation involving CAT LLC is an expense of operating the CAT, and, therefore, is appropriately an obligation of both Participants and Industry Members under the CAT Funding Model.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $17,013,414 represent the fees paid to the consulting firm Deloitte &amp; Touche LLP (“Deloitte”) as project manager during the Pre-FAM Period, from October 2012 until June 22, 2020. These consulting costs include costs for advisory services related to the operation of the CAT, and meeting facilitation and communications coordination, vendor support and financial analyses.</P>
                    <P>To help facilitate project management given the unprecedented complexity and scope of the CAT project, the Participants determined it was necessary to engage a consulting firm to assist with the CAT project in 2012, following the adoption of Rule 613. A variety of factors were considered in the analysis of prospective consulting firms, including (1) the firm's qualifications, resources, and expertise, (2) the firm's relevant experience and understanding of the regulatory issues raised by the CAT and in coordinating matters of similar scope, (3) the composition of the consulting team, and (4) professional fees. Following a series of interviews, the exchanges and FINRA as a consortium determined that Deloitte was well qualified given the balance of these considerations and engaged Deloitte on October 1, 2012.</P>
                    <P>
                        Deloitte's fee rates are negotiated on an annual basis and are in line with market rates for this type of specialized consulting work. CAT LLC assesses Deloitte's performance and reviews prospective budgets and staffing plans submitted by Deloitte on an annual basis. Deloitte's compensation arrangements are reasonable and appropriate, and in line with the rates 
                        <PRTPAGE P="10477"/>
                        charged by other leading consulting firms for similar work.
                    </P>
                    <P>The consulting costs for CAT during the period from 2012 until the formation of the CAT NMS, LLC were paid directly by the Participants to Deloitte. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC to Deloitte. CAT LLC reviewed the consulting fees each month and approved the invoices.</P>
                    <P>After Deloitte was hired in 2012 through the end of the Pre-FAM Period on June 22, 2020 (excluding the consulting costs from November 15, 2017 through November 15, 2018), Deloitte provided a variety of consulting services, including the following:</P>
                    <P>• Established and implemented program operations for the CAT project, including the program managment office and workstream design;</P>
                    <P>• Assisted with the Plan Processor selection process, including but not limited to, the development of the RFP and the bidder evaluation process, and facilitation and consolidation of the Participant's independent reviews;</P>
                    <P>• Assisted with the development and drafting of the CAT NMS Plan, including conducting cost-benefit studies, analyzing OATS and CAT requirements, and drafting appendices to the Plan;</P>
                    <P>• Assisted with cost and funding-related activities for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>
                        • Provided governance support to the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with industry outreach and communications regarding the CAT, including assistance with industry outreach events, the development of the CAT website, frequently asked questions, and coordinating with the CAT LLC's public relations firm;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress;</P>
                    <P>• Coordinated efforts regarding the selection of the successor Plan Processor;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor, including support for the Operating Committee and successor Plan Processor for the new role; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $880,419 represent the cost incurred for insurance for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT insurance policies, which included engaging in discussions with different insurance companies and conducting cost comparisons of various alternative approaches to insurance. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance from USI Insurance Services LLC (“USI”). Such policies are standard for corporate entities, and cyber security liability insurance is important for the CAT System. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        In adopting the CAT NMS Plan, the Commission amended the Plan to add a requirement that CAT LLC's financial statements be prepared in compliance with GAAP, audited by an independent public accounting firm, and made publicly available.
                        <SU>47</SU>
                        <FTREF/>
                         The professional and administration costs include costs related to accounting and accounting advisory services to support the operating and financial functions of CAT, financial statement audit services by an independent accounting firm, preparation of tax returns, and various cash management and treasury functions. In addition, professional and administration costs for the Pre-FAM Period include costs related to the receipt of market data and a security assessment. The costs for these professional and administration services were $1,082,036 for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             Section 9.2 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin Accountants &amp; Advisors (“Anchin”).</E>
                         CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT in April 2018. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services were paid by CAT LLC to Anchin.
                    </P>
                    <P>After Anchin was hired in April 2018 through the end of the Pre-FAM Period on June 22, 2020 (excluding the period from April 2018 through November 15, 2018), Anchin provided a variety of services, including the following:</P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial reporting matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>
                        • Supported the annual financial statement audits by an independent auditor;
                        <PRTPAGE P="10478"/>
                    </P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton LLP (“Grant Thornton”).</E>
                         In February 2020, CAT LLC determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the proposed role given the balance of these considerations. Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services. The fees for these services were paid by CAT LLC to Grant Thornton.
                    </P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         The professional and administrative costs for the Pre-FAM Period included costs related to the receipt of certain market data for the CAT pursuant to an agreement with the CAT LLC, and then with FCAT. Exegy provided SIP Data required by the CAT NMS Plan.
                    </P>
                    <P>
                        After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy from July 2018 through March 2019. CAT LLC determined that, unlike certain other vendors, Exegy provided market data that included all data elements required by the CAT NMS Plan.
                        <SU>48</SU>
                        <FTREF/>
                         In addition, the fees were reasonable and in line with market rates for the market data received. Accordingly, the professional and administrative costs for the Pre-FAM Period include the Exegy costs from November 2018 through March 2019. The cost of the market data was reasonable for the market data received. The fees for the market data were paid directly by CAT LLC to Exegy.
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>Upon the termination of the contract between CAT LLC and Exegy, FCAT entered into a contract with Exegy to purchase the required market data from Exegy in July 2019. All costs under the contract were treated as a direct pass through cost to CAT LLC. Therefore, the fees for the market data were paid by CAT LLC to FCAT, who, in turn, paid Exegy for the market data.</P>
                    <P>
                        <E T="03">Security Assessment: RSM US LLP (“RSM”).</E>
                         The operating costs for the Pre-FAM Period include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation, and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment. RSM performed the assessment from October 2018 through December 2018. Accordingly, the costs for the Pre-FAM Period include the costs incurred in November and December 2018. The cost for the security assessment were paid directly to RSM by CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $224,669 represent the fees paid to public relations firms during the Pre-FAM Period for professional communications services to CAT, including media relations consulting, strategy and execution. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants. Specifically, the public relations firms provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                    </P>
                    <P>The services performed by each of the public relations firms were comparable. The fees for such services were reasonable and in line with market rates. Only one public relations firm was engaged at a time; the three firms were engaged sequentially as the primary public relations contact moved among the three firms during this time period.</P>
                    <P>
                        <E T="03">Public Relations Firm: Peppercomm, Inc. (“Peppercomm”).</E>
                         The national securities exchanges and FINRA, acting as a consortium, determined to hire the public relations firm Peppercomm in October 2014 and continued to engage this firm through September 2017. The exchanges and FINRA made this engagement decision after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fee rates for this public relations firm were negotiated on an arm's length basis and were in line with market rates for these types of services. The public relations costs during the period from October 2014 until the formation of the CAT NMS LLC were paid directly by the exchanges and FINRA to the public relations firm. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Sloane &amp; Company (“Sloane”).</E>
                         CAT LLC determined to hire a new public relations firm, Sloane, in March 2018, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Sloane. CAT LLC continued the engagement with Sloane until February 2020.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Peak Strategies.</E>
                         CAT LLC determined to hire a new public relations firm, Peak Strategies, in March 2020, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Peak Strategies.
                    </P>
                    <HD SOURCE="HD3">(ii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 1</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 1 of the Financial Accountability Milestones (“FAM Period 1”),
                        <SU>49</SU>
                        <FTREF/>
                         which covers the period from June 22, 2020-July 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 1 of $6,377,343. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($2,125,781), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-
                        <PRTPAGE P="10479"/>
                        third ($2,125,781) and CEBSs paying one-third ($2,125,781). The following table breaks down Historical CAT Costs 1 for FAM Period 1 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             Section 11.6(a)(i)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <GID>EN13FE24.115</GID>
                    </GPH>
                    <P>
                        By the completion 
                        <FTREF/>
                        of FAM Period 1, CAT LLC was required to implement the reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of equities transaction data and options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.
                        <SU>52</SU>
                        <FTREF/>
                         CAT LLC completed the requirements of FAM Period 1 by July 31, 2020. The following describes the costs for each of the categories for FAM Period 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>50</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>51</SU>
                             The costs described in this table of costs for FAM Period 1 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             
                            <E T="03">See</E>
                             definition of “Initial Industry Member Core Equity and Options Reporting” in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 1 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 1 Period. Accordingly, the $2,642,122 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 1. The fee arrangement for AWS described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. Moreover, CAT LLC continued to believe that AWS's maturity in the cloud services space as well as the significant cost and time necessary to move the CAT to a different cloud services provider supported the continued engagement of AWS.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 1 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, reference data and other types of Other Data. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 1.
                        <SU>53</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="298">
                        <PRTPAGE P="10480"/>
                        <GID>EN13FE24.116</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 1. Accordingly, the $1,099,680 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 1. The fee arrangement for FCAT described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Published iterative drafts of draft Technical Specifications for Phase 2d, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published iterative drafts of CAIS Technical Specifications, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated Industry Member reporting of Quote Sent Time on Options Market Maker quotes;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 1. Accordingly, the $254,998 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 1. The fee arrangement for Kingland described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>CAT LLC did not incur costs related to change requests during FAM Period 1.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>
                        Capitalized developed technology costs for FAM Period 1 of $1,684,870 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include: (1) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including separate production and industry test entitlements, and reprocessing of exchange event 
                        <PRTPAGE P="10481"/>
                        timestamps; (2) implementation fees; and (3) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $481,687 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 1.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 1 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to WilmerHale. During FAM Period 1, WilmerHale provided legal assistance to the CAT including with regard to the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments and fee filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, verbal activity, options market maker quote sent time, TRF linkages, and allocations;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including the Financial Accountability Milestone amendment;</P>
                    <P>• Assisted with compliance with Regulation SCI;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the drafting of the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Assisted with communications and presentations for the industry regarding CAIS;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding CAT technical specifications;</P>
                    <P>• Assisted with third party vendor agreements; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to Pillsbury. During FAM Period 1, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $137,209 represent the fees paid to Deloitte as project manager during FAM Period 1. CAT LLC continued to employ Deloitte during FAM Period 1 based on, among other things, their expertise and cumulative experience with the CAT. The fee rates for Deloitte during FAM Period 1 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 1 were paid by CAT LLC to the consulting firm. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 1, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>Although insurance was in effect during FAM Period 1, CAT LLC did not incur costs related to insurance during FAM Period 1.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         The professional and administration costs of $69,077 represent the fees paid to Anchin during FAM Period 1. CAT LLC continued to employ Anchin during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these type of financial advisory services. The fees for these services during FAM Period 1 were paid by CAT LLC to Anchin. During FAM Period 1, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups; and</P>
                    <P>• Prepared monthly and quarterly financial statements.</P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $7,700 represent the fees paid to Peak Strategies during FAM Period 1. CAT LLC continued to employ Peak Strategies during FAM Period 1 based on, among other things, their expertise and history with the project. The fee rates for this firm were reasonable and in line with market rates for these types of services. The fees for these services during FAM Period 1 were paid by CAT LLC to Peak Strategies. During FAM Period 1, Peak Strategies continued to provide professional communications services to CAT LLC, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT 
                        <PRTPAGE P="10482"/>
                        (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 2</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT LLC and already funded by Participants during Period 2 of the Financial Accountability Milestones (“FAM Period 2”),
                        <SU>54</SU>
                        <FTREF/>
                         which covers the period from August 1, 2020-December 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 2 of $42,976,478. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($14,325,493), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($14,325,493) and CEBSs paying one-third ($14,325,493). The following table breaks down Historical CAT Costs 1 for FAM Period 2 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             Section 11.6(a)(i)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>55</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>56</SU>
                             The costs described in this table of costs for FAM Period 2 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <GID>EN13FE24.117</GID>
                    </GPH>
                    <P>By the completion of FAM Period 2, CAT LLC was required to implement the following with regard to the CAT:</P>
                    <EXTRACT>
                        <P>
                            (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, CustomerID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission.
                            <SU>57</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>57</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Implementation of Core Equity Reporting Requirements” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>CAT LLC completed the requirements of FAM Period 2 by December 31, 2020. The following describes the costs for each of the categories for FAM Period 2.</FP>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 2 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 2 Period. Accordingly, the $20,709,212 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 2. The fee arrangement for AWS described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 2 Period, the volume of CAT Data 
                        <PRTPAGE P="10483"/>
                        continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, and Other Data, including reference data. In addition, Industry Members began reporting LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 2.
                        <SU>58</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="311">
                        <GID>EN13FE24.118</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 2. Accordingly, the $9,108,700 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 2. The fee arrangement for FCAT described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, FCAT's activities with respect to the CAT included publishing the Technical Specifications for Phase 2d and overseeing the reporting of firm to firm and intrafirm linkages by Industry Members. In addition, FCAT also continued to engage in the following activities during FAM Period 2:</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the development and implementation of the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>
                        Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 2. Accordingly, the $1,590,298 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 2. The fee arrangement for Kingland described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 
                        <PRTPAGE P="10484"/>
                        2 pursuant to the Plan Processor Agreement. During FAM Period 2, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs.
                    </P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 2, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 2, CAT incurred costs of $51,823 related to a change request regarding the addition of functionality for exchange Participants to report rejected messages to the CAT.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 2 of $6,761,094 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to separate production and industry test entitlements, market maker reference data, and back-processing of exchange exception logic; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $2,766,644 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 2.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 2 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to WilmerHale. During FAM Period 1 [
                        <E T="03">sic</E>
                        ], the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, allocations, exchange activity, OTQT, initial data validation, error corrections and recordkeeping;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittees, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6 of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for the Compliance Subcommittee, including with regard to responses to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding the SEC's proposed security amendments to the CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>
                        • Assisted with third party vendor agreements (
                        <E T="03">e.g.,</E>
                         with regard to Anchin, Grant Thornton and insurance policies);
                    </P>
                    <P>• Assisted with change requests; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to Pillsbury. During FAM Period 2, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted and filed a proposed amendment to the CAT NMS plan regarding liability matters. As discussed above, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $532,146 represent the fees paid to Deloitte as project manager during FAM Period 2. CAT LLC continued to employ Deloitte during FAM Period 2 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 2 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 2 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 2, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $976,098 represent the fees paid for insurance during FAM Period 2. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $438,523 represent the fees paid to Anchin and Grant Thornton for financial services provided during FAM Period 2.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to engage Anchin during FAM Period 2 based on, among other things, their expertise and history 
                        <PRTPAGE P="10485"/>
                        with the project. The hourly fee rates for this firm were in line with market rates for these types of financial advisory services. The fees for these services during FAM Period 2 were paid by CAT LLC to Anchin. During FAM Period 2, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from the Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audit by an independent auditor; and</P>
                    <P>• Reviewed historical costs from inception.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 2 based on, among other things, its expertise and cumulative knowledge of CAT LLC. CAT LLC continued to believe that Grant Thornton was well qualified for its role and its fee rates were in line with with market rates for these accounting services. The fees for these services during FAM Period 2 were paid by CAT LLC to Grant Thornton. During FAM Period 2, Grant Thornton performed a financial statement audit for CAT LLC as an independent accounting firm.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $41,940 represent the fees paid to Peak Strategies during FAM Period 2. CAT LLC continued to employ Peak Strategies during FAM Period 2 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 2 were paid by CAT LLC to Peak Strategies. During FAM Period 2, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iv) Historical CAT Costs Incurred in Financial Accountability Milestone Period 3</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 3 of the Financial Accountability Milestones (“FAM Period 3”),
                        <SU>59</SU>
                        <FTREF/>
                         which covers the period from January 1, 2021-December 31, 2021. Historical CAT Costs 1 would include costs for FAM Period 3 of $144,415,268. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($48,138,423), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($48,138,423) and CEBSs paying one-third ($48,138,423). The following table breaks down Historical CAT Costs 1 for FAM Period 3 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             Section 11.6(a)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10486"/>
                        <GID>EN13FE24.119</GID>
                    </GPH>
                    <P>
                        By the
                        <FTREF/>
                         completion of FAM Period 3, CAT LLC was required to implement the following requirements with regard the CAT:
                    </P>
                    <FTNT>
                        <P>
                            <SU>60</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>61</SU>
                             The costs described in this table of costs for FAM Period 3 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met.
                            <SU>62</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>62</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Availability and Regulatory Utilization of Transactional Database Functionality” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>CAT LLC completed the requirements of FAM Period 3 by December 31, 2021. The following describes the costs for each of the categories for FAM Period 3.</FP>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 3 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 3 Period. Accordingly, the $94,574,759 in technology costs for cloud hosting services represents costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 3. The fee arrangement for AWS described above for the earlier periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During FAM Period 3, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a, Phase 2b, Phase 2c and Phase 2d Industry Member Data (including certain linkages), SIP Data, Other Data, including reference data, and LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 3.
                        <SU>63</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="325">
                        <PRTPAGE P="10487"/>
                        <GID>EN13FE24.120</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 3. Accordingly, the $23,106,091 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 3. The fee arrangement for FCAT described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Facilitated Phase 2c and Phase 2d testing for Industry Members;</P>
                    <P>• Oversaw creation of linkages of the lifecycle of order events based on the received data through Phase 2d;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement with FCAT discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 3. Accordingly, the $5,562,383 in technology costs for CAIS operating fees represents costs incurred for services provided by Kingland during FAM Period 3. The fee arrangement for Kingland described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs. The full CAIS Technical Specifications were published during FAM Period 3.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        During FAM Period 3, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 3, CAT incurred costs of $396,169 related to change requests, including the following: (1) the addition of functionality for exchange Participants to report rejected messages to the CAT; (2) the migration of MIRS query engine to AWS to reduce operational costs and increase resiliency; and (3) updating the Participant Technical Specifications to allow for two-sided Participant option quote reporting.
                        <PRTPAGE P="10488"/>
                    </P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 3 of $10,763,372 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor, including the transition from equity data received by FINRA pursuant to various regulatory services agreements between FINRA and Participant exchanges to the equity CAT Data, and the completion of the Industry Member Phase 2d options manual and complex orders go-live requirements; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to off-exchange volume concentration, Participant 24-hour trading and an external metastore; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $6,333,248 represent the fees paid for legal services provided by three law firms, WilmerHale, Pillsbury and Covington &amp; Burling LLP (“Covington”) during FAM Period 3.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 3 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to WilmerHale. During FAM Period 3, the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including, for example, verbal activity regarding Phase 2c cutover, error reports, error corrections, Phase 2d Reporting, unique Order-ID on internal route events, reporting addresses, recordkeeping, and unique CCID for foreign customers;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs, CAIS requirements, ADF, and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6(c) of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding SEC's proposed security amendments to CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>• Provided assistance with change requests;</P>
                    <P>• Provided guidance and regulatory support for litigation regarding the response to SEC's exemptive orders;</P>
                    <P>• Assisted with communications with the industry, includng CAT Alerts and presentations;</P>
                    <P>• Provided guidance regarding the confidentiality of CAT Data, including third-party information requests;</P>
                    <P>• Assisted with cost management analysis and proposals; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to Pillsbury. During FAM Period 3, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During this period, Pillsbury advised CAT LLC regarding applicable legal matters, reviewed and responded to comment letters regarding the proposed Plan amendment, participated in meetings with senior SEC staff, responded to comments submitted following the SEC's April 6, 2021 order instituting proceedings,
                        <SU>64</SU>
                        <FTREF/>
                         and assessed legal matters regarding the SEC's October 29, 2021 order denying the proposed Plan amendment.
                        <SU>65</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             Securities Exchange Act Rel. No. 91487 (Apr. 6, 2021), 86 FR 19054 (Apr. 12, 2021).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             Securities Exchange Act Rel. No. 93484 (Oct. 29, 2021), 86 FR 60933 (Nov. 4, 2021).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Law Firm: Covington.</E>
                         CAT LLC hired Covington for litigation with the SEC regarding certain exemptive orders related to the CAT, including orders issued in December 2020.
                        <SU>66</SU>
                        <FTREF/>
                         CAT LLC interviewed this law firm as well as other potential law firms, considering a variety of factors in its analysis for choosing legal assistance, including the relevant expertise and fees of the potential lawyers. CAT LLC approved the engagement of Covington in January 2021. The fee rates for this law firm, which were calculated based on hourly rates, were in line with market rates for specialized services. The legal fees for FAM Period 3 for this firm were paid by CAT LLC to Covington.
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 90688 (Dec. 16, 2020), 85 FR 83634 (Dec. 22, 2020); and Securities Exchange Act Rel. No. 90689 (Dec. 16, 2020), 85 FR 83667 (Dec. 22, 2020) (collectively, the “2020 Orders”).
                        </P>
                    </FTNT>
                    <P>After Covington was hired in 2021 through the end of 2021, the firm provided legal assistance regarding the litigation with the SEC regarding the 2020 Orders. These services included researching, drafting, and filing motions to stay the 2020 orders and related materials in proceedings before the SEC, as well as researching, drafting, and filing petitions for judicial review of the 2020 Orders in proceedings before the U.S. Court of Appeals for the D.C. Circuit. Covington oversaw ongoing litigation proceedings on these matters, and also supported WilmerHale with respect to settlement negotiations with the SEC staff regarding the 2020 Orders.</P>
                    <P>
                        In addition to these services, CAT LLC engaged Covington in November 2021 to provide assistance with respect to the SEC's disapproval of CAT NMS Plan amendments concerning a proposed limitation on liability in the event of a data breach or similar event. Covington provided advice concerning CAT's response to the SEC's disapproval order. This work accounted for a minority of Covington's fees in 2021.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             As discussed above with regard to Pillsbury's work on liability matters, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, such activity is a necessary part of the operation of the CAT.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>
                        The consulting costs of $1,408,209 represent the fees paid to Deloitte as project manager during FAM Period 3. CAT LLC continued to employ Deloitte during FAM Period 3 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 3 were negotiated and in line with market rates 
                        <PRTPAGE P="10489"/>
                        for this type of specialized consulting work. The consulting fees during FAM Period 3 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 3, Deloitte's CAT-related activities included the following:
                    </P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $1,582,714 represent the fees paid for insurance FAM Period 3. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $595,923 represent the fees paid to Anchin and Grant Thornton for financial services during FAM Period 3.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to employ Anchin during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services during FAM Period 3 were paid by CAT LLC to Anchin. During FAM Period 3, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 3 based on, among other things, their expertise and cumulative knowledge of CAT LLC. CAT LLC determined that Grant Thornton was well qualified for its role and that its fixed fee rates were in line with market rates for these accountant services. The fees for these services during FAM Period 3 were paid by CAT LLC to Grant Thornton. During FAM Period 3, Grant Thornton provided audited financial statements for CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $92,400 represent the fees paid to Peak Strategies during FAM Period 3. CAT LLC continued to employ Peak Strategies during FAM Period 3 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 3 were paid by CAT LLC to Peak Strategies. During FAM Period 3, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(v) Excluded Costs</HD>
                    <P>
                        Historical CAT Costs 1 would not include two categories of CAT costs (“Excluded Costs”): (1) $48,874,937, which are all CAT costs incurred from November 15, 2017 through November 15, 2018; and (2) $14,749,362 of costs related to the termination of the relationship with the Initial Plan Processor. The Participants would remain responsible for 100% of these costs, which total $63,624,299. CAT LLC determined that it was reasonable to exclude these Excluded Costs from Historical CAT Costs 1 because the excluded costs relate to the delay in the start of reporting to the CAT and the conclusion of the relationship with the Initial Plan Processor.
                        <SU>68</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             In approving the CAT Funding Model, the Commission states that “the proposed exclusion of the `Excluded Costs' from Past CAT Costs is reasonable in the Commission's view because it would not require all costs incurred by the Participants to be recovered from Industry Members through the Historical CAT Assessment, specifically excluding those costs related to the delay in the start of reporting to the CAT and costs related to the conclusion of the relationship with the Initial Plan Processor.” CAT Funding Model Approval Order at 62663.
                        </P>
                    </FTNT>
                    <P>First, Historical CAT Costs 1 would not include $14,749,362 of costs related to the conclusion of the relationship with the Initial Plan Processor. Such costs include costs related to the American Arbitration Association, the legal assistance of Pillsbury with regard to the arbitration with Thesys CAT, and the settlement costs related to the arbitration with Thesys CAT. The Participants would remain responsible for 100% of these $14,749,362 in costs.</P>
                    <P>
                        Second, the Historical CAT Costs would exclude all CAT costs incurred from November 15, 2017 through November 15, 2018. CAT LLC determined to exclude all costs during 
                        <PRTPAGE P="10490"/>
                        this one-year period of $48,874,937 from fees charged to Industry Members due to the delay in the start of reporting to the CAT. The Participants would remain responsible for 100% of these $48,874,937 in costs. The following table breaks down these costs into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <GPH SPAN="3" DEEP="239">
                        <GID>EN13FE24.121</GID>
                    </GPH>
                    <P>
                        The following provides additional detail regarding the Excluded Costs.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             The costs described in this table of Excluded Costs were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services, Operating Fees, CAIS Operating Fees and Change Request Fees</HD>
                    <P>CAT LLC did not incur technology costs related to the categories of cloud hosting services, operating fees, CAIS operating fees or change requests during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(b) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for the period from November 15, 2017 through November 15, 2018 include capitalizable application development costs of $37,852,083 incurred in the development of the CAT by the Initial Plan Processor. Such costs include development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Initial Plan Processor. Such costs include costs related to Industry Member technical specifications for orders and transactions, the system security plan, testing and production for Participant CAT reporting, third-party security assessment and response, query portal, onboarding of the Chief Information Security Officer, and ingestion of FINRA TRF data and FINRA data related to halts and corporate actions.</P>
                    <HD SOURCE="HD3">(c) Legal Costs</HD>
                    <P>The legal costs of $6,143,278 represent the fees paid to WilmerHale for legal services from November 15, 2017 through November 15, 2018. During this period, WilmerHale provided legal assistance to the CAT including with regard to the following:</P>
                    <P>• Provided legal support for the governance of the CAT, including governance support for the Operating Committee, Advisory Committee, Compliance Subcommittee, and CAT working groups;</P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan;</P>
                    <P>• Provided assistance related to CAT security;</P>
                    <P>• Drafted exemptive requests, including requests related to PII;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided advice with regard to regulator access to the CAT;</P>
                    <P>• Assisted with the Plan Processor transition;</P>
                    <P>• Provided assistance regarding communications with the industry regarding the CAT;</P>
                    <P>• Provided advice regarding Customer Account Information and PII;</P>
                    <P>• Provided support for litigation related to SEC exemptive orders; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretative and implementation issues.</P>
                    <HD SOURCE="HD3">(d) Consulting Costs</HD>
                    <P>The consulting costs of $4,452,106 represent the fees paid to Deloitte for their role as project manager for the CAT from November 15, 2017 through November 15, 2018. During this period, Deloitte engaged in the following activities with respect to the CAT:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>
                        • Provided governance support to the Operating Committee, including support for Subcommittees and working groups of the Operating Committee (
                        <E T="03">e.g.,</E>
                         Compliance Subcommittee, Cost and Funding Working Group, Technical Working Group, Industry Outreach Working Group, Security Working Group and Steering Committee);
                    </P>
                    <P>
                        • Assisted with cost and funding issue for the CAT, including the development of the CAT funding model 
                        <PRTPAGE P="10491"/>
                        and assistance with loans and the CAT bank account for CAT funding;
                    </P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress.</P>
                    <HD SOURCE="HD3">(e) Insurance</HD>
                    <P>CAT LLC did not incur costs related to insurance during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(f) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $340,145 represent the fees paid to Anchin, Exegy and RSM from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in April 2018 through November 15, 2018, Anchin engaged in the following activities with respect to the CAT:
                    </P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         From July 2018 through November 15, 2018, CAT LLC purchased market data from Exegy (as described in more detail above).
                    </P>
                    <P>
                        <E T="03">Security Assessment: RSM.</E>
                         From October 2018 through November 15, 2018, CAT LLC incurred costs for RSM's performance of a security assessment (as described in more detail above).
                    </P>
                    <HD SOURCE="HD3">(g) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $87,325 represent the fees paid to Sloane from November 15, 2017 through November 15, 2018. From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in March 2018 through November 15, 2018, Sloane provided professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, Sloane provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan).
                    </P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        Under the CAT NMS Plan, the Operating Committee is required to reasonably establish the length of the Historical Recovery Period used in calculating each Historical Fee Rate based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment, and to describe the reasons for its length.
                        <SU>70</SU>
                        <FTREF/>
                         The Historical Recovery Period used in calculating the Historical Fee Rate may not be less than 24 months or more than five years.
                        <SU>71</SU>
                        <FTREF/>
                         The Operating Committee has determined to establish a Historical Recovery Period 1 of 24 months for Historical CAT Assessment 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             Section 11.3(b)(i)(D)(I) and Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             Section 11.3(b)(i)(D)(I) of the CAT NMS Plan. In the CAT Funding Model Approval Order, the SEC stated that “[i]n the Commission's view, it is reasonable for the Operating Committee to establish the length of the Historical Recovery Period to be no less than 24 months and no more than five years.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The Operating Committee determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans to the Participants in a timely fashion. The Operating Committee determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>72</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, the Operating Committee recognized that the total costs for Historical CAT Assessment 1 were less than the total costs for 2022 and 2023,
                        <SU>73</SU>
                        <FTREF/>
                         and therefore it would be reasonable and appropriate to recover costs subject to this filing over an approximate two-year period. Furthermore, the Operating Committee notes that 24 months is appropriate because it is not currently proposing that Industry Members be required to pay additional CAT fees with regard to another Historical CAT Assessment or CAT Fees with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model at 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             The total CAT costs for 2022 were approximately $186 million and the total CAT costs for 2023 are estimated to be approximately $233 million.
                        </P>
                    </FTNT>
                    <P>
                        The length of the Historical Recovery Period 1 and the reasons for its length are provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>74</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             Section 11.3(b)(iii)(B)(II)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Total Executed Equivalent Share Volume</HD>
                    <P>
                        The calculation of Historical Fee Rate 1 also requires the determination of the projected total executed equivalent share volume of transactions in Eligible Securities for Historical Recovery Period 1. Under the CAT NMS Plan, the Operating Committee is required to “reasonably determine the projected total executed equivalent share volume of all transactions in Eligible Securities for each Historical Recovery Period based on the executed equivalent share volume of all transactions in Eligible Securities for the prior twelve months.” 
                        <SU>75</SU>
                        <FTREF/>
                         The Operating Committee is required to base its projection on the prior twelve months, but it may use its discretion to analyze the likely volume for the upcoming year. Such discretion would allow the Operating Committee to use its judgment when estimating projected total executed equivalent share volume if the volume over the prior twelve months was unusual or 
                        <PRTPAGE P="10492"/>
                        otherwise unfit to serve as the basis of a future volume estimate.
                        <SU>76</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             Section 11.3(b)(i)(E) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. The Operating Committee has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. The Operating Committee determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is projected to be 7,685,722,694,558.88 executed equivalent shares.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <P>
                        The projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1 and a description of the calculation of the projection is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>78</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             Section 11.3(b)(iii)(B)(II)(D) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Historical Fee Rate 1</HD>
                    <P>
                        Historical Fee Rate 1 would be calculated by dividing Historical CAT Costs 1 by the reasonably projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1, as described in detail above.
                        <SU>79</SU>
                        <FTREF/>
                         Specifically, Historical Fee Rate 1 would be calculated by dividing $337,688,610 by 7,685,722,694,558.88. As a result, the Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. Historical Fee Rate 1 is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide the Historical Fee Rate in a fee filing for a Historical CAT Assessment.
                        <SU>80</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             In approving the CAT Funding Model, the Commission stated that “[t]he calculation of the Historical Fee Rate by dividing the Historical CAT Costs by the projected total executed equivalent share volume of all transactions in Eligible Securities for the Historical Recovery Period is reasonable.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>80</SU>
                             Section 11.3(b)(iii)(B)(II)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Past CAT Costs and Participants</HD>
                    <P>Participants would not be required to pay any fees associated with Historical CAT Assessment 1 as the Participants previously have paid all Past CAT Costs. The CAT NMS Plan explains that:</P>
                    <EXTRACT>
                        <P>
                            Because Participants previously have paid Past CAT Costs via loans to the Company, Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs and such other additional Past CAT Costs as reasonably determined by the Operating Committee will be paid by the cancellation of loans made to the Company on a pro rata basis based on the outstanding loan amounts due under the loans.
                            <SU>81</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>81</SU>
                                 Section 11.3(b)(ii) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The CAT NMS Plan further states that “Historical CAT Assessments are designed to recover two-thirds of the Historical CAT Costs.” 
                        <SU>82</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             
                            <E T="03">Id.</E>
                             In approving the CAT Funding Model, the Commission stated that “[t]he proposed allocation of the Historical CAT Assessment solely to CEBs and CEBBs, and ultimately Industry Members, is reasonable. The Historical CAT Assessment will still be divided into thirds,” as the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made to the Company. CAT Funding Model Approval Order at 62666.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(4) Monthly Fees</HD>
                    <P>
                        CEBBs and CEBSs would be required to pay fees for Historical CAT Assessment 1 on a monthly basis for the period in which Historical CAT Assessment 1 is in effect.
                        <SU>83</SU>
                        <FTREF/>
                         A CEBB or CEBS's fee for each month would be calculated based on the transactions in Eligible Securities executed by the CEBB or CEBS from the prior month.
                        <SU>84</SU>
                        <FTREF/>
                         Proposed paragraph (a)(1)(A) of the CAT Fee Schedule would state that each CAT Executing Broker would receive its first invoice in April 2024, and “would receive an invoice each month thereafter in which Historical CAT Assessment 1 is in effect.” Proposed paragraph (a)(1)(B) of the CAT Fee Schedule would state that “Consolidated Audited Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” In addition, proposed paragraph (b)(1) of the CAT Fee Schedule states that each CEBB and CEBS is required to pay its CAT fees “each month.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             See proposed paragraph (a)(1)(B) of the CAT Fee Schedule.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(5) Actual Recovery Period for Historical CAT Assessment 1</HD>
                    <P>
                        The CAT NMS Plan states that, “[n]otwithstanding the length of the Historical Recovery Period used in calculating the Historical Fee Rate, each Historical CAT Assessment calculated using the Historical Fee Rate will remain in effect until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                        <SU>85</SU>
                        <FTREF/>
                         Accordingly, Historical CAT Assessment 1 will remain in effect until all Historical CAT Costs 1 have been collected. The actual recovery period for Historical CAT Assessment 1 may be shorter or longer than Historical Recovery Period 1 depending on the actual executed equivalent share volumes during the time that Historical CAT Assessment 1 is in effect.
                        <SU>86</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             Section 11.3(b)(i)(D)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>86</SU>
                             In approving the CAT Funding Model, the Commission stated that “[i]n the Commission's view, it is reasonable for Industry Members to be charged a Historical CAT Assessment until all Historical CAT Costs for the Historical CAT Assessment are collected.” CAT Funding Model Approval Order at 62665.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(6) Consolidated Audit Trail Funding Fees</HD>
                    <P>To implement Historical CAT Assessment 1, the Exchange proposes to adopt CAT Fee Schedule to include the proposed paragraphs described below.</P>
                    <HD SOURCE="HD3">(A) Fee Schedule for Historical CAT Assessment 1</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Each month in which a Historical CAT Assessment is in effect, each CEBB and each CEBS shall pay a fee for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate reasonably determined pursuant to paragraph (b)(i) of this Section 11.3.
                            <SU>87</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>87</SU>
                                 Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, based on the factors discussed above, the Exchange proposes to add paragraph (a)(1) to the CAT Fee Schedule. Proposed paragraph (a)(1) would state the following:</P>
                    <EXTRACT>
                        <P>(A) Each CAT Executing Broker shall receive its first invoice for Historical CAT Assessment 1 in April 2024, which shall set forth the Historical CAT Assessment 1 fees calculated based on transactions in March 2024, and shall receive an invoice for Historical CAT Assessment 1 for each month thereafter in which Historical CAT Assessment 1 is in effect.</P>
                        <P>
                            (B) Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on 
                            <PRTPAGE P="10493"/>
                            a monthly basis. Each month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.
                        </P>
                        <P>(C) Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time. Consolidated Audit Trail, LLC will provide notice when Historical CAT Assessment 1 will no longer be in effect.</P>
                        <P>(D) Each CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).</P>
                    </EXTRACT>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, “as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>88</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of the CAT Fee Schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 of $0.0000439371316687066 by one-third, and rounding the result to 6 decimal places.
                        <SU>89</SU>
                        <FTREF/>
                         The Operating Committee determined to use six decimal places to balance the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             Dividing $0.0000439371316687066 by three equals $0.00001464571055623553. Rounding $0.00001464571055623553 to six decimal places equals $0.000015.
                        </P>
                    </FTNT>
                    <P>The proposed language in paragraph (a)(1)(A) of the CAT Fee Schedule would describe when CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1. Specifically, CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 and the fees set forth in that invoice would be calculated based on transactions executed in the prior month, that is, transactions executed in March 2024. The payment for the first invoice would be required within 30 days after the receipt of the first invoice (unless a longer period is indicated), as described in proposed paragraph (b)(2) of the CAT Fee Schedule.</P>
                    <P>Proposed paragraph (a)(1)(A) of the CAT Fee Schedule also would describe the monthly cadence of the invoices for Historical CAT Assessment 1. Specifically, after the first invoices are provided to CAT Executing Brokers in April 2024, invoices will be sent to CAT Executing Brokers each month thereafter while Historical CAT Assessment 1 is in effect.</P>
                    <P>Proposed paragraph (a)(1)(B) of the CAT Fee Schedule would describe the invoices for Historical CAT Assessment 1. Proposed paragraph (a)(1)(B) of the CAT Fee Schedule would state that “Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” Proposed paragraph (a)(1)(B) of the CAT Fee Schedule also would describe the fees to be set forth in the invoices for Historical CAT Assessment 1. Specifically, it would state that “[e]ach month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.”</P>
                    <P>
                        Furthermore, proposed paragraph (a)(1)(C) of the CAT Fee Schedule would describe how long Historical CAT Assessment 1 would remain in effect. It would state that “Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time.” This proposed paragraph would further state that “Consolidated Audit Trail, LLC will be [
                        <E T="03">sic</E>
                        ] provide notice when Historical CAT Assessment 1 will no longer be in effect.”
                    </P>
                    <P>Historical CAT Assessment 1 will be assessed for all transactions executed in each month through the end of the month in which two-thirds of Historical CAT Costs 1 are assessed, and then CAT LLC will provide notice that Historical CAT Assessment 1 is no longer in effect. Since Historical CAT Assessment 1 is a monthly fee based on transaction volume from the prior month, Historical CAT Assessment 1 may collect more than two-thirds of Historical CAT Costs 1. To the extent that occurs, any excess money collected during the final month in which Historical CAT Assessment 1 is in effect will be used to offset future fees and/or to fund the reserve for the CAT.</P>
                    <P>Finally, proposed paragraph (a)(1)(D) of the CAT Fee Schedule sets forth the requirement for the CAT Executing Brokers to pay the invoices for Historical CAT Assessment 1. It would state that “[e]ach CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).”</P>
                    <HD SOURCE="HD3">(B) Manner of Payment</HD>
                    <P>
                        The Exchange proposes to add paragraph (b)(1) to the “Consolidated Audit Trail Funding Fees” section of its CAT Fee Schedule to describe the manner of payment of Industry Member CAT fees. The CAT NMS Plan requires the Operating Committee to establish a system for the collection of CAT fees.
                        <SU>90</SU>
                        <FTREF/>
                         The Plan Processor has established a billing system for CAT fees.
                        <SU>91</SU>
                        <FTREF/>
                         Therefore, the Exchange proposes to require CAT Executing Brokers to pay Historical CAT Assessment 1 in accordance with such system. Accordingly, proposed paragraph (b)(1) would state that “[e]ach CAT Executing Broker shall pay its CAT fees as required pursuant to paragraph (a) each month to the Consolidated Audit Trail, LLC in the manner prescribed by the Consolidated Audit Trail, LLC.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             Section 11.4 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>91</SU>
                             The billing process and system are described in CAT Alert 2023-02 as well as the CAT FAQs related to the billing of CAT fees, the Industry Member CAT Reporter Portal User Guide, the FCAT Industry Member Onboarding Guide, the FCAT Connectivity Supplement for Industry Members and the CAT Billing Webinars (dated September 28, 2023 and November 7, 2023), each available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(C) Failure To Pay CAT Fees</HD>
                    <P>The CAT NMS Plan further states that:</P>
                    <EXTRACT>
                        <P>
                            Participants shall require each Industry Member to pay all applicable fees authorized under this Article XI within thirty (30) days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due (as determined in accordance with the preceding sentence), such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of: (a) the Prime Rate plus 300 basis points; 
                            <PRTPAGE P="10494"/>
                            or (b) the maximum rate permitted by applicable law.
                            <SU>92</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>92</SU>
                                 Section 11.4 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, the Exchange proposes to add this requirement to the Exchange's CAT Fee Schedule. Proposed paragraph (b)(2) of the CAT Fee Schedule would state:</P>
                    <EXTRACT>
                        <P>Each CAT Executing Broker shall pay the CAT fees required pursuant to paragraph (a) within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If a CAT Executing Broker fails to pay any such CAT fee when due, such CAT Executing Broker shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of (A) the Prime Rate plus 300 basis points, or (B) the maximum rate permitted by applicable law.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(7) Historical CAT Assessment Details</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Details regarding the calculation of a CAT Executing Broker's Historical CAT Assessment will be provided upon request to such CAT Executing Broker. At a minimum, such details would include each CAT Executing Broker's executed equivalent share volume and corresponding fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise than on an exchange, and (3) by buy-side transactions and sell-side transactions.
                            <SU>93</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>93</SU>
                                 Section 11.3(a)(iv)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        Such information would provide CEBBs and CEBSs with the ability to understand the details regarding the calculation of their Historical CAT Assessment.
                        <SU>94</SU>
                        <FTREF/>
                         CAT LLC will provide CAT Executing Brokers with these details regarding the calculation of their Historical CAT Assessments on their monthly invoice for the Historical CAT Assessment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, providing CAT Execut[ing] Brokers information regarding the calculation of their CAT Fees will aid in transparency and permit CAT Execut[ing] Brokers to confirm the accuracy of their invoices for CAT Fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>
                        In addition, CAT LLC will make certain aggregate statistics regarding Historical CAT Assessments publicly available. Specifically, the CAT NMS Plan states that, “[f]or each Historical CAT Assessment, at a minimum, CAT LLC will make publicly available the aggregate executed equivalent share volume and corresponding aggregate fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise on an exchange, and (3) by buy-side transactions and sell-side transactions.” 
                        <SU>95</SU>
                        <FTREF/>
                         Such aggregate statistics will be available on the CAT website.
                    </P>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             Section 11.3(a)(iv)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission stated that “[t]he publication of the aggregate executed equivalent share volume and aggregate fee is appropriate because it would allow Participants and CAT Executing Brokers a high-level validation of executed volume and fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>Furthermore, CAT LLC will make publicly available on the CAT website the total amount invoiced each month that Historical CAT Assessment 1 is in effect as well as the total amount invoiced for Historical CAT Assessment 1 for all months since its commencement. CAT LLC also will make publicly available on the CAT website the total costs to be collected from Industry Members for Historical CAT Assessment 1. By reviewing statistics regarding how much has been invoiced and how much remains to be invoiced for Historical CAT Assessment 1, Industry Members would have sufficient information to reasonably track how much longer Historical CAT Assessment 1 is likely to be in place.</P>
                    <HD SOURCE="HD3">(8) Implementation Assistance</HD>
                    <P>To assist Industry Members with compliance with the commencement of Historical CAT Assessment 1, CAT LLC will make available to CAT Executing Brokers four months of mock invoices prior to the commencement of Historical CAT Assessment 1. Specifically, CAT Executing Brokers will receive mock invoices based on transaction data from November 2023, December 2023, January 2024 and February 2024. The mock invoices will be in the same form as the actual, payable invoices, including both the relevant transaction data and the corresponding fee. However, no payments will be required in response to such mock invoices; they are to be used solely to assist CAT Executing Brokers with the development of their processes for paying the CAT fees. Such data will provide CAT Executing Brokers with a preview of the transaction data used in creating the invoices for Historical CAT Assessment 1 fees, as the data will be the same as data provided in actual invoices. Such data preview is intended to facilitate the payment of Historical CAT Assessment 1.</P>
                    <HD SOURCE="HD3">(9) Financial Accountability Milestones</HD>
                    <P>
                        The CAT NMS Plan states that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.” 
                        <SU>96</SU>
                        <FTREF/>
                         The CAT NMS Plan further states that “in all filings submitted by the Participants to the Commission under Section 19(b) of the Exchange Act, to establish or implement Post-Amendment Industry Member Fees pursuant to this Article, . . . the Participants shall clearly indicate whether such fees are related to Post-Amendment Expenses incurred during Period 1, Period 2, Period 3, or Period 4.” 
                        <SU>97</SU>
                        <FTREF/>
                         As discussed in detail below, all applicable Financial Accountability Milestones for Historical CAT Assessment 1—that is, Period 1, Period 2 and Period 3 of the Financial Accountability Milestones—have been satisfied. Furthermore, as discussed below, this filing clearly indicates that Historical CAT Assessment 1 relates to Post-Amendment Expenses incurred during Periods 1, 2 and 3 of the Financial Accountability Milestones.
                    </P>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             Section 11.6(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Period 1 of the Financial Accountability Milestones</HD>
                    <P>
                        In accordance with Section 11.6(b) of the CAT NMS Plan, Historical CAT Assessment 1 seeks to recover costs that are related to “all fees, costs, and expenses (including legal and consulting fees, costs, and expenses) incurred by or for the Company in connection with the development, implementation and operation of the CAT from the effective date of [Section 11.6 of the CAT NMS Plan] until such time as Full Implementation of CAT NMS Plan Requirements has been achieved” 
                        <SU>98</SU>
                        <FTREF/>
                         (“Post-Amendment Expenses”) incurred during FAM Period 1. FAM Period 1 began on June 22, 2020, the effective date of Section 11.6 of the CAT NMS Plan, and concluded on July 31, 2020, the date of Initial Industry Member Core Equity and Options Reporting. Section 1.1 of the CAT NMS Plan defines “Initial Industry Member Core Equity and Options Reporting” as:
                    </P>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             Section 11.6 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>The reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of both: (a) equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information; and (b) options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.</P>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' 
                        <PRTPAGE P="10495"/>
                        Quarterly Progress Reports.
                        <SU>99</SU>
                        <FTREF/>
                         As indicated by the Participants' Quarterly Progress Report for the third quarter of 2020,
                        <SU>100</SU>
                        <FTREF/>
                         Initial Industry Member Core Equity and Option Reporting was completed on schedule on July 22, 2020, which is prior to the July 31, 2020 deadline.
                    </P>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             The Quarterly Progress Reports are available at 
                            <E T="03">https://www.catnmsplan.com/implementation-plan.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020) and Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Under the FAM Period 1 requirement of Initial Industry Member Core Equity and Options Reporting, Industry Members—excluding Small Industry Members that are not OATS reporters—were required to report two categories of data to the CAT: equites transaction data and options transaction data (both excluding Customer Account Information, Customer-ID, and Customer Identifying Information) by July 31, 2020. Pursuant to exemptive relief provided by the Commission, the Commission authorized the Participants' Compliance Rules to allow core equity reporting for Industry Members (Phase 2a) to begin on June 22, 2020 and core options reporting for Industry Members (Phase 2b) to begin on July 20, 2020.
                        <SU>101</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order. Under the CAT NMS Plan as adopted, the Participants were required, through their Compliance Rules, to require their Large Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2018, and to require their Small Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2019. Sections 6.7(a)(v) and (vi) of the CAT NMS Plan. The SEC granted exemptive relief from these provisions of the CAT NMS Plan to allow for the phased implementation of Industry Member reporting via five phases addressing the reporting requirements for Phase 2a Industry Member Data, Phase 2b Industry Member Data, Phase 2c Industry Member Data, Phase 2d Industry Member Data and Phase 2e Industry Member Data.
                        </P>
                    </FTNT>
                    <P>
                        In adopting the FAMs, the Commission stated that the equities transaction reporting required for FAM Period 1 “is consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Equities 2a file submission and data integrity validations.' ” 
                        <SU>102</SU>
                        <FTREF/>
                         The Phase 2a Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the following data related to Eligible Securities that are equities:
                    </P>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             Securities Exchange Act Rel. No. 88890, 85 FR 31322, 31330 n.97 (“FAM Adopting Release”).
                        </P>
                    </FTNT>
                    <P>• All events and scenarios covered by OATS, which includes information related to the receipt or origination of orders, order transmittal, and order modifications, cancellations and executions;</P>
                    <P>
                        • Reportable Events for: (1) proprietary orders, including market maker orders, for Eligible Securities that are equities; (2) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) sent to a national securities exchange or FINRA's Alternative Display Facility (“ADF”); (3) electronic quotes in unlisted Eligible Securities (
                        <E T="03">i.e.,</E>
                         OTC Equity Securities) received by an Industry Member operating an interdealer quotation system (“IDQS”); and (4) electronic quotes in unlisted Eligible Securities sent to an IDQS or other quotation system not operated by a Participant or Industry Member;
                    </P>
                    <P>• Firm Designated IDs (“FDIDs”), which Industry Members must report to the CAT as required by Sections 6.3(d)(i)(A) and 6.4(d)(ii)(C) of the CAT NMS Plan;</P>
                    <P>• Industry Members would be required to report all street side representative orders, including both agency and proprietary orders and mark such orders as representative orders, except in certain limited exceptions as described in the Industry Member Technical Specifications;</P>
                    <P>• The link between the street side representative order and the order being represented when: (1) the representative order was originated specifically to represent a single order received either from a customer or another broker-dealer; and (2) there is (a) an existing direct electronic link in the Industry Member's system between the order being represented and the representative order and (b) any resulting executions are immediately and automatically applied to the represented order in the Industry Member's system;</P>
                    <P>• Manual and Electronic Capture Time for Manual Order Events;</P>
                    <P>• Special handling instructions for the original receipt or origination of an order during Phase 2a; and</P>
                    <P>• When routing an order, whether the order was routed as an intermarket sweep order (“ISO”).</P>
                    <P>
                        In Phase 2a, Industry Members were not required to report modifications of a previously routed order in certain limited instances, nor were they required to report a cancellation of an order received from a Customer after the order has been executed.
                        <SU>103</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             Phased Reporting Exemptive Relief Order at 23076-78.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Equities 2a file submission and data integrity validation (Large Industry Members and Small OATS Reporters)” was completed on June 22, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information” was completed on June 22, 2020.</P>
                    <P>
                        In adopting the FAMs, the Commission stated that the options transaction reporting required for FAM Period 1 is “consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Options 2b file submission and data integrity validations.' ” 
                        <SU>104</SU>
                        <FTREF/>
                         The Phase 2b Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the Industry Member Data related to Eligible Securities that are options and related to simple electronic option orders, excluding electronic paired option orders. A simple electronic option order is an order to buy or sell a single option that is not related to or dependent on any other transaction for pricing and timing of execution that is either received or routed electronically by an Industry Member. Electronic receipt of an order is defined as the initial receipt of an order by an Industry Member in electronic form in standard format directly into an order handling or execution system. Electronic routing of an order is the routing of an order via electronic medium in standard format from one Industry Member's order handling or execution system to an exchange or another Industry Member. An electronic paired option order is an electronic option order that contains both the buy and sell side that is routed to another Industry Member or exchange for crossing and/or price improvement as a single transaction on an exchange. Responses to auctions of simple orders and paired simple orders would be reportable in Phase 2b. Furthermore, combined orders in options would be treated in Phase 2b in the same way as equity representative orders are treated in Phase 2a. A combined order would mean, as permitted by SRO rules, a single, simple order in Listed Options created by combining individual, simple orders in Listed Options from a customer with the same exchange origin code before routing to an exchange. During Phase 2b, the single combined order sent to an exchange must be reported and marked as a combined order, but the linkage to the underlying 
                        <PRTPAGE P="10496"/>
                        orders is not required to be reported until Phase 2d.
                        <SU>105</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             FAM Adopting Release at 31330, n.98.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             Phased Reporting Exemptive Relief Order at 23078.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Options 2b file submission and data integrity validations” was completed on July 20, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information” was completed on July 20, 2020.</P>
                    <P>As discussed above, the Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from June 22, 2020 through July 31, 2020. The total costs for this period, as discussed above, are $6,377,343. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781).</P>
                    <HD SOURCE="HD3">(B) Period 2 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 2. FAM Period 2 began on August 1, 2020, and concluded on December 31, 2020, the date of the Full Implementation of Core Equity Reporting. Section 1.1 of the CAT NMS Plan defines “Full Implementation of Core Equity Reporting” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2020,
                        <SU>106</SU>
                        <FTREF/>
                         Full Implementation of Core Equity Reporting was completed on schedule by December 31, 2020.
                    </P>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the Full Implementation of Core Equity Reporting requires the satisfaction of two prongs. The first prong requires Participants to have fully implemented the first phase of equities transaction reporting for Industry Members (excluding Small Industry Members that are not OATS reporters) at an Error Rate of less than 5%. In addition, equities transaction data produced by the CAT at this stage must also be sufficiently interlinked so as to permit full analysis of an order's lifecycle across the national market, excluding full linkage of representative orders. As CAT LLC reported on its Quarterly Progress Reports, Phase 2a was fully implemented as of October 26, 2020, including intra-firm, inter-firm, national securities exchange, and trade reporting facilities linkages.
                        <SU>107</SU>
                        <FTREF/>
                         In addition to the reporting of Phase 2a Industry Member Data as described above with regard to FAM Period 1, the following linkage data was added to the CAT as described in the Quarterly Progress Reports for the third and fourth quarter of 2020:
                    </P>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             For a description of the requirements of Phases 2a, 
                            <E T="03">see</E>
                             Phased Reporting Exemptive Relief Order.
                        </P>
                    </FTNT>
                    <P>
                        • “Production Go-Live for Equities 2a Intrafirm Linkage validations” was completed on 7/27/2020; 
                        <SU>108</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>108</SU>
                             Q3 2020 Quarterly Progress Report (Oct. 20, 2021).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Firm to Firm Linkage validations for Equities 2a (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020; and</P>
                    <P>• “Production Go-Live for Equities 2a Exchange and TRF Linkage validations (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020.</P>
                    <P>Furthermore, as CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2020, the average overall error rate for Phase 2a Industry Member Data was less than 5% as of December 31, 2020. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The second prong of this FAM requires that the equities transaction data collected by the CAT at this stage be made available to regulators through two basic query tools required by the CAT NMS Plan—a targeted query tool that will enable regulators to retrieve data via an online query screen with a variety of predefined selection criteria, and a user-defined direct query tool that will provide regulators with the ability to query data using all available attributes and data sources.
                        <SU>109</SU>
                        <FTREF/>
                         As CAT LLC reported on its Quarterly Progress Reports, the query tool functionality incorporating the data from Phase 2a was available to the Participants and the Commission as of December 31, 2020.
                        <SU>110</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             Section 6.10(c)(i)(A) of the CAT NMS Plan requires the Plan Processor to “provide Participants and the SEC with access to all CAT Data stored in the Central Repository” via an “online targeted query tool.” Appendix D, Sections 8.1.1-8.1.3 of the CAT NMS Plan describes the required functionality associated with this regulatory tool. Appendix D, Section 8.2.1 describes the required functionality associated with a user-defined direct query tool that will “deliver large sets of data that can then be used in internal surveillance or market analysis applications.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020); Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021); and Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>111</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             Securities Exchange Act Rel. No. 98848 (Nov. 2, 2023), 88 FR 77128, 77129 n.13 (Nov. 8, 2023) (“Settlement Exemptive Order”).
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from August 1, 2020 through December 31, 2020. The total costs for this period, as discussed above, are $42,976,478. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($14,325,492.70) and CEBSs paying one-third ($14,325,492.70).
                    </P>
                    <HD SOURCE="HD3">(C) Period 3 of the Financial Accountability Milestones</HD>
                    <P>
                        Historical CAT Assessment 1 seeks to recover costs that are related to Post-
                        <PRTPAGE P="10497"/>
                        Amendment Expenses incurred during FAM Period 3. FAM Period 3 began on January 1, 2021, and concluded on December 31, 2021, the date of the Full Availability and Regulatory Utilization of Transactional Database Functionality. Section 1.1 of the CAT NMS Plan defines “Full Availability and Regulatory Utilization of Transactional Database Functionality” as:
                    </P>
                    <EXTRACT>
                        <FP>the point at which: (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>112</SU>
                        <FTREF/>
                         Full Availability and Regulatory Utilization of Transactional Database Functionality was completed on schedule by December 31, 2021.
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires the satisfaction of five prongs. The first prong requires that reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>113</SU>
                        <FTREF/>
                         FINRA retired OATS effective September 1, 2021.
                        <SU>114</SU>
                        <FTREF/>
                         Accordingly, after the retirement of OATS, reporting to OATS was no longer required.
                    </P>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             Securities Exchange Act Rel. No. 92239 (June 23, 2021), 86 FR 34293 (June 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        In addition to Phase 2a and Phase 2b Industry Member Data, the second and third prongs of “Full Availability and Regulatory Utilization of Transactional Database Functionality” require Industry Member reporting of Phase 2c Industry Member Data and Phase 2d Industry Member Data. The Phase 2c Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. That Order states that “Phase 2c Industry Member Data” is Industry Member Data related to Eligible Securities that are equities other than Phase 2a Industry Member Data, Phase 2d Industry Member Data, or Phase 2e Industry Member Data. Specifically, the Phase 2c Industry Member Data includes Industry Member Data that is related to Eligible Securities that are equities and that is related to: (1) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (2) quotes in unlisted Eligible Securities sent to an IDQS operated by a CAT Reporter (reportable by the Industry Member sending the quotes) (except for quotes reportable in Phase 2d, as discussed below); (3) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) that are not sent to a national securities exchange or FINRA's Alternative Display Facility; (4) reporting changes to client instructions regarding modifications to algorithms; (5) marking as a representative order any order originated to work a customer order in price guarantee scenarios, such as a guaranteed VWAP; (6) flagging rejected external routes to indicate a route was not accepted by the receiving destination; (7) linkage of duplicate electronic messages related to a Manual Order Event between the electronic event and the original manual route; (8) special handling instructions on order route reports (other than the ISO, which is required to be reported in Phase 2a); (9) quote identifier on trade events; (10) reporting of LTIDs (if applicable) for accounts with Reportable Events that are reportable to CAT as of and including Phase 2c; (11) reporting of date account opened or Account Effective Date71 (as applicable) for accounts and reporting of a flag indicating the Firm Designated ID type as account or relationship; (12) order effective time for orders that are received by an Industry Member and do not become effective until a later time; (13) the modification or cancellation of an internal route of an order; and (14) linkages to the customer orders(s) being represented for representative order scenarios, including agency average price trades, net trades, aggregated orders, and disconnected Order Management System (“OMS”)—Execution Management System (“EMS”) scenarios, as required in the Industry Member Technical Specifications.
                        <SU>115</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>115</SU>
                             Phase Reporting Exemptive Relief Order at 23078-79.
                        </P>
                    </FTNT>
                    <P>
                        Phase 2c Industry Member Data also includes electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are equities and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: (1) an equity bid or offer is displayed publicly or has been communicated (a) for listed securities to the Alternative Display Facility (ADF) operated by FINRA; or (b) for unlisted equity securities to an “interdealer quotation system,” as defined in FINRA Rule 6420(c); or (2) an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing; 
                        <E T="03">i.e.,</E>
                         no further manual or electronic action is required by the responder providing the quote in order to execute or cause a trade to be executed). With respect to OTC Equity Securities, OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter (other than such an IDQS that does not match and execute orders) are reportable by the Industry Member sending them in Phase 2c. Accordingly, any response to a request for quote or other form of solicitation response provided in a standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this quote definition (
                        <E T="03">i.e.,</E>
                         an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing) would be reportable in Phase 2c.
                        <SU>116</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             
                            <E T="03">Id.</E>
                             at 23079.
                        </P>
                    </FTNT>
                    <P>
                        The Phase 2d Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. “Phase 2d Industry Member Data” is Industry Member Data that is related to Eligible Securities that are 
                        <PRTPAGE P="10498"/>
                        options other than Phase 2b Industry Member Data, Industry Member Data that is related to Eligible Securities that are equities other than Phase 2a Industry Member Data or Phase 2c Industry Member Data, and Industry Member Data other than Phase 2e Industry Member Data. Phase 2d Industry Member Data includes with respect to the Eligible Securities that are options: (1) simple manual orders; (2) electronic and manual paired orders; (3) all complex orders with linkages to all CAT-reportable legs; (4) LTIDs (if applicable) for accounts with Reportable Events for Phase 2d; (5) date account opened or Account Effective Date (as applicable) for accounts with an LTID and flag indicating the Firm Designated ID type as account or relationship for such accounts; (6) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (7) the modification or cancellation of an internal route of an order; and (8) linkage between a combined order and the original customer orders. Phase 2d Industry Member Data also would include electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are options and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: a listed option bid or offer which is accessible electronically by customers or other market participants and is immediately actionable (
                        <E T="03">i.e.,</E>
                         no further action is required by the responder providing the quote in order to execute or cause a trade to be executed). Accordingly, any response to a request for quote or other form of solicitation response provided in standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this definition is reportable in Phase 2d for options.
                        <SU>117</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Phase 2d Industry Member Data also includes with respect to Eligible Securities that are options or equities (1) receipt time of cancellation and modification instructions through Order Cancel Request and Order Modification Request events; (2) modifications of previously routed orders in certain instances; and (3) OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter that does not match and execute orders. In addition, subject to any exemptive or other relief, Phase 2d Industry Member Data will include verbal or manual quotes on an exchange floor or in the over-the-counter market, where verbal quotes and manual quotes are defined as bids or offers in Eligible Securities provided verbally or that are provided or received other than via a CAT Reporter's order handling and execution system (
                        <E T="03">e.g.,</E>
                         quotations provided via email or instant messaging).
                        <SU>118</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             
                            <E T="03">Id.</E>
                             at 23079-80.
                        </P>
                    </FTNT>
                    <P>
                        The Quarterly Progress Report for the fourth quarter of 2021 states that “Phase 2a was fully implemented as of October 26, 2020;” “Phase 2b was fully implemented as of January 4, 2021;” “Phase 2c was implemented as of April 26, 2021;” and “Phase 2d was fully implemented as of December 13, 2021.” 
                        <SU>119</SU>
                        <FTREF/>
                         The Quarterly Progress Reports for 2021 provide additional detail regarding the implementation of these steps including the following:
                    </P>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2a, 2b and 2c (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “FCAT Plan Processor creates linkages of the lifecycle of order events based on the received data through Phase 2d Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2b reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2d (Large Industry Members)” was completed on December 13, 2021; and</P>
                    <P>
                        • “LTID Account Information Reporting Go-Live for Phases 2a, 2b, 2c and 2d (Small Industry Members)” was completed on December 13, 2021.
                        <SU>120</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>120</SU>
                             
