[Federal Register Volume 66, Number 151 (Monday, August 6, 2001)]
[Notices]
[Pages 41058-41060]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19526]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44615; File No. SR-CTA-2001-3]


Consolidated Tape Association; Notice of Filing and Immediate 
Effectiveness of Third Substantive Amendment to the Second Restatement 
of the Consolidated Tape Association Plan

July 30, 2001.
    Pursuant to Rule 11Aa3-2 \1\ of the Securities Exchange Act of 1934 
(``Act''), notice is hereby given that on July 16, 2001, the 
Consolidated Tape Association (``CTA'') participants (``Participants'') 
\2\ filed with the

[[Page 41059]]

Securities and Exchange Commission (``Commission'' or ``SEC'') 
amendments to the Restated CTA Plan. In the amendment, the Participants 
propose to modify the definitions of two CTA Plan terms that the 
Restated Consolidated Quote (``CQ'') Plan incorporates by reference. 
Thus, the CTA Plan amendment will also have the effect of causing the 
same modifications to the Restated CQ Plan. However, achieving that 
result does not require any change to the text of the Restated CQ Plan.
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    \1\ 17 CFR 240.11Aa3-2.
    \2\ Each Participant executed the amendment. The Participants 
are the American Stock Exchange LLC (``AMEX''), Boston Stock 
Exchange, Inc. (``BSE''), Chicago Board Options Exchange, Inc. 
(``CBOE''), Chicago Stock Exchange, Inc. (``CHX''), Cincinnati Stock 
Exchange, Inc. ``CSE''), National Association of Securities Dealers, 
Inc. (``NASD''), New York Stock Exchange, Inc. (``NYSE''), Pacific 
Exchange, Inc. (``PCX''), and Philadelphia Stock Exchange, Inc. 
(``PHLX'').
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    Pursuant to Rule 11A3-2(c)(3)(iii) under the Act,\3\ the 
Participants designate the amendment as involving solely technical or 
ministerial matters of the CTA Plan. As a result, the amendment has 
become effective upon filing with the Commission.\4\ The Participants 
submitted this notice of proposed amendment to the CTA Plan, which is 
an effective national market system plan,\5\ pursuant to Rule 11Aa3-
2(c).\6\ The Commission is publishing notice to solicit comments from 
interested persons on the amendment.
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    \3\ 17 CFR 240 11Aa3-2(c)(3)(ii).
    \4\ The Participants initially filed the CTA Plan amendments on 
July 3, 2001, as concerned solely with the administration of the 
Plan, pursuant to Rule 11Aa3-2(c)(3)(ii) under the Act. The 
Participants amended the filing on July 16, 2001 to designate the 
filing as submitted pursuant to Rule 11Aa3-2(c)(iii) under the Act.
    \5\ The CTA Plan has been designated as an effective transaction 
reporting plan pursuant to Rule 11Aa3-1(b). 17 CFR 240.11Aa3-1(b).
    \6\ 17 CFR 240.11 Aa3-2(c)(1).
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1. Description and Purpose of the Amendment

A. Rule 11Aa3-2

    The Participants propose to change the CTA Plan definitions of 
``Network A Eligible Securities'' and ``Network B Eligible 
Securities.'' The changes would allow a security that is listed on AMEX 
or another natinal securities exchange to remain as a Network B 
Eligible Security in the event that NYSE determines to admit a security 
that is lited on AMEX to dealings on the basis of unlisted trading 
privileges (``UTP''). The changes to the definitions in the CTA Plan 
would also have the effect of changing in the same manner the meanings 
of ``CQ Network A quotation information'' and ``CQ Network B quotation 
information'' for the purposes of the Restated CQ Plan.
    In addition, the Participants propose an amendment that would 
assure that a security that trades over the facilities of the NASDAQ 
Stock Market (other than an exchange-listed security) would not become 
a Network B Eligible Security if the NASDAQ Stock Market procures 
status as a national securities exchange.
    Current, Section I(p) of the CTA Plan defines ``Network A Eligible 
Securities'' as ``Eligible Securities admitted to dealings on NYSE''. 
Section I(q) defines ``Network B Eligible Securities'' as ``Eligible 
Securities admitted to dealings on the AMEX, BSE, CBOE, CHX, CSE, PSE, 
PHLX or on any other exchange, but not also admitted to dealings on 
NYSE.'' As a result of these definitions, if NYSE were to commence to 
trade a security that is listed on AMEX or on another exchange on the 
basis of UTP, the security would convert from a Network B Eligible 
Security to a Network A Eligible Security under the CTA Plan.
    The proposed change would amend those definitions to prevent that 
conversion. That is, it would cause a security to remain a ``Network B 
Eligible Security,'' and not to convert to a ``Network A Eligible 
Security,'' if NYSE determines to admit the security to dealing on NYSE 
pursuant to UTP. Accordingly, last sale price information relating to 
such a security would remain ``CTA Network B information'' (as Section 
I(c) of the CTA Plan defines that term). Because the Restated CQ Plan 
incorporates by reference the CTA Plan definitions of ``Network A 
Eligible Securities'' and ``Network B Eligible Securities,'' this also 
means that quotation information relating to such a security would 
remain ``CQ Network B quotation information'' (as Section I(e) of the 
Restated CQ Plan defines that term).
    As a further result of the proposed change, the terms and 
conditions of Network B market data contracts would apply to NYSE in 
respect of market data that NYSE makes available regarding Network B 
Eligible Securities that it admits to dealings pursuant to UTP. Also, 
NYSE would commence to share in Network B market data revenues insofar 
as trades in the shares of any such securities take place on NYSE.
    CTA is aware that the NASDAQ Stock Market has applied for status as 
national securities exchange under Section 6 \7\ of the Act. Under the 
CTA Plan's current definition of ``Network B Eligible Securities,'' all 
securities listed on the NASDAQ Stock Market would qualify as ``Network 
B Eligible Securities'' upon its registration as a national securities 
exchange. In order to avoid that unintended consequence, the proposed 
change provides that a security that is listed on a market other than 
NYSE or AMEX is not an ``Eligible Security'' if the listing exchange 
reports last sale information relating to the security pursuant to 
transaction reporting plan other than the CTA Plan (such as the 
transaction reporting plan through which the NASDAQ Stock Market 
currently reports trades in securities that are not listed on an 
exchange).
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    \7\ 15 U.S.C. 78f.
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B. Governing or Constituent Documents

