[Federal Register Volume 68, Number 250 (Wednesday, December 31, 2003)]
[Notices]
[Pages 75661-75662]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-32181]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48987; File No. SR-CTA/CQ-2003-01]


Consolidated Tape Association; Notice of Filing of the Fifth 
Substantive Amendment to the Second Restatement of the Consolidated 
Tape Association Plan and the Third Substantive Amendment to the 
Restated Consolidated Quotation Plan and Amendment No. 1 Thereto

December 23, 2003.
    Pursuant to Rule 11Aa3-2 \1\ under the Securities Exchange Act of 
1934 (``Act''), notice is hereby given that on November 28, 2003, the 
Consolidated Tape Association (``CTA'') Plan and Consolidated Quotation 
(``CQ'') Plan Participants (``Participants'') \2\ filed with the 
Securities and Exchange Commission (``SEC'' or ``Commission'') a 
proposal to amend the CTA and CQ Plans (collectively, the ``Plans''). 
The proposal represents the 5th substantive amendment made to the 
Second Restatement of the CTA Plan and the 3rd substantive amendment to 
the Restated CQ Plan, and reflects changes unanimously adopted by the 
Participants. The proposed amendments would delete the provisions of 
the Plans that exempt any Participant in the Plans from paying market 
data fees for the receipt of data on its trading floor for regulation 
or surveillance or for other specifically approved purposes 
(``Participant Fee Exemptions''). On December 23, 2003, the 
Participants submitted Amendment No. 1 to the proposed amendments.\3\ 
The Commission is publishing this notice to solicit comments from 
interested persons on the proposed amendments to the Plans.
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    \1\ 17 CFR 240.11Aa3-2.
    \2\ Each Participant executed the proposed amendments. The 
Participants are the American Stock Exchange LLC; Boston Stock 
Exchange, Inc.; Chicago Board Options Exchange, Inc.; Chicago Stock 
Exchange, Inc.; Cincinnati Stock Exchange, Inc.; National 
Association of Securities Dealers, Inc. (``NASD''); New York Stock 
Exchange, Inc. (``NYSE''); Pacific Exchange, Inc.; and Philadelphia 
Stock Exchange, Inc.
    \3\ See letter to Jonathan G. Katz, Secretary, Commission, from 
Thomas E. Haley, Chairman, CTA, dated December 22, 2003 (``Amendment 
No. 1''). Amendment No. 1 makes a technical correction to the 
proposed amendments.
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I. Description and Purpose of the Amendments

A. Rule 11Aa3-2 \4\
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    \4\ 17 CFR 240.11Aa3-2.
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    Currently, the Plans specify that each Participant is exempt from 
certain market data charges (other than access fees) if it is in 
compliance with the requisite market data contract. According to the 
Participant Fee Exemptions, the market data contract must require the 
Participant (1) to receive market data solely at premises that it 
occupies solely or on its ``trading floor or trading floors'' (as that 
term is generally understood), and (2) to use the data solely for 
regulatory, surveillance and other approved purposes.
    The Participants propose to amend the Plans to require each 
Participant to pay the same fees for its receipt and use of market data 
as other market participants pay, regardless of whether the Participant 
receives the data on its trading floor or elsewhere or uses the data 
for surveillance or other purposes.
    The Participants believe that eliminating the Participant Fee 
Exemptions will eliminate disputes that have arisen among the 
Participants regarding what constitutes a ``trading floor'' (as that 
term is generally understood) and will eliminate a perceived 
competitive advantage that the Participant Fee Exemptions give 
Participant markets over non-exchange markets (such as electronic 
communications networks and other alternative trading systems), over 
NASD market makers and, in the case of Participants that trade options, 
over non-Participant options markets.
    The Participants believe that the filing of the proposed amendments 
is in fulfillment of the national market system objectives regarding 
the dissemination of market information as anticipated by sections 
11A(a)(1)(C),\5\ 11A(a)(1)(D) \6\ and 11A(a)(3)(B) \7\ of the Act.
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    \5\ 15 U.S.C. 78k-1(a)(1)(C).
    \6\ 15 U.S.C. 78k-1(a)(1)(D).
    \7\ 15 U.S.C. 78k-1(a)(3)(B).

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[[Page 75662]]

B. Governing or Constituent Documents

    Not applicable.

C. Implementation of Amendment

    The Participants have manifested their approval of the proposed 
amendments to the CTA and CQ Plans by means of their execution of the 
proposed amendments. The proposed amendments would become effective 
upon Commission approval of the proposed amendments. The Participants 
will commence to pay the fees that are the subject of the exemption in 
the billing cycle that follows the Commission's approval of these 
proposed amendments.

D. Development and Implementation Phases

    See Item I.C. above.

E. Analysis of Impact on Competition

    The Participants believe that the proposed amendments do not impose 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The Participants do not believe 
that the proposed plan amendments introduce terms that are unreasonably 
discriminatory for the purposes of section 11A(c)(1)(D) \8\ of the Act.
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    \8\ 15 U.S.C. 78k-1(c)(1)(D).
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F. Written Understanding or Agreements relating to Interpretation of, 
or Participation in, Plan

    The Participants do not anticipate that they will enter into any 
new written understandings or agreements relating to the interpretation 
of the Plans or to conditions for becoming a sponsor or participant in 
the Plans.

G. Approval by Sponsors in Accordance With Plan

    In accordance with Section IV(b) of the CTA Plan and Section IV(c) 
of the CQ Plan, each of the Participants has approved the proposed 
amendments.

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

    Not applicable.

I. Terms and Conditions of Access

    By removing the exemptions, the proposed amendments would subject 
the Participants to the same fee schedule as all other recipients and 
users of market data.

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

    The proposed amendments do not change the method for determining, 
and the amount of, fees and charges. However, the proposed amendments 
do impose charges for regulation, surveillance and other previously 
exempted purposes on the Participants.

K. Method and Frequency of Processor Evaluation

    Not applicable.

L. Dispute Resolution

    Not applicable.

II. Rule 11Aa3-1\9\
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    \9\ 17 CFR 240.11Aa3-1.
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A. Reporting Requirements

    Not applicable.

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

    Not applicable.

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

    By removing the Participant Fee Exemptions, the proposed amendments 
would subject the Participants to the same fee schedule as all other 
persons seeking access to the Participants' transaction reports.

G. Identification of Marketplace of Execution

    Not Applicable.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed 
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. Comments may also be submitted electronically at the 
following e-mail address: [email protected]. All comment letters 
should refer to File No. SR-CTA/CQ-2003-02. This file number should be 
included on the subject line if e-mail is used. To help the Commission 
process and review comments more efficiently, comments should be sent 
in hardcopy or by e-mail but not by both methods. Copies of the 
submission, all subsequent amendments, all written statements with 
respect to the proposed amendments that are filed with the Commission, 
and all written communications relating to the proposal 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 the filing will also be available for 
inspection and copying at the principal office of CTA.
    All submissions should refer to File No. SR-CTA/CQ-2003-01 and be 
submitted by January 21, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(27).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-32181 Filed 12-30-03; 8:45 am]
BILLING CODE 8010-01-P