                            <E T="03">See</E>
                             Q2 2021 Quarterly Progress Report (July 27, 2021); and Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>The third prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” also imposes an Error Rate requirement of 5% or less. The Quarterly Progress Report for the fourth quarter of 2021 states the average overall error rate was less than 5% as of December 31, 2021. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The fourth prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires that the data collected by the CAT at this stage be made available to regulators through an online targeted query tool and a user-defined direct query tool. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021, the query tool functionality incorporating the data from Phases 2a, 2b, 2c and 2d was available to the Participants and to the Commission as of December 31, 2021.
                        <SU>121</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The fifth prong requires the requirements of Section 6.10(a) of the CAT NMS Plan to have been met. Section 6.10(a) of the CAT NMS Plan requires the Participants to use the tools described in Appendix D to “develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository.” The Exchange implemented a surveillance system, or enhanced existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository as of December 31, 2021 in accordance with Section 6.10(a) of the CAT NMS Plan.
                        <SU>122</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             
                            <E T="03">See</E>
                             Q1 2021 Quarterly Progress Report (April 30, 2021); Q2 2021 Quarterly Progress Report (July 27, 2021); Q3 2021 Quarterly Progress Report (Nov. 1, 2021); Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>123</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             Settlement Exemptive Order at 77129 n.13.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from January 1, 2021 through December 31, 2021. The total costs for this period, 
                        <PRTPAGE P="10499"/>
                        as discussed above, are $144,415,268. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($48,138,422.70) and CBSs paying one-third ($48,138,422.70).
                    </P>
                    <HD SOURCE="HD3">2. Statutory Basis</HD>
                    <P>
                        The Exchange believes the proposed rule change is consistent with the requirements of the Exchange Act. The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,
                        <SU>124</SU>
                        <FTREF/>
                         which requires, among other things, that the Exchange's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act,
                        <SU>125</SU>
                        <FTREF/>
                         because it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using its facilities. The Exchange further believes that the proposed rule change is consistent with Section 6(b)(8) of the Act,
                        <SU>126</SU>
                        <FTREF/>
                         which requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. These provisions also require that the Exchange be “so organized and [have] the capacity to be able to carry out the purposes” of the Act and “to comply, and . . . to enforce compliance by its members and persons associated with its members,” with the provisions of the Exchange Act.
                        <SU>127</SU>
                        <FTREF/>
                         Accordingly, a reasonable reading of the Act indicates that it intended that regulatory funding be sufficient to permit an exchange to fulfill its statutory responsibility under the Act, and contemplated that such funding would be achieved through equitable assessments on the members, issuers, and other users of an exchange's facilities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             15 U.S.C. 78f(b)(6).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             
                            <E T="03">See</E>
                             Section 6(b)(1) of the Exchange Act.
                        </P>
                    </FTNT>
                    <P>
                        The Exchange believes that this proposal is consistent with the Act because it implements provisions of the Plan and is designed to assist the Exchange in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>128</SU>
                        <FTREF/>
                         To the extent that this proposal implements the Plan and applies specific requirements to Industry Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             CAT NMS Plan Approval Order at 84697.
                        </P>
                    </FTNT>
                    <P>The Exchange believes that the proposed fees paid by the CEBBs and CEBSs are reasonable, equitably allocated and not unfairly discriminatory. First, the Historical CAT Assessment 1 fees to be collected are directly associated with the costs of establishing and maintaining the CAT, where such costs include Plan Processor costs and costs related to technology, legal, consulting, insurance, professional and administration, and public relations costs. The Exchange has already incurred such development and implementation costs and the proposed Historical CAT Assessment 1 fees, therefore, would allow the Exchange to collect certain of such costs in a fair and reasonable manner from Industry Members, as contemplated by the CAT NMS Plan.</P>
                    <P>The proposed Historical CAT Assessment 1 fees would be charged to Industry Members in support of the maintenance of a consolidated audit trail for regulatory purposes. The proposed fees, therefore, are consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business operations. The proposed fees would not cover Exchange services unrelated to the CAT. In addition, any surplus would be used as a reserve to offset future fees. Given the direct relationship between CAT fees and CAT costs, the Exchange believes that the proposed fees are reasonable, equitable and not unfairly discriminatory.</P>
                    <P>As further discussed below, the SEC approved the CAT Funding Model, finding it was reasonable and that it equitably allocates fees among Participants and Industry Members. The Exchange believes that the proposed fees adopted pursuant to the CAT Funding Model approved by the SEC are reasonable, equitably allocated and not unfairly discriminatory.</P>
                    <HD SOURCE="HD3">(1) Implementation of CAT Funding Model in CAT NMS Plan</HD>
                    <P>
                        Section 11.1(b) of the CAT NMS Plan states that “[t]he Participants shall file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves.” Per Section 11.1(b) of the CAT NMS Plan, the Exchange has filed this fee filing to implement the Industry Member CAT fees included in the CAT Funding Model. The Exchange believes that this proposal is consistent with the Exchange Act because it is consistent with, and implements, the CAT Funding Model in the CAT NMS Plan, and is designed to assist the Exchange and its Industry Members in meeting regulatory obligations pursuant to the CAT NMS Plan. In approving the CAT NMS Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>129</SU>
                        <FTREF/>
                         Similarly, in approving the CAT Funding Model, the SEC concluded that the CAT Funding Model met this standard.
                        <SU>130</SU>
                        <FTREF/>
                         As this proposal implements the Plan and the CAT Funding Model described therein, and applies specific requirements to Industry Members in compliance with the Plan, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Exchange Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             CAT NMS Plan Approval Order at 84696.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             CAT Funding Model Approval Order at 62686.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(2) Calculation of Fee Rate for Historical CAT Assessment 1 Is Reasonable</HD>
                    <P>
                        The SEC has determined that the CAT Funding Model is reasonable and satisfies the requirements of the Exchange Act. Specifically, the SEC has concluded that the method for determining Historical CAT Assessments as set forth in Section 11.3 of the CAT NMS Plan, including the formula for calculating the Historical Fee Rate, the identification of the parties responsible for payment and the transactions subject to the fee rate for the Historical CAT Assessment, is reasonable and satisfies the Exchange Act.
                        <SU>131</SU>
                        <FTREF/>
                         In each respect, as discussed above, Historical CAT Assessment 1 is calculated, and would be applied, in accordance with the requirements applicable to Historical CAT Assessments as set forth in the CAT NMS Plan. Furthermore, as discussed 
                        <PRTPAGE P="10500"/>
                        below, the Exchange believes that each of the figures for the variables in the SEC-approved formula for calculating the fee rate for Historical CAT Assessment 1 is reasonable and consistent with the Exchange Act. Calculation of the Historical Fee Rate for Historical CAT Assessment 1 requires the figures for the Historical CAT Costs 1, the executed equivalent share volume for the prior twelve months, the determination of Historical Recovery Period 1, and the projection of the executed equivalent share volume for Historical Recovery Period 1. Each of these variables is reasonable and satisfies the Exchange Act, as discussed throughout this filing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             
                            <E T="03">Id.</E>
                             at 62662-63.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Historical CAT Costs 1</HD>
                    <P>The formula for calculating a Historical Fee Rate requires the amount of Historical CAT Costs to be recovered. Specifically, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires a fee filing to provide:</P>
                    <EXTRACT>
                        <FP>a brief description of the amount and type of the Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.</FP>
                    </EXTRACT>
                    <P>In accordance with this requirement, the Exchange has set forth the amount and type of Historical CAT Costs 1 for each of these categories of costs above.</P>
                    <P>Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan also requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” As discussed below, the Exchange believes that the amounts set forth in this filing for each of these cost categories is “reasonable and appropriate.” Each of the costs included in Historical CAT Costs 1 are reasonable and appropriate because the costs are consistent with standard industry practice, based on the need to comply with the requirements of the CAT NMS Plan, incurred subject to negotiations performed on an arm's length basis, and/or are consistent with the needs of any legal entity, particularly one with no employees.</P>
                    <HD SOURCE="HD3">(i) Technology: Cloud Hosting Services</HD>
                    <P>
                        In approving the CAT Funding Model, the Commission recognized that it is appropriate to recover costs related to cloud hosting services as a part of Historical CAT Assessments.
                        <SU>132</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to cloud hosting services described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. As described above, the cloud hosting services costs reflect, among other things, the breadth of the CAT cloud activities, data volume far in excess of the original volume estimates, the need for specialized cloud services given the volume and unique nature of the CAT, the processing time requirements of the Plan, and regular efforts to seek to minimize costs where permissible under the Plan. CAT LLC determined that use of cloud hosting services is necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT, and that the fees for cloud hosting services negotiated by FCAT were reasonable, taking into consideration a variety of factors, including the expected volume of data and the breadth of services provided and market rates for similar services.
                        <SU>133</SU>
                        <FTREF/>
                         Indeed, the actual costs of the CAT are far in excess of the original estimated costs of the CAT due to various factors, including the higher volumes and greater complexity of the CAT than anticipated when Rule 613 was originally adopted.
                    </P>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             For a discussion of the amount and type of cloud hosting services fees, 
                            <E T="03">see</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>To comply with the requirements of the Plan, the breadth of the cloud activities related to the CAT is substantial. The cloud services not only include the production environment for the CAT, but they also include two industry testing environments, support environments for quality assurance and stress testing and disaster recovery capabilities. Moreover, the cloud storage costs are driven by the requirements of the Plan, which requires the storage of multiple versions of the data, from the original submitted version of the data through various processing steps, to the final version of the data.</P>
                    <P>
                        Data volume is a significant driver of costs for cloud hosting services. When the Commission adopted the CAT NMS Plan in 2016, it estimated that the CAT would need to receive 58 billion records per day 
                        <SU>134</SU>
                        <FTREF/>
                         and that annual operating costs for the CAT would range from $36.5 million to $55 million.
                        <SU>135</SU>
                        <FTREF/>
                         Through 2021, the actual data volumes have been five times that original estimate. The data volumes for each period are set forth in detail above.
                        <SU>136</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             CAT NMS Plan Approval Order at 84801.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>
                        In addition to the effect of the data volume on the cloud hosting costs, the processing timelines set forth in the Plan contribute to the cloud hosting costs. Although CAT LLC has proactively sought to manage cloud hosting costs while complying with the Plan, including through requests to the Commission for exemptive relief and an amendment to the CAT NMS Plan, stringent CAT NMS Plan requirements do not allow for any material flexibility in cloud architecture design choices, processing timelines (
                        <E T="03">e.g.,</E>
                         the use of non-peak processing windows), or lower-cost storage tiers. As a result, the required CAT processing timelines contribute to the cloud hosting costs of the CAT.
                    </P>
                    <P>The costs for cloud hosting services also reflect the need for specialized cloud hosting services given the data volume and unique processing needs of the CAT. The data volume as well as the data processing needs of the CAT necessitate the use of cloud hosting services. The equipment, power and services required for an on-premises data model, the alternative to cloud hosting services, would be cost prohibitive. Moreover, as CAT was being developed, there were limited cloud hosting providers that could satisfy all the necessary CAT requirements, including the operational and security criteria. Over time more providers offering cloud hosting services that would satisfy these criteria have entered the market. CAT LLC will continue to evaluate alternative cloud hosting services, recognizing that the time and cost to move to an alternative cloud provider would be substantial.</P>
                    <P>
                        The reasonableness of the cloud hosting services costs is further supported by key cost discipline mechanisms for the CAT—a cost-based funding structure, cost transparency, cost management efforts (including regular efforts to lower compute and storage costs where permitted by the Plan) and oversight. Together, these mechanisms help ensure the ongoing reasonableness of the CAT's costs and the level of fees assessed to support those costs.
                        <SU>137</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 97151 (Mar. 15, 2023), 88 FR 17086, 17117 (Mar. 21, 2023) (describing key cost discipline mechanisms for the CAT).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Technology: Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to operating fees as a part of Historical CAT Assessments.
                        <SU>138</SU>
                        <FTREF/>
                         CAT LLC determined 
                        <PRTPAGE P="10501"/>
                        that the costs related to operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The operating fees include the negotiated fees paid by CAT LLC to the Plan Processor to operate and maintain the system for order-related information and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the selection of FCAT as the Plan Processor was reasonable and appropriate given its expertise with securities regulatory reporting, after a process of considering other potential candidates.
                        <SU>139</SU>
                        <FTREF/>
                         CAT LLC also determined that the fixed price contract, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, was reasonable and appropriate, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity.
                        <SU>140</SU>
                        <FTREF/>
                         The services performed by FCAT for each period and the costs related to such services are described above.
                        <SU>141</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(b), 3(a)(2)(B)(ii)(b), 3(a)(2)(B)(iii)(b) and 3(a)(2)(B)(iv)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iii) Technology: CAIS Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to CAIS operating fees as a part of Historical CAT Assessments.
                        <SU>142</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to CAIS operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The CAIS operating fees include the fees paid to the Plan Processor to operate and maintain CAIS and to perform the business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the FCAT-negotiated fees for Kingland's CAIS-related services, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity, were reasonable and appropriate.
                        <SU>143</SU>
                        <FTREF/>
                         The services performed by Kingland for each period and the costs for each period are described above.
                        <SU>144</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(c), 3(a)(2)(B)(ii)(c), 3(a)(2)(B)(iii)(c) and 3(a)(2)(B)(iv)(c) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iv) Technology: Change Request Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to change request fees as a part of Historical CAT Assessments.
                        <SU>145</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to change request fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. It is common practice to utilize a change request process to address evolving needs in technology projects. This is particularly true for a project like CAT that is the first of its kind, both in substance and in scale. The substance and costs of each of the change requests are evaluated by the Operating Committee, and approved in accordance with the requirements for Operating Committee meetings. In each case, CAT LLC determined that the change requests were necessary to implement the CAT. As described above, the change requests cover various technology changes, including, for example, changes related to CAT reporting, data feeds and exchange functionality. CAT LLC also determined that the costs for each change request were appropriate for the relevant technology change. A description of the change requests for each FAM Period and their total costs are set described above.
                        <SU>146</SU>
                        <FTREF/>
                         As noted above, the total costs for change requests through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.25% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(d), 3(a)(2)(B)(ii)(d), 3(a)(2)(B)(iii)(d) and 3(a)(2)(B)(iv)(d) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(v) Capitalized Developed Technology Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to capitalized developed technology costs as a part of Historical CAT Assessments.
                        <SU>147</SU>
                        <FTREF/>
                         Capitalized developed technology costs include costs related to certain development costs, costs related to certain modifications, upgrades and other changes to the CAT, CAIS implementation fees and license fees. The amount and type of costs for each period are described in more detail above.
                        <SU>148</SU>
                        <FTREF/>
                         CAT LLC determined that these costs are reasonable and should be included as a part of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(e), 3(a)(2)(B)(ii)(e), 3(a)(2)(B)(iii)(e) and 3(a)(2)(B)(iv)(e) above.
                        </P>
                    </FTNT>
                    <P>
                        These costs involve the activity of both the Initial Plan Processor and FCAT, as the successor Plan Processor.
                        <SU>149</SU>
                        <FTREF/>
                         With regard to the Initial Plan Processor, the Participants utilized an RFP to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan. CAT LLC entered into an agreement with the Initial Plan Processor in which CAT LLC would pay the Initial Plan Processor a negotiated, fixed price fee.
                        <SU>150</SU>
                        <FTREF/>
                         In addition, as described above, CAT LLC determined that is [
                        <E T="03">sic</E>
                        ] was appropriate to enter into an agreement with FCAT as the successor Plan Processor.
                        <SU>151</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(e) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vi) Legal</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to legal fees as a part of Historical CAT Assessments.
                        <SU>152</SU>
                        <FTREF/>
                         CAT LLC determined that the legal costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Given the unique nature of the CAT, the number of parties involved with the CAT (including, for example, the SEC, Participants, Industry Members, and vendors) and the many regulatory issues associated with the CAT, the scope of the necessary legal services are substantial. CAT LLC determined that the scope of the legal services is necessary to implement and maintain the CAT and that the legal rates reflect the specialized services necessary for such a project. When hiring each law firm for a CAT project, CAT LLC interviewed multiple firms, and determined to hire each firm based on a variety of factors, including the relevant expertise and fees. In each case, CAT LLC determined that the hourly fee rates were in line with market rates for the specialized legal expertise. In 
                        <PRTPAGE P="10502"/>
                        addition, CAT LLC determined that the total costs incurred for each CAT project were appropriate given the breadth of services provided. The services performed by each law firm for each period and the costs related to such services are described above.
                        <SU>153</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(2) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(f), 3(a)(2)(B)(ii)(f), 3(a)(2)(B)(iii)(f) and 3(a)(2)(B)(iv)(f) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vii) Consulting</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover consulting costs as a part of Historical CAT Assessments.
                        <SU>154</SU>
                        <FTREF/>
                         CAT LLC determined that the consulting costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees 
                        <SU>155</SU>
                        <FTREF/>
                         and because of the significant number of issues associated with the CAT, the consultants provided assistance in the management of various CAT matters and the processes related to such matters.
                        <SU>156</SU>
                        <FTREF/>
                         CAT LLC considered a variety of factors in choosing a consulting firm and determined to select Deloitte after an interview process.
                        <SU>157</SU>
                        <FTREF/>
                         CAT LLC also determined that the consulting services were provided at reasonable market rates, as the fees were negotiated annually and comparable to the rates charged by other consulting firms for similar work.
                        <SU>158</SU>
                        <FTREF/>
                         Moreover, the total costs for such consulting services were appropriate in light of the breadth of services provided by Deloitte. The services performed by Deloitte and the costs related to such services are described above.
                        <SU>159</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(3) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             As stated in the filing of the proposed CAT NMS Plan, “[i]t is the intent of the Participants that the Company have no employees.” Securities Exchange Act Rel. No. 77724 (Apr. 27, 2016), 81 FR 30614, 30621 (May 17, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             CAT LLC uses certain third parties to perform tasks that may be performed by administrators for other NMS Plans. 
                            <E T="03">See, e.g.,</E>
                             CTA Plan and CQ Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(g), 3(a)(2)(B)(ii)(g), 3(a)(2)(B)(iii)(g) and 3(a)(2)(B)(iv)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(viii) Insurance</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover insurance costs as a part of Historical CAT Assessments.
                        <SU>160</SU>
                        <FTREF/>
                         CAT LLC determined that the insurance costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that it is common practice to have directors' and officers' liability insurance, and errors and omissions liability insurance. CAT LLC further determined that it was important to have cyber security insurance given the nature of the CAT, and such a decision is consistent with the CAT NMS Plan, which states that the cyber incident response plan may include “[i]nsurance against security breaches.” 
                        <SU>161</SU>
                        <FTREF/>
                         In selecting the insurance providers for these policies, CAT LLC engaged in an evaluation of alternative insurers, including a comparison of the pricing offered by the alternative insurers.
                        <SU>162</SU>
                        <FTREF/>
                         Based on this analysis, CAT LLC determined that the selected insurance policies provided appropriate coverage at reasonable market rates.
                        <SU>163</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(4) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             Section 4.1.5 of Appendix D of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(h), 3(a)(2)(B)(ii)(h), 3(a)(2)(B)(iii)(h) and 3(a)(2)(B)(iv)(h) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ix) Professional and Administration</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover professional and administration costs as a part of Historical CAT Assessments.
                        <SU>164</SU>
                        <FTREF/>
                         CAT LLC determined that the professional and administration costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees, all required accounting, financial, tax, cash management and treasury functions for CAT LLC have been outsourced at market rates. In addition, the required annual financial statement audit of CAT LLC is included in professional and administration costs, which costs are also at market rates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(5) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees.
                        <SU>165</SU>
                        <FTREF/>
                         The hourly fee rates for this firm were in line with market rates for the financial advisory services provided.
                        <SU>166</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Anchin. The services performed by Anchin and the costs related to such services are described above.
                        <SU>167</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC also determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the role given the balanace [
                        <E T="03">sic</E>
                        ] of these considerations.
                        <SU>168</SU>
                        <FTREF/>
                         Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services.
                        <SU>169</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Grant Thornton. The services performed by Grant Thornton and the costs related to such services are described above.
                        <SU>170</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to the receipt of certain market data from Exegy. After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy. Exegy provided the data elements required by the CAT NMS Plan, and the fees were reasonable and in line with market rates for the market data received.
                        <SU>171</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment.
                        <SU>172</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <PRTPAGE P="10503"/>
                    <HD SOURCE="HD3">(x) Public Relations Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover public relations costs as a part of Historical CAT Assessments.
                        <SU>173</SU>
                        <FTREF/>
                         CAT LLC determined that the public relations costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that the types of public relations services utilized were beneficial to the CAT and market participants more generally. Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                        <SU>174</SU>
                        <FTREF/>
                         By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT issues to the benefit of all market participants.
                        <SU>175</SU>
                        <FTREF/>
                         Moreover, CAT LLC determined that the rates charged for such services were in line with market rates.
                        <SU>176</SU>
                        <FTREF/>
                         As noted above, the total public relations costs through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.1% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(6) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(j), 3(a)(2)(B)(ii)(j), 3(a)(2)(B)(iii)(j) and 3(a)(2)(B)(iv)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Total Executed Equivalent Share Volume for the Prior 12 Months</HD>
                    <P>The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. CAT LLC determined the total executed equivalent share volume for the prior twelve months by counting executed equivalent shares in the same manner as it will count executed equivalent shares for CAT billing purposes.</P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to establish a Historical Recovery Period of 24 months for Historical CAT Assessment 1 and that such length is reasonable. CAT LLC determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans notes to the Participants in a timely fashion. CAT LLC determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>177</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, CAT LLC recognized that the total costs for Historical CAT Assessment 1 was less than the total costs for 2022 and 2023, and therefore it would be appropriate to recover those costs in two years. Furthermore, CAT LLC notes 24 months is appropriate because it is not currently proposing that Industry Members be required to pay another Historical CAT Assessment or CAT Fee with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model Approval Order at 62682.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Executed Equivalent Share Volume for Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. CAT LLC determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant in recent years. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is 7,685,722,694,558.88 executed equivalent shares.
                        <SU>178</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Actual Fee Rate for Historical CAT Assessment 1</HD>
                    <HD SOURCE="HD3">(i) Decimal Places</HD>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>179</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of CAT Fee Schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 by one-third, and rounding the result to 6 decimal places. CAT LLC determined that the use of six decimal places is reasonable as it balances the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Reasonable Fee Level</HD>
                    <P>
                        The Exchange believes that imposing Historical CAT Assessment 1 with a fee rate of $0.000015 per executed equivalent share is reasonable because it provides for a revenue stream for the Company that is aligned with Historical CAT Costs 1 and such costs would be spread out over an appropriate recovery period, as discussed above. Moreover, the Exchange believes that the level of the fee rate is reasonable, as it is comparable to other transaction-based fees. Indeed, Historical CAT Assessment 1 is significantly lower than fees assessed pursuant to Section 31 (
                        <E T="03">e.g.,</E>
                         $0.0009 per share to 0.0004 per share),
                        <SU>180</SU>
                        <FTREF/>
                         and, as a result, the magnitude of Historical CAT Assessment 1 is small, and therefore will mitigate any potential adverse economic effects or inefficiencies.
                        <SU>181</SU>
                        <FTREF/>
                         Furthermore, the reasonable fee rate for Historical CAT Assessment 1 further supports CAT LLC's decision to seek to recover all Historical CAT Costs prior to 2022, rather than establishing separate Historical CAT Assessments for pre-FAM, FAM 1, FAM 2 and FAM 3 costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             CAT Funding Model Approval Order at 62663, 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Historical CAT Assessment 1 Provides for an Equitable Allocation of Fees</HD>
                    <P>
                        Historical CAT Assessment 1 provides for an equitable allocation of fees, as it equitably allocates CAT costs between and among the Participants and Industry Members. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act, including the formula for calculating Historical CAT Assessments as well as the Industry Members to be charged the Historical CAT Assessments.
                        <SU>182</SU>
                        <FTREF/>
                         In approving the CAT Funding Model, the SEC stated that “[t]he Participants have sufficiently demonstrated that the proposed allocation of fees is reasonable.” 
                        <SU>183</SU>
                        <FTREF/>
                         Accordingly, the CAT Funding Model sets forth the requirements for allocating fees related to Historical CAT Costs among Participants and Industry Members, and the fee filings for 
                        <PRTPAGE P="10504"/>
                        Historical CAT Assessments must comply with those requirements.
                    </P>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <P>Historical CAT Assessment 1 provides for an equitable allocation of fees as it complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. For example, as described above, the calculation of Historical CAT Assessment 1 complies with the formula set forth in Section 11.3(b) of the CAT NMS Plan. In addition, Historical CAT Assessment 1 would be charged to CEBBs and CEBSs in accordance with Section 11.3(b) of the CAT NMS Plan. Furthermore, the Participants would continue to remain responsible for their designated share of Past CAT Costs through the cancellation of loans made by the Participants to CAT LLC.</P>
                    <P>In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1—Historical CAT Costs 1 (including Excluded Costs), the count for the executed equivalent share volume for the prior 12 months, the length of the Historical Recovery Period, and the projected executed equivalent share volume for the Historical Recovery Period—are reasonable. Moreover, these inputs lead to a reasonable fee rate for Historical CAT Assessment 1 that is lower than other fee rates for transaction-based fees. A reasonable fee rate allocated in accordance with the requirements of the CAT Funding Model provides for an equitable allocation of fees.</P>
                    <HD SOURCE="HD3">(4) Historical CAT Assessment 1 Is Not Unfairly Discriminatory</HD>
                    <P>Historical CAT Assessment 1 is not an unfairly discriminatory fee. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act. In reaching this conclusion, the SEC analyzed the potential effect of Historical CAT Assessments calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Historical CAT Assessment 1 complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 and the resulting fee rate for Historical CAT Assessment 1 is reasonable. Therefore, Historical CAT Assessment 1 does not impose an unfairly discriminatory fee on Industry Members.</P>
                    <P>Finally, the Exchange believes the proposed fees established pursuant to the CAT Funding Model promote just and equitable principles of trade, and, in general, protect investors and the public interest, and are provided in a transparent manner and specificity in CAT Fee Schedule. The Exchange also believes that the proposed fees are reasonable because they would provide ease of calculation, ease of billing and other administrative functions, and predictability of a fee based on fixed rate per executed equivalent share. Such factors are crucial to estimating a reliable revenue stream for CAT LLC and for permitting Exchange members to reasonably predict their payment obligations for budgeting purposes.</P>
                    <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                    <P>
                        Section 6(b)(8) of the Act 
                        <SU>184</SU>
                        <FTREF/>
                         requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that Historical CAT Assessment 1 implements provisions of the CAT NMS Plan that were approved by the Commission and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>In addition, all Participants (including exchanges and FINRA) are proposing to introduce Historical CAT Assessment 1 on behalf of CAT LLC to implement the requirements of the CAT NMS Plan. Therefore, this is not a competitive fee filing, and, therefore, it does not raise competition issues between and among the Participants.</P>
                    <P>
                        Furthermore, in approving the CAT Funding Model, the SEC analyzed the potential competitive impact of the CAT Funding Model, including competitive issues related to market services, trading services and regulatory services, efficiency concerns, and capital formation.
                        <SU>185</SU>
                        <FTREF/>
                         The SEC also analyzed the potential effect of CAT fees calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Based on this analysis, the SEC approved the CAT Funding Model as compliant with the Exchange Act. Historical CAT Assessment 1 is calculated and implemented in accordance with the CAT Funding Model as approved by the SEC.
                    </P>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             CAT Funding Model Approval Order at 62676-86.
                        </P>
                    </FTNT>
                    <P>As discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 is reasonable and the resulting fee rate for Historical CAT Assessment 1 calculated in accordance with the CAT Funding Model is reasonable. Therefore, Historical CAT Assessment 1 would not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act.</P>
                    <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                    <P>The Exchange neither solicited nor received written comments on the proposed rule change.</P>
                    <HD SOURCE="HD1">III. Suspension of the Proposed Rule Change</HD>
                    <P>
                        Pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>186</SU>
                        <FTREF/>
                         at any time within 60 days of the date of filing of a proposed rule change pursuant to Section 19(b)(1) of the Act,
                        <SU>187</SU>
                        <FTREF/>
                         the Commission summarily may temporarily suspend the change in the rules of an SRO if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. As discussed below, a temporary suspension of the proposed rule change is necessary or appropriate to allow for additional analysis of the proposed rule change's consistency with the Act and the rules thereunder.
                    </P>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <P>
                        When exchanges file their proposed rule changes with the Commission, including fee filings like the Exchange's present proposed rule change, they are required to provide a statement supporting the proposed rule change's basis under the Act and the rules and regulations thereunder applicable to the 
                        <PRTPAGE P="10505"/>
                        exchange.
                        <SU>188</SU>
                        <FTREF/>
                         The instructions to Form 19b-4, on which exchanges file their proposed rule changes, specify that such statement “should be sufficiently detailed and specific to support a finding that the proposed rule change is consistent with [those] requirements.” 
                        <SU>189</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>188</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.19b-4 (Item 3 entitled “Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Among other things, the Exchange's proposed rule change is subject to Section 6 of the Act, including Sections 6(b)(4), (5), and (8), which require the rules of an exchange to: (1) provide for the equitable allocation of reasonable fees among members, issuers, and other persons using the exchange's facilities; 
                        <SU>190</SU>
                        <FTREF/>
                         (2) be designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers; 
                        <SU>191</SU>
                        <FTREF/>
                         and (3) not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
                        <SU>192</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>190</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             15 U.S.C. 78f(b)(5).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>192</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>The proposed rule change is also subject to the CAT Funding Model set forth in the CAT NMS Plan. For example, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” In addition, Section 11.3(b)(i)(C) of the CAT NMS Plan provides that the “Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and Section 11.3(b)(i)(D) of the CAT NMS Plan provides that “[t]he length of the Historical Recovery Period used in calculating each Historical Fee Rate will be reasonably established by the Operating Committee based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment . . .” Further, Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan provides that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.”</P>
                    <P>
                        In temporarily suspending the Exchange's fee change, the Commission intends to further consider whether the proposed fees are consistent with the statutory requirements applicable to a national securities exchange under the Act and with the requirements set forth in the CAT Funding Model. Among other things, the Commission will consider whether the proposed rule change provides for reasonable fees that satisfy the standards under the Act and the rules thereunder.
                        <SU>193</SU>
                        <FTREF/>
                         Further, and among other things, the Commission will consider whether the proposed rule change, as required by the CAT Funding Model, provides “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including, but not limited to, whether the Operating Committee has “reasonably determine[d] the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and whether the “length of the Historical Recovery Period used in calculating each Historical Fee Rate [was] reasonably established by the Operating Committee.” 
                        <SU>194</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>193</SU>
                             