    Not applicable.

C. Implementation of Amendment

    Because the amendment involves solely technical or ministerial 
matters of the Plan, it has become effective upon filing with the 
Commission.\8\ However, the amendment will not ``be implemented'' until 
the first instance in which NYSE admits to dealing on the basis of UTP 
a security that is listed on another exchange.
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    \8\ The Commission notes that the effective date of the filing 
is July 16, 2001, the date on which the Commission received the 
amendment to the proposal. See supra note 4.
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D. Development and Implementation Phases

    The amendment requires no development or implementation phases.

E. Analysis of Impact on Completion

    The amendment will impose no burden on competition.

F. Written Understanding or Agreements Relating to Interpretation of, 
or Participation in, the Plan

    The Participants have no written understandings or agreements 
relating to interpretation of the CTA Plan as a result of the 
amendment.

G. Approval by Sponsors in Accordance With Plan

    Under Section IV(b) of the CTA Plan, each CTA Plan Participant must 
execute a written amendment to the CTA Plan before the amendment can 
become effective. The amendment has been so executed.

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

    Not applicable.

1. Terms and Conditions of Access

    Not applicable.

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

    The amendment makes no change in the method of determination and 
imposition, and amount of, fees and charges.

[[Page 41060]]

K. Method and Frequency of Processor Evaluation

    Not applicable.

L. Dispute Resolution

    Not applicable.

II. Rule 11Aa3-1

A. Reporting Requirements

    Not applicable.

B. Manner of Collecting, Processing, Sequencing, Making Available and 
Disseminating Last Sale Information

    If NYSE were to exercise UTP in respect of securities listed on 
another exchange, the amendment would require NYSE to report last sale 
price information and quotation information relating to those 
securities through the facilities that the Participants use to process, 
sequence, and disseminate Network B last sale price information and CQ 
Network B quotation information, rather than through network A 
facilities. The other Participants would continue to report their last 
sale price information and quotation information through the Network B 
facilities, just as they do today.

C. Manner of Consolidation

    Not applicable.

D. Standards and Methods Ensuring Promptness, Accuracy and Completeness 
of Transaction Reports

    Not applicable.

E. Rules and Procedures Addressed to Fraudulent or Manipulative 
Dissemination

    Not applicable.

F. Terms of Access to Transaction Reports

    Data users would continue to gain access to transaction reports 
relating to securities that are listed on other exchanges that NYSE 
admits to dealings on the basis of UTP by means of a Network B data 
feed, just as today.

G. Identification of Marketplace of Execution

    Not applicable.

III. Solicitation of Comments

    The CTA has designated these amendments as involving solely 
technical or ministerial matters, which, under Section 11Aa3-
2(c)(3)(iii) of the Act,\9\ renders the proposal effective upon receipt 
of this filing by the Commission
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    \9\ 17 CFR 240.11Aa3-2(c)(3)(iii).
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    The Commission may summarily abrogate the amendment within sixty 
days of its filing and require refiling and approval of the amendment 
by Commission order pursuant to Section 11Aa3-2(c)(3)(iii) of the 
Act,\10\ if it appears to the Commission that such action is necessary 
or appropriate in the public interest, for the protection of investors 
or maintenance of fair and orderly markets, to remove impediments to, 
and perfect the mechanisms of, a national market system, or otherwise 
in furtherance of the purposes of the Act.
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    \10\ Id. 
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    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the amendments 
are consistent with the Act. Persons making written submissions should 
file six copies thereof with the Secretary, Securities and Exchange 
Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. Copies of 
the submission, all subsequent amendments, all written statements with 
respect to the proposed plan amendments that are filed with the 
Commission, and all written communications relating to the proposed 
plan amendments 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 inspection and copying in the 
Commission's Public Reference Room. Copies of such filing will also be 
available for inspection and copying at the principal office of the 
CTA. All submissions should refer to File No. SR-CTA-2001-03 and should 
be submitted by August 27, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(27).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-19526 Filed 8-3-01; 8:45 am]
BILLING CODE 8010-01-M