                            <E T="03">See</E>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>194</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <P>
                        Therefore, the Commission finds that it is necessary or appropriate in the public interest, for the protection of investors, and otherwise in furtherance of the purposes of the Act, to temporarily suspend the proposed rule change.
                        <SU>195</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>195</SU>
                             For purposes of temporarily suspending the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                            <E T="03">See</E>
                             15 U.S.C. 78c(f).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">IV. Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</HD>
                    <P>
                        In addition to temporarily suspending the proposed rule change, the Commission is instituting proceedings pursuant to Sections 19(b)(3)(C) 
                        <SU>196</SU>
                        <FTREF/>
                         and 19(b)(2)(B) 
                        <SU>197</SU>
                        <FTREF/>
                         of the Act to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change to inform the Commission's analysis of whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>196</SU>
                             15 U.S.C. 78s(b)(3)(C). Once the Commission temporarily suspends a proposed rule change, Section 19(b)(3)(C) of the Act requires that the Commission institute proceedings under Section 19(b)(2)(B) to determine whether a proposed rule change should be approved or disapproved.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>197</SU>
                             15 U.S.C. 78s(b)(2)(B).
                        </P>
                    </FTNT>
                    <P>
                        Pursuant to Section 19(b)(2)(B) of the Act,
                        <SU>198</SU>
                        <FTREF/>
                         the Commission is providing notice of the grounds for possible disapproval under consideration. The Commission is instituting proceedings to allow for additional consideration and comment on whether the Exchange has sufficiently demonstrated that the proposed rule change is consistent with Section 6(b)(4) 
                        <SU>199</SU>
                        <FTREF/>
                         of the Act, and consistent with the CAT Funding Model. Section 6(b)(4) of the Act, among other things, provides that the dues, fees, and other charges for an exchange's members be reasonable. And the CAT Funding Model, as noted above, requires, among other things, that the proposed rule change provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including whether the Operating Committee has reasonably determined the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee and whether the length of the Historical Recovery Period used in calculating each Historical Fee Rate was reasonably established by the Operating Committee.
                        <SU>200</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>198</SU>
                             15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the Act also provides that proceedings to determine whether to disapprove a proposed rule change must be concluded within 180 days of the date of publication of notice of the filing of the proposed rule change. 
                            <E T="03">See id.</E>
                             The time for conclusion of the proceedings may be extended for up to 60 days if the Commission finds good cause for such extension and publishes its reasons for so finding, or if the exchange consents to the longer period. 
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>199</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>200</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">V. Commission's Solicitation of Comments</HD>
                    <P>
                        The Commission requests that interested persons provide written submission of their views, data, and arguments with respect to the issues identified above, as well as any other 
                        <PRTPAGE P="10506"/>
                        concerns they have with the proposed rule change. In particular, the Commission invites the written views of interested persons concerning whether the proposed rule change is consistent with Section 6(b)(4), or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.
                        <SU>201</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act grants the Commission flexibility to determine what type of proceeding—either oral or notice and opportunity for written comments—is appropriate for consideration of a particular proposed rule change by an exchange. 
                            <E T="03">See</E>
                             Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975).
                        </P>
                    </FTNT>
                    <P>Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule changes should be approved or disapproved by March 5, 2024. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by March 19, 2024.</P>
                    <P>Comments may be submitted by any of the following methods:</P>
                    <HD SOURCE="HD2">Electronic Comments</HD>
                    <P>
                        • Use the Commission's internet comment form (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ); or
                    </P>
                    <P>
                        • Send an email to 
                        <E T="03">rule-comments@sec.gov.</E>
                         Please include file number SR-CboeEDGA-2024-002 on the subject line.
                    </P>
                    <HD SOURCE="HD2">Paper Comments</HD>
                    <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                    <FP>
                        All submissions should refer to file number SR-CboeEDGA-2024-002. 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 internet website (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-CboeEDGA-2024-002 and should be submitted on or before March 5, 2024. Rebuttal comments should be submitted by March 19, 2024.
                    </FP>
                    <HD SOURCE="HD1">VI. Conclusion</HD>
                    <P>
                        <E T="03">It is therefore ordered,</E>
                         pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>202</SU>
                        <FTREF/>
                         that File No. SR-CboeEDGA-2024-002 be, and hereby is, temporarily suspended. In addition, the Commission is instituting proceedings to determine whether the proposed rule change should be approved or disapproved.
                    </P>
                    <FTNT>
                        <P>
                            <SU>202</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <SIG>
                        <P>
                            For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                            <SU>203</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>203</SU>
                                 17 CFR 200.30-3(a)(12), (57) and (58).
                            </P>
                        </FTNT>
                        <NAME>Sherry R. Haywood,</NAME>
                        <TITLE>Assistant Secretary.</TITLE>
                    </SIG>
                </PREAMB>
                <FRDOC>[FR Doc. 2024-01179 Filed 2-12-24; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 8011-01-P</BILCOD>
            </NOTICE>
            <NOTICE>
                <PREAMB>
                    <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                    <DEPDOC>[Release No. 34-99376; File No. SR-CboeEDGX-2024-005]</DEPDOC>
                    <SUBJECT>Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail; Suspension of and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</SUBJECT>
                    <DATE>January 17, 2024.</DATE>
                    <P>
                        Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act” or the “Exchange Act”),
                        <SU>1</SU>
                        <FTREF/>
                         and Rule 19b-4 thereunder,
                        <SU>2</SU>
                        <FTREF/>
                         notice is hereby given that, on January 2, 2024, Cboe EDGX Exchange, Inc. (the “Exchange” or “EDGX”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is, pursuant to Section 19(b)(3)(C) of the Act, hereby: (i) temporarily suspending the rule change; and (ii) instituting proceedings to determine whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             17 CFR 240.19b-4.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                    <P>
                        The Exchange proposes to adopt a fee schedule to establish fees for Industry Members 
                        <SU>3</SU>
                        <FTREF/>
                         related to certain historical costs of the National Market System Plan Governing the Consolidated Audit Trail (the “CAT NMS Plan” or “Plan”) incurred prior to January 1, 2022. These fees will be payable to Consolidated Audit Trail, LLC (“CAT LLC” or “the Company”) 
                        <SU>4</SU>
                        <FTREF/>
                         and referred to as Historical CAT Assessment 1 and would be described in an Exchange fee schedule entitled “Consolidated Audit Trail Funding Fees” (“CAT Fee Schedule”).
                        <SU>5</SU>
                        <FTREF/>
                         The fee rate for Historical CAT Assessment 1 will be $0.000015 per executed equivalent share. CAT Executing Brokers will receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 calculated based on their transactions as CAT Executing Brokers for the Buyer (“CEBB”) and/or CAT Executing Brokers for the Seller (“CEBS”) in March 2024.
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             An “Industry Member” is defined as “a member of a national securities exchange or a member of a national securities association.” 
                            <E T="03">See</E>
                             Exchange Rule 4.5(u). Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth in the CAT Compliance Rule. 
                            <E T="03">See</E>
                             Exchange Rules 4.5-4.17.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             The term “CAT LLC” may be used to refer to Consolidated Audit Trail, LLC or CAT NMS, LLC, depending on the context.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             The Exchange and each of its affiliated exchanges (Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe C2 Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe EDGX Exchange, Inc.) are filing to adopt the CAT Fee Schedule.
                        </P>
                    </FTNT>
                    <P>
                        The text of the proposed rule change is available on the Exchange's website (
                        <E T="03">http://markets.cboe.com/us/options/regulation/rule_filings/edgx/</E>
                        ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                        <PRTPAGE P="10507"/>
                    </P>
                    <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item V below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                    <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <HD SOURCE="HD3">1. Purpose</HD>
                    <P>
                        On July 11, 2012, the Commission adopted Rule 613 of Regulation NMS, which required the self-regulatory organizations (“SROs”) to submit a national market system (“NMS”) plan to create, implement and maintain a consolidated audit trail that would capture customer and order event information for orders in NMS securities across all markets, from the time of order inception through routing, cancellation, modification or execution.
                        <SU>6</SU>
                        <FTREF/>
                         On November 15, 2016, the Commission approved the CAT NMS Plan.
                        <SU>7</SU>
                        <FTREF/>
                         Under the CAT NMS Plan, the Operating Committee has the discretion to establish funding for CAT LLC to operate the CAT, including establishing fees for Industry Members to be assessed by CAT LLC that would be implemented on behalf of CAT LLC by the Participants.
                        <SU>8</SU>
                        <FTREF/>
                         The Operating Committee adopted a revised funding model to fund the CAT (“CAT Funding Model”). On September 6, 2023, the Commission approved the CAT Funding Model, after concluding that the model was reasonable and that it satisfied the requirements of Section 11A of the Exchange Act and Rule 608 thereunder.
                        <SU>9</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             Securities Exchange Act Rel. No. 67457 (July 18, 2012), 77 FR 45721 (Aug. 1, 2012).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             Securities Exchange Act Rel. No. 79318 (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016) (“CAT NMS Plan Approval Order”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             Securities Exchange Act Rel. No. 98290 (Sept. 6, 2023), 88 FR 62628 (Sept. 12, 2023) (“CAT Funding Model Approval Order”).
                        </P>
                    </FTNT>
                    <P>
                        The CAT Funding Model provides a framework for the recovery of the costs to create, develop and maintain the CAT, including providing a method for allocating costs to fund the CAT among Participants and Industry Members. The CAT Funding Model establishes two categories of fees: (1) CAT fees assessed by CAT LLC and payable by certain Industry Members to recover a portion of historical CAT costs previously paid by the Participants (“Historical CAT Assessment” fees); and (2) CAT fees assessed by CAT LLC and payable by Participants and Industry Members to fund prospective CAT costs (“Prospective CAT Costs” fees).
                        <SU>10</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             Under the CAT Funding Model, the Operating Committee may establish one or more Historical CAT Assessments. Section 11.3(b) of the CAT NMS Plan. This filing only establishes Historical CAT Assessment 1 related to certain Historical CAT Costs as described herein; it does not address any other potential Historical CAT Assessment related to other Historical CAT Costs. In addition, under the CAT Funding Model, the Operating Committee also may establish CAT Fees related to CAT costs going forward. Section 11.3(a) of the CAT NMS Plan. This filing does not address any potential CAT Fees related to CAT costs going forward. Any such other fee for any other Historical CAT Assessment or CAT Fee for Prospective CAT Costs will be subject to a separate fee filing.
                        </P>
                    </FTNT>
                    <P>
                        Under the CAT Funding Model, “[t]he Operating Committee will establish one or more fees (each a `Historical CAT Assessment') to be payable by Industry Members with regard to CAT costs previously paid by the Participants (`Past CAT Costs').” 
                        <SU>11</SU>
                        <FTREF/>
                         In establishing a Historical CAT Assessment, the Operating Committee will determine a “Historical Recovery Period” and calculate a “Historical Fee Rate” for that Historical Recovery Period. Then, for each month in which a Historical CAT Assessment is in effect, each CEBB and CEBS would be required to pay the fee—the Historical CAT Assessment—for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate.
                        <SU>12</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, the proposed recovery of the Past CAT Costs via the Historical CAT Assessment is reasonable.” CAT Funding Model Approval Order at 62662.
                        </P>
                    </FTNT>
                    <P>
                        Each Historical CAT Assessment to be paid by CEBBs and CEBSs is designed to contribute toward the recovery of two-thirds of the Historical CAT Costs. Because the Participants previously have paid Past CAT Costs via loans to the Company, the Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made by the Participants to the Company on a pro rata basis based on the outstanding loan amounts due under the loans, instead of through the payment of a CAT fee.
                        <SU>13</SU>
                        <FTREF/>
                         In addition, Participants also will be 100% responsible for certain Excluded Costs (as discussed below).
                    </P>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             Section 11.3(b)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC proposes to charge CEBBs and CEBSs (as described in more detail below) Historical CAT Assessment 1 to recover certain historical CAT costs incurred prior to January 1, 2022, in accordance with the CAT Funding Model. To implement this fee on behalf of CAT LLC, the CAT NMS Plan requires the Participants to “file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves, and such fees shall be labeled as `Consolidated Audit Trail Funding Fees.' ” 
                        <SU>14</SU>
                        <FTREF/>
                         The Plan further states that “Participants will be required to file with the SEC pursuant to Section 19(b) of the Exchange Act a filing for each Historical CAT Assessment.” 
                        <SU>15</SU>
                        <FTREF/>
                         Accordingly, the purpose of this filing is to implement a Historical CAT Assessment on behalf of CAT LLC for Industry Members, referred to as Historical CAT Assessment 1, in accordance with the CAT NMS Plan.
                        <SU>16</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>15</SU>
                             Section 11.3(b)(iii)(B)(I) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             Note that there may be one or more Historical CAT Assessments depending on the timing of the completion of the Financial Accountability Milestones, among other things. Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(1) CAT Executing Brokers</HD>
                    <P>
                        Historical CAT Assessment 1 will be charged to each CEBB and CEBS for each applicable transaction in Eligible Securities.
                        <SU>17</SU>
                        <FTREF/>
                         The CAT NMS Plan defines a “CAT Executing Broker” to mean:
                    </P>
                    <FTNT>
                        <P>
                            <SU>17</SU>
                             In its approval of the CAT Funding Model, the Commission determined that charging CAT fees to CAT Executing Brokers was reasonable. In reaching this conclusion the Commission noted that the use of CAT Executing Brokers is appropriate because the CAT Funding Model is based upon the calculation of 
                            <E T="03">executed</E>
                             equivalent shares, and, therefore, charging CAT Executing Brokers would reflect their executing role in each transaction. Furthermore, the Commission noted that, because CAT Executing Brokers are already identified in transaction reports from the exchanges and FINRA's equity trade reporting facilities recorded in CAT Data, charging CAT Executing Brokers could streamline the billing process. CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) with respect to a transaction in an Eligible Security that is executed on an exchange, the Industry Member identified as the Industry Member responsible for the order on the buy-side of the transaction and the Industry Member responsible for the sell-side of the transaction in the equity order trade event and option trade event in the CAT Data submitted to the CAT by the relevant exchange pursuant to the Participant Technical Specifications; and (b) with 
                            <PRTPAGE P="10508"/>
                            respect to a transaction in an Eligible Security that is executed otherwise than on an exchange and required to be reported to an equity trade reporting facility of a registered national securities association, the Industry Member identified as the executing broker and the Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event in the CAT Data submitted to the CAT by FINRA pursuant to the Participant Technical Specifications; provided, however, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.
                            <SU>18</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>18</SU>
                                 Section 1.1 of the CAT NMS Plan. Note that CEBBs and CEBSs may, but are not required to, pass-through their CAT fees to their clients, who may, in turn, pass their fees to their clients until they are imposed ultimately on the account that executed the transaction. 
                                <E T="03">See</E>
                                 CAT Funding Model Approval Order at 62649.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The following
                        <FTREF/>
                         fields of the Participant Technical Specifications indicate the CAT Executing Brokers for the transactions executed on an exchange.
                    </P>
                    <FTNT>
                        <P>
                            <SU>19</SU>
                             
                            <E T="03">See</E>
                             Table 23, Section 4.7 (Order Trade Event) of the CAT Reporting Technical Specifications for Plan Participants, Version 4.1.0-r20 (Sept. 25, 2023), 
                            <E T="03">https://www.catnmsplan.com/sites/default/files/2023-09/9.25.2023-CAT_Reporting_Technical_Specifications_for_Participants_4.1.0-r20.pdf</E>
                             (“CAT Reporting Technical Specifications for Plan Participants”).
                        </P>
                        <P>
                            <SU>20</SU>
                             
                            <E T="03">See</E>
                             Table 51, Section 5.2.5.1 (Simple Option Trade Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="189">
                        <GID>EN13FE24.122</GID>
                    </GPH>
                    <GPH SPAN="3" DEEP="79">
                        <GID>EN13FE24.123</GID>
                    </GPH>
                    <P>
                        In addition,
                        <FTREF/>
                         the following fields of the Participant Technical Specifications would indicate the CAT Executing Brokers for the transactions executed otherwise than on an exchange.
                    </P>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             
                            <E T="03">See</E>
                             Table 61, Section 6.1 (TRF/ORF/ADF Transaction Data Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="107">
                        <GID>EN13FE24.124</GID>
                    </GPH>
                    <PRTPAGE P="10509"/>
                    <HD SOURCE="HD3">(2) Calculation of Historical Fee Rate 1</HD>
                    <P>The Operating Committee determined the Historical Fee Rate to be used in calculating Historical CAT Assessment 1 (“Historical Fee Rate 1”) by dividing the Historical CAT Costs for Historical CAT Assessment 1 (“Historical CAT Costs 1”) by the projected total executed share volume of all transactions in Eligible Securities for the Historical Recovery Period for Historical CAT Assessment 1 (“Historical Recovery Period 1”), as discussed in detail below. Based on this calculation, the Operating Committee has determined that Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. This rate is then divided by three and rounded to determine the fee rate of $0.000015 per executed equivalent share that will be assessed to CEBBs and CEBSs, as also discussed in detail below.</P>
                    <HD SOURCE="HD3">(A) Executed Equivalent Shares for Transactions in Eligible Securities</HD>
                    <P>
                        Under the CAT NMS Plan, for purposes of calculating each Historical CAT Assessment, executed equivalent shares in a transaction in Eligible Securities will be reasonably counted as follows: (1) each executed share for a transaction in NMS Stocks will be counted as one executed equivalent share; (2) each executed contract for a transaction in Listed Options will be counted based on the multiplier applicable to the specific Listed Options (
                        <E T="03">i.e.,</E>
                         100 executed equivalent shares or such other applicable multiplier); and (3) each executed share for a transaction in OTC Equity Securities shall be counted as 0.01 executed equivalent share.
                        <SU>22</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             Section 11.3(a)(i)(B) and 11.3(b)(i)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission concluded that “the use of executed equivalent share volume as the basis of the proposed cost allocation methodology is reasonable and consistent with the approach taken by the funding principles of the CAT NMS Plan.” CAT Funding Model Approval Order at 62640.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Historical CAT Costs 1</HD>
                    <P>
                        The CAT NMS Plan states that “[t]he Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee. Each Historical CAT Assessment will seek to recover from CAT Executing Brokers two-thirds of Historical CAT Costs incurred during the period covered by the Historical CAT Assessment.” 
                        <SU>23</SU>
                        <FTREF/>
                         As described in detail below, Historical CAT Costs 1 would be $337,688,610. This figure includes Past CAT Costs of $401,312,909 minus certain Excluded Costs of $63,624,299. Participants collectively will remain responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), plus the Excluded Costs of $63,624,299. CEBBs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), and CEBSs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870).
                    </P>
                    <FTNT>
                        <P>
                            <SU>23</SU>
                             Section 11.3(b)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        The following describes in detail Historical CAT Costs 1 with regard to four separate historical time periods as well as Past CAT Costs excluded from Historical CAT Costs 1 (“Excluded Costs”). The following cost details are provided in accordance with the requirement in the CAT NMS Plan to provide in the fee filing “a brief description of the amount and type of Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.” 
                        <SU>24</SU>
                        <FTREF/>
                         Each of the costs described below are reasonable, appropriate and necessary for the creation, implementation and maintenance of CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             Section 11.3(b)(iii)(B)(II)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(i) Historical CAT Costs Incurred Prior to June 22, 2020 (Pre-FAM Costs)</HD>
                    <P>Historical CAT Costs 1 would include costs incurred by CAT prior to June 22, 2020 (“Pre-FAM Period”) and already funded by the Participants, excluding Excluded Costs (described further below). Historical CAT Costs 1 would include costs for the Pre-FAM Period of $143,919,521. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($47,973,174), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($47,973,174) and CEBSs paying one-third ($47,973,174). These costs do not include Excluded Costs, as discussed further below. The following table breaks down Historical CAT Costs 1 for the Pre-FAM Period into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.</P>
                    <GPH SPAN="3" DEEP="295">
                        <PRTPAGE P="10510"/>
                        <GID>EN13FE24.125</GID>
                    </GPH>
                    <P>
                        The Pre-FAM Period includes a broad range of CAT-related activity from 2012 through June 22, 2020, including the evaluation of the requirements of SEC Rule 613, the development of the CAT NMS Plan, the evaluation and selection of the initial and successor Plan Processors, the commencement of the creation and implementation of the CAT to comply with Rule 613 and the CAT NMS Plan, including technical specifications for transaction reporting and regulatory access, and related technology and the commencement of reporting to the CAT. The following describes the costs for each of the categories for the Pre-FAM Period.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>25</SU>
                             With respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>26</SU>
                             The costs described in this table of costs for the Pre-FAM Period were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website. In addition, in accordance with Section 6.6(a)(i) of the CAT NMS Plan, in 2018 CAT LLC provided the SEC with “an independent audit of fees, costs, and expenses incurred by the Participants on behalf of the Company prior to the Effective Date of the Plan that will be publicly available.” The audit is available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>The $10,268,840 in technology costs for cloud hosting services represent costs incurred for services provided by the cloud services provider for the CAT, Amazon Web Services, Inc. (“AWS”), during the Pre-FAM Period.</P>
                    <P>As part of its proposal for acting as the successor Plan Processor for the CAT, FCAT selected AWS as a subcontractor to provide cloud hosting services. In 2019, after reviewing the capabilities of other cloud services providers, FCAT determined that AWS was the only cloud services provider at that time sufficiently mature and capable of providing the full suite of necessary cloud services for the CAT, including, for example, the security, resiliency and complexity necessary for the CAT computing requirements. The use of cloud hosting services is standard for this type of high-volume data activity and reasonable and necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT the fees incurred by the Plan Processor for cloud hosting services provided by AWS as FCAT's subcontrator on a monthly basis for the cloud hosting services, and FCAT, in turn, pays such fees to AWS. The fees for cloud hosting services were negotiated by FCAT on an arm's length basis with the goals of managing cost and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the expected volume of data, the breadth of services provided and market rates for similar services. The fees for cloud hosting services during the Pre-FAM Period were paid to FCAT by CAT NMS LLC 
                        <SU>27</SU>
                        <FTREF/>
                         and subsequently Consolidated Audit Trail, LLC (as previously noted, both entities are referred to generally as “CAT LLC”),
                        <SU>28</SU>
                        <FTREF/>
                         and FCAT, in turn, paid AWS. CAT LLC was funded via loan contributions by the Participants.
                        <SU>29</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             CAT NMS, LLC was formed by FINRA and the U.S. national securities exchanges to implement the requirements of SEC Rule 613 under the Exchange Act. SEC Rule 613 required the SROs to jointly submit to the SEC the CAT NMS Plan to create, implement and maintain the CAT. The SEC approved the CAT NMS Plan on November 15, 2016. CAT NMS Plan Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             On August 29, 2019, the Participants formed a new Delaware limited liability company named Consolidated Audit Trail, LLC for the purpose of conducting activities related to the CAT from and after the effectiveness of the proposed amendment of the CAT NMS Plan to replace CAT NMS, LLC. 
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 87149 (Sept. 27, 2019), 84 FR 52905 (Oct. 3, 2019).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             For each of the costs paid by CAT NMS, LLC and Consolidated Audit Trail, LLC as discussed throughout this filing, CAT NMS, LLC and Consolidated Audit Trail, LLC paid these costs via loan contributions by the Participants to CAT NMS, 
                            <PRTPAGE/>
                            LLC and Consolidated Audit Trail, LLC, respectively.
                        </P>
                    </FTNT>
                    <PRTPAGE P="10511"/>
                    <P>AWS was engaged by FCAT to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. Services provided by AWS include storage services, databases, compute services and other services (such as networking, management tools and DevOps tools). AWS also was engaged to provide various environments for CAT, such as development, performance testing, test and production environments.</P>
                    <P>
                        The cost for AWS services for the CAT is a function of the volume of CAT Data. The greater the amount of CAT Data, the greater the cost of AWS services to the CAT. During the Pre-FAM Period from the engagement of AWS in February 2019 through June 2020, AWS provided cloud hosting services for volumes of CAT Data far in excess of the volume predictions set forth in the CAT NMS Plan. The CAT NMS Plan states, when all CAT Reporters are submitting their data to the CAT, it “must be sized to receive[,] process and load more than 58 billion records per day,” 
                        <SU>30</SU>
                        <FTREF/>
                         and that “[i]t is expected that the Central Repository will grow to more than 29 petabytes of raw, uncompressed data.” 
                        <SU>31</SU>
                        <FTREF/>
                         However, the volume of CAT Data for the Pre-FAM Period was far in excess of these predicted levels. By the end of this period, data submitted to the CAT included options and equities Participant Data,
                        <SU>32</SU>
                        <FTREF/>
                         Phase 2a and Phase 2b Industry Member Data 
                        <SU>33</SU>
                        <FTREF/>
                         (including certain linkages), as well as SIP Data,
                        <SU>34</SU>
                        <FTREF/>
                         reference data and other types of Other Data.
                        <SU>35</SU>
                        <FTREF/>
                         The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during the Pre-FAM Period.
                        <SU>36</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             Appendix D-5 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             
                            <E T="03">See</E>
                             Section 6.3(d) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Rel. No. 88702 (Apr. 20, 2020), 85 FR 23075 (Apr. 24, 2020) (“Phased Reporting Exemptive Relief Order”) for a description of Phase 2a and Phase 2b Industry Member Data.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             
                            <E T="03">See</E>
                             Appendix C-108 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                        <P>
                            <SU>37</SU>
                             Note that, although there were compute hours during this period, data related to such compute hours are no longer available in current data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="350">
                        <GID>EN13FE24.126</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>
                        The $21,085,485 in technology costs related to operating fees represent costs incurred with regard to activities of FCAT as the Plan Processor. Operating fees are those fees paid by CAT LLC to FCAT as the Plan Processor to operate and maintain the CAT and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management as required by the CAT NMS Plan.
                    </P>
                    <P>
                        FCAT was selected to assume the role of the successor Plan Processor. Prior to this selection, the Participants engaged 
                        <PRTPAGE P="10512"/>
                        in discussions with two prior Bidders 
                        <SU>38</SU>
                        <FTREF/>
                         for the successor Plan Processor role. The Operating Committee formed a Selection Subcommittee in accordance with Section 4.12 of the CAT NMS Plan to evaluate and review Bids and to make a recommendation to the Operating Committee with respect to the selection of the successor Plan Processor. In an April 9, 2019 letter to the Commission, the Participants described the reasons for its selection of the successor Plan Processor:
                    </P>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             The term “Bidder” is defined in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>The Selection Subcommittee considered factors including, but not limited to, the following, in recommending FINRA to the Operating Committee as the successor Plan Processor:</P>
                        <P>a. FINRA's specialized technical expertise and capabilities in the area of broker-dealer technology;</P>
                        <P>b. The need to appoint a successor Plan Processor with specialized expertise to develop, implement, and maintain the CAT System in accordance with the CAT NMS Plan and SEC Rule 613;</P>
                        <P>c. FINRA's detailed proposal in response to CATLLC's recent inquiries; and</P>
                        <P>d. FINRA's data query and analytics systems demonstration to the Participants.</P>
                        <P>
                            Based on these and other factors, the Selection Subcommittee determined that FINRA was the most appropriate Bidder to become the successor Plan Processor.
                            <SU>39</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>39</SU>
                                 Letter from Michael J. Simon, Chair, CAT NMS, LLC Operating Committee, to Brent J. Fields, Secretary, SEC (Apr. 9, 2019), 
                                <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection-040919.pdf.</E>
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <FP>
                        On February 26, 2019, the Operating Committee (with FINRA recusing itself) voted to select FINRA as the successor Plan Processor pursuant to Section 6.1(t) of the CAT NMS Plan.
                        <SU>40</SU>
                        <FTREF/>
                         On March 29, 2019, CAT LLC and FCAT (a wholly owned subsidiary of FINRA) entered into a Plan Processor Agreement pursuant to which FCAT would perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT.
                    </FP>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT a negotiated monthly fixed price for the operation of the CAT. This fixed price contract was negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity. The operating fees during the Pre-FAM Period were paid to FCAT by CAT LLC.</P>
                    <P>From March 29, 2019 (the commencement of the Plan Processor Agreement with FCAT) through June 22, 2020 (the end of the Pre-FAM Period), the Plan Processor's activities with respect to the CAT included the following:</P>
                    <EXTRACT>
                        <P>
                            • Commenced user acceptance testing with market data provided by Exegy Incorporated (“Exegy”), a market data provider; 
                            <SU>41</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>41</SU>
                                 The use of Exegy to provide market data, including the costs and market data provided, is discussed below in Section 3(a)(2)(B)(i)(i).
                            </P>
                        </FTNT>
                        <P>• Published Technical Specifications and related reporting scenarios documents for Phase 2a, 2b and 2c reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                        <P>• Facilitated testing for Phase 2a and 2b reporting for Industry Members;</P>
                        <P>• Began developing Technical Specifications and related reporting scenarios documents for Phase 2d reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                        <P>• Published Central Repository Access Technical Specifications, and provided regulator access to test data from Industry Members;</P>
                        <P>• Facilitated Participant exchanges that support options market makers sending Quote Sent Time to the CAT;</P>
                        <P>• Facilitated the introduction of OPRA and Options NBBO Other Data to CAT;</P>
                        <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing requirements under Regulation SCI;</P>
                        <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                        <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                        <P>• Oversaw the security of the CAT;</P>
                        <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                        <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                        <P>• Provided support in discussions with Participants, SEC and its staff;</P>
                        <P>• Operated the FINRA CAT Helpdesk, which is the primary source for answers to questions about CAT, including questions regarding: clock synchronization, firm reporting responsibilities, interpretive questions, technical specifications for reporting to CAT and more;</P>
                        <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                        <P>
                            • Administered the CAT website and all of its content; 
                            <SU>42</SU>
                            <FTREF/>
                             and
                        </P>
                        <FTNT>
                            <P>
                                <SU>42</SU>
                                 The CAT website is 
                                <E T="03">https://www.catnmsplan.com.</E>
                            </P>
                        </FTNT>
                        <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>The $2,072,908 in technology costs related to CAIS operating fees represent the fees paid for FCAT's subcontractor charged with the development and operation of CAT's Customer and Account Information System (“CAIS”). The CAT is required under the CAT NMS Plan to capture and store Customer Identifying Information and Customer Account Information in a database separate from the transactional database and to create a CAT-Customer-ID for each Customer.</P>
                    <P>During the Pre-FAM Period, the CAIS-related services were provided by the Plan Processor through the Plan Processor's subcontractor, Kingland Systems Incorporation (“Kingland”). Kingland had experience operating in the securities regulatory technology space, and as a part of its proposal for acting as the Plan Processor for the CAT, FCAT selected Kingland as a subcontractor to provide certain CAIS-related services.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay to the Plan Processor the fees incurred by the FCAT for CAIS-related services provided by FCAT through Kingland on a monthly basis. FCAT negotiated the fees for Kingland's CAIS-related services on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity. The fees for CAIS-related services during the Pre-FAM Period were paid by CAT LLC to FCAT. FCAT, in turn, paid Kingland. During the Pre-FAM Period, Kingland began development of the CAIS Technical Specifications and the building of CAIS. In addition, Kingland also worked on the build related to the CCID Alternative, an alternative approach to customer information that was not included in the CAT NMS Plan as originally adopted.
                        <SU>43</SU>
                        <FTREF/>
                         Furthermore, Kingland also worked on the acceleration of the reporting of large trader identifiers (“LTID”) earlier than originally contemplated during this period, in accordance with exemptive relief granted by the SEC.
                        <SU>44</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             For a discussion of the CCID Alternative, 
                            <E T="03">see</E>
                             Securities Exchange Act Rel. No. 88393 (Mar. 17, 2020), 85 FR 16152 (Mar. 20, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             Phased Reporting Exemptive Relief Order at 23079-80.
                        </P>
                    </FTNT>
                    <PRTPAGE P="10513"/>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        The technology costs related to change request fees include costs related to certain modifications, upgrades or other changes to the CAT. Change requests are standard practice and necessary to reflect operational changes, including changes related to new market developments, such as new market participants. In general, if CAT LLC determines that a modification, upgrade or other changes to the functionality or service is necessary and appropriate, CAT LLC will submit a request for such a change to the Plan Processor. The Plan Processor will then respond to the request with a proposal for implementing the change, including the cost (if any) of such a change. CAT LLC then determines whether to approve the proposed change. The change request costs were paid by CAT LLC to FCAT. During the Pre-FAM Period, CAT LLC incurred costs of $141,346 related to change requests implemented by FCAT. Such change requests related to a development fee regarding the OPRA and SIP data feeds, and the reprocessing of certain exchange data.
                        <SU>45</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             Note that CAT LLC also has incurred costs related to specific Industry Members (
                            <E T="03">e.g.,</E>
                             reprocessing costs related to Industry Member reporting errors).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>This category of costs includes capitalizable application development costs incurred in the development of the CAT. The capitalized developed technology costs for the Pre-FAM Period of $71,475,941 relate to technology provided by the Initial Plan Processor and the successor Plan Processor.</P>
                    <P>
                        <E T="03">Initial Plan Processor: Thesys CAT, LLC.</E>
                         The capitalized developed technology costs related to the Initial Plan Processor include costs incurred with regard to testing for Participant reporting, Participant reporting to the CAT, a security assessment of the CAT, the development of the billing function for the CAT, and a Plan Processor transition fee.
                    </P>
                    <P>
                        On January 17, 2017, the Selection Committee of the CAT NMS Plan selected the Initial Plan Processor, Thesys Technologies, LLC, for the CAT NMS Plan pursuant to Article V of the CAT NMS Plan.
                        <SU>46</SU>
                        <FTREF/>
                         The Participants utilized a request for proposal (“RFP”) to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan, taking into consideration that the Initial Plan Processor had experience operating in the securities regulatory technology space, among other considerations. On April 6, 2017, CAT LLC entered into an agreement with Thesys CAT LLC (“Thesys CAT”), a Thesys affiliate, to perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT. Under the agreement, CAT LLC would pay Thesys CAT a negotiated, fixed price fee for its role as the Initial Plan Processor. Effective January 30, 2019, the Plan Processor Agreement with Thesys CAT was terminated, and FCAT was subsequently selected as the successor Plan Processor.
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             Letter from the Participants to Brent J. Fields, Secretary, SEC (Jan. 18, 2017), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection.pdf.</E>
                        </P>
                    </FTNT>
                    <P>From January 17, 2017 through January 30, 2019, the time in which the Thesys CAT was engaged for the CAT, but excluding the period from November 15, 2017 through November 15, 2018, the Initial Plan Processor engaged in various activities with respect to the CAT, including preparing iterative drafts of Participant Technical Specifications, Industry Member Technical Specifications and the Central Repository Access Technical Specifications. Thesys CAT initiated and maintained the Participant reporting per the Participant Technical Specifications. In addition, Thesys CAT also developed CAT technology, addressed compliance items, including drafting CAT policies and procedures, addressing Regulation SCI requirements, establishing a CAT Compliance Officer and a Chief Information Security Officer, and addressed security-related matters for the CAT. Furthermore, Thesys CAT performed transition services related to the transition from Thesys CAT to FCAT as the successor Plan Processor from January 30, 2019 through April 15, 2019.</P>
                    <P>
                        <E T="03">Successor Plan Processor: FCAT.</E>
                         The capitalized developed technology costs related to FCAT include: (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, including the completion of go-live functionality related to options ingestion and validation, equities regulatory services agreement query tool updates and unlinked options data query, options linkages release, Industry Member Phase 2a file submission and data integrity (including error corrections), and Industry Member testing, including reporting relationships, ATS order type management, basic reporting statistics, SFTP data integrity feedback and error correction; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including a one-time development fee for a secure analytics workspace, a one-time development fee of an Industry Member connectivity solution, and a one-time development fee for the acceleration of multi-factor authentication; (3) CAIS implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $19,674,463 represent the fees paid for legal services provided by two law firms, Wilmer Cutler Pickering Hale and Dorr LLP (“WilmerHale”) and Pillsbury Winthrop Shaw Pittman LLP (“Pillsbury”), during the Pre-FAM Period. The legal costs exclude those costs incurred from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         Following the adoption of Rule 613, the Participants determined it was necessary to engage external legal counsel to advise the Participants with respect to corporate and regulatory legal matters related to the CAT, including drafting and developing the CAT NMS Plan. The Participants considered a variety of factors in their analysis of prospective law firms, including (1) the firm's qualifications, resources and expertise, (2) the firm's relevant experience and understanding of the regulatory matters raised by the CAT and in advising on matters of similar scope, (3) the composition of the legal team, and (4) professional fees. Following a series of interviews, the Participants acting as a consortium determined that WilmerHale was well qualified given the balance of these considerations and engaged WilmerHale in February 2013.
                    </P>
                    <P>WilmerHale's billing rates are negotiated on an annual basis and are determined with reference to the rates charged by other leading law firms for similar work. The Participants assess WilmerHale's performance and review prospective budgets and staffing plans submitted by WilmerHale on an annual basis. WilmerHale's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading law firms for similar work.</P>
                    <P>
                        The legal costs for WilmerHale during the Pre-FAM Period included costs 
                        <PRTPAGE P="10514"/>
                        incurred from 2013 until June 22, 2020 to address corporate and regulatory legal matters related to the CAT. The legal fees for this law firm during the period from February 2013 until the formation of the CAT NMS, LLC on November 15, 2016 were paid directly by the exchanges and FINRA to WilmerHale. After the formation of CAT NMS LLC, the legal fees were paid by CAT LLC to WilmerHale.
                    </P>
                    <P>After WilmerHale was engaged in 2013 through the end of the Pre-FAM Period on June 22, 2020 (excluding the legal costs from November 15, 2017 through November 15, 2018), WilmerHale provided legal assistance to the CAT on a variety of matters, including with regard to the following:</P>
                    <EXTRACT>
                        <P>• Analyzed various legal matters associated with the Selection Plan, and drafted an amendment to Selection Plan;</P>
                        <P>• Assisted with the RFP and bidding process for the CAT Plan Processor;</P>
                        <P>• Analyzed legal matters related to the Development Advisory Group (“DAG”);</P>
                        <P>• Drafted the CAT NMS Plan, analyzed various items related to the CAT NMS Plan, and responded to comment letters on CAT NMS Plan;</P>
                        <P>
                            • Provided legal support for the formation of the legal entity, the governance of the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                            <E T="03">e.g.,</E>
                             Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan; and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                        </P>
                        <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan and related filings;</P>
                        <P>• Negotiated and drafted the plan processor agreements with the Initial Plan Processor and the successor Plan Processor;</P>
                        <P>• Provided assistance with compliance with Regulation SCI;</P>
                        <P>• Assisted with clock synchronization study;</P>
                        <P>• Provided assistance with respect to the establishment of CAT security;</P>
                        <P>• Drafted exemptive requests from CAT NMS Plan requirements, including with regard to options market maker quotes, Customer IDs, CAT Reporter IDs, linking allocations to executions, CAT reporting timeline, FDIDs, customer and account information, timestamp granularity, small industry members, data facility reporting and linkage, allocation reports, SRO-assigned market participant identifiers and cancelled trade indicators, thereby seeking to implement changes that would be cost effective and benefit Industry Members and Participants;</P>
                        <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                        <P>• Provided advice regarding CAT policies and procedures;</P>
                        <P>• Analyzed the SEC's amendment of the CAT NMS Plan regarding financial accountability;</P>
                        <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                        <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues; and</P>
                        <P>• Assisted with third party vendor agreements.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         The legal costs for CAT during the Pre-FAM Period include costs related to the legal services performed by Pillsbury. The Participants interviewed this law firm as well as other potential law firms to provide legal assistance regarding certain liability matters. After considering a variety of factors in its analysis, including the relevant expertise and fees of the firm, CAT LLC determined to hire Pillsbury in April 2019. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees were paid by CAT LLC to Pillsbury. The legal costs for Pillsbury during the Pre-FAM Period included costs incurred from April 2019 until June 22, 2020 to address legal matters regarding the agreements between CAT Reporters and CAT LLC concerning certain terms associated with CAT Reporting (the “Reporter Agreement”). During that period, Pillsbury advised CAT LLC regarding applicable legal matters, participated in negotiations between the Participants and Industry Members, participated in meetings with senior SEC staff, the Chairman, and Commissioners, represented CAT LLC and the Participants in an SEC administrative proceeding, and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, litigation involving CAT LLC is an expense of operating the CAT, and, therefore, is appropriately an obligation of both Participants and Industry Members under the CAT Funding Model.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $17,013,414 represent the fees paid to the consulting firm Deloitte &amp; Touche LLP (“Deloitte”) as project manager during the Pre-FAM Period, from October 2012 until June 22, 2020. These consulting costs include costs for advisory services related to the operation of the CAT, and meeting facilitation and communications coordination, vendor support and financial analyses.</P>
                    <P>To help facilitate project management given the unprecedented complexity and scope of the CAT project, the Participants determined it was necessary to engage a consulting firm to assist with the CAT project in 2012, following the adoption of Rule 613. A variety of factors were considered in the analysis of prospective consulting firms, including (1) the firm's qualifications, resources, and expertise, (2) the firm's relevant experience and understanding of the regulatory issues raised by the CAT and in coordinating matters of similar scope, (3) the composition of the consulting team, and (4) professional fees. Following a series of interviews, the exchanges and FINRA as a consortium determined that Deloitte was well qualified given the balance of these considerations and engaged Deloitte on October 1, 2012.</P>
                    <P>Deloitte's fee rates are negotiated on an annual basis and are in line with market rates for this type of specialized consulting work. CAT LLC assesses Deloitte's performance and reviews prospective budgets and staffing plans submitted by Deloitte on an annual basis. Deloitte's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading consulting firms for similar work.</P>
                    <P>The consulting costs for CAT during the period from 2012 until the formation of the CAT NMS, LLC were paid directly by the Participants to Deloitte. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC to Deloitte. CAT LLC reviewed the consulting fees each month and approved the invoices.</P>
                    <P>After Deloitte was hired in 2012 through the end of the Pre-FAM Period on June 22, 2020 (excluding the consulting costs from November 15, 2017 through November 15, 2018), Deloitte provided a variety of consulting services, including the following:</P>
                    <EXTRACT>
                        <P>• Established and implemented program operations for the CAT project, including the program managment office and workstream design;</P>
                        <P>• Assisted with the Plan Processor selection process, including but not limited to, the development of the RFP and the bidder evaluation process, and facilitation and consolidation of the Participant's independent reviews;</P>
                        <P>
                            • Assisted with the development and drafting of the CAT NMS Plan, including conducting cost-benefit studies, analyzing 
                            <PRTPAGE P="10515"/>
                            OATS and CAT requirements, and drafting appendices to the Plan;
                        </P>
                        <P>• Assisted with cost and funding-related activities for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                        <P>
                            • Provided governance support to the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                            <E T="03">e.g.,</E>
                             Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                        </P>
                        <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                        <P>• Assisted with industry outreach and communications regarding the CAT, including assistance with industry outreach events, the development of the CAT website, frequently asked questions, and coordinating with the CAT LLC's public relations firm;</P>
                        <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                        <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress;</P>
                        <P>• Coordinated efforts regarding the selection of the successor Plan Processor;</P>
                        <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor, including support for the Operating Committee and successor Plan Processor for the new role; and</P>
                        <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $880,419 represent the cost incurred for insurance for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT insurance policies, which included engaging in discussions with different insurance companies and conducting cost comparisons of various alternative approaches to insurance. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance from USI Insurance Services LLC (“USI”). Such policies are standard for corporate entities, and cyber security liability insurance is important for the CAT System. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        In adopting the CAT NMS Plan, the Commission amended the Plan to add a requirement that CAT LLC's financial statements be prepared in compliance with GAAP, audited by an independent public accounting firm, and made publicly available.
                        <SU>47</SU>
                        <FTREF/>
                         The professional and administration costs include costs related to accounting and accounting advisory services to support the operating and financial functions of CAT, financial statement audit services by an independent accounting firm, preparation of tax returns, and various cash management and treasury functions. In addition, professional and administration costs for the Pre-FAM Period include costs related to the receipt of market data and a security assessment. The costs for these professional and administration services were $1,082,036 for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             Section 9.2 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin Accountants &amp; Advisors (“Anchin”).</E>
                         CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT in April 2018. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services were paid by CAT LLC to Anchin.
                    </P>
                    <P>After Anchin was hired in April 2018 through the end of the Pre-FAM Period on June 22, 2020 (excluding the period from April 2018 through November 15, 2018), Anchin provided a variety of services, including the following:</P>
                    <EXTRACT>
                        <P>• Developed, updated and maintained internal controls;</P>
                        <P>• Provided cash management and treasury functions;</P>
                        <P>• Facilitated bill payments;</P>
                        <P>• Provided monthly bookkeeping;</P>
                        <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                        <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                        <P>• Addressed not-for-profit tax and accounting considerations;</P>
                        <P>• Prepared tax returns;</P>
                        <P>• Addressed various accounting, financial and operating inquiries from Participants;</P>
                        <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                        <P>• Addressed accounting and financial reporting matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                        <P>• Supported compliance with the CAT NMS Plan;</P>
                        <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                        <P>• Prepared monthly, quarterly and annual financial statements;</P>
                        <P>• Supported the annual financial statement audits by an independent auditor;</P>
                        <P>• Reviewed historical costs from inception; and</P>
                        <P>• Provided accounting and financial information in support of SEC filings.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton LLP (“Grant Thornton”).</E>
                         In February 2020, CAT LLC determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the proposed role given the balance of these considerations. Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services. The fees for these services were paid by CAT LLC to Grant Thornton.
                    </P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         The professional and administrative costs for the Pre-FAM Period included costs related to the receipt of certain market data for the CAT pursuant to an agreement with the CAT LLC, and then with FCAT. Exegy provided SIP Data required by the CAT NMS Plan.
                    </P>
                    <P>
                        After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy from July 2018 through March 2019. CAT LLC determined that, unlike certain other vendors, Exegy provided market data that included all data elements required 
                        <PRTPAGE P="10516"/>
                        by the CAT NMS Plan.
                        <SU>48</SU>
                        <FTREF/>
                         In addition, the fees were reasonable and in line with market rates for the market data received. Accordingly, the professional and administrative costs for the Pre-FAM Period include the Exegy costs from November 2018 through March 2019. The cost of the market data was reasonable for the market data received. The fees for the market data were paid directly by CAT LLC to Exegy.
                    </P>
                    <FTNT>
                        <P>
                            <SU>48</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>Upon the termination of the contract between CAT LLC and Exegy, FCAT entered into a contract with Exegy to purchase the required market data from Exegy in July 2019. All costs under the contract were treated as a direct pass through cost to CAT LLC. Therefore, the fees for the market data were paid by CAT LLC to FCAT, who, in turn, paid Exegy for the market data.</P>
                    <P>
                        <E T="03">Security Assessment: RSM US LLP (“RSM”).</E>
                         The operating costs for the Pre-FAM Period include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation, and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment. RSM performed the assessment from October 2018 through December 2018. Accordingly, the costs for the Pre-FAM Period include the costs incurred in November and December 2018. The cost for the security assessment were paid directly to RSM by CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $224,669 represent the fees paid to public relations firms during the Pre-FAM Period for professional communications services to CAT, including media relations consulting, strategy and execution. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants. Specifically, the public relations firms provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                    </P>
                    <P>The services performed by each of the public relations firms were comparable. The fees for such services were reasonable and in line with market rates. Only one public relations firm was engaged at a time; the three firms were engaged sequentially as the primary public relations contact moved among the three firms during this time period.</P>
                    <P>
                        <E T="03">Public Relations Firm: Peppercomm, Inc. (“Peppercomm”).</E>
                         The national securities exchanges and FINRA, acting as a consortium, determined to hire the public relations firm Peppercomm in October 2014 and continued to engage this firm through September 2017. The exchanges and FINRA made this engagement decision after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fee rates for this public relations firm were negotiated on an arm's length basis and were in line with market rates for these types of services. The public relations costs during the period from October 2014 until the formation of the CAT NMS LLC were paid directly by the exchanges and FINRA to the public relations firm. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Sloane &amp; Company (“Sloane”).</E>
                         CAT LLC determined to hire a new public relations firm, Sloane, in March 2018, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Sloane. CAT LLC continued the engagement with Sloane until February 2020.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Peak Strategies.</E>
                         CAT LLC determined to hire a new public relations firm, Peak Strategies, in March 2020, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Peak Strategies.
                    </P>
                    <HD SOURCE="HD3">(ii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 1</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 1 of the Financial Accountability Milestones (“FAM Period 1”),
                        <SU>49</SU>
                        <FTREF/>
                         which covers the period from June 22, 2020-July 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 1 of $6,377,343. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($2,125,781), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781). The following table breaks down Historical CAT Costs 1 for FAM Period 1 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             Section 11.6(a)(i)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10517"/>
                        <GID>EN13FE24.127</GID>
                    </GPH>
                    <P>
                        By
                        <FTREF/>
                         the completion of FAM Period 1, CAT LLC was required to implement the reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of equities transaction data and options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.
                        <SU>52</SU>
                        <FTREF/>
                         CAT LLC completed the requirements of FAM Period 1 by July 31, 2020. The following describes the costs for each of the categories for FAM Period 1.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>50</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             The costs described in this table of costs for FAM Period 1 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             
                            <E T="03">See</E>
                             definition of “Initial Industry Member Core Equity and Options Reporting” in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 1 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 1 Period. Accordingly, the $2,642,122 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 1. The fee arrangement for AWS described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. Moreover, CAT LLC continued to believe that AWS's maturity in the cloud services space as well as the significant cost and time necessary to move the CAT to a different cloud services provider supported the continued engagement of AWS.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 1 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, reference data and other types of Other Data. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 1.
                        <SU>53</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>53</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="298">
                        <PRTPAGE P="10518"/>
                        <GID>EN13FE24.128</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 1. Accordingly, the $1,099,680 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 1. The fee arrangement for FCAT described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, FCAT's activities with respect to the CAT included the following:</P>
                    <EXTRACT>
                        <P>• Published iterative drafts of draft Technical Specifications for Phase 2d, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                        <P>• Published iterative drafts of CAIS Technical Specifications, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                        <P>• Facilitated Industry Member reporting of Quote Sent Time on Options Market Maker quotes;</P>
                        <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                        <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                        <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                        <P>• Oversaw the security of the CAT;</P>
                        <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                        <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                        <P>• Provided support in discussions with Participants and the SEC and its staff;</P>
                        <P>• Operated the FINRA CAT Helpdesk;</P>
                        <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                        <P>• Administered the CAT website and all of its content; and</P>
                        <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 1. Accordingly, the $254,998 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 1. The fee arrangement for Kingland described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>CAT LLC did not incur costs related to change requests during FAM Period 1.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 1 of $1,684,870 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include: (1) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including separate production and industry test entitlements, and reprocessing of exchange event timestamps; (2) implementation fees; and (3) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>
                        The legal costs of $481,687 represent the fees paid for legal services provided 
                        <PRTPAGE P="10519"/>
                        by two law firms, WilmerHale and Pillsbury during FAM Period 1.
                    </P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 1 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to WilmerHale. During FAM Period 1, WilmerHale provided legal assistance to the CAT including with regard to the following:
                    </P>
                    <EXTRACT>
                        <P>• Assisted with the development of the CAT funding model and drafted related amendments and fee filings;</P>
                        <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, verbal activity, options market maker quote sent time, TRF linkages, and allocations;</P>
                        <P>• Provided interpretations related to CAT NMS Plan requirements, including the Financial Accountability Milestone amendment;</P>
                        <P>• Assisted with compliance with Regulation SCI;</P>
                        <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                        <P>• Assisted with the drafting of the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                        <P>• Assisted with communications and presentations for the industry regarding CAIS;</P>
                        <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                        <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                        <P>• Provided guidance regarding CAT technical specifications;</P>
                        <P>• Assisted with third party vendor agreements; and</P>
                        <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to Pillsbury. During FAM Period 1, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $137,209 represent the fees paid to Deloitte as project manager during FAM Period 1. CAT LLC continued to employ Deloitte during FAM Period 1 based on, among other things, their expertise and cumulative experience with the CAT. The fee rates for Deloitte during FAM Period 1 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 1 were paid by CAT LLC to the consulting firm. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 1, Deloitte's CAT-related activities included the following:</P>
                    <EXTRACT>
                        <P>• Implemented program operations for the CAT project;</P>
                        <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                        <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                        <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                        <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor; and</P>
                        <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>Although insurance was in effect during FAM Period 1, CAT LLC did not incur costs related to insurance during FAM Period 1.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         The professional and administration costs of $69,077 represent the fees paid to Anchin during FAM Period 1. CAT LLC continued to employ Anchin during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these type of financial advisory services. The fees for these services during FAM Period 1 were paid by CAT LLC to Anchin. During FAM Period 1, Anchin provided a variety of services, including the following:
                    </P>
                    <EXTRACT>
                        <P>• Maintained internal controls;</P>
                        <P>• Provided cash management and treasury functions;</P>
                        <P>• Facilitated bill payments;</P>
                        <P>• Provided monthly bookkeeping;</P>
                        <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                        <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                        <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                        <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                        <P>• Supported compliance with the CAT NMS Plan;</P>
                        <P>• Worked with and provided support to the Operating Committee and various CAT working groups; and</P>
                        <P>• Prepared monthly and quarterly financial statements.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $7,700 represent the fees paid to Peak Strategies during FAM Period 1. CAT LLC continued to employ Peak Strategies during FAM Period 1 based on, among other things, their expertise and history with the project. The fee rates for this firm were reasonable and in line with market rates for these types of services. The fees for these services during FAM Period 1 were paid by CAT LLC to Peak Strategies. During FAM Period 1, Peak Strategies continued to provide professional communications services to CAT LLC, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                        <PRTPAGE P="10520"/>
                    </P>
                    <HD SOURCE="HD3">(iii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 2</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT LLC and already funded by Participants during Period 2 of the Financial Accountability Milestones (“FAM Period 2”),
                        <SU>54</SU>
                        <FTREF/>
                         which covers the period from August 1, 2020-December 31, 2020. Historical CAT Costs 1 would include costs for
                        <FTREF/>
                         FAM Period 2 of $42,976,478. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($14,325,493), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third
                        <FTREF/>
                         ($14,325,493) and CEBSs paying one-third ($14,325,493). The following table breaks down Historical CAT Costs 1 for FAM Period 2 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>54</SU>
                             Section 11.6(a)(i)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>55</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>56</SU>
                             The costs described in this table of costs for FAM Period 2 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <GID>EN13FE24.129</GID>
                    </GPH>
                    <P>By the completion of FAM Period 2, CAT LLC was required to implement the following with regard to the CAT:</P>
                    <EXTRACT>
                        <P>
                            (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, CustomerID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission.
                            <SU>57</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>57</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Implementation of Core Equity Reporting Requirements” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 2 by December 31, 2020. The following describes the costs for each of the categories for FAM Period 2.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 2 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 2 Period. Accordingly, the $20,709,212 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 2. The fee arrangement for AWS described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 2 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, and Other Data, including reference data. In addition, Industry Members began reporting LTID account information. The following chart provides data regarding the average 
                        <PRTPAGE P="10521"/>
                        daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 2.
                        <SU>58</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="311">
                        <GID>EN13FE24.130</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 2. Accordingly, the $9,108,700 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 2. The fee arrangement for FCAT described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, FCAT's activities with respect to the CAT included publishing the Technical Specifications for Phase 2d and overseeing the reporting of firm to firm and intrafirm linkages by Industry Members. In addition, FCAT also continued to engage in the following activities during FAM Period 2:</P>
                    <EXTRACT>
                        <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                        <P>• Provided support to the Operating Committee, Compliance Subcommittee and CAT working groups;</P>
                        <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                        <P>• Oversaw the development and implementation of the security of the CAT;</P>
                        <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                        <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                        <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                        <P>• Operated the FINRA CAT Helpdesk;</P>
                        <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                        <P>• Administered the CAT website and all of its content; and</P>
                        <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 2. Accordingly, the $1,590,298 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 2. The fee arrangement for Kingland described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        During FAM Period 2, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 
                        <PRTPAGE P="10522"/>
                        2, CAT incurred costs of $51,823 related to a change request regarding the addition of functionality for exchange Participants to report rejected messages to the CAT.
                    </P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 2 of $6,761,094 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to separate production and industry test entitlements, market maker reference data, and back-processing of exchange exception logic; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $2,766,644 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 2.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 2 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to WilmerHale. During FAM Period 1 [
                        <E T="03">sic</E>
                        ], the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <EXTRACT>
                        <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                        <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, allocations, exchange activity, OTQT, initial data validation, error corrections and recordkeeping;</P>
                        <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs and technical specifications;</P>
                        <P>• Provided support for the Operating Committee, Compliance Subcommittees, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                        <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6 of the CAT NMS Plan;</P>
                        <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                        <P>• Provided support for the Compliance Subcommittee, including with regard to responses to OCIE examinations and the annual assessment;</P>
                        <P>• Provided guidance regarding the SEC's proposed security amendments to the CAT NMS Plan;</P>
                        <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                        <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                        <P>
                            • Assisted with third party vendor agreements (
                            <E T="03">e.g.,</E>
                             with regard to Anchin, Grant Thornton and insurance policies);
                        </P>
                        <P>• Assisted with change requests; and</P>
                        <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to Pillsbury. During FAM Period 2, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted and filed a proposed amendment to the CAT NMS plan regarding liability matters. As discussed above, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $532,146 represent the fees paid to Deloitte as project manager during FAM Period 2. CAT LLC continued to employ Deloitte during FAM Period 2 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 2 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 2 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 2, Deloitte's CAT-related activities included the following:</P>
                    <EXTRACT>
                        <P>• Implemented program operations for the CAT project;</P>
                        <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                        <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                        <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                        <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $976,098 represent the fees paid for insurance during FAM Period 2. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $438,523 represent the fees paid to Anchin and Grant Thornton for financial services provided during FAM Period 2.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to engage Anchin during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these types of financial advisory services. The fees for these services during FAM Period 2 were paid by CAT LLC to Anchin. During FAM Period 2, Anchin provided a variety of services, including the following:
                    </P>
                    <EXTRACT>
                        <P>• Updated and maintained internal controls;</P>
                        <P>• Provided cash management and treasury functions;</P>
                        <P>
                            • Faciliated [
                            <E T="03">sic</E>
                            ] bill payments;
                        </P>
                        <P>• Provided monthly bookkeeping;</P>
                        <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                        <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                        <P>• Addressed not-for-profit tax and accounting considerations;</P>
                        <P>• Prepared tax returns;</P>
                        <P>• Addressed various accounting, financial reporting and operating inquiries from the Participants;</P>
                        <P>
                            • Developed and maintained quarterly and annual operating and financial budgets, 
                            <PRTPAGE P="10523"/>
                            including budget to actual fluctuation analyses;
                        </P>
                        <P>• Supported compliance with the CAT NMS Plan;</P>
                        <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                        <P>• Prepared monthly, quarterly and annual financial statements;</P>
                        <P>• Supported the annual financial statement audit by an independent auditor; and</P>
                        <P>• Reviewed historical costs from inception.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 2 based on, among other things, its expertise and cumulative knowledge of CAT LLC. CAT LLC continued to believe that Grant Thornton was well qualified for its role and its fee rates were in line with with market rates for these accounting services. The fees for these services during FAM Period 2 were paid by CAT LLC to Grant Thornton. During FAM Period 2, Grant Thornton performed a financial statement audit for CAT LLC as an independent accounting firm.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $41,940 represent the fees paid to Peak Strategies during FAM Period 2. CAT LLC continued to employ Peak Strategies during FAM Period 2 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 2 were paid by CAT LLC to Peak Strategies. During FAM Period 2, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iv) Historical CAT Costs Incurred in Financial Accountability Milestone Period 3</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 3 of the Financial Accountability Milestones (“FAM Period 3”),
                        <SU>59</SU>
                        <FTREF/>
                         which covers the period from January 1, 2021-December 31, 2021. Historical CAT Costs 1 would include costs for FAM Period 3 of $144,415,268. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($48,138,423), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($48,138,423) and CEBSs paying one-third ($48,138,423). The following table breaks down Historical CAT Costs 1 for FAM Period 3 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             Section 11.6(a)(i)(C) of the CAT NMS Plan.
                        </P>
                        <P>
                            <SU>60</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>61</SU>
                             The costs described in this table of costs for FAM Period 3 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <GID>EN13FE24.131</GID>
                    </GPH>
                    <PRTPAGE P="10524"/>
                    <P>By the completion of FAM Period 3, CAT LLC was required to implement the following requirements with regard the CAT:</P>
                    <EXTRACT>
                        <P>
                            (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met.
                            <SU>62</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>62</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Availability and Regulatory Utilization of Transactional Database Functionality” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 3 by December 31, 2021. The following describes the costs for each of the categories for FAM Period 3.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 3 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 3 Period. Accordingly, the $94,574,759 in technology costs for cloud hosting services represents costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 3. The fee arrangement for AWS described above for the earlier periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During FAM Period 3, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a, Phase 2b, Phase 2c and Phase 2d Industry Member Data (including certain linkages), SIP Data, Other Data, including reference data, and LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 3.
                        <SU>63</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="351">
                        <PRTPAGE P="10525"/>
                        <GID>EN13FE24.132</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 3. Accordingly, the $23,106,091 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 3. The fee arrangement for FCAT described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, FCAT's activities with respect to the CAT included the following:</P>
                    <EXTRACT>
                        <P>• Facilitated Phase 2c and Phase 2d testing for Industry Members;</P>
                        <P>• Oversaw creation of linkages of the lifecycle of order events based on the received data through Phase 2d;</P>
                        <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                        <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                        <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                        <P>• Oversaw the security of the CAT;</P>
                        <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                        <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                        <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                        <P>• Operated the FINRA CAT Helpdesk;</P>
                        <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                        <P>• Administered the CAT website and all of its content; and</P>
                        <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement with FCAT discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 3. Accordingly, the $5,562,383 in technology costs for CAIS operating fees represents costs incurred for services provided by Kingland during FAM Period 3. The fee arrangement for Kingland described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs. The full CAIS Technical Specifications were published during FAM Period 3.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        During FAM Period 3, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 3, CAT incurred costs of $396,169 related to change requests, including the following: (1) the addition of functionality for exchange Participants to report rejected messages to the CAT; (2) the migration of MIRS query engine to AWS to reduce operational costs and increase resiliency; and (3) updating the Participant Technical Specifications to 
                        <PRTPAGE P="10526"/>
                        allow for two-sided Participant option quote reporting.
                    </P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 3 of $10,763,372 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor, including the transition from equity data received by FINRA pursuant to various regulatory services agreements between FINRA and Participant exchanges to the equity CAT Data, and the completion of the Industry Member Phase 2d options manual and complex orders go-live requirements; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to off-exchange volume concentration, Participant 24-hour trading and an external metastore; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $6,333,248 represent the fees paid for legal services provided by three law firms, WilmerHale, Pillsbury and Covington &amp; Burling LLP (“Covington”) during FAM Period 3.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 3 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to WilmerHale. During FAM Period 3, the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <EXTRACT>
                        <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                        <P>• Drafted exemptive requests from CAT NMS Plan requirements, including, for example, verbal activity regarding Phase 2c cutover, error reports, error corrections, Phase 2d Reporting, unique Order-ID on internal route events, reporting addresses, recordkeeping, and unique CCID for foreign customers;</P>
                        <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs, CAIS requirements, ADF, and technical specifications;</P>
                        <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                        <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6(c) of the CAT NMS Plan;</P>
                        <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                        <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                        <P>• Provided guidance regarding SEC's proposed security amendments to CAT NMS Plan;</P>
                        <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                        <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                        <P>• Provided assistance with change requests;</P>
                        <P>• Provided guidance and regulatory support for litigation regarding the response to SEC's exemptive orders;</P>
                        <P>• Assisted with communications with the industry, includng CAT Alerts and presentations;</P>
                        <P>• Provided guidance regarding the confidentiality of CAT Data, including third-party information requests;</P>
                        <P>• Assisted with cost management analysis and proposals; and</P>
                        <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to Pillsbury. During FAM Period 3, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During this period, Pillsbury advised CAT LLC regarding applicable legal matters, reviewed and responded to comment letters regarding the proposed Plan amendment, participated in meetings with senior SEC staff, responded to comments submitted following the SEC's April 6, 2021 order instituting proceedings,
                        <SU>64</SU>
                        <FTREF/>
                         and assessed legal matters regarding the SEC's October 29, 2021 order denying the proposed Plan amendment.
                        <SU>65</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             Securities Exchange Act Rel. No. 91487 (Apr. 6, 2021), 86 FR 19054 (Apr. 12, 2021).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             Securities Exchange Act Rel. No. 93484 (Oct. 29, 2021), 86 FR 60933 (Nov. 4, 2021).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Law Firm: Covington.</E>
                         CAT LLC hired Covington for litigation with the SEC regarding certain exemptive orders related to the CAT, including orders issued in December 2020.
                        <SU>66</SU>
                        <FTREF/>
                         CAT LLC interviewed this law firm as well as other potential law firms, considering a variety of factors in its analysis for choosing legal assistance, including the relevant expertise and fees of the potential lawyers. CAT LLC approved the engagement of Covington in January 2021. The fee rates for this law firm, which were calculated based on hourly rates, were in line with market rates for specialized services. The legal fees for FAM Period 3 for this firm were paid by CAT LLC to Covington.
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 90688 (Dec. 16, 2020), 85 FR 83634 (Dec. 22, 2020); and Securities Exchange Act Rel. No. 90689 (Dec. 16, 2020), 85 FR 83667 (Dec. 22, 2020) (collectively, the “2020 Orders”).
                        </P>
                    </FTNT>
                    <P>After Covington was hired in 2021 through the end of 2021, the firm provided legal assistance regarding the litigation with the SEC regarding the 2020 Orders. These services included researching, drafting, and filing motions to stay the 2020 orders and related materials in proceedings before the SEC, as well as researching, drafting, and filing petitions for judicial review of the 2020 Orders in proceedings before the U.S. Court of Appeals for the D.C. Circuit. Covington oversaw ongoing litigation proceedings on these matters, and also supported WilmerHale with respect to settlement negotiations with the SEC staff regarding the 2020 Orders.</P>
                    <P>
                        In addition to these services, CAT LLC engaged Covington in November 2021 to provide assistance with respect to the SEC's disapproval of CAT NMS Plan amendments concerning a proposed limitation on liability in the event of a data breach or similar event. Covington provided advice concerning CAT's response to the SEC's disapproval order. This work accounted for a minority of Covington's fees in 2021.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             As discussed above with regard to Pillsbury's work on liability matters, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, such activity is a necessary part of the operation of the CAT.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>
                        The consulting costs of $1,408,209 represent the fees paid to Deloitte as project manager during FAM Period 3. CAT LLC continued to employ Deloitte during FAM Period 3 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 3 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM 
                        <PRTPAGE P="10527"/>
                        Period 3 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 3, Deloitte's CAT-related activities included the following:
                    </P>
                    <EXTRACT>
                        <P>• Implemented program operations for the CAT project;</P>
                        <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                        <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                        <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                        <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $1,582,714 represent the fees paid for insurance FAM Period 3. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $595,923 represent the fees paid to Anchin and Grant Thornton for financial services during FAM Period 3.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to employ Anchin during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services during FAM Period 3 were paid by CAT LLC to Anchin. During FAM Period 3, Anchin provided a variety of services, including the following:
                    </P>
                    <EXTRACT>
                        <P>• Updated and maintained internal controls;</P>
                        <P>• Provided cash management and treasury functions;</P>
                        <P>
                            • Faciliated [
                            <E T="03">sic</E>
                            ] bill payments;
                        </P>
                        <P>• Provided monthly bookkeeping;</P>
                        <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                        <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                        <P>• Addressed not-for-profit tax and accounting considerations;</P>
                        <P>• Prepared tax returns;</P>
                        <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                        <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                        <P>• Supported compliance with the CAT NMS Plan;</P>
                        <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                        <P>• Prepared monthly, quarterly and annual financial statements;</P>
                        <P>• Supported the annual financial statement audits by an independent auditor;</P>
                        <P>• Reviewed historical costs from inception; and</P>
                        <P>• Provided accounting and financial information in support of SEC filings.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 3 based on, among other things, their expertise and cumulative knowledge of CAT LLC. CAT LLC determined that Grant Thornton was well qualified for its role and that its fixed fee rates were in line with market rates for these accountant services. The fees for these services during FAM Period 3 were paid by CAT LLC to Grant Thornton. During FAM Period 3, Grant Thornton provided audited financial statements for CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $92,400 represent the fees paid to Peak Strategies during FAM Period 3. CAT LLC continued to employ Peak Strategies during FAM Period 3 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 3 were paid by CAT LLC to Peak Strategies. During FAM Period 3, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(v) Excluded Costs</HD>
                    <P>
                        Historical CAT Costs 1 would not include two categories of CAT costs (“Excluded Costs”): (1) $48,874,937, which are all CAT costs incurred from November 15, 2017 through November 15, 2018; and (2) $14,749,362 of costs related to the termination of the relationship with the Initial Plan Processor. The Participants would remain responsible for 100% of these costs, which total $63,624,299. CAT LLC determined that it was reasonable to exclude these Excluded Costs from Historical CAT Costs 1 because the excluded costs relate to the delay in the start of reporting to the CAT and the conclusion of the relationship with the Initial Plan Processor.
                        <SU>68</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             In approving the CAT Funding Model, the Commission states that “the proposed exclusion of the `Excluded Costs' from Past CAT Costs is reasonable in the Commission's view because it would not require all costs incurred by the Participants to be recovered from Industry Members through the Historical CAT Assessment, specifically excluding those costs related to the delay in the start of reporting to the CAT and costs related to the conclusion of the relationship with the Initial Plan Processor.” CAT Funding Model Approval Order at 62663.
                        </P>
                    </FTNT>
                    <P>First, Historical CAT Costs 1 would not include $14,749,362 of costs related to the conclusion of the relationship with the Initial Plan Processor. Such costs include costs related to the American Arbitration Association, the legal assistance of Pillsbury with regard to the arbitration with Thesys CAT, and the settlement costs related to the arbitration with Thesys CAT. The Participants would remain responsible for 100% of these $14,749,362 in costs.</P>
                    <P>
                        Second, the Historical CAT Costs would exclude all CAT costs incurred from November 15, 2017 through November 15, 2018. CAT LLC determined to exclude all costs during this one-year period of $48,874,937 from fees charged to Industry Members due to the delay in the start of reporting to the CAT. The Participants would remain responsible for 100% of these $48,874,937 in costs. The following table breaks down these costs into the 
                        <PRTPAGE P="10528"/>
                        categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             The costs described in this table of Excluded Costs were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="239">
                        <GID>EN13FE24.133</GID>
                    </GPH>
                    <P>The following provides additional detail regarding the Excluded Costs.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services, Operating Fees, CAIS Operating Fees and Change Request Fees</HD>
                    <P>CAT LLC did not incur technology costs related to the categories of cloud hosting services, operating fees, CAIS operating fees or change requests during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(b) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for the period from November 15, 2017 through November 15, 2018 include capitalizable application development costs of $37,852,083 incurred in the development of the CAT by the Initial Plan Processor. Such costs include development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Initial Plan Processor. Such costs include costs related to Industry Member technical specifications for orders and transactions, the system security plan, testing and production for Participant CAT reporting, third-party security assessment and response, query portal, onboarding of the Chief Information Security Officer, and ingestion of FINRA TRF data and FINRA data related to halts and corporate actions.</P>
                    <HD SOURCE="HD3">(c) Legal Costs</HD>
                    <P>The legal costs of $6,143,278 represent the fees paid to WilmerHale for legal services from November 15, 2017 through November 15, 2018. During this period, WilmerHale provided legal assistance to the CAT including with regard to the following:</P>
                    <EXTRACT>
                        <P>• Provided legal support for the governance of the CAT, including governance support for the Operating Committee, Advisory Committee, Compliance Subcommittee, and CAT working groups;</P>
                        <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan;</P>
                        <P>• Provided assistance related to CAT security;</P>
                        <P>• Drafted exemptive requests, including requests related to PII;</P>
                        <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                        <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                        <P>• Provided advice with regard to regulator access to the CAT;</P>
                        <P>• Assisted with the Plan Processor transition;</P>
                        <P>• Provided assistance regarding communications with the industry regarding the CAT;</P>
                        <P>• Provided advice regarding Customer Account Information and PII;</P>
                        <P>• Provided support for litigation related to SEC exemptive orders; and</P>
                        <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretative and implementation issues.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(d) Consulting Costs</HD>
                    <P>The consulting costs of $4,452,106 represent the fees paid to Deloitte for their role as project manager for the CAT from November 15, 2017 through November 15, 2018. During this period, Deloitte engaged in the following activities with respect to the CAT:</P>
                    <EXTRACT>
                        <P>• Implemented program operations for the CAT project;</P>
                        <P>
                            • Provided governance support to the Operating Committee, including support for Subcommittees and working groups of the Operating Committee (
                            <E T="03">e.g.,</E>
                             Compliance Subcommittee, Cost and Funding Working Group, Technical Working Group, Industry Outreach Working Group, Security Working Group and Steering Committee);
                        </P>
                        <P>• Assisted with cost and funding issue for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                        <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                        <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress.</P>
                    </EXTRACT>
                    <PRTPAGE P="10529"/>
                    <HD SOURCE="HD3">(e) Insurance</HD>
                    <P>CAT LLC did not incur costs related to insurance during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(f) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $340,145 represent the fees paid to Anchin, Exegy and RSM from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in April 2018 through November 15, 2018, Anchin engaged in the following activities with respect to the CAT:
                    </P>
                    <EXTRACT>
                        <P>• Developed, updated and maintained internal controls;</P>
                        <P>• Provided cash management and treasury functions;</P>
                        <P>• Facilitated bill payments;</P>
                        <P>• Provided monthly bookkeeping;</P>
                        <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                        <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                        <P>• Addressed not-for-profit tax and accounting considerations;</P>
                        <P>• Prepared tax returns;</P>
                        <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                        <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                        <P>• Addressed accounting and financial matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                        <P>• Supported compliance with the CAT NMS Plan;</P>
                        <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                        <P>• Prepared monthly, quarterly and annual financial statements;</P>
                        <P>• Supported the annual financial statement audits by an independent auditor;</P>
                        <P>• Reviewed historical costs from inception; and</P>
                        <P>• Provided accounting and financial information in support of SEC filings.</P>
                    </EXTRACT>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         From July 2018 through November 15, 2018, CAT LLC purchased market data from Exegy (as described in more detail above).
                    </P>
                    <P>
                        <E T="03">Security Assessment: RSM.</E>
                         From October 2018 through November 15, 2018, CAT LLC incurred costs for RSM's performance of a security assessment (as described in more detail above).
                    </P>
                    <HD SOURCE="HD3">(g) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $87,325 represent the fees paid to Sloane from November 15, 2017 through November 15, 2018. From the commencement of its engagment [
                        <E T="03">sic</E>
                        ] in March 2018 through November 15, 2018, Sloane provided professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, Sloane provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan).
                    </P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        Under the CAT NMS Plan, the Operating Committee is required to reasonably establish the length of the Historical Recovery Period used in calculating each Historical Fee Rate based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment, and to describe the reasons for its length.
                        <SU>70</SU>
                        <FTREF/>
                         The Historical Recovery Period used in calculating the Historical Fee Rate may not be less than 24 months or more than five years.
                        <SU>71</SU>
                        <FTREF/>
                         The Operating Committee has determined to establish a Historical Recovery Period 1 of 24 months for Historical CAT Assessment 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             Section 11.3(b)(i)(D)(I) and Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             Section 11.3(b)(i)(D)(I) of the CAT NMS Plan. In the CAT Funding Model Approval Order, the SEC stated that “[i]n the Commission's view, it is reasonable for the Operating Committee to establish the length of the Historical Recovery Period to be no less than 24 months and no more than five years.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The Operating Committee determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans to the Participants in a timely fashion. The Operating Committee determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>72</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, the Operating Committee recognized that the total costs for Historical CAT Assessment 1 were less than the total costs for 2022 and 2023,
                        <SU>73</SU>
                        <FTREF/>
                         and therefore it would be reasonable and appropriate to recover costs subject to this filing over an approximate two-year period. Furthermore, the Operating Committee notes that 24 months is appropriate because it is not currently proposing that Industry Members be required to pay additional CAT fees with regard to another Historical CAT Assessment or CAT Fees with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model at 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             The total CAT costs for 2022 were approximately $186 million and the total CAT costs for 2023 are estimated to be approximately $233 million.
                        </P>
                    </FTNT>
                    <P>
                        The length of the Historical Recovery Period 1 and the reasons for its length are provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>74</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             Section 11.3(b)(iii)(B)(II)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Total Executed Equivalent Share Volume</HD>
                    <P>
                        The calculation of Historical Fee Rate 1 also requires the determination of the projected total executed equivalent share volume of transactions in Eligible Securities for Historical Recovery Period 1. Under the CAT NMS Plan, the Operating Committee is required to “reasonably determine the projected total executed equivalent share volume of all transactions in Eligible Securities for each Historical Recovery Period based on the executed equivalent share volume of all transactions in Eligible Securities for the prior twelve months.” 
                        <SU>75</SU>
                        <FTREF/>
                         The Operating Committee is required to base its projection on the prior twelve months, but it may use its discretion to analyze the likely volume for the upcoming year. Such discretion would allow the Operating Committee to use its judgment when estimating projected total executed equivalent share volume if the volume over the prior twelve months was unusual or otherwise unfit to serve as the basis of a future volume estimate.
                        <SU>76</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             Section 11.3(b)(i)(E) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. The Operating Committee has determined to calculate the projected total executed equivalent share volume for the 24 months of 
                        <PRTPAGE P="10530"/>
                        Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. The Operating Committee determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is projected to be 7,685,722,694,558.88 executed equivalent shares.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <P>
                        The projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1 and a description of the calculation of the projection is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>78</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>78</SU>
                             Section 11.3(b)(iii)(B)(II)(D) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Historical Fee Rate 1</HD>
                    <P>
                        Historical Fee Rate 1 would be calculated by dividing Historical CAT Costs 1 by the reasonably projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1, as described in detail above.
                        <SU>79</SU>
                        <FTREF/>
                         Specifically, Historical Fee Rate 1 would be calculated by dividing $337,688,610 by 7,685,722,694,558.88. As a result, the Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. Historical Fee Rate 1 is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide the Historical Fee Rate in a fee filing for a Historical CAT Assessment.
                        <SU>80</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             In approving the CAT Funding Model, the Commission stated that “[t]he calculation of the Historical Fee Rate by dividing the Historical CAT Costs by the projected total executed equivalent share volume of all transactions in Eligible Securities for the Historical Recovery Period is reasonable.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>80</SU>
                             Section 11.3(b)(iii)(B)(II)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Past CAT Costs and Participants</HD>
                    <P>Participants would not be required to pay any fees associated with Historical CAT Assessment 1 as the Participants previously have paid all Past CAT Costs. The CAT NMS Plan explains that:</P>
                    <EXTRACT>
                        <P>
                            Because Participants previously have paid Past CAT Costs via loans to the Company, Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs and such other additional Past CAT Costs as reasonably determined by the Operating Committee will be paid by the cancellation of loans made to the Company on a pro rata basis based on the outstanding loan amounts due under the loans.
                            <SU>81</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>81</SU>
                                 Section 11.3(b)(ii) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The CAT NMS Plan further states that “Historical CAT Assessments are designed to recover two-thirds of the Historical CAT Costs.” 
                        <SU>82</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             
                            <E T="03">Id.</E>
                             In approving the CAT Funding Model, the Commission stated that “[t]he proposed allocation of the Historical CAT Assessment solely to CEBs and CEBBs, and ultimately Industry Members, is reasonable. The Historical CAT Assessment will still be divided into thirds,” as the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made to the Company. CAT Funding Model Approval Order at 62666.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(4) Monthly Fees</HD>
                    <P>
                        CEBBs and CEBSs would be required to pay fees for Historical CAT Assessment 1 on a monthly basis for the period in which Historical CAT Assessment 1 is in effect.
                        <SU>83</SU>
                        <FTREF/>
                         A CEBB or CEBS's fee for each month would be calculated based on the transactions in Eligible Securities executed by the CEBB or CEBS from the prior month.
                        <SU>84</SU>
                        <FTREF/>
                         Proposed paragraph (a)(1)(A) of the CAT Fee Schedule would state that each CAT Executing Broker would receive its first invoice in April 2024, and “would receive an invoice each month thereafter in which Historical CAT Assessment 1 is in effect.” Proposed paragraph (a)(1)(B) of the CAT Fee Schedule would state that “Consolidated Audited Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” In addition, proposed paragraph (b)(1) of the CAT Fee Schedule states that each CEBB and CEBS is required to pay its CAT fees “each month.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             See proposed paragraph (a)(1)(B) of the CAT Fee Schedule.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(5) Actual Recovery Period for Historical CAT Assessment 1</HD>
                    <P>
                        The CAT NMS Plan states that, “[n]otwithstanding the length of the Historical Recovery Period used in calculating the Historical Fee Rate, each Historical CAT Assessment calculated using the Historical Fee Rate will remain in effect until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                        <SU>85</SU>
                        <FTREF/>
                         Accordingly, Historical CAT Assessment 1 will remain in effect until all Historical CAT Costs 1 have been collected. The actual recovery period for Historical CAT Assessment 1 may be shorter or longer than Historical Recovery Period 1 depending on the actual executed equivalent share volumes during the time that Historical CAT Assessment 1 is in effect.
                        <SU>86</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             Section 11.3(b)(i)(D)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>86</SU>
                             In approving the CAT Funding Model, the Commission stated that “[i]n the Commission's view, it is reasonable for Industry Members to be charged a Historical CAT Assessment until all Historical CAT Costs for the Historical CAT Assessment are collected.” CAT Funding Model Approval Order at 62665.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(6) Consolidated Audit Trail Funding Fees</HD>
                    <P>To implement Historical CAT Assessment 1, the Exchange proposes to adopt CAT Fee Schedule to include the proposed paragraphs described below.</P>
                    <HD SOURCE="HD3">(A) Fee Schedule for Historical CAT Assessment 1</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Each month in which a Historical CAT Assessment is in effect, each CEBB and each CEBS shall pay a fee for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate reasonably determined pursuant to paragraph (b)(i) of this Section 11.3.
                            <SU>87</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>87</SU>
                                 Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, based on the factors discussed above, the Exchange proposes to add paragraph (a)(1) to the CAT Fee Schedule. Proposed paragraph (a)(1) would state the following:</P>
                    <EXTRACT>
                        <P>(A) Each CAT Executing Broker shall receive its first invoice for Historical CAT Assessment 1 in April 2024, which shall set forth the Historical CAT Assessment 1 fees calculated based on transactions in March 2024, and shall receive an invoice for Historical CAT Assessment 1 for each month thereafter in which Historical CAT Assessment 1 is in effect.</P>
                        <P>(B) Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis. Each month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.</P>
                        <P>
                            (C) Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-
                            <PRTPAGE P="10531"/>
                            thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time. Consolidated Audit Trail, LLC will provide notice when Historical CAT Assessment 1 will no longer be in effect.
                        </P>
                        <P>(D) Each CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).</P>
                    </EXTRACT>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, “as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>88</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of the CAT Fee Schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 of $0.0000439371316687066 by one-third, and rounding the result to 6 decimal places.
                        <SU>89</SU>
                        <FTREF/>
                         The Operating Committee determined to use six decimal places to balance the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>89</SU>
                             Dividing $0.0000439371316687066 by three equals $0.00001464571055623553. Rounding $0.00001464571055623553 to six decimal places equals $0.000015.
                        </P>
                    </FTNT>
                    <P>The proposed language in paragraph (a)(1)(A) of the CAT Fee Schedule would describe when CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1. Specifically, CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 and the fees set forth in that invoice would be calculated based on transactions executed in the prior month, that is, transactions executed in March 2024. The payment for the first invoice would be required within 30 days after the receipt of the first invoice (unless a longer period is indicated), as described in proposed paragraph (b)(2) of the CAT Fee Schedule.</P>
                    <P>Proposed paragraph (a)(1)(A) of the CAT Fee Schedule also would describe the monthly cadence of the invoices for Historical CAT Assessment 1. Specifically, after the first invoices are provided to CAT Executing Brokers in April 2024, invoices will be sent to CAT Executing Brokers each month thereafter while Historical CAT Assessment 1 is in effect.</P>
                    <P>Proposed paragraph (a)(1)(B) of the CAT Fee Schedule would describe the invoices for Historical CAT Assessment 1. Proposed paragraph (a)(1)(B) of the CAT Fee Schedule would state that “Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” Proposed paragraph (a)(1)(B) of the CAT Fee Schedule also would describe the fees to be set forth in the invoices for Historical CAT Assessment 1. Specifically, it would state that “[e]ach month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.”</P>
                    <P>
                        Furthermore, proposed paragraph (a)(1)(C) of the CAT Fee Schedule would describe how long Historical CAT Assessment 1 would remain in effect. It would state that “Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time.” This proposed paragraph would further state that “Consolidated Audit Trail, LLC will be [
                        <E T="03">sic</E>
                        ] provide notice when Historical CAT Assessment 1 will no longer be in effect.”
                    </P>
                    <P>Historical CAT Assessment 1 will be assessed for all transactions executed in each month through the end of the month in which two-thirds of Historical CAT Costs 1 are assessed, and then CAT LLC will provide notice that Historical CAT Assessment 1 is no longer in effect. Since Historical CAT Assessment 1 is a monthly fee based on transaction volume from the prior month, Historical CAT Assessment 1 may collect more than two-thirds of Historical CAT Costs 1. To the extent that occurs, any excess money collected during the final month in which Historical CAT Assessment 1 is in effect will be used to offset future fees and/or to fund the reserve for the CAT.</P>
                    <P>Finally, proposed paragraph (a)(1)(D) of the CAT Fee Schedule sets forth the requirement for the CAT Executing Brokers to pay the invoices for Historical CAT Assessment 1. It would state that “[e]ach CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph (b).”</P>
                    <HD SOURCE="HD3">(B) Manner of Payment</HD>
                    <P>
                        The Exchange proposes to add paragraph (b)(1) to the “Consolidated Audit Trail Funding Fees” section of its CAT Fee Schedule to describe the manner of payment of Industry Member CAT fees. The CAT NMS Plan requires the Operating Committee to establish a system for the collection of CAT fees.
                        <SU>90</SU>
                        <FTREF/>
                         The Plan Processor has established a billing system for CAT fees.
                        <SU>91</SU>
                        <FTREF/>
                         Therefore, the Exchange proposes to require CAT Executing Brokers to pay Historical CAT Assessment 1 in accordance with such system. Accordingly, proposed paragraph (b)(1) would state that “[e]ach CAT Executing Broker shall pay its CAT fees as required pursuant to paragraph (a) each month to the Consolidated Audit Trail, LLC in the manner prescribed by the Consolidated Audit Trail, LLC.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             Section 11.4 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>91</SU>
                             The billing process and system are described in CAT Alert 2023-02 as well as the CAT FAQs related to the billing of CAT fees, the Industry Member CAT Reporter Portal User Guide, the FCAT Industry Member Onboarding Guide, the FCAT Connectivity Supplement for Industry Members and the CAT Billing Webinars (dated September 28, 2023 and November 7, 2023), each available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(C) Failure To Pay CAT Fees</HD>
                    <P>The CAT NMS Plan further states that:</P>
                    <EXTRACT>
                        <P>
                            Participants shall require each Industry Member to pay all applicable fees authorized under this Article XI within thirty (30) days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due (as determined in accordance with the preceding sentence), such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of: (a) the Prime Rate plus 300 basis points; or (b) the maximum rate permitted by applicable law.
                            <SU>92</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>92</SU>
                                 Section 11.4 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, the Exchange proposes to add this requirement to the Exchange's CAT Fee Schedule. Proposed paragraph (b)(2) of the CAT Fee Schedule would state:</P>
                    <EXTRACT>
                        <P>
                            Each CAT Executing Broker shall pay the CAT fees required pursuant to paragraph (a) within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If a CAT Executing Broker fails to pay any such CAT fee when due, such CAT Executing Broker shall pay interest on the 
                            <PRTPAGE P="10532"/>
                            outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of (A) the Prime Rate plus 300 basis points, or (B) the maximum rate permitted by applicable law.
                        </P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(7) Historical CAT Assessment Details</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Details regarding the calculation of a CAT Executing Broker's Historical CAT Assessment will be provided upon request to such CAT Executing Broker. At a minimum, such details would include each CAT Executing Broker's executed equivalent share volume and corresponding fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise than on an exchange, and (3) by buy-side transactions and sell-side transactions.
                            <SU>93</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>93</SU>
                                 Section 11.3(a)(iv)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        Such information would provide CEBBs and CEBSs with the ability to understand the details regarding the calculation of their Historical CAT Assessment.
                        <SU>94</SU>
                        <FTREF/>
                         CAT LLC will provide CAT Executing Brokers with these details regarding the calculation of their Historical CAT Assessments on their monthly invoice for the Historical CAT Assessment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, providing CAT Execut[ing] Brokers information regarding the calculation of their CAT Fees will aid in transparency and permit CAT Execut[ing] Brokers to confirm the accuracy of their invoices for CAT Fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>
                        In addition, CAT LLC will make certain aggregate statistics regarding Historical CAT Assessments publicly available. Specifically, the CAT NMS Plan states that, “[f]or each Historical CAT Assessment, at a minimum, CAT LLC will make publicly available the aggregate executed equivalent share volume and corresponding aggregate fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise on an exchange, and (3) by buy-side transactions and sell-side transactions.” 
                        <SU>95</SU>
                        <FTREF/>
                         Such aggregate statistics will be available on the CAT website.
                    </P>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             Section 11.3(a)(iv)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission stated that “[t]he publication of the aggregate executed equivalent share volume and aggregate fee is appropriate because it would allow Participants and CAT Executing Brokers a high-level validation of executed volume and fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>Furthermore, CAT LLC will make publicly available on the CAT website the total amount invoiced each month that Historical CAT Assessment 1 is in effect as well as the total amount invoiced for Historical CAT Assessment 1 for all months since its commencement. CAT LLC also will make publicly available on the CAT website the total costs to be collected from Industry Members for Historical CAT Assessment 1. By reviewing statistics regarding how much has been invoiced and how much remains to be invoiced for Historical CAT Assessment 1, Industry Members would have sufficient information to reasonably track how much longer Historical CAT Assessment 1 is likely to be in place.</P>
                    <HD SOURCE="HD3">(8) Implementation Assistance</HD>
                    <P>To assist Industry Members with compliance with the commencement of Historical CAT Assessment 1, CAT LLC will make available to CAT Executing Brokers four months of mock invoices prior to the commencement of Historical CAT Assessment 1. Specifically, CAT Executing Brokers will receive mock invoices based on transaction data from November 2023, December 2023, January 2024 and February 2024. The mock invoices will be in the same form as the actual, payable invoices, including both the relevant transaction data and the corresponding fee. However, no payments will be required in response to such mock invoices; they are to be used solely to assist CAT Executing Brokers with the development of their processes for paying the CAT fees. Such data will provide CAT Executing Brokers with a preview of the transaction data used in creating the invoices for Historical CAT Assessment 1 fees, as the data will be the same as data provided in actual invoices. Such data preview is intended to facilitate the payment of Historical CAT Assessment 1.</P>
                    <HD SOURCE="HD3">(9) Financial Accountability Milestones</HD>
                    <P>
                        The CAT NMS Plan states that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.” 
                        <SU>96</SU>
                        <FTREF/>
                         The CAT NMS Plan further states that “in all filings submitted by the Participants to the Commission under Section 19(b) of the Exchange Act, to establish or implement Post-Amendment Industry Member Fees pursuant to this Article, . . . the Participants shall clearly indicate whether such fees are related to Post-Amendment Expenses incurred during Period 1, Period 2, Period 3, or Period 4.” 
                        <SU>97</SU>
                        <FTREF/>
                         As discussed in detail below, all applicable Financial Accountability Milestones for Historical CAT Assessment 1—that is, Period 1, Period 2 and Period 3 of the Financial Accountability Milestones—have been satisfied. Furthermore, as discussed below, this filing clearly indicates that Historical CAT Assessment 1 relates to Post-Amendment Expenses incurred during Periods 1, 2 and 3 of the Financial Accountability Milestones.
                    </P>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             Section 11.6(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Period 1 of the Financial Accountability Milestones</HD>
                    <P>
                        In accordance with Section 11.6(b) of the CAT NMS Plan, Historical CAT Assessment 1 seeks to recover costs that are related to “all fees, costs, and expenses (including legal and consulting fees, costs, and expenses) incurred by or for the Company in connection with the development, implementation and operation of the CAT from the effective date of [Section 11.6 of the CAT NMS Plan] until such time as Full Implementation of CAT NMS Plan Requirements has been achieved” 
                        <SU>98</SU>
                        <FTREF/>
                         (“Post-Amendment Expenses”) incurred during FAM Period 1. FAM Period 1 began on June 22, 2020, the effective date of Section 11.6 of the CAT NMS Plan, and concluded on July 31, 2020, the date of Initial Industry Member Core Equity and Options Reporting. Section 1.1 of the CAT NMS Plan defines “Initial Industry Member Core Equity and Options Reporting” as:
                    </P>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             Section 11.6 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>The reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of both: (a) equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information; and (b) options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.</P>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports.
                        <SU>99</SU>
                        <FTREF/>
                         As indicated by the Participants' Quarterly Progress Report for the third quarter of 2020,
                        <SU>100</SU>
                        <FTREF/>
                         Initial Industry Member Core Equity and Option Reporting was completed on schedule on July 22, 2020, which is prior to the July 31, 2020 deadline.
                    </P>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             The Quarterly Progress Reports are available at 
                            <E T="03">https://www.catnmsplan.com/implementation-plan.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020) and Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Under the FAM Period 1 requirement of Initial Industry Member Core Equity and Options Reporting, Industry 
                        <PRTPAGE P="10533"/>
                        Members—excluding Small Industry Members that are not OATS reporters—were required to report two categories of data to the CAT: equites transaction data and options transaction data (both excluding Customer Account Information, Customer-ID, and Customer Identifying Information) by July 31, 2020. Pursuant to exemptive relief provided by the Commission, the Commission authorized the Participants' Compliance Rules to allow core equity reporting for Industry Members (Phase 2a) to begin on June 22, 2020 and core options reporting for Industry Members (Phase 2b) to begin on July 20, 2020.
                        <SU>101</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order. Under the CAT NMS Plan as adopted, the Participants were required, through their Compliance Rules, to require their Large Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2018, and to require their Small Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2019. Sections 6.7(a)(v) and (vi) of the CAT NMS Plan. The SEC granted exemptive relief from these provisions of the CAT NMS Plan to allow for the phased implementation of Industry Member reporting via five phases addressing the reporting requirements for Phase 2a Industry Member Data, Phase 2b Industry Member Data, Phase 2c Industry Member Data, Phase 2d Industry Member Data and Phase 2e Industry Member Data.
                        </P>
                    </FTNT>
                    <P>
                        In adopting the FAMs, the Commission stated that the equities transaction reporting required for FAM Period 1 “is consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Equities 2a file submission and data integrity validations.' ” 
                        <SU>102</SU>
                        <FTREF/>
                         The Phase 2a Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the following data related to Eligible Securities that are equities:
                    </P>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             Securities Exchange Act Rel. No. 88890, 85 FR 31322, 31330 n.97 (“FAM Adopting Release”).
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>• All events and scenarios covered by OATS, which includes information related to the receipt or origination of orders, order transmittal, and order modifications, cancellations and executions;</P>
                        <P>
                            • Reportable Events for: (1) proprietary orders, including market maker orders, for Eligible Securities that are equities; (2) electronic quotes in listed equity Eligible Securities (
                            <E T="03">i.e.,</E>
                             NMS stocks) sent to a national securities exchange or FINRA's Alternative Display Facility (“ADF”); (3) electronic quotes in unlisted Eligible Securities (
                            <E T="03">i.e.,</E>
                             OTC Equity Securities) received by an Industry Member operating an interdealer quotation system (“IDQS”); and (4) electronic quotes in unlisted Eligible Securities sent to an IDQS or other quotation system not operated by a Participant or Industry Member;
                        </P>
                        <P>• Firm Designated IDs (“FDIDs”), which Industry Members must report to the CAT as required by Sections 6.3(d)(i)(A) and 6.4(d)(ii)(C) of the CAT NMS Plan; </P>
                        <P>• Industry Members would be required to report all street side representative orders, including both agency and proprietary orders and mark such orders as representative orders, except in certain limited exceptions as described in the Industry Member Technical Specifications;</P>
                        <P>• The link between the street side representative order and the order being represented when: (1) the representative order was originated specifically to represent a single order received either from a customer or another broker-dealer; and (2) there is (a) an existing direct electronic link in the Industry Member's system between the order being represented and the representative order and (b) any resulting executions are immediately and automatically applied to the represented order in the Industry Member's system;</P>
                        <P>• Manual and Electronic Capture Time for Manual Order Events;</P>
                        <P>• Special handling instructions for the original receipt or origination of an order during Phase 2a; and</P>
                        <P>• When routing an order, whether the order was routed as an intermarket sweep order (“ISO”).</P>
                    </EXTRACT>
                    <P>
                        In Phase 2a, Industry Members were not required to report modifications of a previously routed order in certain limited instances, nor were they required to report a cancellation of an order received from a Customer after the order has been executed.
                        <SU>103</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             Phased Reporting Exemptive Relief Order at 23076-78.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Equities 2a file submission and data integrity validation (Large Industry Members and Small OATS Reporters)” was completed on June 22, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information” was completed on June 22, 2020.</P>
                    <P>
                        In adopting the FAMs, the Commission stated that the options transaction reporting required for FAM Period 1 is “consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Options 2b file submission and data integrity validations.' ” 
                        <SU>104</SU>
                        <FTREF/>
                         The Phase 2b Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the Industry Member Data related to Eligible Securities that are options and related to simple electronic option orders, excluding electronic paired option orders. A simple electronic option order is an order to buy or sell a single option that is not related to or dependent on any other transaction for pricing and timing of execution that is either received or routed electronically by an Industry Member. Electronic receipt of an order is defined as the initial receipt of an order by an Industry Member in electronic form in standard format directly into an order handling or execution system. Electronic routing of an order is the routing of an order via electronic medium in standard format from one Industry Member's order handling or execution system to an exchange or another Industry Member. An electronic paired option order is an electronic option order that contains both the buy and sell side that is routed to another Industry Member or exchange for crossing and/or price improvement as a single transaction on an exchange. Responses to auctions of simple orders and paired simple orders would be reportable in Phase 2b. Furthermore, combined orders in options would be treated in Phase 2b in the same way as equity representative orders are treated in Phase 2a. A combined order would mean, as permitted by SRO rules, a single, simple order in Listed Options created by combining individual, simple orders in Listed Options from a customer with the same exchange origin code before routing to an exchange. During Phase 2b, the single combined order sent to an exchange must be reported and marked as a combined order, but the linkage to the underlying orders is not required to be reported until Phase 2d.
                        <SU>105</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             FAM Adopting Release at 31330, n.98.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             Phased Reporting Exemptive Relief Order at 23078.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Options 2b file submission and data integrity validations” was completed on July 20, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information” was completed on July 20, 2020.</P>
                    <P>
                        As discussed above, the Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from June 22, 2020 through July 31, 2020. The total costs for this period, as discussed above, 
                        <PRTPAGE P="10534"/>
                        are $6,377,343. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781).
                    </P>
                    <HD SOURCE="HD3">(B) Period 2 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 2. FAM Period 2 began on August 1, 2020, and concluded on December 31, 2020, the date of the Full Implementation of Core Equity Reporting. Section 1.1 of the CAT NMS Plan defines “Full Implementation of Core Equity Reporting” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2020,
                        <SU>106</SU>
                        <FTREF/>
                         Full Implementation of Core Equity Reporting was completed on schedule by December 31, 2020.
                    </P>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the Full Implementation of Core Equity Reporting requires the satisfaction of two prongs. The first prong requires Participants to have fully implemented the first phase of equities transaction reporting for Industry Members (excluding Small Industry Members that are not OATS reporters) at an Error Rate of less than 5%. In addition, equities transaction data produced by the CAT at this stage must also be sufficiently interlinked so as to permit full analysis of an order's lifecycle across the national market, excluding full linkage of representative orders. As CAT LLC reported on its Quarterly Progress Reports, Phase 2a was fully implemented as of October 26, 2020, including intra-firm, inter-firm, national securities exchange, and trade reporting facilities linkages.
                        <SU>107</SU>
                        <FTREF/>
                         In addition to the reporting of Phase 2a Industry Member Data as described above with regard to FAM Period 1, the following linkage data was added to the CAT as described in the Quarterly Progress Reports for the third and fourth quarter of 2020:
                    </P>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             For a description of the requirements of Phases 2a, 
                            <E T="03">see</E>
                             Phased Reporting Exemptive Relief Order.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            • “Production Go-Live for Equities 2a Intrafirm Linkage validations” was completed on 7/27/2020; 
                            <SU>108</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>108</SU>
                                 Q3 2020 Quarterly Progress Report (Oct. 20, 2021).
                            </P>
                        </FTNT>
                        <P>• “Production Go-Live for Firm to Firm Linkage validations for Equities 2a (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020; and</P>
                        <P>• “Production Go-Live for Equities 2a Exchange and TRF Linkage validations (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020.</P>
                    </EXTRACT>
                    <P>Furthermore, as CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2020, the average overall error rate for Phase 2a Industry Member Data was less than 5% as of December 31, 2020. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The second prong of this FAM requires that the equities transaction data collected by the CAT at this stage be made available to regulators through two basic query tools required by the CAT NMS Plan—a targeted query tool that will enable regulators to retrieve data via an online query screen with a variety of predefined selection criteria, and a user-defined direct query tool that will provide regulators with the ability to query data using all available attributes and data sources.
                        <SU>109</SU>
                        <FTREF/>
                         As CAT LLC reported on its Quarterly Progress Reports, the query tool functionality incorporating the data from Phase 2a was available to the Participants and the Commission as of December 31, 2020.
                        <SU>110</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             Section 6.10(c)(i)(A) of the CAT NMS Plan requires the Plan Processor to “provide Participants and the SEC with access to all CAT Data stored in the Central Repository” via an “online targeted query tool.” Appendix D, Sections 8.1.1-8.1.3 of the CAT NMS Plan describes the required functionality associated with this regulatory tool. Appendix D, Section 8.2.1 describes the required functionality associated with a user-defined direct query tool that will “deliver large sets of data that can then be used in internal surveillance or market analysis applications.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020); Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021); and Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>111</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             Securities Exchange Act Rel. No. 98848 (Nov. 2, 2023), 88 FR 77128, 77129 n.13 (Nov. 8, 2023) (“Settlement Exemptive Order”).
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from August 1, 2020 through December 31, 2020. The total costs for this period, as discussed above, are $42,976,478. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($14,325,492.70) and CEBSs paying one-third ($14,325,492.70).
                    </P>
                    <HD SOURCE="HD3">(C) Period 3 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 3. FAM Period 3 began on January 1, 2021, and concluded on December 31, 2021, the date of the Full Availability and Regulatory Utilization of Transactional Database Functionality. Section 1.1 of the CAT NMS Plan defines “Full Availability and Regulatory Utilization of Transactional Database Functionality” as:</P>
                    <EXTRACT>
                        <FP>
                            the point at which: (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and 
                            <PRTPAGE P="10535"/>
                            implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).
                        </FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>112</SU>
                        <FTREF/>
                         Full Availability and Regulatory Utilization of Transactional Database Functionality was completed on schedule by December 31, 2021.
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires the satisfaction of five prongs. The first prong requires that reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>113</SU>
                        <FTREF/>
                         FINRA retired OATS effective September 1, 2021.
                        <SU>114</SU>
                        <FTREF/>
                         Accordingly, after the retirement of OATS, reporting to OATS was no longer required.
                    </P>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             Securities Exchange Act Rel. No. 92239 (June 23, 2021), 86 FR 34293 (June 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        In addition to Phase 2a and Phase 2b Industry Member Data, the second and third prongs of “Full Availability and Regulatory Utilization of Transactional Database Functionality” require Industry Member reporting of Phase 2c Industry Member Data and Phase 2d Industry Member Data. The Phase 2c Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. That Order states that “Phase 2c Industry Member Data” is Industry Member Data related to Eligible Securities that are equities other than Phase 2a Industry Member Data, Phase 2d Industry Member Data, or Phase 2e Industry Member Data. Specifically, the Phase 2c Industry Member Data includes Industry Member Data that is related to Eligible Securities that are equities and that is related to: (1) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (2) quotes in unlisted Eligible Securities sent to an IDQS operated by a CAT Reporter (reportable by the Industry Member sending the quotes) (except for quotes reportable in Phase 2d, as discussed below); (3) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) that are not sent to a national securities exchange or FINRA's Alternative Display Facility; (4) reporting changes to client instructions regarding modifications to algorithms; (5) marking as a representative order any order originated to work a customer order in price guarantee scenarios, such as a guaranteed VWAP; (6) flagging rejected external routes to indicate a route was not accepted by the receiving destination; (7) linkage of duplicate electronic messages related to a Manual Order Event between the electronic event and the original manual route; (8) special handling instructions on order route reports (other than the ISO, which is required to be reported in Phase 2a); (9) quote identifier on trade events; (10) reporting of LTIDs (if applicable) for accounts with Reportable Events that are reportable to CAT as of and including Phase 2c; (11) reporting of date account opened or Account Effective Date71 (as applicable) for accounts and reporting of a flag indicating the Firm Designated ID type as account or relationship; (12) order effective time for orders that are received by an Industry Member and do not become effective until a later time; (13) the modification or cancellation of an internal route of an order; and (14) linkages to the customer orders(s) being represented for representative order scenarios, including agency average price trades, net trades, aggregated orders, and disconnected Order Management System (“OMS”)—Execution Management System (“EMS”) scenarios, as required in the Industry Member Technical Specifications.
                        <SU>115</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>115</SU>
                             Phase Reporting Exemptive Relief Order at 23078-79.
                        </P>
                    </FTNT>
                    <P>
                        Phase 2c Industry Member Data also includes electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are equities and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: (1) an equity bid or offer is displayed publicly or has been communicated (a) for listed securities to the Alternative Display Facility (ADF) operated by FINRA; or (b) for unlisted equity securities to an “interdealer quotation system,” as defined in FINRA Rule 6420(c); or (2) an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing; 
                        <E T="03">i.e.,</E>
                         no further manual or electronic action is required by the responder providing the quote in order to execute or cause a trade to be executed). With respect to OTC Equity Securities, OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter (other than such an IDQS that does not match and execute orders) are reportable by the Industry Member sending them in Phase 2c. Accordingly, any response to a request for quote or other form of solicitation response provided in a standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this quote definition (
                        <E T="03">i.e.,</E>
                         an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing) would be reportable in Phase 2c.
                        <SU>116</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             
                            <E T="03">Id.</E>
                             at 23079.
                        </P>
                    </FTNT>
                    <P>
                        The Phase 2d Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. “Phase 2d Industry Member Data” is Industry Member Data that is related to Eligible Securities that are options other than Phase 2b Industry Member Data, Industry Member Data that is related to Eligible Securities that are equities other than Phase 2a Industry Member Data or Phase 2c Industry Member Data, and Industry Member Data other than Phase 2e Industry Member Data. Phase 2d Industry Member Data includes with respect to the Eligible Securities that are options: (1) simple manual orders; (2) electronic and manual paired orders; (3) all complex orders with linkages to all CAT-reportable legs; (4) LTIDs (if applicable) for accounts with Reportable Events for Phase 2d; (5) date account opened or Account Effective Date (as applicable) for accounts with an LTID and flag indicating the Firm Designated ID type as account or relationship for such accounts; (6) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (7) the modification or cancellation of an internal route of an order; and (8) linkage between a 
                        <PRTPAGE P="10536"/>
                        combined order and the original customer orders. Phase 2d Industry Member Data also would include electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are options and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: a listed option bid or offer which is accessible electronically by customers or other market participants and is immediately actionable (
                        <E T="03">i.e.,</E>
                         no further action is required by the responder providing the quote in order to execute or cause a trade to be executed). Accordingly, any response to a request for quote or other form of solicitation response provided in standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this definition is reportable in Phase 2d for options.
                        <SU>117</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Phase 2d Industry Member Data also includes with respect to Eligible Securities that are options or equities (1) receipt time of cancellation and modification instructions through Order Cancel Request and Order Modification Request events; (2) modifications of previously routed orders in certain instances; and (3) OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter that does not match and execute orders. In addition, subject to any exemptive or other relief, Phase 2d Industry Member Data will include verbal or manual quotes on an exchange floor or in the over-the-counter market, where verbal quotes and manual quotes are defined as bids or offers in Eligible Securities provided verbally or that are provided or received other than via a CAT Reporter's order handling and execution system (
                        <E T="03">e.g.,</E>
                         quotations provided via email or instant messaging).
                        <SU>118</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             
                            <E T="03">Id.</E>
                             at 23079-80.
                        </P>
                    </FTNT>
                    <P>
                        The Quarterly Progress Report for the fourth quarter of 2021 states that “Phase 2a was fully implemented as of October 26, 2020;” “Phase 2b was fully implemented as of January 4, 2021;” “Phase 2c was implemented as of April 26, 2021;” and “Phase 2d was fully implemented as of December 13, 2021.” 
                        <SU>119</SU>
                        <FTREF/>
                         The Quarterly Progress Reports for 2021 provide additional detail regarding the implementation of these steps including the following:
                    </P>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>• “Production Go-Live for Equities 2c reporting requirements (Large Industry Members)” was completed on April 26, 2021;</P>
                        <P>• “LTID Account Information Reporting Go-Live for Phases 2a, 2b and 2c (Large Industry Members)” was completed on April 26, 2021;</P>
                        <P>• “FCAT Plan Processor creates linkages of the lifecycle of order events based on the received data through Phase 2d Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                        <P>• “Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                        <P>• “Production Go-Live for Options 2b reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                        <P>• “Production Go-Live for Equities 2c reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                        <P>• “Production Go-Live for Options 2d reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                        <P>• “LTID Account Information Reporting Go-Live for Phases 2d (Large Industry Members)” was completed on December 13, 2021; and</P>
                        <P>
                            • “LTID Account Information Reporting Go-Live for Phases 2a, 2b, 2c and 2d (Small Industry Members)” was completed on December 13, 2021.
                            <SU>120</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>120</SU>
                                 
                                <E T="03">See</E>
                                 Q2 2021 Quarterly Progress Report (July 27, 2021); and Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>The third prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” also imposes an Error Rate requirement of 5% or less. The Quarterly Progress Report for the fourth quarter of 2021 states the average overall error rate was less than 5% as of December 31, 2021. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The fourth prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires that the data collected by the CAT at this stage be made available to regulators through an online targeted query tool and a user-defined direct query tool. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021, the query tool functionality incorporating the data from Phases 2a, 2b, 2c and 2d was available to the Participants and to the Commission as of December 31, 2021.
                        <SU>121</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The fifth prong requires the requirements of Section 6.10(a) of the CAT NMS Plan to have been met. Section 6.10(a) of the CAT NMS Plan requires the Participants to use the tools described in Appendix D to “develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository.” The Exchange implemented a surveillance system, or enhanced existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository as of December 31, 2021 in accordance with Section 6.10(a) of the CAT NMS Plan.
                        <SU>122</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             
                            <E T="03">See</E>
                             Q1 2021 Quarterly Progress Report (April 30, 2021); Q2 2021 Quarterly Progress Report (July 27, 2021); Q3 2021 Quarterly Progress Report (Nov. 1, 2021); Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>123</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             Settlement Exemptive Order at 77129 n.13.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from January 1, 2021 through December 31, 2021. The total costs for this period, as discussed above, are $144,415,268. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($48,138,422.70) and CBSs paying one-third ($48,138,422.70).
                    </P>
                    <HD SOURCE="HD3">2. Statutory Basis</HD>
                    <P>
                        The Exchange believes the proposed rule change is consistent with the requirements of the Exchange Act. The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,
                        <SU>124</SU>
                        <FTREF/>
                         which requires, among other things, that the Exchange's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act,
                        <SU>125</SU>
                        <FTREF/>
                         because it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using its 
                        <PRTPAGE P="10537"/>
                        facilities. The Exchange further believes that the proposed rule change is consistent with Section 6(b)(8) of the Act,
                        <SU>126</SU>
                        <FTREF/>
                         which requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. These provisions also require that the Exchange be “so organized and [have] the capacity to be able to carry out the purposes” of the Act and “to comply, and . . . to enforce compliance by its members and persons associated with its members,” with the provisions of the Exchange Act.
                        <SU>127</SU>
                        <FTREF/>
                         Accordingly, a reasonable reading of the Act indicates that it intended that regulatory funding be sufficient to permit an exchange to fulfill its statutory responsibility under the Act, and contemplated that such funding would be achieved through equitable assessments on the members, issuers, and other users of an exchange's facilities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             15 U.S.C. 78f(b)(6).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             
                            <E T="03">See</E>
                             Section 6(b)(1) of the Exchange Act.
                        </P>
                    </FTNT>
                    <P>
                        The Exchange believes that this proposal is consistent with the Act because it implements provisions of the Plan and is designed to assist the Exchange in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>128</SU>
                        <FTREF/>
                         To the extent that this proposal implements the Plan and applies specific requirements to Industry Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             CAT NMS Plan Approval Order at 84697.
                        </P>
                    </FTNT>
                    <P>The Exchange believes that the proposed fees paid by the CEBBs and CEBSs are reasonable, equitably allocated and not unfairly discriminatory. First, the Historical CAT Assessment 1 fees to be collected are directly associated with the costs of establishing and maintaining the CAT, where such costs include Plan Processor costs and costs related to technology, legal, consulting, insurance, professional and administration, and public relations costs. The Exchange has already incurred such development and implementation costs and the proposed Historical CAT Assessment 1 fees, therefore, would allow the Exchange to collect certain of such costs in a fair and reasonable manner from Industry Members, as contemplated by the CAT NMS Plan.</P>
                    <P>The proposed Historical CAT Assessment 1 fees would be charged to Industry Members in support of the maintenance of a consolidated audit trail for regulatory purposes. The proposed fees, therefore, are consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business operations. The proposed fees would not cover Exchange services unrelated to the CAT. In addition, any surplus would be used as a reserve to offset future fees. Given the direct relationship between CAT fees and CAT costs, the Exchange believes that the proposed fees are reasonable, equitable and not unfairly discriminatory.</P>
                    <P>As further discussed below, the SEC approved the CAT Funding Model, finding it was reasonable and that it equitably allocates fees among Participants and Industry Members. The Exchange believes that the proposed fees adopted pursuant to the CAT Funding Model approved by the SEC are reasonable, equitably allocated and not unfairly discriminatory.</P>
                    <HD SOURCE="HD3">(1) Implementation of CAT Funding Model in CAT NMS Plan</HD>
                    <P>
                        Section 11.1(b) of the CAT NMS Plan states that “[t]he Participants shall file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves.” Per Section 11.1(b) of the CAT NMS Plan, the Exchange has filed this fee filing to implement the Industry Member CAT fees included in the CAT Funding Model. The Exchange believes that this proposal is consistent with the Exchange Act because it is consistent with, and implements, the CAT Funding Model in the CAT NMS Plan, and is designed to assist the Exchange and its Industry Members in meeting regulatory obligations pursuant to the CAT NMS Plan. In approving the CAT NMS Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>129</SU>
                        <FTREF/>
                         Similarly, in approving the CAT Funding Model, the SEC concluded that the CAT Funding Model met this standard.
                        <SU>130</SU>
                        <FTREF/>
                         As this proposal implements the Plan and the CAT Funding Model described therein, and applies specific requirements to Industry Members in compliance with the Plan, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Exchange Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             CAT NMS Plan Approval Order at 84696.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             CAT Funding Model Approval Order at 62686.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(2) Calculation of Fee Rate for Historical CAT Assessment 1 Is Reasonable</HD>
                    <P>
                        The SEC has determined that the CAT Funding Model is reasonable and satisfies the requirements of the Exchange Act. Specifically, the SEC has concluded that the method for determining Historical CAT Assessments as set forth in Section 11.3 of the CAT NMS Plan, including the formula for calculating the Historical Fee Rate, the identification of the parties responsible for payment and the transactions subject to the fee rate for the Historical CAT Assessment, is reasonable and satisfies the Exchange Act.
                        <SU>131</SU>
                        <FTREF/>
                         In each respect, as discussed above, Historical CAT Assessment 1 is calculated, and would be applied, in accordance with the requirements applicable to Historical CAT Assessments as set forth in the CAT NMS Plan. Furthermore, as discussed below, the Exchange believes that each of the figures for the variables in the SEC-approved formula for calculating the fee rate for Historical CAT Assessment 1 is reasonable and consistent with the Exchange Act. Calculation of the Historical Fee Rate for Historical CAT Assessment 1 requires the figures for the Historical CAT Costs 1, the executed equivalent share volume for the prior twelve months, the determination of Historical Recovery Period 1, and the projection of the executed equivalent share volume for Historical Recovery Period 1. Each of these variables is reasonable and satisfies the Exchange Act, as discussed throughout this filing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             
                            <E T="03">Id.</E>
                             at 62662-63.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Historical CAT Costs 1</HD>
                    <P>The formula for calculating a Historical Fee Rate requires the amount of Historical CAT Costs to be recovered. Specifically, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires a fee filing to provide:</P>
                    <EXTRACT>
                        <FP>a brief description of the amount and type of the Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.</FP>
                    </EXTRACT>
                    <PRTPAGE P="10538"/>
                    <P>In accordance with this requirement, the Exchange has set forth the amount and type of Historical CAT Costs 1 for each of these categories of costs above.</P>
                    <P>Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan also requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” As discussed below, the Exchange believes that the amounts set forth in this filing for each of these cost categories is “reasonable and appropriate.” Each of the costs included in Historical CAT Costs 1 are reasonable and appropriate because the costs are consistent with standard industry practice, based on the need to comply with the requirements of the CAT NMS Plan, incurred subject to negotiations performed on an arm's length basis, and/or are consistent with the needs of any legal entity, particularly one with no employees.</P>
                    <HD SOURCE="HD3">(i) Technology: Cloud Hosting Services</HD>
                    <P>
                        In approving the CAT Funding Model, the Commission recognized that it is appropriate to recover costs related to cloud hosting services as a part of Historical CAT Assessments.
                        <SU>132</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to cloud hosting services described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. As described above, the cloud hosting services costs reflect, among other things, the breadth of the CAT cloud activities, data volume far in excess of the original volume estimates, the need for specialized cloud services given the volume and unique nature of the CAT, the processing time requirements of the Plan, and regular efforts to seek to minimize costs where permissible under the Plan. CAT LLC determined that use of cloud hosting services is necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT, and that the fees for cloud hosting services negotiated by FCAT were reasonable, taking into consideration a variety of factors, including the expected volume of data and the breadth of services provided and market rates for similar services.
                        <SU>133</SU>
                        <FTREF/>
                         Indeed, the actual costs of the CAT are far in excess of the original estimated costs of the CAT due to various factors, including the higher volumes and greater complexity of the CAT than anticipated when Rule 613 was originally adopted.
                    </P>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             For a discussion of the amount and type of cloud hosting services fees, 
                            <E T="03">see</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>To comply with the requirements of the Plan, the breadth of the cloud activities related to the CAT is substantial. The cloud services not only include the production environment for the CAT, but they also include two industry testing environments, support environments for quality assurance and stress testing and disaster recovery capabilities. Moreover, the cloud storage costs are driven by the requirements of the Plan, which requires the storage of multiple versions of the data, from the original submitted version of the data through various processing steps, to the final version of the data.</P>
                    <P>
                        Data volume is a significant driver of costs for cloud hosting services. When the Commission adopted the CAT NMS Plan in 2016, it estimated that the CAT would need to receive 58 billion records per day 
                        <SU>134</SU>
                        <FTREF/>
                         and that annual operating costs for the CAT would range from $36.5 million to $55 million.
                        <SU>135</SU>
                        <FTREF/>
                         Through 2021, the actual data volumes have been five times that original estimate. The data volumes for each period are set forth in detail above.
                        <SU>136</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             CAT NMS Plan Approval Order at 84801.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>
                        In addition to the effect of the data volume on the cloud hosting costs, the processing timelines set forth in the Plan contribute to the cloud hosting costs. Although CAT LLC has proactively sought to manage cloud hosting costs while complying with the Plan, including through requests to the Commission for exemptive relief and an amendment to the CAT NMS Plan, stringent CAT NMS Plan requirements do not allow for any material flexibility in cloud architecture design choices, processing timelines (
                        <E T="03">e.g.,</E>
                         the use of non-peak processing windows), or lower-cost storage tiers. As a result, the required CAT processing timelines contribute to the cloud hosting costs of the CAT.
                    </P>
                    <P>The costs for cloud hosting services also reflect the need for specialized cloud hosting services given the data volume and unique processing needs of the CAT. The data volume as well as the data processing needs of the CAT necessitate the use of cloud hosting services. The equipment, power and services required for an on-premises data model, the alternative to cloud hosting services, would be cost prohibitive. Moreover, as CAT was being developed, there were limited cloud hosting providers that could satisfy all the necessary CAT requirements, including the operational and security criteria. Over time more providers offering cloud hosting services that would satisfy these criteria have entered the market. CAT LLC will continue to evaluate alternative cloud hosting services, recognizing that the time and cost to move to an alternative cloud provider would be substantial.</P>
                    <P>
                        The reasonableness of the cloud hosting services costs is further supported by key cost discipline mechanisms for the CAT—a cost-based funding structure, cost transparency, cost management efforts (including regular efforts to lower compute and storage costs where permitted by the Plan) and oversight. Together, these mechanisms help ensure the ongoing reasonableness of the CAT's costs and the level of fees assessed to support those costs.
                        <SU>137</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 97151 (Mar. 15, 2023), 88 FR 17086, 17117 (Mar. 21, 2023) (describing key cost discipline mechanisms for the CAT).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Technology: Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to operating fees as a part of Historical CAT Assessments.
                        <SU>138</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The operating fees include the negotiated fees paid by CAT LLC to the Plan Processor to operate and maintain the system for order-related information and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the selection of FCAT as the Plan Processor was reasonable and appropriate given its expertise with securities regulatory reporting, after a process of considering other potential candidates.
                        <SU>139</SU>
                        <FTREF/>
                         CAT LLC also determined that the fixed price contract, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, was reasonable and appropriate, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity.
                        <SU>140</SU>
                        <FTREF/>
                         The services 
                        <PRTPAGE P="10539"/>
                        performed by FCAT for each period and the costs related to such services are described above.
                        <SU>141</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(b), 3(a)(2)(B)(ii)(b), 3(a)(2)(B)(iii)(b) and 3(a)(2)(B)(iv)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iii) Technology: CAIS Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to CAIS operating fees as a part of Historical CAT Assessments.
                        <SU>142</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to CAIS operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The CAIS operating fees include the fees paid to the Plan Processor to operate and maintain CAIS and to perform the business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the FCAT-negotiated fees for Kingland's CAIS-related services, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity, were reasonable and appropriate.
                        <SU>143</SU>
                        <FTREF/>
                         The services performed by Kingland for each period and the costs for each period are described above.
                        <SU>144</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(c), 3(a)(2)(B)(ii)(c), 3(a)(2)(B)(iii)(c) and 3(a)(2)(B)(iv)(c) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iv) Technology: Change Request Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to change request fees as a part of Historical CAT Assessments.
                        <SU>145</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to change request fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. It is common practice to utilize a change request process to address evolving needs in technology projects. This is particularly true for a project like CAT that is the first of its kind, both in substance and in scale. The substance and costs of each of the change requests are evaluated by the Operating Committee, and approved in accordance with the requirements for Operating Committee meetings. In each case, CAT LLC determined that the change requests were necessary to implement the CAT. As described above, the change requests cover various technology changes, including, for example, changes related to CAT reporting, data feeds and exchange functionality. CAT LLC also determined that the costs for each change request were appropriate for the relevant technology change. A description of the change requests for each FAM Period and their total costs are set described above.
                        <SU>146</SU>
                        <FTREF/>
                         As noted above, the total costs for change requests through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.25% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(d), 3(a)(2)(B)(ii)(d), 3(a)(2)(B)(iii)(d) and 3(a)(2)(B)(iv)(d) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(v) Capitalized Developed Technology Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to capitalized developed technology costs as a part of Historical CAT Assessments.
                        <SU>147</SU>
                        <FTREF/>
                         Capitalized developed technology costs include costs related to certain development costs, costs related to certain modifications, upgrades and other changes to the CAT, CAIS implementation fees and license fees. The amount and type of costs for each period are described in more detail above.
                        <SU>148</SU>
                        <FTREF/>
                         CAT LLC determined that these costs are reasonable and should be included as a part of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(e), 3(a)(2)(B)(ii)(e), 3(a)(2)(B)(iii)(e) and 3(a)(2)(B)(iv)(e) above.
                        </P>
                    </FTNT>
                    <P>
                        These costs involve the activity of both the Initial Plan Processor and FCAT, as the successor Plan Processor.
                        <SU>149</SU>
                        <FTREF/>
                         With regard to the Initial Plan Processor, the Participants utilized an RFP to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan. CAT LLC entered into an agreement with the Initial Plan Processor in which CAT LLC would pay the Initial Plan Processor a negotiated, fixed price fee.
                        <SU>150</SU>
                        <FTREF/>
                         In addition, as described above, CAT LLC determined that is [
                        <E T="03">sic</E>
                        ] was appropriate to enter into an agreement with FCAT as the successor Plan Processor.
                        <SU>151</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(e) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vi) Legal</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to legal fees as a part of Historical CAT Assessments.
                        <SU>152</SU>
                        <FTREF/>
                         CAT LLC determined that the legal costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Given the unique nature of the CAT, the number of parties involved with the CAT (including, for example, the SEC, Participants, Industry Members, and vendors) and the many regulatory issues associated with the CAT, the scope of the necessary legal services are substantial. CAT LLC determined that the scope of the legal services is necessary to implement and maintain the CAT and that the legal rates reflect the specialized services necessary for such a project. When hiring each law firm for a CAT project, CAT LLC interviewed multiple firms, and determined to hire each firm based on a variety of factors, including the relevant expertise and fees. In each case, CAT LLC determined that the hourly fee rates were in line with market rates for the specialized legal expertise. In addition, CAT LLC determined that the total costs incurred for each CAT project were appropriate given the breadth of services provided. The services performed by each law firm for each period and the costs related to such services are described above.
                        <SU>153</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(2) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(f), 3(a)(2)(B)(ii)(f), 3(a)(2)(B)(iii)(f) and 3(a)(2)(B)(iv)(f) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vii) Consulting</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover consulting costs as a part of Historical CAT Assessments.
                        <SU>154</SU>
                        <FTREF/>
                         CAT LLC determined that the consulting costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees 
                        <SU>155</SU>
                        <FTREF/>
                         and because of the significant number of issues associated with the CAT, the consultants provided assistance in the management of various CAT matters and the processes related to such 
                        <PRTPAGE P="10540"/>
                        matters.
                        <SU>156</SU>
                        <FTREF/>
                         CAT LLC considered a variety of factors in choosing a consulting firm and determined to select Deloitte after an interview process.
                        <SU>157</SU>
                        <FTREF/>
                         CAT LLC also determined that the consulting services were provided at reasonable market rates, as the fees were negotiated annually and comparable to the rates charged by other consulting firms for similar work.
                        <SU>158</SU>
                        <FTREF/>
                         Moreover, the total costs for such consulting services were appropriate in light of the breadth of services provided by Deloitte. The services performed by Deloitte and the costs related to such services are described above.
                        <SU>159</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(3) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             As stated in the filing of the proposed CAT NMS Plan, “[i]t is the intent of the Participants that the Company have no employees.” Securities Exchange Act Rel. No. 77724 (Apr. 27, 2016), 81 FR 30614, 30621 (May 17, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             CAT LLC uses certain third parties to perform tasks that may be performed by administrators for other NMS Plans. 
                            <E T="03">See, e.g.,</E>
                             CTA Plan and CQ Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(g), 3(a)(2)(B)(ii)(g), 3(a)(2)(B)(iii)(g) and 3(a)(2)(B)(iv)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(viii) Insurance</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover insurance costs as a part of Historical CAT Assessments.
                        <SU>160</SU>
                        <FTREF/>
                         CAT LLC determined that the insurance costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that it is common practice to have directors' and officers' liability insurance, and errors and omissions liability insurance. CAT LLC further determined that it was important to have cyber security insurance given the nature of the CAT, and such a decision is consistent with the CAT NMS Plan, which states that the cyber incident response plan may include “[i]nsurance against security breaches.” 
                        <SU>161</SU>
                        <FTREF/>
                         In selecting the insurance providers for these policies, CAT LLC engaged in an evaluation of alternative insurers, including a comparison of the pricing offered by the alternative insurers.
                        <SU>162</SU>
                        <FTREF/>
                         Based on this analysis, CAT LLC determined that the selected insurance policies provided appropriate coverage at reasonable market rates.
                        <SU>163</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(4) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             Section 4.1.5 of Appendix D of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(h), 3(a)(2)(B)(ii)(h), 3(a)(2)(B)(iii)(h) and 3(a)(2)(B)(iv)(h) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ix) Professional and Administration</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover professional and administration costs as a part of Historical CAT Assessments.
                        <SU>164</SU>
                        <FTREF/>
                         CAT LLC determined that the professional and administration costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees, all required accounting, financial, tax, cash management and treasury functions for CAT LLC have been outsourced at market rates. In addition, the required annual financial statement audit of CAT LLC is included in professional and administration costs, which costs are also at market rates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(5) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees.
                        <SU>165</SU>
                        <FTREF/>
                         The hourly fee rates for this firm were in line with market rates for the financial advisory services provided.
                        <SU>166</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Anchin. The services performed by Anchin and the costs related to such services are described above.
                        <SU>167</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC also determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the role given the balanace [
                        <E T="03">sic</E>
                        ] of these considerations.
                        <SU>168</SU>
                        <FTREF/>
                         Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services.
                        <SU>169</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Grant Thornton. The services performed by Grant Thornton and the costs related to such services are described above.
                        <SU>170</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to the receipt of certain market data from Exegy. After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy. Exegy provided the data elements required by the CAT NMS Plan, and the fees were reasonable and in line with market rates for the market data received.
                        <SU>171</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment.
                        <SU>172</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(x) Public Relations Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover public relations costs as a part of Historical CAT Assessments.
                        <SU>173</SU>
                        <FTREF/>
                         CAT LLC determined that the public relations costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that the types of public relations services utilized were beneficial to the CAT and market participants more generally. Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                        <SU>174</SU>
                        <FTREF/>
                         By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT issues to the benefit of all market participants.
                        <SU>175</SU>
                        <FTREF/>
                         Moreover, CAT LLC determined that the rates charged for such services were in line with market rates.
                        <SU>176</SU>
                        <FTREF/>
                         As noted above, the total public relations costs through FAM Period 3 represent a small percentage of 
                        <PRTPAGE P="10541"/>
                        Historical CAT Costs 1—that is, 0.1% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(6) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(j), 3(a)(2)(B)(ii)(j), 3(a)(2)(B)(iii)(j) and 3(a)(2)(B)(iv)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Total Executed Equivalent Share Volume for the Prior 12 Months</HD>
                    <P>The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. CAT LLC determined the total executed equivalent share volume for the prior twelve months by counting executed equivalent shares in the same manner as it will count executed equivalent shares for CAT billing purposes.</P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to establish a Historical Recovery Period of 24 months for Historical CAT Assessment 1 and that such length is reasonable. CAT LLC determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans notes to the Participants in a timely fashion. CAT LLC determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>177</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, CAT LLC recognized that the total costs for Historical CAT Assessment 1 was less than the total costs for 2022 and 2023, and therefore it would be appropriate to recover those costs in two years. Furthermore, CAT LLC notes 24 months is appropriate because it is not currently proposing that Industry Members be required to pay another Historical CAT Assessment or CAT Fee with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model Approval Order at 62682.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Executed Equivalent Share Volume for Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. CAT LLC determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant in recent years. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is 7,685,722,694,558.88 executed equivalent shares.
                        <SU>178</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Actual Fee Rate for Historical CAT Assessment 1</HD>
                    <HD SOURCE="HD3">(i) Decimal Places</HD>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>179</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph (a)(1)(B) of CAT Fee Schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 by one-third, and rounding the result to 6 decimal places. CAT LLC determined that the use of six decimal places is reasonable as it balances the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Reasonable Fee Level</HD>
                    <P>
                        The Exchange believes that imposing Historical CAT Assessment 1 with a fee rate of $0.000015 per executed equivalent share is reasonable because it provides for a revenue stream for the Company that is aligned with Historical CAT Costs 1 and such costs would be spread out over an appropriate recovery period, as discussed above. Moreover, the Exchange believes that the level of the fee rate is reasonable, as it is comparable to other transaction-based fees. Indeed, Historical CAT Assessment 1 is significantly lower than fees assessed pursuant to Section 31 (
                        <E T="03">e.g.,</E>
                         $0.0009 per share to 0.0004 per share),
                        <SU>180</SU>
                        <FTREF/>
                         and, as a result, the magnitude of Historical CAT Assessment 1 is small, and therefore will mitigate any potential adverse economic effects or inefficiencies.
                        <SU>181</SU>
                        <FTREF/>
                         Furthermore, the reasonable fee rate for Historical CAT Assessment 1 further supports CAT LLC's decision to seek to recover all Historical CAT Costs prior to 2022, rather than establishing separate Historical CAT Assessments for pre-FAM, FAM 1, FAM 2 and FAM 3 costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             CAT Funding Model Approval Order at 62663, 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>181</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Historical CAT Assessment 1 Provides for an Equitable Allocation of Fees</HD>
                    <P>
                        Historical CAT Assessment 1 provides for an equitable allocation of fees, as it equitably allocates CAT costs between and among the Participants and Industry Members. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act, including the formula for calculating Historical CAT Assessments as well as the Industry Members to be charged the Historical CAT Assessments.
                        <SU>182</SU>
                        <FTREF/>
                         In approving the CAT Funding Model, the SEC stated that “[t]he Participants have sufficiently demonstrated that the proposed allocation of fees is reasonable.” 
                        <SU>183</SU>
                        <FTREF/>
                         Accordingly, the CAT Funding Model sets forth the requirements for allocating fees related to Historical CAT Costs among Participants and Industry Members, and the fee filings for Historical CAT Assessments must comply with those requirements.
                    </P>
                    <FTNT>
                        <P>
                            <SU>182</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>183</SU>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <P>Historical CAT Assessment 1 provides for an equitable allocation of fees as it complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. For example, as described above, the calculation of Historical CAT Assessment 1 complies with the formula set forth in Section 11.3(b) of the CAT NMS Plan. In addition, Historical CAT Assessment 1 would be charged to CEBBs and CEBSs in accordance with Section 11.3(b) of the CAT NMS Plan. Furthermore, the Participants would continue to remain responsible for their designated share of Past CAT Costs through the cancellation of loans made by the Participants to CAT LLC.</P>
                    <P>
                        In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1—Historical CAT Costs 1 (including Excluded Costs), the count for the executed equivalent share volume for the prior 12 months, the length of the Historical Recovery Period, and the projected executed equivalent share volume for the Historical Recovery Period—are reasonable. Moreover, these inputs lead to a reasonable fee rate for Historical CAT Assessment 1 that is lower than other fee rates for transaction-based fees. A reasonable fee 
                        <PRTPAGE P="10542"/>
                        rate allocated in accordance with the requirements of the CAT Funding Model provides for an equitable allocation of fees.
                    </P>
                    <HD SOURCE="HD3">(4) Historical CAT Assessment 1 Is Not Unfairly Discriminatory</HD>
                    <P>Historical CAT Assessment 1 is not an unfairly discriminatory fee. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act. In reaching this conclusion, the SEC analyzed the potential effect of Historical CAT Assessments calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Historical CAT Assessment 1 complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 and the resulting fee rate for Historical CAT Assessment 1 is reasonable. Therefore, Historical CAT Assessment 1 does not impose an unfairly discriminatory fee on Industry Members.</P>
                    <P>Finally, the Exchange believes the proposed fees established pursuant to the CAT Funding Model promote just and equitable principles of trade, and, in general, protect investors and the public interest, and are provided in a transparent manner and specificity in CAT Fee Schedule. The Exchange also believes that the proposed fees are reasonable because they would provide ease of calculation, ease of billing and other administrative functions, and predictability of a fee based on fixed rate per executed equivalent share. Such factors are crucial to estimating a reliable revenue stream for CAT LLC and for permitting Exchange members to reasonably predict their payment obligations for budgeting purposes.</P>
                    <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                    <P>
                        Section 6(b)(8) of the Act 
                        <SU>184</SU>
                        <FTREF/>
                         requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that Historical CAT Assessment 1 implements provisions of the CAT NMS Plan that were approved by the Commission and is designed to assist the Exchange in meeting its regulatory obligations pursuant to the Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>184</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>In addition, all Participants (including exchanges and FINRA) are proposing to introduce Historical CAT Assessment 1 on behalf of CAT LLC to implement the requirements of the CAT NMS Plan. Therefore, this is not a competitive fee filing, and, therefore, it does not raise competition issues between and among the Participants.</P>
                    <P>
                        Furthermore, in approving the CAT Funding Model, the SEC analyzed the potential competitive impact of the CAT Funding Model, including competitive issues related to market services, trading services and regulatory services, efficiency concerns, and capital formation.
                        <SU>185</SU>
                        <FTREF/>
                         The SEC also analyzed the potential effect of CAT fees calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Based on this analysis, the SEC approved the CAT Funding Model as compliant with the Exchange Act. Historical CAT Assessment 1 is calculated and implemented in accordance with the CAT Funding Model as approved by the SEC.
                    </P>
                    <FTNT>
                        <P>
                            <SU>185</SU>
                             CAT Funding Model Approval Order at 62676-86.
                        </P>
                    </FTNT>
                    <P>As discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 is reasonable and the resulting fee rate for Historical CAT Assessment 1 calculated in accordance with the CAT Funding Model is reasonable. Therefore, Historical CAT Assessment 1 would not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act.</P>
                    <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                    <P>The Exchange neither solicited nor received written comments on the proposed rule change.</P>
                    <HD SOURCE="HD1">III. Suspension of the Proposed Rule Change</HD>
                    <P>
                        Pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>186</SU>
                        <FTREF/>
                         at any time within 60 days of the date of filing of a proposed rule change pursuant to Section 19(b)(1) of the Act,
                        <SU>187</SU>
                        <FTREF/>
                         the Commission summarily may temporarily suspend the change in the rules of an SRO if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. As discussed below, a temporary suspension of the proposed rule change is necessary or appropriate to allow for additional analysis of the proposed rule change's consistency with the Act and the rules thereunder.
                    </P>
                    <FTNT>
                        <P>
                            <SU>186</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>187</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <P>
                        When exchanges file their proposed rule changes with the Commission, including fee filings like the Exchange's present proposed rule change, they are required to provide a statement supporting the proposed rule change's basis under the Act and the rules and regulations thereunder applicable to the exchange.
                        <SU>188</SU>
                        <FTREF/>
                         The instructions to Form 19b-4, on which exchanges file their proposed rule changes, specify that such statement “should be sufficiently detailed and specific to support a finding that the proposed rule change is consistent with [those] requirements.” 
                        <SU>189</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>188</SU>
                             
                            <E T="03">See</E>
                             17 CFR 240.19b-4 (Item 3 entitled “Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>189</SU>
                             
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Among other things, the Exchange's proposed rule change is subject to Section 6 of the Act, including Sections 6(b)(4), (5), and (8), which require the rules of an exchange to: (1) provide for the equitable allocation of reasonable fees among members, issuers, and other persons using the exchange's facilities; 
                        <SU>190</SU>
                        <FTREF/>
                         (2) be designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, to protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers; 
                        <SU>191</SU>
                        <FTREF/>
                         and (3) not impose any burden on competition not necessary or 
                        <PRTPAGE P="10543"/>
                        appropriate in furtherance of the purposes of the Act.
                        <SU>192</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>190</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>191</SU>
                             15 U.S.C. 78f(b)(5).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>192</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <P>The proposed rule change is also subject to the CAT Funding Model set forth in the CAT NMS Plan. For example, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” In addition, Section 11.3(b)(i)(C) of the CAT NMS Plan provides that the “Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and Section 11.3(b)(i)(D) of the CAT NMS Plan provides that “[t]he length of the Historical Recovery Period used in calculating each Historical Fee Rate will be reasonably established by the Operating Committee based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment . . .” Further, Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan provides that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.”</P>
                    <P>
                        In temporarily suspending the Exchange's fee change, the Commission intends to further consider whether the proposed fees are consistent with the statutory requirements applicable to a national securities exchange under the Act and with the requirements set forth in the CAT Funding Model. Among other things, the Commission will consider whether the proposed rule change provides for reasonable fees that satisfy the standards under the Act and the rules thereunder.
                        <SU>193</SU>
                        <FTREF/>
                         Further, and among other things, the Commission will consider whether the proposed rule change, as required by the CAT Funding Model, provides “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including, but not limited to, whether the Operating Committee has “reasonably determine[d] the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee” and whether the “length of the Historical Recovery Period used in calculating each Historical Fee Rate [was] reasonably established by the Operating Committee.” 
                        <SU>194</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>193</SU>
                             
                            <E T="03">See</E>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>194</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <P>
                        Therefore, the Commission finds that it is necessary or appropriate in the public interest, for the protection of investors, and otherwise in furtherance of the purposes of the Act, to temporarily suspend the proposed rule change.
                        <SU>195</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>195</SU>
                             For purposes of temporarily suspending the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                            <E T="03">See</E>
                             15 U.S.C. 78c(f).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">IV. Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</HD>
                    <P>
                        In addition to temporarily suspending the proposed rule change, the Commission is instituting proceedings pursuant to Sections 19(b)(3)(C) 
                        <SU>196</SU>
                        <FTREF/>
                         and 19(b)(2)(B) 
                        <SU>197</SU>
                        <FTREF/>
                         of the Act to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change to inform the Commission's analysis of whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>196</SU>
                             15 U.S.C. 78s(b)(3)(C). Once the Commission temporarily suspends a proposed rule change, Section 19(b)(3)(C) of the Act requires that the Commission institute proceedings under Section 19(b)(2)(B) to determine whether a proposed rule change should be approved or disapproved.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>197</SU>
                             15 U.S.C. 78s(b)(2)(B).
                        </P>
                    </FTNT>
                    <P>
                        Pursuant to Section 19(b)(2)(B) of the Act,
                        <SU>198</SU>
                        <FTREF/>
                         the Commission is providing notice of the grounds for possible disapproval under consideration. The Commission is instituting proceedings to allow for additional consideration and comment on whether the Exchange has sufficiently demonstrated that the proposed rule change is consistent with Section 6(b)(4) 
                        <SU>199</SU>
                        <FTREF/>
                         of the Act, and consistent with the CAT Funding Model. Section 6(b)(4) of the Act, among other things, provides that the dues, fees, and other charges for an exchange's members be reasonable. And the CAT Funding Model, as noted above, requires, among other things, that the proposed rule change provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate,” including whether the Operating Committee has reasonably determined the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee and whether the length of the Historical Recovery Period used in calculating each Historical Fee Rate was reasonably established by the Operating Committee.
                        <SU>200</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>198</SU>
                             15 U.S.C. 78s(b)(2)(B). Section 19(b)(2)(B) of the Act also provides that proceedings to determine whether to disapprove a proposed rule change must be concluded within 180 days of the date of publication of notice of the filing of the proposed rule change. 
                            <E T="03">See id.</E>
                             The time for conclusion of the proceedings may be extended for up to 60 days if the Commission finds good cause for such extension and publishes its reasons for so finding, or if the exchange consents to the longer period. 
                            <E T="03">See id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>199</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>200</SU>
                             
                            <E T="03">See</E>
                             CAT Funding Model Approval Order at 62660.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">V. Commission's Solicitation of Comments</HD>
                    <P>
                        The Commission requests that interested persons provide written submission of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they have with the proposed rule change. In particular, the Commission invites the written views of interested persons concerning whether the proposed rule change is consistent with Section 6(b)(4), or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.
                        <SU>201</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>201</SU>
                             15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act grants the Commission flexibility to determine what type of proceeding—either oral or notice and opportunity for written comments—is appropriate for consideration of a particular proposed rule change by an exchange. 
                            <E T="03">See</E>
                             Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing and Urban Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975).
                        </P>
                    </FTNT>
                    <P>Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule changes should be approved or disapproved by March 5, 2024. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by March 19, 2024.</P>
                    <P>
                        Comments may be submitted by any of the following methods:
                        <PRTPAGE P="10544"/>
                    </P>
                    <HD SOURCE="HD2">Electronic Comments</HD>
                    <P>
                        • Use the Commission's internet comment form (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ); or
                    </P>
                    <P>
                        • Send an email to 
                        <E T="03">rule-comments@sec.gov.</E>
                         Please include file number SR-CboeEDGX-2024-005 on the subject line.
                    </P>
                    <HD SOURCE="HD2">Paper Comments</HD>
                    <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                    <FP>
                        All submissions should refer to file number SR-CboeEDGX-2024-005. 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 internet website (
                        <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                        ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 website 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 filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-CboeEDGX-2024-005 and should be submitted on or before March 5, 2024. Rebuttal comments should be submitted by March 19, 2024.
                    </FP>
                    <HD SOURCE="HD1">VI. Conclusion</HD>
                    <P>
                        <E T="03">It is therefore ordered,</E>
                         pursuant to Section 19(b)(3)(C) of the Act,
                        <SU>202</SU>
                        <FTREF/>
                         that File No. SR-CboeEDGX-2024-005 be, and hereby is, temporarily suspended. In addition, the Commission is instituting proceedings to determine whether the proposed rule change should be approved or disapproved.
                    </P>
                    <FTNT>
                        <P>
                            <SU>202</SU>
                             15 U.S.C. 78s(b)(3)(C).
                        </P>
                    </FTNT>
                    <SIG>
                        <P>
                            For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                            <SU>203</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>203</SU>
                                 17 CFR 200.30-3(a)(12), (57) and (58).
                            </P>
                        </FTNT>
                        <NAME>Sherry R. Haywood,</NAME>
                        <TITLE>Assistant Secretary.</TITLE>
                    </SIG>
                </PREAMB>
                <FRDOC>[FR Doc. 2024-01180 Filed 2-12-24; 8:45 am]</FRDOC>
                <BILCOD>BILLING CODE 8011-01-P</BILCOD>
            </NOTICE>
            <NOTICE>
                <PREAMB>
                    <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                    <DEPDOC>[Release No. 34-99377; File No. SR-BOX-2024-03]</DEPDOC>
                    <SUBJECT>Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail; Suspension of and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Change</SUBJECT>
                    <DATE>January 17, 2024</DATE>
                    <P>
                        Pursuant to Section 19(b)(1) under the Securities Exchange Act of 1934 (the “Act” or the “Exchange Act”) 
                        <SU>1</SU>
                        <FTREF/>
                         and Rule 19b-4 thereunder,
                        <SU>2</SU>
                        <FTREF/>
                         notice is hereby given that on January 2, 2024, BOX Exchange LLC (the “Exchange”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is, pursuant to Section 19(b)(3)(C) of the Act, hereby: (i) temporarily suspending the rule change; and (ii) instituting proceedings to determine whether to approve or disapprove the proposed rule change.
                    </P>
                    <FTNT>
                        <P>
                            <SU>1</SU>
                             15 U.S.C. 78s(b)(1).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>2</SU>
                             17 CFR 240.19b-4.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change</HD>
                    <P>
                        The Exchange is filing with the Securities and Exchange Commission (“Commission”) a proposed rule change to amend the Fee Schedule to establish fees for Industry Members related to certain historical costs of the National Market System Plan Governing the Consolidated Audit Trail (the “CAT NMS Plan” or “Plan”) incurred prior to January 1, 2022. The text of the proposed rule change is available from the principal office of the Exchange, at the Commission's Public Reference Room and also on the Exchange's internet website at 
                        <E T="03">https://rules.boxexchange.com/rulefilings.</E>
                    </P>
                    <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <P>In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item V below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements.</P>
                    <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                    <HD SOURCE="HD3">1. Purpose</HD>
                    <P>
                        On July 11, 2012, the Commission adopted Rule 613 of Regulation NMS, which required the self-regulatory organizations (“SROs”) to submit a national market system (“NMS”) plan to create, implement and maintain a consolidated audit trail that would capture customer and order event information for orders in NMS securities across all markets, from the time of order inception through routing, cancellation, modification or execution.
                        <SU>3</SU>
                        <FTREF/>
                         On November 15, 2016, the Commission approved the CAT NMS Plan.
                        <SU>4</SU>
                        <FTREF/>
                         Under the CAT NMS Plan, the Operating Committee has the discretion to establish funding for CAT LLC to operate the CAT, including establishing fees for Industry Members to be assessed by CAT LLC that would be implemented on behalf of CAT LLC by the Participants.
                        <SU>5</SU>
                        <FTREF/>
                         The Operating Committee adopted a revised funding model to fund the CAT (“CAT Funding Model”). On September 6, 2023, the Commission approved the CAT Funding Model, after concluding that the model was reasonable and that it satisfied the requirements of Section 11A of the Exchange Act and Rule 608 thereunder.
                        <SU>6</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>3</SU>
                             Securities Exchange Act Rel. No. 67457 (July 18, 2012), 77 FR 45721 (Aug. 1, 2012).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>4</SU>
                             Securities Exchange Act Rel. No. 79318 (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016) (“CAT NMS Plan Approval Order”).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>5</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>6</SU>
                             Securities Exchange Act Rel. No. 98290 (Sept. 6, 2023), 88 FR 62628 (Sept. 12, 2023) (“CAT Funding Model Approval Order”).
                        </P>
                    </FTNT>
                    <P>
                        The CAT Funding Model provides a framework for the recovery of the costs to create, develop and maintain the 
                        <PRTPAGE P="10545"/>
                        CAT, including providing a method for allocating costs to fund the CAT among Participants and Industry Members. The CAT Funding Model establishes two categories of fees: (1) CAT fees assessed by CAT LLC and payable by certain Industry Members to recover a portion of historical CAT costs previously paid by the Participants (“Historical CAT Assessment” fees); and (2) CAT fees assessed by CAT LLC and payable by Participants and Industry Members to fund prospective CAT costs (“Prospective CAT Costs” fees).
                        <SU>7</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>7</SU>
                             Under the CAT Funding Model, the Operating Committee may establish one or more Historical CAT Assessments. Section 11.3(b) of the CAT NMS Plan. This filing only establishes Historical CAT Assessment 1 related to certain Historical CAT Costs as described herein; it does not address any other potential Historical CAT Assessment related to other Historical CAT Costs. In addition, under the CAT Funding Model, the Operating Committee also may establish CAT Fees related to CAT costs going forward. Section 11.3(a) of the CAT NMS Plan. This filing does not address any potential CAT Fees related to CAT costs going forward. Any such other fee for any other Historical CAT Assessment or CAT Fee for Prospective CAT Costs will be subject to a separate fee filing.
                        </P>
                    </FTNT>
                    <P>
                        Under the CAT Funding Model, “[t]he Operating Committee will establish one or more fees (each a `Historical CAT Assessment') to be payable by Industry Members with regard to CAT costs previously paid by the Participants (`Past CAT Costs').” 
                        <SU>8</SU>
                        <FTREF/>
                         In establishing a Historical CAT Assessment, the Operating Committee will determine a “Historical Recovery Period” and calculate a “Historical Fee Rate” for that Historical Recovery Period. Then, for each month in which a Historical CAT Assessment is in effect, each CEBB and CEBS would be required to pay the fee—the Historical CAT Assessment—for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate.
                        <SU>9</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>8</SU>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>9</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, the proposed recovery of the Past CAT Costs via the Historical CAT Assessment is reasonable.” CAT Funding Model Approval Order at 62662.
                        </P>
                    </FTNT>
                      
                    <P>
                        Each Historical CAT Assessment to be paid by CEBBs and CEBSs is designed to contribute toward the recovery of two-thirds of the Historical CAT Costs. Because the Participants previously have paid Past CAT Costs via loans to the Company, the Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made by the Participants to the Company on a pro rata basis based on the outstanding loan amounts due under the loans, instead of through the payment of a CAT fee.
                        <SU>10</SU>
                        <FTREF/>
                         In addition, Participants also will be 100% responsible for certain Excluded Costs (as discussed below).
                    </P>
                    <FTNT>
                        <P>
                            <SU>10</SU>
                             Section 11.3(b)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC proposes to charge CEBBs and CEBSs (as described in more detail below) Historical CAT Assessment 1 to recover certain historical CAT costs incurred prior to January 1, 2022, in accordance with the CAT Funding Model. To implement this fee on behalf of CAT LLC, the CAT NMS Plan requires the Participants to “file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves, and such fees shall be labeled as `Consolidated Audit Trail Funding Fees.' ” 
                        <SU>11</SU>
                        <FTREF/>
                         The Plan further states that “Participants will be required to file with the SEC pursuant to Section 19(b) of the Exchange Act a filing for each Historical CAT Assessment.” 
                        <SU>12</SU>
                        <FTREF/>
                         Accordingly, the purpose of this filing is to implement a Historical CAT Assessment on behalf of CAT LLC for Industry Members, referred to as Historical CAT Assessment 1, in accordance with the CAT NMS Plan.
                        <SU>13</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             Section 11.1(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             Section 11.3(b)(iii)(B)(I) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>13</SU>
                             Note that there may be one or more Historical CAT Assessments depending on the timing of the completion of the Financial Accountability Milestones, among other things. Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(1) CAT Executing Brokers</HD>
                    <P>
                        Historical CAT Assessment 1 will be charged to each CEBB and CEBS for each applicable transaction in Eligible Securities.
                        <SU>14</SU>
                        <FTREF/>
                         The CAT NMS Plan defines a “CAT Executing Broker” to mean:
                    </P>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             In its approval of the CAT Funding Model, the Commission determined that charging CAT fees to CAT Executing Brokers was reasonable. In reaching this conclusion the Commission noted that the use of CAT Executing Brokers is appropriate because the CAT Funding Model is based upon the calculation of 
                            <E T="03">executed</E>
                             equivalent shares, and, therefore, charging CAT Executing Brokers would reflect their executing role in each transaction. Furthermore, the Commission noted that, because CAT Executing Brokers are already identified in transaction reports from the exchanges and FINRA's equity trade reporting facilities recorded in CAT Data, charging CAT Executing Brokers could streamline the billing process. CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) with respect to a transaction in an Eligible Security that is executed on an exchange, the Industry Member identified as the Industry Member responsible for the order on the buy-side of the transaction and the Industry Member responsible for the sell-side of the transaction in the equity order trade event and option trade event in the CAT Data submitted to the CAT by the relevant exchange pursuant to the Participant Technical Specifications; and (b) with respect to a transaction in an Eligible Security that is executed otherwise than on an exchange and required to be reported to an equity trade reporting facility of a registered national securities association, the Industry Member identified as the executing broker and the Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event in the CAT Data submitted to the CAT by FINRA pursuant to the Participant Technical Specifications; provided, however, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.
                            <SU>15</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>15</SU>
                                 Section 1.1 of the CAT NMS Plan. Note that CEBBs and CEBSs may, but are not required to, pass-through their CAT fees to their clients, who may, in turn, pass their fees to their clients until they are imposed ultimately on the account that executed the transaction. 
                                <E T="03">See</E>
                                 CAT Funding Model Approval Order at 62649.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>The following fields of the Participant Technical Specifications indicate the CAT Executing Brokers for the transactions executed on an exchange.</P>
                    <GPH SPAN="3" DEEP="202">
                        <PRTPAGE P="10546"/>
                        <GID>EN13FE24.146</GID>
                    </GPH>
                    <GPH SPAN="3" DEEP="79">
                        <GID>EN13FE24.147</GID>
                    </GPH>
                    <P>In addition, the following fields of the Participant Technical Specifications would indicate the CAT Executing Brokers for the transactions executed otherwise than on an exchange.</P>
                    <GPH SPAN="3" DEEP="107">
                        <GID>EN13FE24.148</GID>
                    </GPH>
                    <HD SOURCE="HD3">
                        (2) Calculation of Historical Fee Rate 1
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>16</SU>
                             
                            <E T="03">See</E>
                             Table 23, Section 4.7 (Order Trade Event) of the CAT Reporting Technical Specifications for Plan Participants, Version 4.1.0-r20 (Sept. 25, 2023), 
                            <E T="03">https://www.catnmsplan.com/sites/default/files/2023-09/9.25.2023-CAT_Reporting_Technical_Specifications_for_Participants_4.1.0-r20.pdf</E>
                             (“CAT Reporting Technical Specifications for Plan Participants”).
                        </P>
                        <P>
                            <SU>17</SU>
                             
                            <E T="03">See</E>
                             Table 51, Section 5.2.5.1 (Simple Option Trade Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                        <P>
                            <SU>18</SU>
                             
                            <E T="03">See</E>
                             Table 61, Section 6.1 (TRF/ORF/ADF Transaction Data Event) of the CAT Reporting Technical Specifications for Plan Participants.
                        </P>
                    </FTNT>
                    <P>The Operating Committee determined the Historical Fee Rate to be used in calculating Historical CAT Assessment 1 (“Historical Fee Rate 1”) by dividing the Historical CAT Costs for Historical CAT Assessment 1 (“Historical CAT Costs 1”) by the projected total executed share volume of all transactions in Eligible Securities for the Historical Recovery Period for Historical CAT Assessment 1 (“Historical Recovery Period 1”), as discussed in detail below. Based on this calculation, the Operating Committee has determined that Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. This rate is then divided by three and rounded to determine the fee rate of $0.000015 per executed equivalent share that will be assessed to CEBBs and CEBSs, as also discussed in detail below.</P>
                    <HD SOURCE="HD3">(A) Executed Equivalent Shares for Transactions in Eligible Securities</HD>
                    <P>
                        Under the CAT NMS Plan, for purposes of calculating each Historical CAT Assessment, executed equivalent shares in a transaction in Eligible Securities will be reasonably counted as follows: (1) each executed share for a transaction in NMS Stocks will be counted as one executed equivalent share; (2) each executed contract for a transaction in Listed Options will be counted based on the multiplier applicable to the specific Listed Options (
                        <E T="03">i.e.,</E>
                         100 executed equivalent shares or such other applicable multiplier); and (3) each executed share for a transaction in OTC Equity Securities shall be 
                        <PRTPAGE P="10547"/>
                        counted as 0.01 executed equivalent share.
                        <SU>19</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>19</SU>
                             Section 11.3(a)(i)(B) and 11.3(b)(i)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission concluded that “the use of executed equivalent share volume as the basis of the proposed cost allocation methodology is reasonable and consistent with the approach taken by the funding principles of the CAT NMS Plan.” CAT Funding Model Approval Order at 62640.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Historical CAT Costs 1</HD>
                    <P>
                        The CAT NMS Plan states that “[t]he Operating Committee will reasonably determine the Historical CAT Costs sought to be recovered by each Historical CAT Assessment, where the Historical CAT Costs will be Past CAT Costs minus Past CAT Costs reasonably excluded from Historical CAT Costs by the Operating Committee. Each Historical CAT Assessment will seek to recover from CAT Executing Brokers two-thirds of Historical CAT Costs incurred during the period covered by the Historical CAT Assessment.” 
                        <SU>20</SU>
                        <FTREF/>
                         As described in detail below, Historical CAT Costs 1 would be $337,688,610. This figure includes Past CAT Costs of $401,312,909 minus certain Excluded Costs of $63,624,299. Participants collectively will remain responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), plus the Excluded Costs of $63,624,299. CEBBs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870), and CEBSs collectively will be responsible for one-third of Historical CAT Costs 1 (which is $112,562,870).
                    </P>
                    <FTNT>
                        <P>
                            <SU>20</SU>
                             Section 11.3(b)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        The following describes in detail Historical CAT Costs 1 with regard to four separate historical time periods as well as Past CAT Costs excluded from Historical CAT Costs 1 (“Excluded Costs”). The following cost details are provided in accordance with the requirement in the CAT NMS Plan to provide in the fee filing “a brief description of the amount and type of Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.” 
                        <SU>21</SU>
                        <FTREF/>
                         Each of the costs described below are reasonable, appropriate and necessary for the creation, implementation and maintenance of CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             Section 11.3(b)(iii)(B)(II)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(i) Historical CAT Costs Incurred Prior to June 22, 2020 (Pre-FAM Costs)</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT prior to June 22, 2020 (“Pre-FAM Period”) and already funded by the Participants, excluding Excluded Costs (described further below). Historical CAT Costs 1 would include costs for the Pre-FAM Period of $143,919,521. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($47,973,174), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($47,973,174) and CEBSs paying one-third ($47,973,174). These costs do not include Excluded Costs, as discussed further below. The following table breaks down Historical CAT Costs 1 for the Pre-FAM Period into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             With respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>23</SU>
                             The costs described in this table of costs for the Pre-FAM Period were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website. In addition, in accordance with Section 6.6(a)(i) of the CAT NMS Plan, in 2018 CAT LLC provided the SEC with “an independent audit of fees, costs, and expenses incurred by the Participants on behalf of the Company prior to the Effective Date of the Plan that will be publicly available.” The audit is available on the CAT website.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="265">
                        <GID>EN13FE24.149</GID>
                    </GPH>
                    <PRTPAGE P="10548"/>
                    <P>The Pre-FAM Period includes a broad range of CAT-related activity from 2012 through June 22, 2020, including the evaluation of the requirements of SEC Rule 613, the development of the CAT NMS Plan, the evaluation and selection of the initial and successor Plan Processors, the commencement of the creation and implementation of the CAT to comply with Rule 613 and the CAT NMS Plan, including technical specifications for transaction reporting and regulatory access, and related technology and the commencement of reporting to the CAT. The following describes the costs for each of the categories for the Pre-FAM Period.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>The $10,268,840 in technology costs for cloud hosting services represent costs incurred for services provided by the cloud services provider for the CAT, Amazon Web Services, Inc. (“AWS”), during the Pre-FAM Period.  </P>
                    <P>As part of its proposal for acting as the successor Plan Processor for the CAT, FCAT selected AWS as a subcontractor to provide cloud hosting services. In 2019, after reviewing the capabilities of other cloud services providers, FCAT determined that AWS was the only cloud services provider at that time sufficiently mature and capable of providing the full suite of necessary cloud services for the CAT, including, for example, the security, resiliency and complexity necessary for the CAT computing requirements. The use of cloud hosting services is standard for this type of high-volume data activity and reasonable and necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT the fees incurred by the Plan Processor for cloud hosting services provided by AWS as FCAT's subcontrator on a monthly basis for the cloud hosting services, and FCAT, in turn, pays such fees to AWS. The fees for cloud hosting services were negotiated by FCAT on an arm's length basis with the goals of managing cost and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the expected volume of data, the breadth of services provided and market rates for similar services. The fees for cloud hosting services during the Pre-FAM Period were paid to FCAT by CAT NMS LLC 
                        <SU>24</SU>
                        <FTREF/>
                         and subsequently Consolidated Audit Trail, LLC (as previously noted, both entities are referred to generally as “CAT LLC”),
                        <SU>25</SU>
                        <FTREF/>
                         and FCAT, in turn, paid AWS. CAT LLC was funded via loan contributions by the Participants.
                        <SU>26</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>24</SU>
                             CAT NMS, LLC was formed by FINRA and the U.S. national securities exchanges to implement the requirements of SEC Rule 613 under the Exchange Act. SEC Rule 613 required the SROs to jointly submit to the SEC the CAT NMS Plan to create, implement and maintain the CAT. The SEC approved the CAT NMS Plan on November 15, 2016. CAT NMS Plan Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>25</SU>
                             On August 29, 2019, the Participants formed a new Delaware limited liability company named Consolidated Audit Trail, LLC for the purpose of conducting activities related to the CAT from and after the effectiveness of the proposed amendment of the CAT NMS Plan to replace CAT NMS, LLC. 
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 87149 (Sept. 27, 2019), 84 FR 52905 (Oct. 3, 2019).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>26</SU>
                             For each of the costs paid by CAT NMS, LLC and Consolidated Audit Trail, LLC as discussed throughout this filing, CAT NMS, LLC and Consolidated Audit Trail, LLC paid these costs via loan contributions by the Participants to CAT NMS, LLC and Consolidated Audit Trail, LLC, respectively.
                        </P>
                    </FTNT>
                    <P>AWS was engaged by FCAT to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. Services provided by AWS include storage services, databases, compute services and other services (such as networking, management tools and DevOps tools). AWS also was engaged to provide various environments for CAT, such as development, performance testing, test and production environments.</P>
                    <P>
                        The cost for AWS services for the CAT is a function of the volume of CAT Data. The greater the amount of CAT Data, the greater the cost of AWS services to the CAT. During the Pre-FAM Period from the engagement of AWS in February 2019 through June 2020, AWS provided cloud hosting services for volumes of CAT Data far in excess of the volume predictions set forth in the CAT NMS Plan. The CAT NMS Plan states, when all CAT Reporters are submitting their data to the CAT, it “must be sized to receive[,] process and load more than 58 billion records per day,” 
                        <SU>27</SU>
                        <FTREF/>
                         and that “[i]t is expected that the Central Repository will grow to more than 29 petabytes of raw, uncompressed data.” 
                        <SU>28</SU>
                        <FTREF/>
                         However, the volume of CAT Data for the Pre-FAM Period was far in excess of these predicted levels. By the end of this period, data submitted to the CAT included options and equities Participant Data,
                        <SU>29</SU>
                        <FTREF/>
                         Phase 2a and Phase 2b Industry Member Data 
                        <SU>30</SU>
                        <FTREF/>
                         (including certain linkages), as well as SIP Data,
                        <SU>31</SU>
                        <FTREF/>
                         reference data and other types of Other Data.
                        <SU>32</SU>
                        <FTREF/>
                         The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during the Pre-FAM Period.
                        <SU>33</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>27</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>28</SU>
                             Appendix D-5 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             
                            <E T="03">See</E>
                             Section 6.3(d) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>30</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Rel. No. 88702 (Apr. 20, 2020), 85 FR 23075 (Apr. 24, 2020) (“Phased Reporting Exemptive Relief Order”) for a description of Phase 2a and Phase 2b Industry Member Data.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>31</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>32</SU>
                             
                            <E T="03">See</E>
                             Appendix C-108 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>33</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="350">
                        <PRTPAGE P="10549"/>
                        <GID>EN13FE24.150</GID>
                    </GPH>
                    <HD SOURCE="HD3">
                        (b) Technology Costs—Operating Fees
                        <FTREF/>
                    </HD>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             Note that, although there were compute hours during this period, data related to such compute hours are no longer available in current data.
                        </P>
                    </FTNT>
                    <P>
                        The $21,085,485 in technology costs related to operating fees represent costs incurred with regard to activities of FCAT as the Plan Processor. Operating fees are those fees paid by CAT LLC to FCAT as the Plan Processor to operate and maintain the CAT and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management as required by the CAT NMS Plan.
                    </P>
                    <P>
                        FCAT was selected to assume the role of the successor Plan Processor. Prior to this selection, the Participants engaged in discussions with two prior Bidders 
                        <SU>35</SU>
                        <FTREF/>
                         for the successor Plan Processor role. The Operating Committee formed a Selection Subcommittee in accordance with Section 4.12 of the CAT NMS Plan to evaluate and review Bids and to make a recommendation to the Operating Committee with respect to the selection of the successor Plan Processor. In an April 9, 2019 letter to the Commission, the Participants described the reasons for its selection of the successor Plan Processor:
                    </P>
                    <FTNT>
                        <P>
                            <SU>35</SU>
                             The term “Bidder” is defined in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>The Selection Subcommittee considered factors including, but not limited to, the following, in recommending FINRA to the Operating Committee as the successor Plan Processor:</P>
                    <EXTRACT>
                        <P>a. FINRA's specialized technical expertise and capabilities in the area of broker-dealer technology;</P>
                        <P>b. The need to appoint a successor Plan Processor with specialized expertise to develop, implement, and maintain the CAT System in accordance with the CAT NMS Plan and SEC Rule 613;</P>
                        <P>c. FINRA's detailed proposal in response to CATLLC's recent inquiries; and</P>
                        <P>d. FINRA's data query and analytics systems demonstration to the Participants.</P>
                    </EXTRACT>
                    <P>
                        Based on these and other factors, the Selection Subcommittee determined that FINRA was the most appropriate Bidder to become the successor Plan Processor.
                        <SU>36</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             Letter from Michael J. Simon, Chair, CAT NMS, LLC Operating Committee, to Brent J. Fields, Secretary, SEC (Apr. 9, 2019), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection-040919.pdf.</E>
                        </P>
                    </FTNT>
                    <P>
                        On February 26, 2019, the Operating Committee (with FINRA recusing itself) voted to select FINRA as the successor Plan Processor pursuant to Section 6.1(t) of the CAT NMS Plan.
                        <SU>37</SU>
                        <FTREF/>
                         On March 29, 2019, CAT LLC and FCAT (a wholly owned subsidiary of FINRA) entered into a Plan Processor Agreement pursuant to which FCAT would perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT.
                    </P>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay FCAT a negotiated monthly fixed price for the operation of the CAT. This fixed price contract was negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity. The operating fees 
                        <PRTPAGE P="10550"/>
                        during the Pre-FAM Period were paid to FCAT by CAT LLC.
                    </P>
                    <P>From March 29, 2019 (the commencement of the Plan Processor Agreement with FCAT) through June 22, 2020 (the end of the Pre-FAM Period), the Plan Processor's activities with respect to the CAT included the following:</P>
                    <P>
                        • Commenced user acceptance testing with market data provided by Exegy Incorporated (“Exegy”), a market data provider; 
                        <SU>38</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             The use of Exegy to provide market data, including the costs and market data provided, is discussed below in Section 3(a)(2)(B)(i)(i).
                        </P>
                    </FTNT>
                    <P>• Published Technical Specifications and related reporting scenarios documents for Phase 2a, 2b and 2c reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated testing for Phase 2a and 2b reporting for Industry Members;</P>
                    <P>• Began developing Technical Specifications and related reporting scenarios documents for Phase 2d reporting for Industry Members, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published Central Repository Access Technical Specifications, and provided regulator access to test data from Industry Members;</P>
                    <P>• Facilitated Participant exchanges that support options market makers sending Quote Sent Time to the CAT;</P>
                    <P>• Facilitated the introduction of OPRA and Options NBBO Other Data to CAT;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing requirements under Regulation SCI;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants, SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk, which is the primary source for answers to questions about CAT, including questions regarding: clock synchronization, firm reporting responsibilities, interpretive questions, technical specifications for reporting to CAT and more;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>
                        • Administered the CAT website and all of its content; 
                        <SU>39</SU>
                        <FTREF/>
                         and
                    </P>
                    <FTNT>
                        <P>
                            <SU>39</SU>
                             The CAT website is 
                            <E T="03">https://www.catnmsplan.com.</E>
                        </P>
                    </FTNT>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>The $2,072,908 in technology costs related to CAIS operating fees represent the fees paid for FCAT's subcontractor charged with the development and operation of CAT's Customer and Account Information System (“CAIS”). The CAT is required under the CAT NMS Plan to capture and store Customer Identifying Information and Customer Account Information in a database separate from the transactional database and to create a CAT-Customer-ID for each Customer.</P>
                    <P>During the Pre-FAM Period, the CAIS-related services were provided by the Plan Processor through the Plan Processor's subcontractor, Kingland Systems Incorporation (“Kingland”). Kingland had experience operating in the securities regulatory technology space, and as a part of its proposal for acting as the Plan Processor for the CAT, FCAT selected Kingland as a subcontractor to provide certain CAIS-related services.</P>
                    <P>
                        Under the Plan Processor Agreement with FCAT, CAT LLC is required to pay to the Plan Processor the fees incurred by the FCAT for CAIS-related services provided by FCAT through Kingland on a monthly basis. FCAT negotiated the fees for Kingland's CAIS-related services on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity. The fees for CAIS-related services during the Pre-FAM Period were paid by CAT LLC to FCAT. FCAT, in turn, paid Kingland. During the Pre-FAM Period, Kingland began development of the CAIS Technical Specifications and the building of CAIS. In addition, Kingland also worked on the build related to the CCID Alternative, an alternative approach to customer information that was not included in the CAT NMS Plan as originally adopted.
                        <SU>40</SU>
                        <FTREF/>
                         Furthermore, Kingland also worked on the acceleration of the reporting of large trader identifiers (“LTID”) earlier than originally contemplated during this period, in accordance with exemptive relief granted by the SEC.
                        <SU>41</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>40</SU>
                             For a discussion of the CCID Alternative, 
                            <E T="03">see</E>
                             Securities Exchange Act Rel. No. 88393 (Mar. 17, 2020), 85 FR 16152 (Mar. 20, 2020).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             Phased Reporting Exemptive Relief Order at 23079-80.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        The technology costs related to change request fees include costs related to certain modifications, upgrades or other changes to the CAT. Change requests are standard practice and necessary to reflect operational changes, including changes related to new market developments, such as new market participants. In general, if CAT LLC determines that a modification, upgrade or other changes to the functionality or service is necessary and appropriate, CAT LLC will submit a request for such a change to the Plan Processor. The Plan Processor will then respond to the request with a proposal for implementing the change, including the cost (if any) of such a change. CAT LLC then determines whether to approve the proposed change. The change request costs were paid by CAT LLC to FCAT. During the Pre-FAM Period, CAT LLC incurred costs of $141,346 related to change requests implemented by FCAT. Such change requests related to a development fee regarding the OPRA and SIP data feeds, and the reprocessing of certain exchange data.
                        <SU>42</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             Note that CAT LLC also has incurred costs related to specific Industry Members (
                            <E T="03">e.g.,</E>
                             reprocessing costs related to Industry Member reporting errors).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>This category of costs includes capitalizable application development costs incurred in the development of the CAT. The capitalized developed technology costs for the Pre-FAM Period of $71,475,941 relate to technology provided by the Initial Plan Processor and the successor Plan Processor.</P>
                    <P>
                        <E T="03">Initial Plan Processor: Thesys CAT, LLC.</E>
                         The capitalized developed technology costs related to the Initial Plan Processor include costs incurred with regard to testing for Participant reporting, Participant reporting to the CAT, a security assessment of the CAT, the development of the billing function for the CAT, and a Plan Processor transition fee.
                        <PRTPAGE P="10551"/>
                    </P>
                    <P>
                        On January 17, 2017, the Selection Committee of the CAT NMS Plan selected the Initial Plan Processor, Thesys Technologies, LLC, for the CAT NMS Plan pursuant to Article V of the CAT NMS Plan.
                        <SU>43</SU>
                        <FTREF/>
                         The Participants utilized a request for proposal (“RFP”) to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan, taking into consideration that the Initial Plan Processor had experience operating in the securities regulatory technology space, among other considerations. On April 6, 2017, CAT LLC entered into an agreement with Thesys CAT LLC (“Thesys CAT”), a Thesys affiliate, to perform the functions and duties of the Plan Processor contemplated by the CAT NMS Plan, including the management and operation of the CAT. Under the agreement, CAT LLC would pay Thesys CAT a negotiated, fixed price fee for its role as the Initial Plan Processor. Effective January 30, 2019, the Plan Processor Agreement with Thesys CAT was terminated, and FCAT was subsequently selected as the successor Plan Processor.
                    </P>
                    <FTNT>
                        <P>
                            <SU>43</SU>
                             Letter from the Participants to Brent J. Fields, Secretary, SEC (Jan. 18, 2017), 
                            <E T="03">https://www.sec.gov/divisions/marketreg/rule613-info-notice-of-plan-processor-selection.pdf.</E>
                        </P>
                    </FTNT>
                    <P>From January 17, 2017 through January 30, 2019, the time in which the Thesys CAT was engaged for the CAT, but excluding the period from November 15, 2017 through November 15, 2018, the Initial Plan Processor engaged in various activities with respect to the CAT, including preparing iterative drafts of Participant Technical Specifications, Industry Member Technical Specifications and the Central Repository Access Technical Specifications. Thesys CAT initiated and maintained the Participant reporting per the Participant Technical Specifications. In addition, Thesys CAT also developed CAT technology, addressed compliance items, including drafting CAT policies and procedures, addressing Regulation SCI requirements, establishing a CAT Compliance Officer and a Chief Information Security Officer, and addressed security-related matters for the CAT. Furthermore, Thesys CAT performed transition services related to the transition from Thesys CAT to FCAT as the successor Plan Processor from January 30, 2019 through April 15, 2019.</P>
                    <P>
                        <E T="03">Successor Plan Processor: FCAT.</E>
                         The capitalized developed technology costs related to FCAT include: (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, including the completion of go-live functionality related to options ingestion and validation, equities regulatory services agreement query tool updates and unlinked options data query, options linkages release, Industry Member Phase 2a file submission and data integrity (including error corrections), and Industry Member testing, including reporting relationships, ATS order type management, basic reporting statistics, SFTP data integrity feedback and error correction; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including a one-time development fee for a secure analytics workspace, a one-time development fee of an Industry Member connectivity solution, and a one-time development fee for the acceleration of multi-factor authentication; (3) CAIS implementation fees; and (4) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $19,674,463 represent the fees paid for legal services provided by two law firms, Wilmer Cutler Pickering Hale and Dorr LLP (“WilmerHale”) and Pillsbury Winthrop Shaw Pittman LLP (“Pillsbury”), during the Pre-FAM Period. The legal costs exclude those costs incurred from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         Following the adoption of Rule 613, the Participants determined it was necessary to engage external legal counsel to advise the Participants with respect to corporate and regulatory legal matters related to the CAT, including drafting and developing the CAT NMS Plan. The Participants considered a variety of factors in their analysis of prospective law firms, including (1) the firm's qualifications, resources and expertise, (2) the firm's relevant experience and understanding of the regulatory matters raised by the CAT and in advising on matters of similar scope, (3) the composition of the legal team, and (4) professional fees. Following a series of interviews, the Participants acting as a consortium determined that WilmerHale was well qualified given the balance of these considerations and engaged WilmerHale in February 2013.
                    </P>
                    <P>WilmerHale's billing rates are negotiated on an annual basis and are determined with reference to the rates charged by other leading law firms for similar work. The Participants assess WilmerHale's performance and review prospective budgets and staffing plans submitted by WilmerHale on an annual basis. WilmerHale's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading law firms for similar work.</P>
                    <P>The legal costs for WilmerHale during the Pre-FAM Period included costs incurred from 2013 until June 22, 2020 to address corporate and regulatory legal matters related to the CAT. The legal fees for this law firm during the period from February 2013 until the formation of the CAT NMS, LLC on November 15, 2016 were paid directly by the exchanges and FINRA to WilmerHale. After the formation of CAT NMS LLC, the legal fees were paid by CAT LLC to WilmerHale.  </P>
                    <P>After WilmerHale was engaged in 2013 through the end of the Pre-FAM Period on June 22, 2020 (excluding the legal costs from November 15, 2017 through November 15, 2018), WilmerHale provided legal assistance to the CAT on a variety of matters, including with regard to the following:</P>
                    <P>• Analyzed various legal matters associated with the Selection Plan, and drafted an amendment to Selection Plan;</P>
                    <P>• Assisted with the RFP and bidding process for the CAT Plan Processor;</P>
                    <P>• Analyzed legal matters related to the Development Advisory Group (“DAG”);</P>
                    <P>• Drafted the CAT NMS Plan, analyzed various items related to the CAT NMS Plan, and responded to comment letters on CAT NMS Plan;</P>
                    <P>
                        • Provided legal support for the formation of the legal entity, the governance of the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan; and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                        <PRTPAGE P="10552"/>
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan and related filings;</P>
                    <P>• Negotiated and drafted the plan processor agreements with the Initial Plan Processor and the successor Plan Processor;</P>
                    <P>• Provided assistance with compliance with Regulation SCI;</P>
                    <P>• Assisted with clock synchronization study;</P>
                    <P>• Provided assistance with respect to the establishment of CAT security;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including with regard to options market maker quotes, Customer IDs, CAT Reporter IDs, linking allocations to executions, CAT reporting timeline, FDIDs, customer and account information, timestamp granularity, small industry members, data facility reporting and linkage, allocation reports, SRO-assigned market participant identifiers and cancelled trade indicators, thereby seeking to implement changes that would be cost effective and benefit Industry Members and Participants;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Provided advice regarding CAT policies and procedures;</P>
                    <P>• Analyzed the SEC's amendment of the CAT NMS Plan regarding financial accountability;</P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues; and</P>
                    <P>• Assisted with third party vendor agreements.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         The legal costs for CAT during the Pre-FAM Period include costs related to the legal services performed by Pillsbury. The Participants interviewed this law firm as well as other potential law firms to provide legal assistance regarding certain liability matters. After considering a variety of factors in its analysis, including the relevant expertise and fees of the firm, CAT LLC determined to hire Pillsbury in April 2019. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees were paid by CAT LLC to Pillsbury. The legal costs for Pillsbury during the Pre-FAM Period included costs incurred from April 2019 until June 22, 2020 to address legal matters regarding the agreements between CAT Reporters and CAT LLC concerning certain terms associated with CAT Reporting (the “Reporter Agreement”). During that period, Pillsbury advised CAT LLC regarding applicable legal matters, participated in negotiations between the Participants and Industry Members, participated in meetings with senior SEC staff, the Chairman, and Commissioners, represented CAT LLC and the Participants in an SEC administrative proceeding, and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, litigation involving CAT LLC is an expense of operating the CAT, and, therefore, is appropriately an obligation of both Participants and Industry Members under the CAT Funding Model.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $17,013,414 represent the fees paid to the consulting firm Deloitte &amp; Touche LLP (“Deloitte”) as project manager during the Pre-FAM Period, from October 2012 until June 22, 2020. These consulting costs include costs for advisory services related to the operation of the CAT, and meeting facilitation and communications coordination, vendor support and financial analyses.</P>
                    <P>To help facilitate project management given the unprecedented complexity and scope of the CAT project, the Participants determined it was necessary to engage a consulting firm to assist with the CAT project in 2012, following the adoption of Rule 613. A variety of factors were considered in the analysis of prospective consulting firms, including (1) the firm's qualifications, resources, and expertise, (2) the firm's relevant experience and understanding of the regulatory issues raised by the CAT and in coordinating matters of similar scope, (3) the composition of the consulting team, and (4) professional fees. Following a series of interviews, the exchanges and FINRA as a consortium determined that Deloitte was well qualified given the balance of these considerations and engaged Deloitte on October 1, 2012.</P>
                    <P>Deloitte's fee rates are negotiated on an annual basis and are in line with market rates for this type of specialized consulting work. CAT LLC assesses Deloitte's performance and reviews prospective budgets and staffing plans submitted by Deloitte on an annual basis. Deloitte's compensation arrangements are reasonable and appropriate, and in line with the rates charged by other leading consulting firms for similar work.</P>
                    <P>The consulting costs for CAT during the period from 2012 until the formation of the CAT NMS, LLC were paid directly by the Participants to Deloitte. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC to Deloitte. CAT LLC reviewed the consulting fees each month and approved the invoices.</P>
                    <P>After Deloitte was hired in 2012 through the end of the Pre-FAM Period on June 22, 2020 (excluding the consulting costs from November 15, 2017 through November 15, 2018), Deloitte provided a variety of consulting services, including the following:</P>
                    <P>• Established and implemented program operations for the CAT project, including the program managment office and workstream design;</P>
                    <P>• Assisted with the Plan Processor selection process, including but not limited to, the development of the RFP and the bidder evaluation process, and facilitation and consolidation of the Participant's independent reviews;</P>
                    <P>• Assisted with the development and drafting of the CAT NMS Plan, including conducting cost-benefit studies, analyzing OATS and CAT requirements, and drafting appendices to the Plan;</P>
                    <P>• Assisted with cost and funding-related activities for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>
                        • Provided governance support to the CAT, including governance support prior to the adoption of the CAT NMS Plan, which involved support for the full committee of exchanges and FINRA as well as subcommittees of this group (
                        <E T="03">e.g.,</E>
                         Joint Subcommittee Group, Technical, Industry Outreach, Cost and Funding and Other Products) and the DAG, governance support during the transition to the new governance structure under the CAT NMS Plan and governance support after the adoption of the CAT NMS Plan, which involved support for the Operating Committee, Advisory Committee, Compliance Subcommittee and CAT working groups;
                    </P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>
                        • Assisted with industry outreach and communications regarding the CAT, including assistance with industry outreach events, the development of the CAT website, frequently asked 
                        <PRTPAGE P="10553"/>
                        questions, and coordinating with the CAT LLC's public relations firm;
                    </P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress;</P>
                    <P>• Coordinated efforts regarding the selection of the successor Plan Processor;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor, including support for the Operating Committee and successor Plan Processor for the new role; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $880,419 represent the cost incurred for insurance for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT insurance policies, which included engaging in discussions with different insurance companies and conducting cost comparisons of various alternative approaches to insurance. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance from USI Insurance Services LLC (“USI”). Such policies are standard for corporate entities, and cyber security liability insurance is important for the CAT System. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        In adopting the CAT NMS Plan, the Commission amended the Plan to add a requirement that CAT LLC's financial statements be prepared in compliance with GAAP, audited by an independent public accounting firm, and made publicly available.
                        <SU>44</SU>
                        <FTREF/>
                         The professional and administration costs include costs related to accounting and accounting advisory services to support the operating and financial functions of CAT, financial statement audit services by an independent accounting firm, preparation of tax returns, and various cash management and treasury functions. In addition, professional and administration costs for the Pre-FAM Period include costs related to the receipt of market data and a security assessment. The costs for these professional and administration services were $1,082,036 for the Pre-FAM Period.
                    </P>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             Section 9.2 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin Accountants &amp; Advisors (“Anchin”).</E>
                         CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT in April 2018. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services were paid by CAT LLC to Anchin.
                    </P>
                    <P>After Anchin was hired in April 2018 through the end of the Pre-FAM Period on June 22, 2020 (excluding the period from April 2018 through November 15, 2018), Anchin provided a variety of services, including the following:</P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial reporting matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton LLP (“Grant Thornton”).</E>
                         In February 2020, CAT LLC determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the proposed role given the balance of these considerations. Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services. The fees for these services were paid by CAT LLC to Grant Thornton.
                    </P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         The professional and administrative costs for the Pre-FAM Period included costs related to the receipt of certain market data for the CAT pursuant to an agreement with the CAT LLC, and then with FCAT. Exegy provided SIP Data required by the CAT NMS Plan.
                    </P>
                    <P>
                        After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy from July 2018 through March 2019. CAT LLC determined that, unlike certain other vendors, Exegy provided market data that included all data elements required by the CAT NMS Plan.
                        <SU>45</SU>
                        <FTREF/>
                         In addition, the fees were reasonable and in line with market rates for the market data received. Accordingly, the professional and administrative costs for the Pre-FAM Period include the Exegy costs from November 2018 through March 2019. The cost of the market data was reasonable for the market data received. The fees for the market data were paid directly by CAT LLC to Exegy.
                    </P>
                    <FTNT>
                        <P>
                            <SU>45</SU>
                             
                            <E T="03">See</E>
                             Section 6.5(a)(ii) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        Upon the termination of the contract between CAT LLC and Exegy, FCAT entered into a contract with Exegy to purchase the required market data from Exegy in July 2019. All costs under the contract were treated as a direct pass through cost to CAT LLC. Therefore, the fees for the market data were paid by 
                        <PRTPAGE P="10554"/>
                        CAT LLC to FCAT, who, in turn, paid Exegy for the market data.
                    </P>
                    <P>
                        <E T="03">Security Assessment: RSM US LLP (“RSM”).</E>
                         The operating costs for the Pre-FAM Period include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation, and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees were reasonable and in line with market rates for such an assessment. RSM performed the assessment from October 2018 through December 2018. Accordingly, the costs for the Pre-FAM Period include the costs incurred in November and December 2018. The cost for the security assessment were paid directly to RSM by CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $224,669 represent the fees paid to public relations firms during the Pre-FAM Period for professional communications services to CAT, including media relations consulting, strategy and execution. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants. Specifically, the public relations firms provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                    </P>
                    <P>The services performed by each of the public relations firms were comparable. The fees for such services were reasonable and in line with market rates. Only one public relations firm was engaged at a time; the three firms were engaged sequentially as the primary public relations contact moved among the three firms during this time period.</P>
                    <P>
                        <E T="03">Public Relations Firm: Peppercomm, Inc. (“Peppercomm”).</E>
                         The national securities exchanges and FINRA, acting as a consortium, determined to hire the public relations firm Peppercomm in October 2014 and continued to engage this firm through September 2017. The exchanges and FINRA made this engagement decision after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fee rates for this public relations firm were negotiated on an arm's length basis and were in line with market rates for these types of services. The public relations costs during the period from October 2014 until the formation of the CAT NMS LLC were paid directly by the exchanges and FINRA to the public relations firm. After the formation of CAT NMS, LLC, the consulting fees were paid by CAT LLC.
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Sloane &amp; Company (“Sloane”).</E>
                         CAT LLC determined to hire a new public relations firm, Sloane, in March 2018, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Sloane. CAT LLC continued the engagement with Sloane until February 2020.  
                    </P>
                    <P>
                        <E T="03">Public Relations Firm: Peak Strategies.</E>
                         CAT LLC determined to hire a new public relations firm, Peak Strategies, in March 2020, based on, among other things, their expertise and the primary contact's history with the project. The fee rates for this public relations firm were in line with market rates for these types of services. The fees during the Pre-FAM Period were paid by CAT LLC to Peak Strategies.
                    </P>
                    <HD SOURCE="HD3">(ii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 1</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 1 of the Financial Accountability Milestones (“FAM Period 1”),
                        <SU>46</SU>
                        <FTREF/>
                         which covers the period from June 22, 2020-July 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 1 of $6,377,343. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($2,125,781), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781). The following table breaks down Historical CAT Costs 1 for FAM Period 1 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>46</SU>
                             Section 11.6(a)(i)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10555"/>
                        <GID>EN13FE24.151</GID>
                    </GPH>
                    <P>
                        By
                        <FTREF/>
                         the completion of FAM Period 1, CAT LLC was required to implement the reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of equities transaction data and options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.
                        <SU>49</SU>
                        <FTREF/>
                         CAT LLC completed the requirements of FAM Period 1 by July 31, 2020. The following describes the costs for each of the categories for FAM Period 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>47</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>48</SU>
                             The costs described in this table of costs for FAM Period 1 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             
                            <E T="03">See</E>
                             definition of “Initial Industry Member Core Equity and Options Reporting” in Section 1.1 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 1 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 1 Period. Accordingly, the $2,642,122 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 1. The fee arrangement for AWS described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. Moreover, CAT LLC continued to believe that AWS's maturity in the cloud services space as well as the significant cost and time necessary to move the CAT to a different cloud services provider supported the continued engagement of AWS.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 1 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, reference data and other types of Other Data. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 1.
                        <SU>50</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>50</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="298">
                        <PRTPAGE P="10556"/>
                        <GID>EN13FE24.152</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 1. Accordingly, the $1,099,680 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 1. The fee arrangement for FCAT described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Published iterative drafts of draft Technical Specifications for Phase 2d, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Published iterative drafts of CAIS Technical Specifications, after substantial engagement with SEC staff, Industry Members and Participants on the Technical Specifications;</P>
                    <P>• Facilitated Industry Member reporting of Quote Sent Time on Options Market Maker quotes;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 1. Accordingly, the $254,998 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 1. The fee arrangement for Kingland described above with regard to the Pre-FAM Period continued in place during FAM Period 1 pursuant to the Plan Processor Agreement. During FAM Period 1, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to CCID Alternative, as well as the acceleration of the reporting of LTIDs.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>CAT LLC did not incur costs related to change requests during FAM Period 1.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>
                        Capitalized developed technology costs for FAM Period 1 of $1,684,870 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include: (1) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including separate production and industry test entitlements, and reprocessing of exchange event 
                        <PRTPAGE P="10557"/>
                        timestamps; (2) implementation fees; and (3) license fees.
                    </P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $481,687 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 1.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 1 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to WilmerHale. During FAM Period 1, WilmerHale provided legal assistance to the CAT including with regard to the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments and fee filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, verbal activity, options market maker quote sent time, TRF linkages, and allocations;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including the Financial Accountability Milestone amendment;</P>
                    <P>• Assisted with compliance with Regulation SCI;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the drafting of the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;</P>
                    <P>• Assisted with communications and presentations for the industry regarding CAIS;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding CAT technical specifications;</P>
                    <P>• Assisted with third party vendor agreements; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 1 were paid by CAT LLC to Pillsbury. During FAM Period 1, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted a proposed amendment to the CAT NMS Plan regarding liability matters. Liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $137,209 represent the fees paid to Deloitte as project manager during FAM Period 1. CAT LLC continued to employ Deloitte during FAM Period 1 based on, among other things, their expertise and cumulative experience with the CAT. The fee rates for Deloitte during FAM Period 1 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 1 were paid by CAT LLC to the consulting firm. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 1, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT;</P>
                    <P>• Assisted with the transition from the Initial Plan Processor to the successor Plan Processor; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>Although insurance was in effect during FAM Period 1, CAT LLC did not incur costs related to insurance during FAM Period 1.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         The professional and administration costs of $69,077 represent the fees paid to Anchin during FAM Period 1. CAT LLC continued to employ Anchin during FAM Period 1 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these type of financial advisory services. The fees for these services during FAM Period 1 were paid by CAT LLC to Anchin. During FAM Period 1, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;  </P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups; and</P>
                    <P>• Prepared monthly and quarterly financial statements.</P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $7,700 represent the fees paid to Peak Strategies during FAM Period 1. CAT LLC continued to employ Peak Strategies during FAM Period 1 based on, among other things, their expertise and history with the project. The fee rates for this firm were reasonable and in line with market rates for these types of services. The fees for these services during FAM Period 1 were paid by CAT LLC to Peak Strategies. During FAM Period 1, Peak Strategies continued to provide professional communications services to CAT LLC, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT 
                        <PRTPAGE P="10558"/>
                        (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iii) Historical CAT Costs Incurred in Financial Accountability Milestone Period 2</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT LLC and already funded by Participants during Period 2 of the Financial Accountability Milestones (“FAM Period 2”),
                        <SU>51</SU>
                        <FTREF/>
                         which covers the period from August 1, 2020-December 31, 2020. Historical CAT Costs 1 would include costs for FAM Period 2 of $42,976,478. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($14,325,493), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($14,325,493) and CEBSs paying one-third ($14,325,493). The following table breaks down Historical CAT Costs 1 for FAM Period 2 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             Section 11.6(a)(i)(B) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="207">
                        <GID>EN13FE24.153</GID>
                    </GPH>
                    <P>
                        By the
                        <FTREF/>
                         completion of FAM Period 2, CAT LLC was required to implement the following with regard to the CAT:
                    </P>
                    <FTNT>
                        <P>
                            <SU>52</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>53</SU>
                             The costs described in this table of costs for FAM Period 2 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, CustomerID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission.
                            <SU>54</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>54</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Implementation of Core Equity Reporting Requirements” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 2 by December 31, 2020. The following describes the costs for each of the categories for FAM Period 2.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 2 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 2 Period. Accordingly, the $20,709,212 in technology costs for cloud hosting services represent costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 2. The fee arrangement for AWS described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During the FAM 2 Period, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a and Phase 2b Industry Member Data (including certain linkages) as well as SIP Data, and Other Data, including reference data. In addition, Industry Members began reporting LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage 
                        <PRTPAGE P="10559"/>
                        footprint of the CAT during FAM Period 2.
                        <SU>55</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>55</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="311">
                        <GID>EN13FE24.154</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 2. Accordingly, the $9,108,700 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 2. The fee arrangement for FCAT described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, FCAT's activities with respect to the CAT included publishing the Technical Specifications for Phase 2d and overseeing the reporting of firm to firm and intrafirm linkages by Industry Members. In addition, FCAT also continued to engage in the following activities during FAM Period 2:</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, Compliance Subcommittee and CAT working groups;</P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the development and implementation of the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;  </P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>
                        Pursuant to the Plan Processor Agreement discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 2. Accordingly, the $1,590,298 in technology costs for CAIS operating fees represent costs incurred for services provided by Kingland during FAM Period 2. The fee arrangement for Kingland described above with regard to the Pre-FAM Period and FAM Period 1 continued in place during FAM Period 2 pursuant to the Plan Processor Agreement. During FAM Period 2, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs.
                        <PRTPAGE P="10560"/>
                    </P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>During FAM Period 2, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 2, CAT incurred costs of $51,823 related to a change request regarding the addition of functionality for exchange Participants to report rejected messages to the CAT.</P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 2 of $6,761,094 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to separate production and industry test entitlements, market maker reference data, and back-processing of exchange exception logic; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $2,766,644 represent the fees paid for legal services provided by two law firms, WilmerHale and Pillsbury during FAM Period 2.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 2 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to WilmerHale. During FAM Period 1 [
                        <E T="03">sic</E>
                        ], the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements regarding, for example, allocations, exchange activity, OTQT, initial data validation, error corrections and recordkeeping;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittees, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6 of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for the Compliance Subcommittee, including with regard to responses to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding the SEC's proposed security amendments to the CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>
                        • Assisted with third party vendor agreements (
                        <E T="03">e.g.,</E>
                         with regard to Anchin, Grant Thornton and insurance policies);
                    </P>
                    <P>• Assisted with change requests; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 2 were paid by CAT LLC to Pillsbury. During FAM Period 2, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During that period, Pillsbury advised CAT LLC regarding applicable legal matters and drafted and filed a proposed amendment to the CAT NMS plan regarding liability matters. As discussed above, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants.
                    </P>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>The consulting costs of $532,146 represent the fees paid to Deloitte as project manager during FAM Period 2. CAT LLC continued to employ Deloitte during FAM Period 2 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 2 were negotiated and in line with market rates for this type of specialized consulting work. The consulting fees during FAM Period 2 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 2, Deloitte's CAT-related activities included the following:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $976,098 represent the fees paid for insurance during FAM Period 2. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $438,523 represent the fees paid to Anchin and Grant Thornton for financial services provided during FAM Period 2.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to engage Anchin during FAM Period 2 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these types of financial advisory services. The fees for these services during FAM Period 2 were paid by CAT LLC to Anchin. During FAM Period 2, Anchin provided a variety of services, including the following:
                    </P>
                    <P>
                        • Updated and maintained internal controls;
                        <PRTPAGE P="10561"/>
                    </P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;  
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from the Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audit by an independent auditor; and</P>
                    <P>• Reviewed historical costs from inception.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 2 based on, among other things, its expertise and cumulative knowledge of CAT LLC. CAT LLC continued to believe that Grant Thornton was well qualified for its role and its fee rates were in line with with market rates for these accounting services. The fees for these services during FAM Period 2 were paid by CAT LLC to Grant Thornton. During FAM Period 2, Grant Thornton performed a financial statement audit for CAT LLC as an independent accounting firm.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $41,940 represent the fees paid to Peak Strategies during FAM Period 2. CAT LLC continued to employ Peak Strategies during FAM Period 2 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 2 were paid by CAT LLC to Peak Strategies. During FAM Period 2, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(iv) Historical CAT Costs Incurred in Financial Accountability Milestone Period 3</HD>
                    <P>
                        Historical CAT Costs 1 would include costs incurred by CAT and already funded by the Participants during Period 3 of the Financial Accountability Milestones (“FAM Period 3”),
                        <SU>56</SU>
                        <FTREF/>
                         which covers the period from January 1, 2021—December 31, 2021. Historical CAT Costs 1 would include costs for FAM Period 3 of $144,415,268. The Participants would remain responsible for one-third of this cost (which they have previously paid) ($48,138,423), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($48,138,423) and CEBSs paying one-third ($48,138,423). The following table breaks down Historical CAT Costs 1 for FAM Period 3 into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <FTNT>
                        <P>
                            <SU>56</SU>
                             Section 11.6(a)(i)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="267">
                        <PRTPAGE P="10562"/>
                        <GID>EN13FE24.155</GID>
                    </GPH>
                    <P>
                        By the completion of FAM Period 3, CAT LLC was required to implement the following requirements with regard the CAT:
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>57</SU>
                             As discussed above, with respect to certain costs that were “appropriately excluded,” such excluded costs relate to the amortization of capitalized technology costs, which are amortized over the life of the Plan Processor Agreement. As such costs have already been otherwise reflected in the filing, their inclusion would double count the capitalized technology costs. In addition, amortization is a non-cash expense.
                        </P>
                        <P>
                            <SU>58</SU>
                             The costs described in this table of costs for FAM Period 3 were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>
                            (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met.
                            <SU>59</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>59</SU>
                                 
                                <E T="03">See</E>
                                 definition of “Full Availability and Regulatory Utilization of Transactional Database Functionality” in Section 1.1 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>CAT LLC completed the requirements of FAM Period 3 by December 31, 2021. The following describes the costs for each of the categories for FAM Period 3.</P>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services</HD>
                    <P>CAT LLC continued to utilize AWS in FAM Period 3 to provide a broad array of cloud hosting services for the CAT, including data ingestion, data management, and analytic tools. AWS continued to provide storage services, databases, compute services and other services (such as networking, management tools and DevOps tools), as well as various environments for CAT, such as development, performance testing, test, and production environments, during the FAM 3 Period. Accordingly, the $94,574,759 in technology costs for cloud hosting services represents costs incurred for services provided by AWS, as the cloud services provider, during FAM Period 3. The fee arrangement for AWS described above for the earlier periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement.</P>
                    <P>
                        The cost for AWS cloud services for the CAT continued to be a function of the volume of CAT Data. During FAM Period 3, the volume of CAT Data continued to far exceed the original predictions for the CAT as set forth in the CAT NMS Plan. During this period, data submitted to the CAT included options and equities Participant Data, Phase 2a, Phase 2b, Phase 2c and Phase 2d Industry Member Data (including certain linkages), SIP Data, Other Data, including reference data, and LTID account information. The following chart provides data regarding the average daily volume, cumulative total events, total compute hours and storage footprint of the CAT during FAM Period 3.
                        <SU>60</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>60</SU>
                             Note that the volume data described in this table does not include CAIS data.
                        </P>
                    </FTNT>
                    <GPH SPAN="3" DEEP="325">
                        <PRTPAGE P="10563"/>
                        <GID>EN13FE24.156</GID>
                    </GPH>
                    <HD SOURCE="HD3">(b) Technology Costs—Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement discussed above, FCAT continued in its role as the Plan Processor for the CAT during FAM Period 3. Accordingly, the $23,106,091 in technology costs for operating fees represent costs incurred for the services provided by FCAT under the Plan Processor Agreement during FAM Period 3. The fee arrangement for FCAT described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, FCAT's activities with respect to the CAT included the following:</P>
                    <P>• Facilitated Phase 2c and Phase 2d testing for Industry Members;</P>
                    <P>• Oversaw creation of linkages of the lifecycle of order events based on the received data through Phase 2d;</P>
                    <P>• Addressed compliance items, including drafting CAT policies and procedures, and addressing Regulation SCI requirements;</P>
                    <P>• Provided support to the Operating Committee, the Compliance Subcommittee and CAT working groups;  </P>
                    <P>• Assisted with interpretive efforts and exemptive requests regarding the CAT NMS Plan;</P>
                    <P>• Oversaw the security of the CAT;</P>
                    <P>• Monitored the operation of the CAT, including with regard to Participant and Industry Member reporting;</P>
                    <P>• Provided support to subcontractors under the Plan Processor Agreement;</P>
                    <P>• Provided support in discussions with the Participants and the SEC and its staff;</P>
                    <P>• Operated the FINRA CAT Helpdesk;</P>
                    <P>• Facilitated communications with the industry, including via FAQs, CAT Alerts, meetings, presentations and webinars;</P>
                    <P>• Administered the CAT website and all of its content; and</P>
                    <P>• Provided technical support and assistance with connectivity, data access, and user support, including the use of CAT Data and query tools, for Participants and the SEC staff.</P>
                    <HD SOURCE="HD3">(c) Technology Costs—CAIS Operating Fees</HD>
                    <P>Pursuant to the Plan Processor Agreement with FCAT discussed above, Kingland continued in its role as a subcontractor for the development and implementation of CAIS during FAM Period 3. Accordingly, the $5,562,383 in technology costs for CAIS operating fees represents costs incurred for services provided by Kingland during FAM Period 3. The fee arrangement for Kingland described above with regard to the prior Periods continued in place during FAM Period 3 pursuant to the Plan Processor Agreement. During FAM Period 3, Kingland continued the development of the CAIS Technical Specifications and building of CAIS. In addition, Kingland continued to work on the CAIS Technical Specifications and build related to the CCID Alternative, as well as the acceleration of the reporting of LTIDs. The full CAIS Technical Specifications were published during FAM Period 3.</P>
                    <HD SOURCE="HD3">(d) Technology Costs—Change Request Fees</HD>
                    <P>
                        During FAM Period 3, CAT LLC engaged FCAT to pursue certain change requests in accordance with the Plan Processor Agreement. The change request costs were paid by CAT LLC to FCAT. Specifically, during FAM Period 3, CAT incurred costs of $396,169 related to change requests, including the following: (1) the addition of functionality for exchange Participants to report rejected messages to the CAT; (2) the migration of MIRS query engine to AWS to reduce operational costs and increase resiliency; and (3) updating the Participant Technical Specifications to allow for two-sided Participant option quote reporting.
                        <PRTPAGE P="10564"/>
                    </P>
                    <HD SOURCE="HD3">(e) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for FAM Period 3 of $10,763,372 include capitalizable application development costs incurred in the development of the CAT by FCAT. Such costs include (1) development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Plan Processor, including the transition from equity data received by FINRA pursuant to various regulatory services agreements between FINRA and Participant exchanges to the equity CAT Data, and the completion of the Industry Member Phase 2d options manual and complex orders go-live requirements; (2) costs related to certain modifications, upgrades, or other changes to the CAT that were not contemplated by the agreement between CAT LLC and the Plan Processor, including costs related to off-exchange volume concentration, Participant 24-hour trading and an external metastore; (3) implementation fees; and (4) license fees.</P>
                    <HD SOURCE="HD3">(f) Legal Costs</HD>
                    <P>The legal costs of $6,333,248 represent the fees paid for legal services provided by three law firms, WilmerHale, Pillsbury and Covington &amp; Burling LLP (“Covington”) during FAM Period 3.</P>
                    <P>
                        <E T="03">Law Firm: WilmerHale.</E>
                         CAT LLC continued to employ WilmerHale during FAM Period 3 based on, among other things, their expertise and long history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to WilmerHale. During FAM Period 3, the legal assistance provided by WilmerHale included providing legal advice regarding the following:
                    </P>
                    <P>• Assisted with the development of the CAT funding model and drafting related amendments and rule filings;</P>
                    <P>• Drafted exemptive requests from CAT NMS Plan requirements, including, for example, verbal activity regarding Phase 2c cutover, error reports, error corrections, Phase 2d Reporting, unique Order-ID on internal route events, reporting addresses, recordkeeping, and unique CCID for foreign customers;</P>
                    <P>• Provided interpretations related to CAT NMS Plan requirements, including with regard to the Financial Accountability Milestone amendment, FAQs, CAIS requirements, ADF, and technical specifications;</P>
                    <P>• Provided support for the Operating Committee, Compliance Subcommittee, working groups and Leadership Team, including with regard to meetings with the SEC staff;</P>
                    <P>• Assisted with the Implementation Plan and Quarterly Progress Reports required pursuant to Section 6.6(c) of the CAT NMS Plan;</P>
                    <P>• Drafted SRO rule filings related to the CAT Compliance Rule;</P>
                    <P>• Provided support for Compliance Subcommittee, including with regard to response to OCIE examinations and the annual assessment;</P>
                    <P>• Provided guidance regarding SEC's proposed security amendments to CAT NMS Plan;</P>
                    <P>• Provided guidance regarding SRO rule filings for the retirement of systems;</P>
                    <P>• Provided legal support for Operating Committee meetings, including drafting resolutions and other materials and voting advice;</P>
                    <P>• Provided assistance with change requests;</P>
                    <P>• Provided guidance and regulatory support for litigation regarding the response to SEC's exemptive orders;</P>
                    <P>• Assisted with communications with the industry, including CAT Alerts and presentations;</P>
                    <P>• Provided guidance regarding the confidentiality of CAT Data, including third-party information requests;</P>
                    <P>• Assisted with cost management analysis and proposals; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretive and implementation issues.</P>
                    <P>
                        <E T="03">Law Firm: Pillsbury.</E>
                         CAT LLC continued to employ Pillsbury during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this law firm were in line with market rates for specialized legal expertise. The legal fees during FAM Period 3 were paid by CAT LLC to Pillsbury. During FAM Period 3, Pillsbury provided legal assistance to the CAT regarding the CAT Reporter Agreement. During this period, Pillsbury advised CAT LLC regarding applicable legal matters, reviewed and responded to comment letters regarding the proposed Plan amendment, participated in meetings with senior SEC staff, responded to comments submitted following the SEC's April 6, 2021 order instituting proceedings,
                        <SU>61</SU>
                        <FTREF/>
                         and assessed legal matters regarding the SEC's October 29, 2021 order denying the proposed Plan amendment.
                        <SU>62</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>61</SU>
                             Securities Exchange Act Rel. No. 91487 (Apr. 6, 2021), 86 FR 19054 (Apr. 12, 2021).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>62</SU>
                             Securities Exchange Act Rel. No. 93484 (Oct. 29, 2021), 86 FR 60933 (Nov. 4, 2021).
                        </P>
                    </FTNT>
                    <P>
                        <E T="03">Law Firm: Covington.</E>
                         CAT LLC hired Covington for litigation with the SEC regarding certain exemptive orders related to the CAT, including orders issued in December 2020.
                        <SU>63</SU>
                        <FTREF/>
                         CAT LLC interviewed this law firm as well as other potential law firms, considering a variety of factors in its analysis for choosing legal assistance, including the relevant expertise and fees of the potential lawyers. CAT LLC approved the engagement of Covington in January 2021. The fee rates for this law firm, which were calculated based on hourly rates, were in line with market rates for specialized services. The legal fees for FAM Period 3 for this firm were paid by CAT LLC to Covington.
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 90688 (Dec. 16, 2020), 85 FR 83634 (Dec. 22, 2020); and Securities Exchange Act Rel. No. 90689 (Dec. 16, 2020), 85 FR 83667 (Dec. 22, 2020) (collectively, the “2020 Orders”).
                        </P>
                    </FTNT>
                    <P>After Covington was hired in 2021 through the end of 2021, the firm provided legal assistance regarding the litigation with the SEC regarding the 2020 Orders. These services included researching, drafting, and filing motions to stay the 2020 orders and related materials in proceedings before the SEC, as well as researching, drafting, and filing petitions for judicial review of the 2020 Orders in proceedings before the U.S. Court of Appeals for the D.C. Circuit. Covington oversaw ongoing litigation proceedings on these matters, and also supported WilmerHale with respect to settlement negotiations with the SEC staff regarding the 2020 Orders.</P>
                    <P>
                        In addition to these services, CAT LLC engaged Covington in November 2021 to provide assistance with respect to the SEC's disapproval of CAT NMS Plan amendments concerning a proposed limitation on liability in the event of a data breach or similar event. Covington provided advice concerning CAT's response to the SEC's disapproval order. This work accounted for a minority of Covington's fees in 2021.
                        <SU>64</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>64</SU>
                             As discussed above with regard to Pillsbury's work on liability matters, liability issues related to the CAT are important matters that needed to be resolved and clarified. CAT LLC's efforts to seek such resolution and clarity work to the benefit of Participants, Industry Members and other market participants. Moreover, such activity is a necessary part of the operation of the CAT.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(g) Consulting Costs</HD>
                    <P>
                        The consulting costs of $1,408,209 represent the fees paid to Deloitte as project manager during FAM Period 3. CAT LLC continued to employ Deloitte during FAM Period 3 based on, among other things, their expertise and long history with the project. The fee rates for Deloitte during FAM Period 3 were negotiated and in line with market rates 
                        <PRTPAGE P="10565"/>
                        for this type of specialized consulting work. The consulting fees during FAM Period 3 were paid to Deloitte by CAT LLC. CAT LLC reviewed the consulting fees each month and approved the invoices. During FAM Period 3, Deloitte's CAT-related activities included the following:
                    </P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>• Provided support to the Operating Committee, the Chair of the Operating Committee and the Leadership Team, including project management support, coordination and planning for meetings and communications, and interfacing with law firms and the SEC;</P>
                    <P>• Assisted with cost and funding matters for the CAT, including the development of the CAT funding model and assistance with loans and the CAT bank account for CAT funding;</P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and  </P>
                    <P>• Provided support for third party vendors for the CAT, including FCAT, Anchin and the law firms engaged by CAT LLC.</P>
                    <HD SOURCE="HD3">(h) Insurance</HD>
                    <P>The insurance costs of $1,582,714 represent the fees paid for insurance FAM Period 3. CAT LLC continued to maintain cyber security liability insurance, directors' and officers' liability insurance, and errors and omissions liability insurance offered by USI. After engaging in a process for renewing the coverage, CAT LLC determined to purchase these insurance policies from USI. The annual premiums for these policies were competitive for the coverage provided. The annual premiums were paid by CAT LLC to USI.</P>
                    <HD SOURCE="HD3">(i) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $595,923 represent the fees paid to Anchin and Grant Thornton for financial services during FAM Period 3.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         CAT LLC continued to employ Anchin during FAM Period 3 based on, among other things, their expertise and history with the project. The hourly fee rates for this firm were in line with market rates for these financial advisory services. The fees for these services during FAM Period 3 were paid by CAT LLC to Anchin. During FAM Period 3, Anchin provided a variety of services, including the following:
                    </P>
                    <P>• Updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>
                        • Faciliated [
                        <E T="03">sic</E>
                        ] bill payments;
                    </P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Accounting Firm: Grant Thornton.</E>
                         CAT LLC continued to employ the accounting firm Grant Thornton during FAM Period 3 based on, among other things, their expertise and cumulative knowledge of CAT LLC. CAT LLC determined that Grant Thornton was well qualified for its role and that its fixed fee rates were in line with market rates for these accountant services. The fees for these services during FAM Period 3 were paid by CAT LLC to Grant Thornton. During FAM Period 3, Grant Thornton provided audited financial statements for CAT LLC.
                    </P>
                    <HD SOURCE="HD3">(j) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $92,400 represent the fees paid to Peak Strategies during FAM Period 3. CAT LLC continued to employ Peak Strategies during FAM Period 3 based on, among other things, their expertise and history with the project. The fee rates for this firm were in line with market rates for these types of services. The fees for these services during FAM Period 3 were paid by CAT LLC to Peak Strategies. During FAM Period 3, Peak Strategies continued to provide professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, the public relations firm provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan). As discussed above, such public relations services were important for various reasons, including monitoring comments made by market participants about the CAT and understanding issues related to the CAT discussed on the public record. By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT matters to the benefit of all market participants.
                    </P>
                    <HD SOURCE="HD3">(v) Excluded Costs</HD>
                    <P>
                        Historical CAT Costs 1 would not include two categories of CAT costs (“Excluded Costs”): (1) $48,874,937, which are all CAT costs incurred from November 15, 2017 through November 15, 2018; and (2) $14,749,362 of costs related to the termination of the relationship with the Initial Plan Processor. The Participants would remain responsible for 100% of these costs, which total $63,624,299. CAT LLC determined that it was reasonable to exclude these Excluded Costs from Historical CAT Costs 1 because the excluded costs relate to the delay in the start of reporting to the CAT and the conclusion of the relationship with the Initial Plan Processor.
                        <SU>65</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             In approving the CAT Funding Model, the Commission states that “the proposed exclusion of the `Excluded Costs' from Past CAT Costs is reasonable in the Commission's view because it would not require all costs incurred by the Participants to be recovered from Industry Members through the Historical CAT Assessment, specifically excluding those costs related to the delay in the start of reporting to the CAT and costs related to the conclusion of the relationship with the Initial Plan Processor.” CAT Funding Model Approval Order at 62663.
                        </P>
                    </FTNT>
                    <P>First, Historical CAT Costs 1 would not include $14,749,362 of costs related to the conclusion of the relationship with the Initial Plan Processor. Such costs include costs related to the American Arbitration Association, the legal assistance of Pillsbury with regard to the arbitration with Thesys CAT, and the settlement costs related to the arbitration with Thesys CAT. The Participants would remain responsible for 100% of these $14,749,362 in costs.</P>
                    <P>
                        Second, the Historical CAT Costs would exclude all CAT costs incurred from November 15, 2017 through November 15, 2018. CAT LLC determined to exclude all costs during 
                        <PRTPAGE P="10566"/>
                        this one-year period of $48,874,937 from fees charged to Industry Members due to the delay in the start of reporting to the CAT. The Participants would remain responsible for 100% of these $48,874,937 in costs. The following table breaks down these costs into the categories set forth in Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                    </P>
                    <GPH SPAN="3" DEEP="239">
                        <GID>EN13FE24.157</GID>
                    </GPH>
                    <P>
                        The following provides additional detail regarding the Excluded Costs.
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             The costs described in this table of Excluded Costs were calculated based upon CAT LLC's review of applicable bills and invoices and related financial statements. CAT LLC financial statements are available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(a) Technology Costs—Cloud Hosting Services, Operating Fees, CAIS Operating Fees and Change Request Fees</HD>
                    <P>CAT LLC did not incur technology costs related to the categories of cloud hosting services, operating fees, CAIS operating fees or change requests during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(b) Technology Costs—Capitalized Developed Technology Costs</HD>
                    <P>Capitalized developed technology costs for the period from November 15, 2017 through November 15, 2018 include capitalizable application development costs of $37,852,083 incurred in the development of the CAT by the Initial Plan Processor. Such costs include development costs incurred during the application development stage to meet various agreed-upon milestones regarding the CAT, as defined in the agreement between CAT LLC and the Initial Plan Processor. Such costs include costs related to Industry Member technical specifications for orders and transactions, the system security plan, testing and production for Participant CAT reporting, third-party security assessment and response, query portal, onboarding of the Chief Information Security Officer, and ingestion of FINRA TRF data and FINRA data related to halts and corporate actions.</P>
                    <HD SOURCE="HD3">(c) Legal Costs</HD>
                    <P>The legal costs of $6,143,278 represent the fees paid to WilmerHale for legal services from November 15, 2017 through November 15, 2018. During this period, WilmerHale provided legal assistance to the CAT including with regard to the following:</P>
                    <P>• Provided legal support for the governance of the CAT, including governance support for the Operating Committee, Advisory Committee, Compliance Subcommittee, and CAT working groups;</P>
                    <P>• Assisted with the development of the CAT funding model and drafted related amendments of the CAT NMS Plan;</P>
                    <P>• Provided assistance related to CAT security;</P>
                    <P>• Drafted exemptive requests, including requests related to PII;</P>
                    <P>• Assisted with the Implementation Plan required pursuant to Section 6.6(c)(i) of the CAT NMS Plan;  </P>
                    <P>• Provided interpretations of and related to the CAT NMS Plan;</P>
                    <P>• Provided advice with regard to regulator access to the CAT;</P>
                    <P>• Assisted with the Plan Processor transition;</P>
                    <P>• Provided assistance regarding communications with the industry regarding the CAT;</P>
                    <P>• Provided advice regarding Customer Account Information and PII;</P>
                    <P>• Provided support for litigation related to SEC exemptive orders; and</P>
                    <P>• Provided support with regard to discussions with the SEC and its staff, including with respect to addressing interpretative and implementation issues.</P>
                    <HD SOURCE="HD3">(d) Consulting Costs</HD>
                    <P>The consulting costs of $4,452,106 represent the fees paid to Deloitte for their role as project manager for the CAT from November 15, 2017 through November 15, 2018. During this period, Deloitte engaged in the following activities with respect to the CAT:</P>
                    <P>• Implemented program operations for the CAT project;</P>
                    <P>
                        • Provided governance support to the Operating Committee, including support for Subcommittees and working groups of the Operating Committee (
                        <E T="03">e.g.,</E>
                         Compliance Subcommittee, Cost and Funding Working Group, Technical Working Group, Industry Outreach Working Group, Security Working Group and Steering Committee);
                    </P>
                    <P>
                        • Assisted with cost and funding issue for the CAT, including the development of the CAT funding model 
                        <PRTPAGE P="10567"/>
                        and assistance with loans and the CAT bank account for CAT funding;
                    </P>
                    <P>• Provided support for updating the SEC on the progress of the development of the CAT; and</P>
                    <P>• Provided active planning and coordination with and support for the Initial Plan Processor with regard to the development of the CAT, and reported to the Participants on the progress.</P>
                    <HD SOURCE="HD3">(e) Insurance</HD>
                    <P>CAT LLC did not incur costs related to insurance during the period from November 15, 2017 through November 15, 2018.</P>
                    <HD SOURCE="HD3">(f) Professional and Administration Costs</HD>
                    <P>The professional and administration costs of $340,145 represent the fees paid to Anchin, Exegy and RSM from November 15, 2017 through November 15, 2018.</P>
                    <P>
                        <E T="03">Financial Advisory Firm: Anchin.</E>
                         From the commencement of its engagement [
                        <E T="03">sic</E>
                        ] in April 2018 through November 15, 2018, Anchin engaged in the following activities with respect to the CAT:
                    </P>
                    <P>• Developed, updated and maintained internal controls;</P>
                    <P>• Provided cash management and treasury functions;</P>
                    <P>• Facilitated bill payments;</P>
                    <P>• Provided monthly bookkeeping;</P>
                    <P>• Reviewed vendor invoices and documentation in support of cash disbursements;</P>
                    <P>• Provided accounting research and consultations on various accounting, financial reporting and tax matters;</P>
                    <P>• Addressed not-for-profit tax and accounting considerations;</P>
                    <P>• Prepared tax returns;</P>
                    <P>• Addressed various accounting, financial reporting and operating inquiries from Participants;</P>
                    <P>• Developed and maintained quarterly and annual operating and financial budgets, including budget to actual fluctuation analyses;</P>
                    <P>• Addressed accounting and financial matters relating to the transition from CAT NMS, LLC to Consolidated Audit Trail, LLC, including supporting the dissolution of CAT NMS, LLC;</P>
                    <P>• Supported compliance with the CAT NMS Plan;</P>
                    <P>• Worked with and provided support to the Operating Committee and various CAT working groups;</P>
                    <P>• Prepared monthly, quarterly and annual financial statements;</P>
                    <P>• Supported the annual financial statement audits by an independent auditor;</P>
                    <P>• Reviewed historical costs from inception; and</P>
                    <P>• Provided accounting and financial information in support of SEC filings.</P>
                    <P>
                        <E T="03">Market Data Provider: Exegy.</E>
                         From July 2018 through November 15, 2018, CAT LLC purchased market data from Exegy (as described in more detail above).
                    </P>
                    <P>
                        <E T="03">Security Assessment: RSM.</E>
                         From October 2018 through November 15, 2018, CAT LLC incurred costs for RSM's performance of a security assessment (as described in more detail above).
                    </P>
                    <HD SOURCE="HD3">(g) Public Relations Costs</HD>
                    <P>
                        The public relations costs of $87,325 represent the fees paid to Sloane from November 15, 2017 through November 15, 2018. From the commencement of its engagement [
                        <E T="03">sic</E>
                        ] in March 2018 through November 15, 2018, Sloane provided professional communications services to CAT, including media relations consulting, strategy and execution. Specifically, Sloane provided services related to communications with the public regarding the CAT, including monitoring developments related to the CAT (
                        <E T="03">e.g.,</E>
                         congressional efforts, public comments and reaction to proposals, press coverage of the CAT), reporting such developments to CAT LLC, and drafting and disseminating communications to the public regarding such developments as well as reporting on developments related to the CAT (
                        <E T="03">e.g.,</E>
                         amendments to the CAT NMS Plan).
                    </P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        Under the CAT NMS Plan, the Operating Committee is required to reasonably establish the length of the Historical Recovery Period used in calculating each Historical Fee Rate based upon the amount of the Historical CAT Costs to be recovered by the Historical CAT Assessment, and to describe the reasons for its length.
                        <SU>67</SU>
                        <FTREF/>
                         The Historical Recovery Period used in calculating the Historical Fee Rate may not be less than 24 months or more than five years.
                        <SU>68</SU>
                        <FTREF/>
                         The Operating Committee has determined to establish a Historical Recovery Period 1 of 24 months for Historical CAT Assessment 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             Section 11.3(b)(i)(D)(I) and Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>68</SU>
                             Section 11.3(b)(i)(D)(I) of the CAT NMS Plan. In the CAT Funding Model Approval Order, the SEC stated that “[i]n the Commission's view, it is reasonable for the Operating Committee to establish the length of the Historical Recovery Period to be no less than 24 months and no more than five years.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The Operating Committee determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans to the Participants in a timely fashion. The Operating Committee determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>69</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, the Operating Committee recognized that the total costs for Historical CAT Assessment 1 were less than the total costs for 2022 and 2023,
                        <SU>70</SU>
                        <FTREF/>
                         and therefore it would be reasonable and appropriate to recover costs subject to this filing over an approximate two-year period. Furthermore, the Operating Committee notes that 24 months is appropriate because it is not currently proposing that Industry Members be required to pay additional CAT fees with regard to another Historical CAT Assessment or CAT Fees with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model at 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>70</SU>
                             The total CAT costs for 2022 were approximately $186 million and the total CAT costs for 2023 are estimated to be approximately $233 million.
                        </P>
                    </FTNT>
                    <P>
                        The length of the Historical Recovery Period 1 and the reasons for its length are provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>71</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>71</SU>
                             Section 11.3(b)(iii)(B)(II)(C) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Total Executed Equivalent Share Volume</HD>
                    <P>
                        The calculation of Historical Fee Rate 1 also requires the determination of the projected total executed equivalent share volume of transactions in Eligible Securities for Historical Recovery Period 1. Under the CAT NMS Plan, the Operating Committee is required to “reasonably determine the projected total executed equivalent share volume of all transactions in Eligible Securities for each Historical Recovery Period based on the executed equivalent share volume of all transactions in Eligible Securities for the prior twelve months.” 
                        <SU>72</SU>
                        <FTREF/>
                         The Operating Committee is required to base its projection on the prior twelve months, but it may use its discretion to analyze the likely volume for the upcoming year. Such discretion would allow the Operating Committee to use its judgment when estimating projected total executed equivalent share volume if the volume over the prior twelve months was unusual or 
                        <PRTPAGE P="10568"/>
                        otherwise unfit to serve as the basis of a future volume estimate.
                        <SU>73</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>72</SU>
                             Section 11.3(b)(i)(E) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>73</SU>
                             CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <P>
                        The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. The Operating Committee has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. The Operating Committee determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is projected to be 7,685,722,694,558.88 executed equivalent shares.
                        <SU>74</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>74</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <P>
                        The projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1 and a description of the calculation of the projection is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide such information in a fee filing for a Historical CAT Assessment.
                        <SU>75</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>75</SU>
                             Section 11.3(b)(iii)(B)(II)(D) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Historical Fee Rate 1  </HD>
                    <P>
                        Historical Fee Rate 1 would be calculated by dividing Historical CAT Costs 1 by the reasonably projected total executed equivalent share volume of all transactions in Eligible Securities for Historical Recovery Period 1, as described in detail above.
                        <SU>76</SU>
                        <FTREF/>
                         Specifically, Historical Fee Rate 1 would be calculated by dividing $337,688,610 by 7,685,722,694,558.88. As a result, the Historical Fee Rate 1 would be $0.0000439371316687066 per executed equivalent share. Historical Fee Rate 1 is provided in this filing in accordance with the requirement in the CAT NMS Plan to provide the Historical Fee Rate in a fee filing for a Historical CAT Assessment.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             In approving the CAT Funding Model, the Commission stated that “[t]he calculation of the Historical Fee Rate by dividing the Historical CAT Costs by the projected total executed equivalent share volume of all transactions in Eligible Securities for the Historical Recovery Period is reasonable.” CAT Funding Model Approval Order at 62664.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             Section 11.3(b)(iii)(B)(II)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Past CAT Costs and Participants</HD>
                    <P>Participants would not be required to pay any fees associated with Historical CAT Assessment 1 as the Participants previously have paid all Past CAT Costs. The CAT NMS Plan explains that:</P>
                    <EXTRACT>
                        <P>
                            Because Participants previously have paid Past CAT Costs via loans to the Company, Participants would not be required to pay any Historical CAT Assessment. In lieu of a Historical CAT Assessment, the Participants' one-third share of Historical CAT Costs and such other additional Past CAT Costs as reasonably determined by the Operating Committee will be paid by the cancellation of loans made to the Company on a pro rata basis based on the outstanding loan amounts due under the loans.
                            <SU>78</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>78</SU>
                                 Section 11.3(b)(ii) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        The CAT NMS Plan further states that “Historical CAT Assessments are designed to recover two-thirds of the Historical CAT Costs.” 
                        <SU>79</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             
                            <E T="03">Id.</E>
                             In approving the CAT Funding Model, the Commission stated that “[t]he proposed allocation of the Historical CAT Assessment solely to CEBs and CEBBs, and ultimately Industry Members, is reasonable. The Historical CAT Assessment will still be divided into thirds,” as the Participants' one-third share of Historical CAT Costs will be paid by the cancellation of loans made to the Company. CAT Funding Model Approval Order at 62666.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(4) Monthly Fees</HD>
                    <P>
                        CEBBs and CEBSs would be required to pay fees for Historical CAT Assessment 1 on a monthly basis for the period in which Historical CAT Assessment 1 is in effect.
                        <SU>80</SU>
                        <FTREF/>
                         A CEBB or CEBS's fee for each month would be calculated based on the transactions in Eligible Securities executed by the CEBB or CEBS from the prior month.
                        <SU>81</SU>
                        <FTREF/>
                         Proposed paragraph A.1.a of the fee schedule would state that each CAT Executing Broker would receive its first invoice in April 2024, and “would receive an invoice each month thereafter in which Historical CAT Assessment 1 is in effect.” Proposed paragraph A.1.b. of the fee schedule would state that “Consolidated Audited Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” In addition, proposed paragraph B.1. of the fee schedule states that each CEBB and CEBS is required to pay its CAT fees “each month.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>80</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>81</SU>
                             
                            <E T="03">See</E>
                             proposed paragraph A.1.b. of the fee schedule.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(5) Actual Recovery Period for Historical CAT Assessment 1</HD>
                    <P>
                        The CAT NMS Plan states that, “[n]otwithstanding the length of the Historical Recovery Period used in calculating the Historical Fee Rate, each Historical CAT Assessment calculated using the Historical Fee Rate will remain in effect until all Historical CAT Costs for the Historical CAT Assessment are collected.” 
                        <SU>82</SU>
                        <FTREF/>
                         Accordingly, Historical CAT Assessment 1 will remain in effect until all Historical CAT Costs 1 have been collected. The actual recovery period for Historical CAT Assessment 1 may be shorter or longer than Historical Recovery Period 1 depending on the actual executed equivalent share volumes during the time that Historical CAT Assessment 1 is in effect.
                        <SU>83</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>82</SU>
                             Section 11.3(b)(i)(D)(II) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>83</SU>
                             In approving the CAT Funding Model, the Commission stated that “[i]n the Commission's view, it is reasonable for Industry Members to be charged a Historical CAT Assessment until all Historical CAT Costs for the Historical CAT Assessment are collected.” CAT Funding Model Approval Order at 62665.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(6) Consolidated Audit Trail Funding Fees</HD>
                    <P>To implement Historical CAT Assessment 1, a “Consolidated Audit Trail Funding Fees” section would be added to the Exchange's fee schedule, to include the proposed paragraphs described below.</P>
                    <HD SOURCE="HD3">(A) Fee Schedule for Historical CAT Assessment 1</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Each month in which a Historical CAT Assessment is in effect, each CEBB and each CEBS shall pay a fee for each transaction in Eligible Securities executed by the CEBB or CEBS from the prior month as set forth in CAT Data, where the Historical CAT Assessment for each transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by one-third and by the Historical Fee Rate reasonably determined pursuant to paragraph (b)(i) of this Section 11.3.
                            <SU>84</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>84</SU>
                                 Section 11.3(b)(iii)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, based on the factors discussed above, the Exchange proposes to add paragraph A.1. to the Consolidated Audit Trail Funding Fees section of its fee schedule. Proposed paragraph A.1.would state the following:</P>
                    <EXTRACT>
                        <P>
                            a. Each CAT Executing Broker shall receive its first invoice for Historical CAT Assessment 1 in April 2024, which shall set forth the Historical CAT Assessment 1 fees calculated based on transactions in March 2024, and shall receive an invoice for Historical CAT Assessment 1 for each month 
                            <PRTPAGE P="10569"/>
                            thereafter in which Historical CAT Assessment 1 is in effect.
                        </P>
                        <P>b. Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis. Each month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.</P>
                        <P>c. Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time. Consolidated Audit Trail, LLC will provide notice when Historical CAT Assessment 1 will no longer be in effect.</P>
                        <P>d. Each CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph B.</P>
                    </EXTRACT>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, “as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>85</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph A.1.b. of the fee schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 of $0.0000439371316687066 by one-third, and rounding the result to 6 decimal places.
                        <SU>86</SU>
                        <FTREF/>
                         The Operating Committee determined to use six decimal places to balance the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>85</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>86</SU>
                             Dividing $0.0000439371316687066 by three equals $0.00001464571055623553. Rounding $$0.00001464571055623553 to six decimal places equals $0.000015.
                        </P>
                    </FTNT>
                    <P>The proposed language in paragraph A.1.a. of the fee schedule would describe when CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1. Specifically, CAT Executing Brokers would receive their first monthly invoice for Historical CAT Assessment 1 in April 2024 and the fees set forth in that invoice would be calculated based on transactions executed in the prior month, that is, transactions executed in March 2024. The payment for the first invoice would be required within 30 days after the receipt of the first invoice (unless a longer period is indicated), as described in proposed paragraph B.2. of the fee schedule.</P>
                    <P>Proposed paragraph A.1.a. of the fee schedule also would describe the monthly cadence of the invoices for Historical CAT Assessment 1. Specifically, after the first invoices are provided to CAT Executing Brokers in April 2024, invoices will be sent to CAT Executing Brokers each month thereafter while Historical CAT Assessment 1 is in effect.</P>
                    <P>Proposed paragraph A.1.b. of the fee schedule would describe the invoices for Historical CAT Assessment 1. Proposed paragraph A.1.b. of the fee schedule would state that “Consolidated Audit Trail, LLC shall provide each CAT Executing Broker with an invoice for Historical CAT Assessment 1 on a monthly basis.” Proposed paragraph A.1.b. of the fee schedule also would describe the fees to be set forth in the invoices for Historical CAT Assessment 1. Specifically, it would state that “[e]ach month, such invoices shall set forth a fee for each transaction in Eligible Securities executed by the CAT Executing Broker in its capacity as a CAT Executing Broker for the Buyer (“CEBB”) and/or the CAT Executing Broker for the Seller (“CEBS”) (as applicable) from the prior month as set forth in CAT Data. The fee for each such transaction will be calculated by multiplying the number of executed equivalent shares in the transaction by the fee rate of $0.000015 per executed equivalent share.”</P>
                    <P>
                        Furthermore, proposed paragraph A.1.c. of the fee schedule would describe how long Historical CAT Assessment 1 would remain in effect. It would state that “Historical CAT Assessment 1 will remain in effect until $225,125,740 (two-thirds of Historical CAT Costs 1) are collected from CAT Executing Brokers collectively, which is estimated to be approximately two years, but could be for a longer or shorter period of time.” This proposed paragraph would further state that “Consolidated Audit Trail, LLC will be [
                        <E T="03">sic</E>
                        ] provide notice when Historical CAT Assessment 1 will no longer be in effect.”
                    </P>
                    <P>Historical CAT Assessment 1 will be assessed for all transactions executed in each month through the end of the month in which two-thirds of Historical CAT Costs 1 are assessed, and then CAT LLC will provide notice that Historical CAT Assessment 1 is no longer in effect. Since Historical CAT Assessment 1 is a monthly fee based on transaction volume from the prior month, Historical CAT Assessment 1 may collect more than two-thirds of Historical CAT Costs 1. To the extent that occurs, any excess money collected during the final month in which Historical CAT Assessment 1 is in effect will be used to offset future fees and/or to fund the reserve for the CAT.</P>
                    <P>Finally, proposed paragraph A.1.d. of the fee schedule sets forth the requirement for the CAT Executing Brokers to pay the invoices for Historical CAT Assessment 1. It would state that “[e]ach CAT Executing Broker shall be required to pay each invoice for Historical CAT Assessment 1 in accordance with paragraph B.”</P>
                    <HD SOURCE="HD3">(B) Manner of Payment</HD>
                    <P>
                        The Exchange proposes to add paragraph B.1. to the “Consolidated Audit Trail Funding Fees” section of its fee schedule to describe the manner of payment of Industry Member CAT fees. The CAT NMS Plan requires the Operating Committee to establish a system for the collection of CAT fees.
                        <SU>87</SU>
                        <FTREF/>
                         The Plan Processor has established a billing system for CAT fees.
                        <SU>88</SU>
                        <FTREF/>
                         Therefore, the Exchange proposes to require CAT Executing Brokers to pay Historical CAT Assessment 1 in accordance with such system. Accordingly, proposed paragraph B.1. would state that “[e]ach CAT Executing Broker shall pay its CAT fees as required pursuant to paragraph A. each month to the Consolidated Audit Trail, LLC in the manner prescribed by the Consolidated Audit Trail, LLC.”
                    </P>
                    <FTNT>
                        <P>
                            <SU>87</SU>
                             Section 11.4 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>88</SU>
                             The billing process and system are described in CAT Alert 2023-02 as well as the CAT FAQs related to the billing of CAT fees, the Industry Member CAT Reporter Portal User Guide, the FCAT Industry Member Onboarding Guide, the FCAT Connectivity Supplement for Industry Members and the CAT Billing Webinars (dated September 28, 2023 and November 7, 2023), each available on the CAT website.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(C) Failure To Pay CAT Fees</HD>
                    <P>The CAT NMS Plan further states that:</P>
                    <EXTRACT>
                        <P>
                            Participants shall require each Industry Member to pay all applicable fees authorized under this Article XI within thirty (30) days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If an Industry Member fails to pay any such fee when due (as determined in accordance with the preceding sentence), such Industry Member shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser 
                            <PRTPAGE P="10570"/>
                            of: (a) the Prime Rate plus 300 basis points; or (b) the maximum rate permitted by applicable law.
                            <SU>89</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>89</SU>
                                 Section 11.4 of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>Accordingly, the Exchange proposes to add this requirement to the Exchange's fee schedule. Proposed paragraph B.2. of the fee schedule would state:</P>
                    <EXTRACT>
                        <P>Each CAT Executing Broker shall pay the CAT fees required pursuant to paragraph A. within thirty days after receipt of an invoice or other notice indicating payment is due (unless a longer payment period is otherwise indicated). If a CAT Executing Broker fails to pay any such CAT fee when due, such CAT Executing Broker shall pay interest on the outstanding balance from such due date until such fee is paid at a per annum rate equal to the lesser of (i) the Prime Rate plus 300 basis points, or (ii) the maximum rate permitted by applicable law.</P>
                    </EXTRACT>
                    <HD SOURCE="HD3">(7) Historical CAT Assessment Details</HD>
                    <P>The CAT NMS Plan states that:</P>
                    <EXTRACT>
                        <P>
                            Details regarding the calculation of a CAT Executing Broker's Historical CAT Assessment will be provided upon request to such CAT Executing Broker. At a minimum, such details would include each CAT Executing Broker's executed equivalent share volume and corresponding fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise than on an exchange, and (3) by buy-side transactions and sell-side transactions.
                            <SU>90</SU>
                            <FTREF/>
                        </P>
                        <FTNT>
                            <P>
                                <SU>90</SU>
                                 Section 11.3(a)(iv)(A) of the CAT NMS Plan.
                            </P>
                        </FTNT>
                    </EXTRACT>
                    <P>
                        Such information would provide CEBBs and CEBSs with the ability to understand the details regarding the calculation of their Historical CAT Assessment.
                        <SU>91</SU>
                        <FTREF/>
                         CAT LLC will provide CAT Executing Brokers with these details regarding the calculation of their Historical CAT Assessments on their monthly invoice for the Historical CAT Assessment.
                    </P>
                    <FTNT>
                        <P>
                            <SU>91</SU>
                             In approving the CAT Funding Model, the Commission stated that, “[i]n the Commission's view, providing CAT Execut[ing] Brokers information regarding the calculation of their CAT Fees will aid in transparency and permit CAT Execut[ing] Brokers to confirm the accuracy of their invoices for CAT Fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>
                        In addition, CAT LLC will make certain aggregate statistics regarding Historical CAT Assessments publicly available. Specifically, the CAT NMS Plan states that, “[f]or each Historical CAT Assessment, at a minimum, CAT LLC will make publicly available the aggregate executed equivalent share volume and corresponding aggregate fee by (1) Listed Options, NMS Stocks and OTC Equity Securities, (2) by transactions executed on each exchange and transactions executed otherwise on an exchange, and (3) by buy-side transactions and sell-side transactions.” 
                        <SU>92</SU>
                        <FTREF/>
                         Such aggregate statistics will be available on the CAT website.
                    </P>
                    <FTNT>
                        <P>
                            <SU>92</SU>
                             Section 11.3(a)(iv)(B) of the CAT NMS Plan. In approving the CAT Funding Model, the Commission stated that “[t]he publication of the aggregate executed equivalent share volume and aggregate fee is appropriate because it would allow Participants and CAT Executing Brokers a high-level validation of executed volume and fees.” CAT Funding Model Approval Order at 62667.
                        </P>
                    </FTNT>
                    <P>Furthermore, CAT LLC will make publicly available on the CAT website the total amount invoiced each month that Historical CAT Assessment 1 is in effect as well as the total amount invoiced for Historical CAT Assessment 1 for all months since its commencement. CAT LLC also will make publicly available on the CAT website the total costs to be collected from Industry Members for Historical CAT Assessment 1. By reviewing statistics regarding how much has been invoiced and how much remains to be invoiced for Historical CAT Assessment 1, Industry Members would have sufficient information to reasonably track how much longer Historical CAT Assessment 1 is likely to be in place.</P>
                    <HD SOURCE="HD3">(8) Implementation Assistance</HD>
                    <P>To assist Industry Members with compliance with the commencement of Historical CAT Assessment 1, CAT LLC will make available to CAT Executing Brokers four months of mock invoices prior to the commencement of Historical CAT Assessment 1. Specifically, CAT Executing Brokers will receive mock invoices based on transaction data from November 2023, December 2023, January 2024 and February 2024. The mock invoices will be in the same form as the actual, payable invoices, including both the relevant transaction data and the corresponding fee. However, no payments will be required in response to such mock invoices; they are to be used solely to assist CAT Executing Brokers with the development of their processes for paying the CAT fees. Such data will provide CAT Executing Brokers with a preview of the transaction data used in creating the invoices for Historical CAT Assessment 1 fees, as the data will be the same as data provided in actual invoices. Such data preview is intended to facilitate the payment of Historical CAT Assessment 1.</P>
                    <HD SOURCE="HD3">(9) Financial Accountability Milestones</HD>
                    <P>
                        The CAT NMS Plan states that “[n]o Participant will make a filing with the SEC pursuant to Section 19(b) of the Exchange Act regarding any Historical CAT Assessment until any applicable Financial Accountability Milestone described in Section 11.6 has been satisfied.” 
                        <SU>93</SU>
                        <FTREF/>
                         The CAT NMS Plan further states that “in all filings submitted by the Participants to the Commission under Section 19(b) of the Exchange Act, to establish or implement Post-Amendment Industry Member Fees pursuant to this Article, . . . the Participants shall clearly indicate whether such fees are related to Post-Amendment Expenses incurred during Period 1, Period 2, Period 3, or Period 4.” 
                        <SU>94</SU>
                        <FTREF/>
                         As discussed in detail below, all applicable Financial Accountability Milestones for Historical CAT Assessment 1—that is, Period 1, Period 2 and Period 3 of the Financial Accountability Milestones—have been satisfied. Furthermore, as discussed below, this filing clearly indicates that Historical CAT Assessment 1 relates to Post-Amendment Expenses incurred during Periods 1, 2 and 3 of the Financial Accountability Milestones.
                    </P>
                    <FTNT>
                        <P>
                            <SU>93</SU>
                             Section 11.3(b)(iii)(B)(III) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>94</SU>
                             Section 11.6(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Period 1 of the Financial Accountability Milestones</HD>
                    <P>
                        In accordance with Section 11.6(b) of the CAT NMS Plan, Historical CAT Assessment 1 seeks to recover costs that are related to “all fees, costs, and expenses (including legal and consulting fees, costs, and expenses) incurred by or for the Company in connection with the development, implementation and operation of the CAT from the effective date of [Section 11.6 of the CAT NMS Plan] until such time as Full Implementation of CAT NMS Plan Requirements has been achieved” 
                        <SU>95</SU>
                        <FTREF/>
                         (“Post-Amendment Expenses”) incurred during FAM Period 1. FAM Period 1 began on June 22, 2020, the effective date of Section 11.6 of the CAT NMS Plan, and concluded on July 31, 2020, the date of Initial Industry Member Core Equity and Options Reporting. Section 1.1 of the CAT NMS Plan defines “Initial Industry Member Core Equity and Options Reporting” as:
                    </P>
                    <FTNT>
                        <P>
                            <SU>95</SU>
                             Section 11.6 of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <EXTRACT>
                        <P>The reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of both: (a) equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information; and (b) options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information.</P>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of 
                        <PRTPAGE P="10571"/>
                        the date identified in the Participants' Quarterly Progress Reports.
                        <SU>96</SU>
                        <FTREF/>
                         As indicated by the Participants' Quarterly Progress Report for the third quarter of 2020,
                        <SU>97</SU>
                        <FTREF/>
                         Initial Industry Member Core Equity and Option Reporting was completed on schedule on July 22, 2020, which is prior to the July 31, 2020 deadline.
                    </P>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             The Quarterly Progress Reports are available at 
                            <E T="03">https://www.catnmsplan.com/implementation-plan.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>97</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020) and Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Under the FAM Period 1 requirement of Initial Industry Member Core Equity and Options Reporting, Industry Members—excluding Small Industry Members that are not OATS reporters—were required to report two categories of data to the CAT: equites transaction data and options transaction data (both excluding Customer Account Information, Customer-ID, and Customer Identifying Information) by July 31, 2020. Pursuant to exemptive relief provided by the Commission, the Commission authorized the Participants' Compliance Rules to allow core equity reporting for Industry Members (Phase 2a) to begin on June 22, 2020 and core options reporting for Industry Members (Phase 2b) to begin on July 20, 2020.
                        <SU>98</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>98</SU>
                             
                            <E T="03">See</E>
                             Phased Reporting Exemptive Relief Order. Under the CAT NMS Plan as adopted, the Participants were required, through their Compliance Rules, to require their Large Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2018, and to require their Small Industry Members to commence reporting Industry Member Data to the Central Repository by November 15, 2019. Sections 6.7(a)(v) and (vi) of the CAT NMS Plan. The SEC granted exemptive relief from these provisions of the CAT NMS Plan to allow for the phased implementation of Industry Member reporting via five phases addressing the reporting requirements for Phase 2a Industry Member Data, Phase 2b Industry Member Data, Phase 2c Industry Member Data, Phase 2d Industry Member Data and Phase 2e Industry Member Data.
                        </P>
                    </FTNT>
                    <P>
                        In adopting the FAMs, the Commission stated that the equities transaction reporting required for FAM Period 1 “is consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Equities 2a file submission and data integrity validations.' ” 
                        <SU>99</SU>
                        <FTREF/>
                         The Phase 2a Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the following data related to Eligible Securities that are equities:
                    </P>
                    <FTNT>
                        <P>
                            <SU>99</SU>
                             Securities Exchange Act Rel. No. 88890, 85 FR 31322, 31330 n.97 (“FAM Adopting Release”).
                        </P>
                    </FTNT>
                    <P>• All events and scenarios covered by OATS, which includes information related to the receipt or origination of orders, order transmittal, and order modifications, cancellations and executions;</P>
                    <P>
                        • Reportable Events for: (1) proprietary orders, including market maker orders, for Eligible Securities that are equities; (2) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) sent to a national securities exchange or FINRA's Alternative Display Facility (“ADF”); (3) electronic quotes in unlisted Eligible Securities (
                        <E T="03">i.e.,</E>
                         OTC Equity Securities) received by an Industry Member operating an interdealer quotation system (“IDQS”); and (4) electronic quotes in unlisted Eligible Securities sent to an IDQS or other quotation system not operated by a Participant or Industry Member;
                    </P>
                    <P>• Firm Designated IDs (“FDIDs”), which Industry Members must report to the CAT as required by Sections 6.3(d)(i)(A) and 6.4(d)(ii)(C) of the CAT NMS Plan.</P>
                    <P>• Industry Members would be required to report all street side representative orders, including both agency and proprietary orders and mark such orders as representative orders, except in certain limited exceptions as described in the Industry Member Technical Specifications;</P>
                    <P>• The link between the street side representative order and the order being represented when: (1) the representative order was originated specifically to represent a single order received either from a customer or another broker-dealer; and (2) there is (a) an existing direct electronic link in the Industry Member's system between the order being represented and the representative order and (b) any resulting executions are immediately and automatically applied to the represented order in the Industry Member's system;</P>
                    <P>• Manual and Electronic Capture Time for Manual Order Events;</P>
                    <P>• Special handling instructions for the original receipt or origination of an order during Phase 2a; and</P>
                    <P>• When routing an order, whether the order was routed as an intermarket sweep order (“ISO”).</P>
                    <P>
                        In Phase 2a, Industry Members were not required to report modifications of a previously routed order in certain limited instances, nor were they required to report a cancellation of an order received from a Customer after the order has been executed.
                        <SU>100</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>100</SU>
                             Phased Reporting Exemptive Relief Order at 23076-78.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Equities 2a file submission and data integrity validation (Large Industry Members and Small OATS Reporters)” was completed on June 22, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “equities transaction data, excluding Customer Account Information, Customer-ID, and Customer Identifying Information” was completed on June 22, 2020.</P>
                    <P>
                        In adopting the FAMs, the Commission stated that the options transaction reporting required for FAM Period 1 is “consistent with the functionality that the Participants describe on the CAT NMS Plan website as `Production Go-Live for Options 2b file submission and data integrity validations.' ” 
                        <SU>101</SU>
                        <FTREF/>
                         The Phase 2b Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order, and includes the Industry Member Data related to Eligible Securities that are options and related to simple electronic option orders, excluding electronic paired option orders. A simple electronic option order is an order to buy or sell a single option that is not related to or dependent on any other transaction for pricing and timing of execution that is either received or routed electronically by an Industry Member. Electronic receipt of an order is defined as the initial receipt of an order by an Industry Member in electronic form in standard format directly into an order handling or execution system. Electronic routing of an order is the routing of an order via electronic medium in standard format from one Industry Member's order handling or execution system to an exchange or another Industry Member. An electronic paired option order is an electronic option order that contains both the buy and sell side that is routed to another Industry Member or exchange for crossing and/or price improvement as a single transaction on an exchange. Responses to auctions of simple orders and paired simple orders would be reportable in Phase 2b. Furthermore, combined orders in options would be treated in Phase 2b in the same way as equity representative orders are treated in Phase 2a. A combined order would mean, as permitted by SRO rules, a single, simple order in Listed Options created by combining individual, simple orders in Listed Options from a customer with the same exchange origin code before routing to an exchange. During Phase 2b, the single combined order sent to an exchange must be reported and marked as a combined order, but the linkage to the underlying 
                        <PRTPAGE P="10572"/>
                        orders is not required to be reported until Phase 2d.
                        <SU>102</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>101</SU>
                             FAM Adopting Release at 31330, n.98.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>102</SU>
                             Phased Reporting Exemptive Relief Order at 23078.
                        </P>
                    </FTNT>
                    <P>The Quarterly Progress Report for the third quarter of 2020 states that “Interim Step: Production Go-Live for Options 2b file submission and data integrity validations” was completed on July 20, 2020. Accordingly, the FAM Period 1 requirement of reporting by Industry Members (excluding Small Industry Members that are not OATS reporters) of “options transaction data, excluding Customer Account Information, Customer-ID and Customer Identifying Information” was completed on July 20, 2020.</P>
                    <P>As discussed above, the Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from June 22, 2020 through July 31, 2020. The total costs for this period, as discussed above, are $6,377,343. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remaining two-thirds, with CEBBs paying one-third ($2,125,781) and CEBSs paying one-third ($2,125,781).</P>
                    <HD SOURCE="HD3">(B) Period 2 of the Financial Accountability Milestones</HD>
                    <P>Historical CAT Assessment 1 seeks to recover costs that are related to Post-Amendment Expenses incurred during FAM Period 2. FAM Period 2 began on August 1, 2020, and concluded on December 31, 2020, the date of the Full Implementation of Core Equity Reporting. Section 1.1 of the CAT NMS Plan defines “Full Implementation of Core Equity Reporting” as:</P>
                    <EXTRACT>
                        <FP>the point at which: (a) Industry Member reporting (excluding reporting by Small Industry Members that are not OATS reporters) for equities transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, is developed, tested, and implemented at a 5% Error Rate or less and with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, and trade reporting facilities linkage to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, excluding linkage of representative orders, from order origination through order execution or order cancellation; and (b) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3 and Section 8.2.1 incorporates the Industry Member equities transaction data described in condition (a) and is available to the Participants and to the Commission. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2020,
                        <SU>103</SU>
                        <FTREF/>
                         Full Implementation of Core Equity Reporting was completed on schedule by December 31, 2020.
                    </P>
                    <FTNT>
                        <P>
                            <SU>103</SU>
                             Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the Full Implementation of Core Equity Reporting requires the satisfaction of two prongs. The first prong requires Participants to have fully implemented the first phase of equities transaction reporting for Industry Members (excluding Small Industry Members that are not OATS reporters) at an Error Rate of less than 5%. In addition, equities transaction data produced by the CAT at this stage must also be sufficiently interlinked so as to permit full analysis of an order's lifecycle across the national market, excluding full linkage of representative orders. As CAT LLC reported on its Quarterly Progress Reports, Phase 2a was fully implemented as of October 26, 2020, including intra-firm, inter-firm, national securities exchange, and trade reporting facilities linkages.
                        <SU>104</SU>
                        <FTREF/>
                         In addition to the reporting of Phase 2a Industry Member Data as described above with regard to FAM Period 1, the following linkage data was added to the CAT as described in the Quarterly Progress Reports for the third and fourth quarter of 2020:
                    </P>
                    <FTNT>
                        <P>
                            <SU>104</SU>
                             For a description of the requirements of Phases 2a, 
                            <E T="03">see</E>
                             Phased Reporting Exemptive Relief Order.
                        </P>
                    </FTNT>
                    <P>
                        • “Production Go-Live for Equities 2a Intrafirm Linkage validations” was completed on 7/27/2020; 
                        <SU>105</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>105</SU>
                             Q3 2020 Quarterly Progress Report (Oct. 20, 2021).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Firm to Firm Linkage validations for Equities 2a (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020; and</P>
                    <P>• “Production Go-Live for Equities 2a Exchange and TRF Linkage validations (Large Industry Members and Small OATS Reporters)” was completed on October 26, 2020.</P>
                    <P>Furthermore, as CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2020, the average overall error rate for Phase 2a Industry Member Data was less than 5% as of December 31, 2020. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The second prong of this FAM requires that the equities transaction data collected by the CAT at this stage be made available to regulators through two basic query tools required by the CAT NMS Plan—a targeted query tool that will enable regulators to retrieve data via an online query screen with a variety of predefined selection criteria, and a user-defined direct query tool that will provide regulators with the ability to query data using all available attributes and data sources.
                        <SU>106</SU>
                        <FTREF/>
                         As CAT LLC reported on its Quarterly Progress Reports, the query tool functionality incorporating the data from Phase 2a was available to the Participants and the Commission as of December 31, 2020.
                        <SU>107</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>106</SU>
                             Section 6.10(c)(i)(A) of the CAT NMS Plan requires the Plan Processor to “provide Participants and the SEC with access to all CAT Data stored in the Central Repository” via an “online targeted query tool.” Appendix D, Sections 8.1.1-8.1.3 of the CAT NMS Plan describes the required functionality associated with this regulatory tool. Appendix D, Section 8.2.1 describes the required functionality associated with a user-defined direct query tool that will “deliver large sets of data that can then be used in internal surveillance or market analysis applications.”
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>107</SU>
                             
                            <E T="03">See</E>
                             Q3 2020 Quarterly Progress Report (Oct. 30, 2020); Updated Q3 2020 Quarterly Progress Report (Jan. 29, 2021); and Q4 2020 Quarterly Progress Report (Jan. 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>108</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>108</SU>
                             Securities Exchange Act Rel. No. 98848 (Nov. 2, 2023), 88 FR 77128, 77129 n.13 (Nov. 8, 2023) (“Settlement Exemptive Order”).
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from August 1, 2020 through December 31, 2020. The total costs for this period, as discussed above, are $42,976,478. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($14,325,492.70) and CEBSs paying one-third ($14,325,492.70).
                    </P>
                    <HD SOURCE="HD3">(C) Period 3 of the Financial Accountability Milestones</HD>
                    <P>
                        Historical CAT Assessment 1 seeks to recover costs that are related to Post-
                        <PRTPAGE P="10573"/>
                        Amendment Expenses incurred during FAM Period 3. FAM Period 3 began on January 1, 2021, and concluded on December 31, 2021, the date of the Full Availability and Regulatory Utilization of Transactional Database Functionality. Section 1.1 of the CAT NMS Plan defines “Full Availability and Regulatory Utilization of Transactional Database Functionality” as:
                    </P>
                    <EXTRACT>
                        <FP>the point at which: (a) reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders; (b) Industry Member reporting for equities transactions and simple electronic options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with sufficient intra-firm linkage, inter-firm linkage, national securities exchange linkage, trade reporting facilities linkage, and representative order linkages (including any equities allocation information provided in an Allocation Report) to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, is developed, tested, and implemented at a 5% Error Rate or less; (c) Industry Member reporting for manual options transactions and complex options transactions, excluding Customer Account Information, Customer-ID, and Customer Identifying Information, with all required linkages to permit the Participants and the Commission to analyze the full lifecycle of an order across the national market system, from order origination through order execution or order cancellation, including any options allocation information provided in an Allocation Report, is developed, tested, and fully implemented; (d) the query tool functionality required by Section 6.10(c)(i)(A) and Appendix D, Sections 8.1.1-8.1.3, Section 8.2.1, and Section 8.5 incorporates the data described in conditions (b)-(c) and is available to the Participants and to the Commission; and (e) the requirements of Section 6.10(a) are met. This Financial Accountability Milestone shall be considered complete as of the date identified in a Quarterly Progress Report meeting the requirements of Section 6.6(c).</FP>
                    </EXTRACT>
                    <P>
                        Under Section 1.1 of the CAT NMS Plan, this Financial Accountability Milestone is considered complete as of the date identified in the Participants' Quarterly Progress Reports. As indicated by the Participants' Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>109</SU>
                        <FTREF/>
                         Full Availability and Regulatory Utilization of Transactional Database Functionality was completed on schedule by December 31, 2021.
                    </P>
                    <FTNT>
                        <P>
                            <SU>109</SU>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        Specifically, the “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires the satisfaction of five prongs. The first prong requires that reporting to the Order Audit Trail System (“OATS”) is no longer required for new orders. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021,
                        <SU>110</SU>
                        <FTREF/>
                         FINRA retired OATS effective September 1, 2021.
                        <SU>111</SU>
                        <FTREF/>
                         Accordingly, after the retirement of OATS, reporting to OATS was no longer required.
                    </P>
                    <FTNT>
                        <P>
                            <SU>110</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>111</SU>
                             Securities Exchange Act Rel. No. 92239 (June 23, 2021), 86 FR 34293 (June 29, 2021).
                        </P>
                    </FTNT>
                    <P>
                        In addition to Phase 2a and Phase 2b Industry Member Data, the second and third prongs of “Full Availability and Regulatory Utilization of Transactional Database Functionality” require Industry Member reporting of Phase 2c Industry Member Data and Phase 2d Industry Member Data. The Phase 2c Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. That Order states that “Phase 2c Industry Member Data” is Industry Member Data related to Eligible Securities that are equities other than Phase 2a Industry Member Data, Phase 2d Industry Member Data, or Phase 2e Industry Member Data. Specifically, the Phase 2c Industry Member Data includes Industry Member Data that is related to Eligible Securities that are equities and that is related to: (1) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (2) quotes in unlisted Eligible Securities sent to an IDQS operated by a CAT Reporter (reportable by the Industry Member sending the quotes) (except for quotes reportable in Phase 2d, as discussed below); (3) electronic quotes in listed equity Eligible Securities (
                        <E T="03">i.e.,</E>
                         NMS stocks) that are not sent to a national securities exchange or FINRA's Alternative Display Facility; (4) reporting changes to client instructions regarding modifications to algorithms; (5) marking as a representative order any order originated to work a customer order in price guarantee scenarios, such as a guaranteed VWAP; (6) flagging rejected external routes to indicate a route was not accepted by the receiving destination; (7) linkage of duplicate electronic messages related to a Manual Order Event between the electronic event and the original manual route; (8) special handling instructions on order route reports (other than the ISO, which is required to be reported in Phase 2a); (9) quote identifier on trade events; (10) reporting of LTIDs (if applicable) for accounts with Reportable Events that are reportable to CAT as of and including Phase 2c; (11) reporting of date account opened or Account Effective Date71 (as applicable) for accounts and reporting of a flag indicating the Firm Designated ID type as account or relationship; (12) order effective time for orders that are received by an Industry Member and do not become effective until a later time; (13) the modification or cancellation of an internal route of an order; and (14) linkages to the customer orders(s) being represented for representative order scenarios, including agency average price trades, net trades, aggregated orders, and disconnected Order Management System (“OMS”)—Execution Management System (“EMS”) scenarios, as required in the Industry Member Technical Specifications.
                        <SU>112</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>112</SU>
                             Phase Reporting Exemptive Relief Order at 23078-79.
                        </P>
                    </FTNT>
                      
                    <P>
                        Phase 2c Industry Member Data also includes electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are equities and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: (1) an equity bid or offer is displayed publicly or has been communicated (a) for listed securities to the Alternative Display Facility (ADF) operated by FINRA; or (b) for unlisted equity securities to an “interdealer quotation system,” as defined in FINRA Rule 6420(c); or (2) an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing; 
                        <E T="03">i.e.,</E>
                         no further manual or electronic action is required by the responder providing the quote in order to execute or cause a trade to be executed). With respect to OTC Equity Securities, OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter (other than such an IDQS that does not match and execute orders) are reportable by the Industry Member sending them in Phase 2c. Accordingly, any response to a request for quote or other form of solicitation response provided in a standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this quote definition (
                        <E T="03">i.e.,</E>
                         an equity bid or offer which is accessible electronically by customers or other market participants and is immediately actionable for execution or routing) would be reportable in Phase 2c.
                        <SU>113</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>113</SU>
                             
                            <E T="03">Id.</E>
                             at 23079.
                        </P>
                    </FTNT>
                    <P>
                        The Phase 2d Industry Member Data is described in detail in the SEC's Phased Reporting Exemptive Relief Order. “Phase 2d Industry Member Data” is Industry Member Data that is related to Eligible Securities that are 
                        <PRTPAGE P="10574"/>
                        options other than Phase 2b Industry Member Data, Industry Member Data that is related to Eligible Securities that are equities other than Phase 2a Industry Member Data or Phase 2c Industry Member Data, and Industry Member Data other than Phase 2e Industry Member Data. Phase 2d Industry Member Data includes with respect to the Eligible Securities that are options: (1) simple manual orders; (2) electronic and manual paired orders; (3) all complex orders with linkages to all CAT-reportable legs; (4) LTIDs (if applicable) for accounts with Reportable Events for Phase 2d; (5) date account opened or Account Effective Date (as applicable) for accounts with an LTID and flag indicating the Firm Designated ID type as account or relationship for such accounts; (6) Allocation Reports as required to be recorded and reported to the Central Repository pursuant to Section 6.4(d)(ii)(A)(1) of the CAT NMS Plan; (7) the modification or cancellation of an internal route of an order; and (8) linkage between a combined order and the original customer orders. Phase 2d Industry Member Data also would include electronic quotes that are provided by or received in a CAT Reporter's order/quote handling or execution systems in Eligible Securities that are options and are provided by an Industry Member to other market participants off a national securities exchange under the following conditions: a listed option bid or offer which is accessible electronically by customers or other market participants and is immediately actionable (
                        <E T="03">i.e.,</E>
                         no further action is required by the responder providing the quote in order to execute or cause a trade to be executed). Accordingly, any response to a request for quote or other form of solicitation response provided in standard electronic format (
                        <E T="03">e.g.,</E>
                         FIX) that meets this definition is reportable in Phase 2d for options.
                        <SU>114</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>114</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        Phase 2d Industry Member Data also includes with respect to Eligible Securities that are options or equities (1) receipt time of cancellation and modification instructions through Order Cancel Request and Order Modification Request events; (2) modifications of previously routed orders in certain instances; and (3) OTC Equity Securities quotes sent by an Industry Member to an IDQS operated by an Industry Member CAT Reporter that does not match and execute orders. In addition, subject to any exemptive or other relief, Phase 2d Industry Member Data will include verbal or manual quotes on an exchange floor or in the over-the-counter market, where verbal quotes and manual quotes are defined as bids or offers in Eligible Securities provided verbally or that are provided or received other than via a CAT Reporter's order handling and execution system (
                        <E T="03">e.g.,</E>
                         quotations provided via email or instant messaging).
                        <SU>115</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>115</SU>
                             
                            <E T="03">Id.</E>
                             at 23079-80.
                        </P>
                    </FTNT>
                    <P>
                        The Quarterly Progress Report for the fourth quarter of 2021 states that “Phase 2a was fully implemented as of October 26, 2020;” “Phase 2b was fully implemented as of January 4, 2021;” “Phase 2c was implemented as of April 26, 2021;” and “Phase 2d was fully implemented as of December 13, 2021.” 
                        <SU>116</SU>
                        <FTREF/>
                         The Quarterly Progress Reports for 2021 provide additional detail regarding the implementation of these steps including the following:
                    </P>
                    <FTNT>
                        <P>
                            <SU>116</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2a, 2b and 2c (Large Industry Members)” was completed on April 26, 2021;</P>
                    <P>• “FCAT Plan Processor creates linkages of the lifecycle of order events based on the received data through Phase 2d Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Large Industry Members)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2b reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Equities 2c reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “Production Go-Live for Options 2d reporting requirements (Small OATS Reporters and Small Non-OATS Reporters)” was completed on December 13, 2021;</P>
                    <P>• “LTID Account Information Reporting Go-Live for Phases 2d (Large Industry Members)” was completed on December 13, 2021; and</P>
                    <P>
                        • “LTID Account Information Reporting Go-Live for Phases 2a, 2b, 2c and 2d (Small Industry Members)” was completed on December 13, 2021.
                        <SU>117</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>117</SU>
                             
                            <E T="03">See</E>
                             Q2 2021 Quarterly Progress Report (July 27, 2021); and Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>The third prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” also imposes an Error Rate requirement of 5% or less. The Quarterly Progress Report for the fourth quarter of 2021 states the average overall error rate was less than 5% as of December 31, 2021. The average overall error rate was calculated by dividing the compliance errors by processed records.</P>
                    <P>
                        The fourth prong of “Full Availability and Regulatory Utilization of Transactional Database Functionality” requires that the data collected by the CAT at this stage be made available to regulators through an online targeted query tool and a user-defined direct query tool. As CAT LLC reported on its Quarterly Progress Report for the fourth quarter of 2021, the query tool functionality incorporating the data from Phases 2a, 2b, 2c and 2d was available to the Participants and to the Commission as of December 31, 2021.
                        <SU>118</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>118</SU>
                             
                            <E T="03">See</E>
                             Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                    <P>
                        The fifth prong requires the requirements of Section 6.10(a) of the CAT NMS Plan to have been met. Section 6.10(a) of the CAT NMS Plan requires the Participants to use the tools described in Appendix D to “develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository.” The Exchange implemented a surveillance system, or enhanced existing surveillance systems, reasonably designed to make use of the consolidated information contained in the Central Repository as of December 31, 2021 in accordance with Section 6.10(a) of the CAT NMS Plan.
                        <SU>119</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>119</SU>
                             
                            <E T="03">See</E>
                             Q1 2021 Quarterly Progress Report (April 30, 2021); Q2 2021 Quarterly Progress Report (July 27, 2021); Q3 2021 Quarterly Progress Report (Nov. 1, 2021); Q4 2021 Quarterly Progress Report (Jan. 17, 2022).
                        </P>
                    </FTNT>
                      
                    <P>
                        The Commission has determined that the Participants have sufficiently complied with the conditions set forth in the 2020 Orders and with the technical requirements for Quarterly Progress Reports set forth in Section 6.6(c) of the CAT NMS Plan for purposes of determining compliance with this FAM.
                        <SU>120</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>120</SU>
                             Settlement Exemptive Order at 77129 n.13.
                        </P>
                    </FTNT>
                    <P>
                        As discussed above, Historical CAT Costs 1 to be recovered via Historical CAT Assessment 1 would include fees, costs and expenses incurred by or for the Company in connection with the development, implementation and operation of the CAT during the period from January 1, 2021 through December 31, 2021. The total costs for this period, 
                        <PRTPAGE P="10575"/>
                        as discussed above, are $144,415,268. Participants would remain responsible for one-third of this cost (which they have previously paid), and Industry Members would be responsible for the remain [
                        <E T="03">sic</E>
                        ] two-thirds, with CEBBs paying one-third ($48,138,422.70) and CBSs paying one-third ($48,138,422.70).
                    </P>
                    <HD SOURCE="HD3">2. Statutory Basis</HD>
                    <P>
                        The Exchange believes the proposed rule change is consistent with the requirements of the Exchange Act. The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,
                        <SU>121</SU>
                        <FTREF/>
                         which requires, among other things, that the Exchange's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest, and not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(4) of the Act,
                        <SU>122</SU>
                        <FTREF/>
                         because it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. The Exchange further believes that the proposed rule change is consistent with Section 6(b)(8) of the Act,
                        <SU>123</SU>
                        <FTREF/>
                         which requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Exchange Act. These provisions also require that the Exchange be “so organized and [have] the capacity to be able to carry out the purposes” of the Act and “to comply, and . . . to enforce compliance by its members and persons associated with its members,” with the provisions of the Exchange Act.
                        <SU>124</SU>
                        <FTREF/>
                         Accordingly, a reasonable reading of the Act indicates that it intended that regulatory funding be sufficient to permit an exchange to fulfill its statutory responsibility under the Act, and contemplated that such funding would be achieved through equitable assessments on the members, issuers, and other users of an exchange's facilities.
                    </P>
                    <FTNT>
                        <P>
                            <SU>121</SU>
                             15 U.S.C. 78f(b)(6).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>122</SU>
                             15 U.S.C. 78f(b)(4).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>123</SU>
                             15 U.S.C. 78f(b)(8).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>124</SU>
                             
                            <E T="03">See</E>
                             Section 6(b)(1) of the Exchange Act.
                        </P>
                    </FTNT>
                    <P>
                        The Exchange believes that this proposal is consistent with the Act because it implements provisions of the Plan and is designed to assist the Exchange in meeting regulatory obligations pursuant to the Plan. In approving the Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>125</SU>
                        <FTREF/>
                         To the extent that this proposal implements the Plan and applies specific requirements to Industry Members, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>125</SU>
                             CAT NMS Plan Approval Order at 84697.
                        </P>
                    </FTNT>
                    <P>The Exchange believes that the proposed fees paid by the CEBBs and CEBSs are reasonable, equitably allocated and not unfairly discriminatory. First, the Historical CAT Assessment 1 fees to be collected are directly associated with the costs of establishing and maintaining the CAT, where such costs include Plan Processor costs and costs related to technology, legal, consulting, insurance, professional and administration, and public relations costs. The Exchange has already incurred such development and implementation costs and the proposed Historical CAT Assessment 1 fees, therefore, would allow the Exchange to collect certain of such costs in a fair and reasonable manner from Industry Members, as contemplated by the CAT NMS Plan.</P>
                    <P>The proposed Historical CAT Assessment 1 fees would be charged to Industry Members in support of the maintenance of a consolidated audit trail for regulatory purposes. The proposed fees, therefore, are consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business operations. The proposed fees would not cover Exchange services unrelated to the CAT. In addition, any surplus would be used as a reserve to offset future fees. Given the direct relationship between CAT fees and CAT costs, the Exchange believes that the proposed fees are reasonable, equitable and not unfairly discriminatory.</P>
                    <P>As further discussed below, the SEC approved the CAT Funding Model, finding it was reasonable and that it equitably allocates fees among Participants and Industry Members. The Exchange believes that the proposed fees adopted pursuant to the CAT Funding Model approved by the SEC are reasonable, equitably allocated and not unfairly discriminatory.</P>
                    <HD SOURCE="HD3">(1) Implementation of CAT Funding Model in CAT NMS Plan</HD>
                    <P>
                        Section 11.1(b) of the CAT NMS Plan states that “[t]he Participants shall file with the SEC under Section 19(b) of the Exchange Act any such fees on Industry Members that the Operating Committee approves.” Per Section 11.1(b) of the CAT NMS Plan, the Exchange has filed this fee filing to implement the Industry Member CAT fees included in the CAT Funding Model. The Exchange believes that this proposal is consistent with the Exchange Act because it is consistent with, and implements, the CAT Funding Model in the CAT NMS Plan, and is designed to assist the Exchange and its Industry Members in meeting regulatory obligations pursuant to the CAT NMS Plan. In approving the CAT NMS Plan, the SEC noted that the Plan “is necessary and 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 mechanism of a national market system, or is otherwise in furtherance of the purposes of the Act.” 
                        <SU>126</SU>
                        <FTREF/>
                         Similarly, in approving the CAT Funding Model, the SEC concluded that the CAT Funding Model met this standard.
                        <SU>127</SU>
                        <FTREF/>
                         As this proposal implements the Plan and the CAT Funding Model described therein, and applies specific requirements to Industry Members in compliance with the Plan, the Exchange believes that this proposal furthers the objectives of the Plan, as identified by the SEC, and is therefore consistent with the Exchange Act.
                    </P>
                    <FTNT>
                        <P>
                            <SU>126</SU>
                             CAT NMS Plan Approval Order at 84696.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>127</SU>
                             CAT Funding Model Approval Order at 62686.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(2) Calculation of Fee Rate for Historical CAT Assessment 1 Is Reasonable</HD>
                    <P>
                        The SEC has determined that the CAT Funding Model is reasonable and satisfies the requirements of the Exchange Act. Specifically, the SEC has concluded that the method for determining Historical CAT Assessments as set forth in Section 11.3 of the CAT NMS Plan, including the formula for calculating the Historical Fee Rate, the identification of the parties responsible for payment and the transactions subject to the fee rate for the Historical CAT Assessment, is reasonable and satisfies the Exchange Act.
                        <SU>128</SU>
                        <FTREF/>
                         In each respect, as discussed above, Historical CAT Assessment 1 is calculated, and would be applied, in accordance with the requirements 
                        <PRTPAGE P="10576"/>
                        applicable to Historical CAT Assessments as set forth in the CAT NMS Plan. Furthermore, as discussed below, the Exchange believes that each of the figures for the variables in the SEC-approved formula for calculating the fee rate for Historical CAT Assessment 1 is reasonable and consistent with the Exchange Act. Calculation of the Historical Fee Rate for Historical CAT Assessment 1 requires the figures for the Historical CAT Costs 1, the executed equivalent share volume for the prior twelve months, the determination of Historical Recovery Period 1, and the projection of the executed equivalent share volume for Historical Recovery Period 1. Each of these variables is reasonable and satisfies the Exchange Act, as discussed throughout this filing.
                    </P>
                    <FTNT>
                        <P>
                            <SU>128</SU>
                             
                            <E T="03">Id.</E>
                             at 62662-63.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(A) Historical CAT Costs 1</HD>
                    <P>The formula for calculating a Historical Fee Rate requires the amount of Historical CAT Costs to be recovered. Specifically, Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan requires a fee filing to provide:</P>
                    <EXTRACT>
                        <FP>a brief description of the amount and type of the Historical CAT Costs, including (1) the technology line items of cloud hosting services, operating fees, CAIS operating fees, change request fees, and capitalized developed technology costs, (2) legal, (3) consulting, (4) insurance, (5) professional and administration and (6) public relations costs.</FP>
                    </EXTRACT>
                    <P>In accordance with this requirement, the Exchange has set forth the amount and type of Historical CAT Costs 1 for each of these categories of costs above.  </P>
                    <P>Section 11.3(b)(iii)(B)(II) of the CAT NMS Plan also requires that the fee filing provide “sufficient detail to demonstrate that the Historical CAT Costs are reasonable and appropriate.” As discussed below, the Exchange believes that the amounts set forth in this filing for each of these cost categories is “reasonable and appropriate.” Each of the costs included in Historical CAT Costs 1 are reasonable and appropriate because the costs are consistent with standard industry practice, based on the need to comply with the requirements of the CAT NMS Plan, incurred subject to negotiations performed on an arm's length basis, and/or are consistent with the needs of any legal entity, particularly one with no employees.</P>
                    <HD SOURCE="HD3">(i) Technology: Cloud Hosting Services</HD>
                    <P>
                        In approving the CAT Funding Model, the Commission recognized that it is appropriate to recover costs related to cloud hosting services as a part of Historical CAT Assessments.
                        <SU>129</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to cloud hosting services described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. As described above, the cloud hosting services costs reflect, among other things, the breadth of the CAT cloud activities, data volume far in excess of the original volume estimates, the need for specialized cloud services given the volume and unique nature of the CAT, the processing time requirements of the Plan, and regular efforts to seek to minimize costs where permissible under the Plan. CAT LLC determined that use of cloud hosting services is necessary for implementation of the CAT, particularly given the substantial data volumes associated with the CAT, and that the fees for cloud hosting services negotiated by FCAT were reasonable, taking into consideration a variety of factors, including the expected volume of data and the breadth of services provided and market rates for similar services.
                        <SU>130</SU>
                        <FTREF/>
                         Indeed, the actual costs of the CAT are far in excess of the original estimated costs of the CAT due to various factors, including the higher volumes and greater complexity of the CAT than anticipated when Rule 613 was originally adopted.
                    </P>
                    <FTNT>
                        <P>
                            <SU>129</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>130</SU>
                             For a discussion of the amount and type of cloud hosting services fees, 
                            <E T="03">see</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>To comply with the requirements of the Plan, the breadth of the cloud activities related to the CAT is substantial. The cloud services not only include the production environment for the CAT, but they also include two industry testing environments, support environments for quality assurance and stress testing and disaster recovery capabilities. Moreover, the cloud storage costs are driven by the requirements of the Plan, which requires the storage of multiple versions of the data, from the original submitted version of the data through various processing steps, to the final version of the data.</P>
                    <P>
                        Data volume is a significant driver of costs for cloud hosting services. When the Commission adopted the CAT NMS Plan in 2016, it estimated that the CAT would need to receive 58 billion records per day 
                        <SU>131</SU>
                        <FTREF/>
                         and that annual operating costs for the CAT would range from $36.5 million to $55 million.
                        <SU>132</SU>
                        <FTREF/>
                         Through 2021, the actual data volumes have been five times that original estimate. The data volumes for each period are set forth in detail above.
                        <SU>133</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>131</SU>
                             Appendix D-4 of the CAT NMS Plan at n.262.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>132</SU>
                             CAT NMS Plan Approval Order at 84801.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>133</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(a), 3(a)(2)(B)(ii)(a), 3(a)(2)(B)(iii)(a) and 3(a)(2)(B)(iv)(A) above.
                        </P>
                    </FTNT>
                    <P>
                        In addition to the effect of the data volume on the cloud hosting costs, the processing timelines set forth in the Plan contribute to the cloud hosting costs. Although CAT LLC has proactively sought to manage cloud hosting costs while complying with the Plan, including through requests to the Commission for exemptive relief and an amendment to the CAT NMS Plan, stringent CAT NMS Plan requirements do not allow for any material flexibility in cloud architecture design choices, processing timelines (
                        <E T="03">e.g.,</E>
                         the use of non-peak processing windows), or lower-cost storage tiers. As a result, the required CAT processing timelines contribute to the cloud hosting costs of the CAT.
                    </P>
                    <P>The costs for cloud hosting services also reflect the need for specialized cloud hosting services given the data volume and unique processing needs of the CAT. The data volume as well as the data processing needs of the CAT necessitate the use of cloud hosting services. The equipment, power and services required for an on-premises data model, the alternative to cloud hosting services, would be cost prohibitive. Moreover, as CAT was being developed, there were limited cloud hosting providers that could satisfy all the necessary CAT requirements, including the operational and security criteria. Over time more providers offering cloud hosting services that would satisfy these criteria have entered the market. CAT LLC will continue to evaluate alternative cloud hosting services, recognizing that the time and cost to move to an alternative cloud provider would be substantial.</P>
                    <P>
                        The reasonableness of the cloud hosting services costs is further supported by key cost discipline mechanisms for the CAT—a cost-based funding structure, cost transparency, cost management efforts (including regular efforts to lower compute and storage costs where permitted by the Plan) and oversight. Together, these mechanisms help ensure the ongoing reasonableness of the CAT's costs and the level of fees assessed to support those costs.
                        <SU>134</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>134</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Rel. No. 97151 (Mar. 15, 2023), 88 FR 17086, 17117 (Mar. 21, 2023) (describing key cost discipline mechanisms for the CAT).
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Technology: Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to operating fees 
                        <PRTPAGE P="10577"/>
                        as a part of Historical CAT Assessments.
                        <SU>135</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The operating fees include the negotiated fees paid by CAT LLC to the Plan Processor to operate and maintain the system for order-related information and to perform business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the selection of FCAT as the Plan Processor was reasonable and appropriate given its expertise with securities regulatory reporting, after a process of considering other potential candidates.
                        <SU>136</SU>
                        <FTREF/>
                         CAT LLC also determined that the fixed price contract, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan and Rule 613, was reasonable and appropriate, taking into consideration a variety of factors, including the breadth of services provided and market rates for similar types of activity.
                        <SU>137</SU>
                        <FTREF/>
                         The services performed by FCAT for each period and the costs related to such services are described above.
                        <SU>138</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>135</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>136</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>137</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(b), 3(a)(2)(B)(ii)(b), 3(a)(2)(B)(iii)(b) and 3(a)(2)(B)(iv)(b) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>138</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                      
                    <HD SOURCE="HD3">(iii) Technology: CAIS Operating Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to CAIS operating fees as a part of Historical CAT Assessments.
                        <SU>139</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to CAIS operating fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. The CAIS operating fees include the fees paid to the Plan Processor to operate and maintain CAIS and to perform the business operations related to the system, including compliance, security, testing, training, communications with the industry (
                        <E T="03">e.g.,</E>
                         management of the FINRA CAT Helpdesk, FAQs, website and webinars) and program management. CAT LLC determined that the FCAT-negotiated fees for Kingland's CAIS-related services, negotiated on an arm's length basis with the goals of managing costs and receiving services required to comply with the CAT NMS Plan, taking into consideration a variety of factors, including the services to be provided and market rates for similar types of activity, were reasonable and appropriate.
                        <SU>140</SU>
                        <FTREF/>
                         The services performed by Kingland for each period and the costs for each period are described above.
                        <SU>141</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>139</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>140</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(c), 3(a)(2)(B)(ii)(c), 3(a)(2)(B)(iii)(c) and 3(a)(2)(B)(iv)(c) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>141</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(iv) Technology: Change Request Fees</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to change request fees as a part of Historical CAT Assessments.
                        <SU>142</SU>
                        <FTREF/>
                         CAT LLC determined that the costs related to change request fees described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. It is common practice to utilize a change request process to address evolving needs in technology projects. This is particularly true for a project like CAT that is the first of its kind, both in substance and in scale. The substance and costs of each of the change requests are evaluated by the Operating Committee, and approved in accordance with the requirements for Operating Committee meetings. In each case, CAT LLC determined that the change requests were necessary to implement the CAT. As described above, the change requests cover various technology changes, including, for example, changes related to CAT reporting, data feeds and exchange functionality. CAT LLC also determined that the costs for each change request were appropriate for the relevant technology change. A description of the change requests for each FAM Period and their total costs are set described above.
                        <SU>143</SU>
                        <FTREF/>
                         As noted above, the total costs for change requests through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.25% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>142</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>143</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(d), 3(a)(2)(B)(ii)(d), 3(a)(2)(B)(iii)(d) and 3(a)(2)(B)(iv)(d) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(v) Capitalized Developed Technology Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to capitalized developed technology costs as a part of Historical CAT Assessments.
                        <SU>144</SU>
                        <FTREF/>
                         Capitalized developed technology costs include costs related to certain development costs, costs related to certain modifications, upgrades and other changes to the CAT, CAIS implementation fees and license fees. The amount and type of costs for each period are described in more detail above.
                        <SU>145</SU>
                        <FTREF/>
                         CAT LLC determined that these costs are reasonable and should be included as a part of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>144</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(1) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>145</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(e), 3(a)(2)(B)(ii)(e), 3(a)(2)(B)(iii)(e) and 3(a)(2)(B)(iv)(e) above.
                        </P>
                    </FTNT>
                    <P>
                        These costs involve the activity of both the Initial Plan Processor and FCAT, as the successor Plan Processor.
                        <SU>146</SU>
                        <FTREF/>
                         With regard to the Initial Plan Processor, the Participants utilized an RFP to seek proposals to build and operate the CAT, receiving a number of proposals in response to the RFP. The Participants carefully reviewed and considered each of the proposals, including holding in-person meetings with each of the Bidders. After several rounds of review, the Participants selected the Initial Plan Processor in accordance with the CAT NMS Plan. CAT LLC entered into an agreement with the Initial Plan Processor in which CAT LLC would pay the Initial Plan Processor a negotiated, fixed price fee.
                        <SU>147</SU>
                        <FTREF/>
                         In addition, as described above, CAT LLC determined that is [
                        <E T="03">sic</E>
                        ] was appropriate to enter into an agreement with FCAT as the successor Plan Processor.
                        <SU>148</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>146</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>147</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(e) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>148</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(b) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vi) Legal</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover costs related to legal fees as a part of Historical CAT Assessments.
                        <SU>149</SU>
                        <FTREF/>
                         CAT LLC determined that the legal costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Given the unique nature of the CAT, the number of parties involved with the CAT (including, for example, the SEC, Participants, Industry Members, and vendors) and the many regulatory issues associated with the CAT, the scope of the necessary legal services are substantial. CAT LLC determined that the scope of the legal services is necessary to implement and maintain the CAT and that the legal rates reflect the specialized services necessary for such a project. When hiring each law firm for a CAT project, CAT LLC interviewed multiple firms, and determined to hire each firm based on a variety of factors, including the relevant expertise and fees. In each case, 
                        <PRTPAGE P="10578"/>
                        CAT LLC determined that the hourly fee rates were in line with market rates for the specialized legal expertise. In addition, CAT LLC determined that the total costs incurred for each CAT project were appropriate given the breadth of services provided. The services performed by each law firm for each period and the costs related to such services are described above.
                        <SU>150</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>149</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(2) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>150</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(f), 3(a)(2)(B)(ii)(f), 3(a)(2)(B)(iii)(f) and 3(a)(2)(B)(iv)(f) above.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(vii) Consulting  </HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover consulting costs as a part of Historical CAT Assessments.
                        <SU>151</SU>
                        <FTREF/>
                         CAT LLC determined that the consulting costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees 
                        <SU>152</SU>
                        <FTREF/>
                         and because of the significant number of issues associated with the CAT, the consultants provided assistance in the management of various CAT matters and the processes related to such matters.
                        <SU>153</SU>
                        <FTREF/>
                         CAT LLC considered a variety of factors in choosing a consulting firm and determined to select Deloitte after an interview process.
                        <SU>154</SU>
                        <FTREF/>
                         CAT LLC also determined that the consulting services were provided at reasonable market rates, as the fees were negotiated annually and comparable to the rates charged by other consulting firms for similar work.
                        <SU>155</SU>
                        <FTREF/>
                         Moreover, the total costs for such consulting services were appropriate in light of the breadth of services provided by Deloitte. The services performed by Deloitte and the costs related to such services are described above.
                        <SU>156</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>151</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(3) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>152</SU>
                             As stated in the filing of the proposed CAT NMS Plan, “[i]t is the intent of the Participants that the Company have no employees.” Securities Exchange Act Rel. No. 77724 (Apr. 27, 2016), 81 FR 30614, 30621 (May 17, 2016).
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>153</SU>
                             CAT LLC uses certain third parties to perform tasks that may be performed by administrators for other NMS Plans. 
                            <E T="03">See, e.g.,</E>
                             CTA Plan and CQ Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>154</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>155</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(g), 3(a)(2)(B)(ii)(g), 3(a)(2)(B)(iii)(g) and 3(a)(2)(B)(iv)(g) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>156</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(viii) Insurance</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover insurance costs as a part of Historical CAT Assessments.
                        <SU>157</SU>
                        <FTREF/>
                         CAT LLC determined that the insurance costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that it is common practice to have directors' and officers' liability insurance, and errors and omissions liability insurance. CAT LLC further determined that it was important to have cyber security insurance given the nature of the CAT, and such a decision is consistent with the CAT NMS Plan, which states that the cyber incident response plan may include “[i]nsurance against security breaches.” 
                        <SU>158</SU>
                        <FTREF/>
                         In selecting the insurance providers for these policies, CAT LLC engaged in an evaluation of alternative insurers, including a comparison of the pricing offered by the alternative insurers.
                        <SU>159</SU>
                        <FTREF/>
                         Based on this analysis, CAT LLC determined that the selected insurance policies provided appropriate coverage at reasonable market rates.
                        <SU>160</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>157</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(4) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>158</SU>
                             Section 4.1.5 of Appendix D of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>159</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(h), 3(a)(2)(B)(ii)(h), 3(a)(2)(B)(iii)(h) and 3(a)(2)(B)(iv)(h) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>160</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ix) Professional and Administration</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover professional and administration costs as a part of Historical CAT Assessments.
                        <SU>161</SU>
                        <FTREF/>
                         CAT LLC determined that the professional and administration costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. Because there are no CAT employees, all required accounting, financial, tax, cash management and treasury functions for CAT LLC have been outsourced at market rates. In addition, the required annual financial statement audit of CAT LLC is included in professional and administration costs, which costs are also at market rates.
                    </P>
                    <FTNT>
                        <P>
                            <SU>161</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(5) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC determined to hire a financial advisory firm, Anchin, to assist with financial matters for the CAT. CAT LLC interviewed Anchin as well as other potential financial advisory firms to assist with the CAT project, considering a variety of factors in its analysis, including the firm's relevant expertise and fees.
                        <SU>162</SU>
                        <FTREF/>
                         The hourly fee rates for this firm were in line with market rates for the financial advisory services provided.
                        <SU>163</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Anchin. The services performed by Anchin and the costs related to such services are described above.
                        <SU>164</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>162</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>163</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>164</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        CAT LLC also determined to engage an independent accounting firm, Grant Thornton, to complete the audit of CAT LLC's financial statements, in accordance with the requirements of the CAT NMS Plan. CAT LLC interviewed this firm as well as another potential accounting firm to audit CAT LLC's financial statements, considering a variety of factors in its analysis, including the relevant expertise and fees of each of the firms. CAT LLC determined that Grant Thornton was well-qualified for the role given the balanace [
                        <E T="03">sic</E>
                        ] of these considerations.
                        <SU>165</SU>
                        <FTREF/>
                         Grant Thornton's fixed fee rate compensation arrangement was reasonable and appropriate, and in line with the market rates charged for these types of accounting services.
                        <SU>166</SU>
                        <FTREF/>
                         Moreover, the total costs for such financial advisory services was appropriate in light of the breadth of services provided by Grant Thornton. The services performed by Grant Thornton and the costs related to such services are described above.
                        <SU>167</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>165</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>166</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(i), 3(a)(2)(B)(ii)(i), 3(a)(2)(B)(iii)(i) and 3(a)(2)(B)(iv)(i) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>167</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to the receipt of certain market data from Exegy. After performing an analysis of the available market data vendors to confirm that the data provided met the SIP Data requirements of the CAT NMS Plan and comparing the costs of the vendors providing the required SIP Data, CAT LLC determined to purchase market data from Exegy. Exegy provided the data elements required by the CAT NMS Plan, and the fees were reasonable and in line with market rates for the market data received.
                        <SU>168</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>168</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(i) above.
                        </P>
                    </FTNT>
                    <P>
                        The professional and administrative costs also include costs related to a third party security assessment of the CAT performed by RSM. The assessment was designed to verify and validate the effective design, implementation and operation of the controls specified by NIST Special Publication 800-53, Revision 4 and related standards and guidelines. Such a security assessment is in line with industry practice and important given the data included in the CAT. CAT LLC determined to engage RSM to perform the security assessment, after considering a variety of factors in its analysis, including the firm's relevant expertise and fees. The fees 
                        <PRTPAGE P="10579"/>
                        were reasonable and in line with market rates for such an assessment.
                        <SU>169</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>169</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(x) Public Relations Costs</HD>
                    <P>
                        In approving the CAT Funding Model, the SEC recognized that it is appropriate to recover public relations costs as a part of Historical CAT Assessments.
                        <SU>170</SU>
                        <FTREF/>
                         CAT LLC determined that the public relations costs described in this filing are reasonable and should be included as a part of Historical CAT Costs 1. CAT LLC determined that the types of public relations services utilized were beneficial to the CAT and market participants more generally. Public relations services were important for various reasons, including monitoring comments made by market participants about CAT and understanding issues related to the CAT discussed on the public record.
                        <SU>171</SU>
                        <FTREF/>
                         By engaging a public relations firm, CAT LLC was better positioned to understand and address CAT issues to the benefit of all market participants.
                        <SU>172</SU>
                        <FTREF/>
                         Moreover, CAT LLC determined that the rates charged for such services were in line with market rates.
                        <SU>173</SU>
                        <FTREF/>
                         As noted above, the total public relations costs through FAM Period 3 represent a small percentage of Historical CAT Costs 1—that is, 0.1% of Historical CAT Costs 1.
                    </P>
                    <FTNT>
                        <P>
                            <SU>170</SU>
                             Section 11.3(b)(iii)(B)(II)(B)(6) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>171</SU>
                             
                            <E T="03">See</E>
                             Section 3(a)(2)(B)(i)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>172</SU>
                             
                            <E T="03">See</E>
                             Sections 3(a)(2)(B)(i)(j), 3(a)(2)(B)(ii)(j), 3(a)(2)(B)(iii)(j) and 3(a)(2)(B)(iv)(j) above.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>173</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(B) Total Executed Equivalent Share Volume for the Prior 12 Months  </HD>
                    <P>The total executed equivalent share volume of transactions in Eligible Securities for the period from December 2022 through November 2023 was 3,842,861,347,279.44 executed equivalent shares. CAT LLC determined the total executed equivalent share volume for the prior twelve months by counting executed equivalent shares in the same manner as it will count executed equivalent shares for CAT billing purposes.</P>
                    <HD SOURCE="HD3">(C) Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to establish a Historical Recovery Period of 24 months for Historical CAT Assessment 1 and that such length is reasonable. CAT LLC determined that the length of Historical Recovery Period 1 appropriately weighs the need for a reasonable Historical Fee Rate 1 that spreads the Historical CAT Costs over an appropriate amount of time and the need to repay the loans notes to the Participants in a timely fashion. CAT LLC determined that 24 months for Historical Recovery Period 1 would establish a fee rate that is lower than other transaction-based fees, including fees assessed pursuant to Section 31.
                        <SU>174</SU>
                        <FTREF/>
                         In addition, in establishing a Historical Recovery Period of 24 months, CAT LLC recognized that the total costs for Historical CAT Assessment 1 was less than the total costs for 2022 and 2023, and therefore it would be appropriate to recover those costs in two years. Furthermore, CAT LLC notes 24 months is appropriate because it is not currently proposing that Industry Members be required to pay another Historical CAT Assessment or CAT Fee with regard to Prospective CAT Costs at the same time.
                    </P>
                    <FTNT>
                        <P>
                            <SU>174</SU>
                             As the SEC noted in the CAT Funding Model Approval Order, recent Section 31 fees ranged from $0.00009 per share to $0.0004 per share. CAT Funding Model Approval Order at 62682.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(D) Projected Executed Equivalent Share Volume for Historical Recovery Period 1</HD>
                    <P>
                        CAT LLC has determined to calculate the projected total executed equivalent share volume for the 24 months of Historical Recovery Period 1 by doubling the executed equivalent share volume for the prior 12 months. CAT LLC determined that such an approach was reasonable as the CAT's annual executed equivalent share volume has remained relatively constant in recent years. For example, the executed equivalent share volume for 2021 was 3,963,697,612,395 executed equivalent shares, and the executed equivalent share volume for 2022 was 4,039,821,841,560.31 executed equivalent shares. Accordingly, the projected total executed equivalent share volume for Historical Recovery Period 1 is 7,685,722,694,558.88 executed equivalent shares.
                        <SU>175</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>175</SU>
                             This projection was calculated by multiplying 3,842,861,347,279.44 executed equivalent shares by two.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(E) Actual Fee Rate for Historical CAT Assessment 1</HD>
                    <HD SOURCE="HD3">(i) Decimal Places</HD>
                    <P>
                        As noted in the Plan amendment for the CAT Funding Model, as a practical matter, the fee filing for a Historical CAT Assessment would provide the exact fee per executed equivalent share to be paid for each Historical CAT Assessment, by multiplying the Historical Fee Rate by one-third and describing the relevant number of decimal places for the fee rate.
                        <SU>176</SU>
                        <FTREF/>
                         Accordingly, proposed paragraph A.1.b. of the fee schedule would set forth a fee rate of $0.000015 per executed equivalent share. This fee rate is calculated by multiplying Historical Fee Rate 1 by one-third, and rounding the result to 6 decimal places. CAT LLC determined that the use of six decimal places is reasonable as it balances the accuracy of the calculation with the potential systems and other impracticalities of using additional decimal places in the calculation.
                    </P>
                    <FTNT>
                        <P>
                            <SU>176</SU>
                             CAT Funding Model Approval Order at 62658, n.658.
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(ii) Reasonable Fee Level</HD>
                    <P>
                        The Exchange believes that imposing Historical CAT Assessment 1 with a fee rate of $0.000015 per executed equivalent share is reasonable because it provides for a revenue stream for the Company that is aligned with Historical CAT Costs 1 and such costs would be spread out over an appropriate recovery period, as discussed above. Moreover, the Exchange believes that the level of the fee rate is reasonable, as it is comparable to other transaction-based fees. Indeed, Historical CAT Assessment 1 is significantly lower than fees assessed pursuant to Section 31 (
                        <E T="03">e.g.,</E>
                         $0.0009 per share to 0.0004 per share),
                        <SU>177</SU>
                        <FTREF/>
                         and, as a result, the magnitude of Historical CAT Assessment 1 is small, and therefore will mitigate any potential adverse economic effects or inefficiencies.
                        <SU>178</SU>
                        <FTREF/>
                         Furthermore, the reasonable fee rate for Historical CAT Assessment 1 further supports CAT LLC's decision to seek to recover all Historical CAT Costs prior to 2022, rather than establishing separate Historical CAT Assessments for pre-FAM, FAM 1, FAM 2 and FAM 3 costs.
                    </P>
                    <FTNT>
                        <P>
                            <SU>177</SU>
                             CAT Funding Model Approval Order at 62663, 62682.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>178</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                    <HD SOURCE="HD3">(3) Historical CAT Assessment 1 Provides for an Equitable Allocation of Fees</HD>
                    <P>
                        Historical CAT Assessment 1 provides for an equitable allocation of fees, as it equitably allocates CAT costs between and among the Participants and Industry Members. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act, including the formula for calculating Historical CAT Assessments as well as the Industry Members to be charged the Historical CAT Assessments.
                        <SU>179</SU>
                        <FTREF/>
                         In approving the CAT Funding Model, the SEC stated that “[t]he Participants have sufficiently demonstrated that the proposed allocation of fees is reasonable.” 
                        <SU>180</SU>
                        <FTREF/>
                         Accordingly, the CAT Funding Model sets forth the requirements for allocating fees related to Historical CAT Costs 
                        <PRTPAGE P="10580"/>
                        among Participants and Industry Members, and the fee filings for Historical CAT Assessments must comply with those requirements.
                    </P>
                    <FTNT>
                        <P>
                            <SU>179</SU>
                             
                            <E T="03">See</E>
                             Section 11.3(b) of the CAT NMS Plan.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>180</SU>
                             CAT Funding Model Approval Order at 62629.
                        </P>
                    </FTNT>
                    <P>Historical CAT Assessment 1 provides for an equitable allocation of fees as it complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. For example, as described above, the calculation of Historical CAT Assessment 1 complies with the formula set forth in Section 11.3(b) of the CAT NMS Plan. In addition, Historical CAT Assessment 1 would be charged to CEBBs and CEBSs in accordance with Section 11.3(b) of the CAT NMS Plan. Furthermore, the Participants would continue to remain responsible for their designated share of Past CAT Costs through the cancellation of loans made by the Participants to CAT LLC.</P>
                    <P>In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1—Historical CAT Costs 1 (including Excluded Costs), the count for the executed equivalent share volume for the prior 12 months, the length of the Historical Recovery Period, and the projected executed equivalent share volume for the Historical Recovery Period—are reasonable. Moreover, these inputs lead to a reasonable fee rate for Historical CAT Assessment 1 that is lower than other fee rates for transaction-based fees. A reasonable fee rate allocated in accordance with the requirements of the CAT Funding Model provides for an equitable allocation of fees.</P>
                    <HD SOURCE="HD3">(4) Historical CAT Assessment 1 Is Not Unfairly Discriminatory</HD>
                    <P>Historical CAT Assessment 1 is not an unfairly discriminatory fee. The SEC approved the CAT Funding Model, finding that each aspect of the CAT Funding Model satisfied the requirements of the Exchange Act. In reaching this conclusion, the SEC analyzed the potential effect of Historical CAT Assessments calculated pursuant to the CAT Funding Model on affected categories of market participants, including Participants (including exchanges and FINRA), Industry Members (including subcategories of Industry Members, such as alternative trading systems, CAT Executing Brokers and market makers), and investors generally, and considered market effects related to equities and options, among other things. Historical CAT Assessment 1 complies with the requirements regarding the calculation of Historical CAT Assessments as set forth in the CAT NMS Plan. In addition, as discussed above, each of the inputs into the calculation of Historical CAT Assessment 1 and the resulting fee rate for Historical CAT Assessment 1 is reasonable. Therefore, Historical CAT Assessment 1 does not impose an unfairly discriminatory fee on Industry Members.</P>
                    <P>Finally, the Exchange believes the proposed fees established pursuant to the CAT Funding Model promote just and equitable principles of trade, and, in general, protect investors and the public interest, and are provided in a transparent manner and specificity in the fee schedule. The Exchange also believes that the proposed fees are reasonable because they would provide ease of calculation, ease of billing and other administrative functions, and predictability of a fee based on fixed rate per executed equivalent share. Such factors are crucial to estimating a reliable revenue stream for CAT LLC and for permitting Exchange members to reasonably predict their payment obligations for budgeting purposes.</P>
                    <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                    <P>
                        Section 6(b)(8) of the Act 
                        <SU>181</SU>
                        <FTREF/>
                         requires that the Exchange's rules not impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of th