[Federal Register Volume 68, Number 250 (Wednesday, December 31, 2003)]
[Notices]
[Pages 75662-75664]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-32182]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48984; File No. SR-CTA/CQ-2003-02]


Consolidated Tape Association; Notice of Filing of the Sixth 
Substantive Amendment to the Second Restatement of the Consolidated 
Tape Association Plan and the Fourth 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 6th substantive amendment made to the 
Second

[[Page 75663]]

Restatement of the CTA Plan and the 4th substantive amendment to the 
Restated CQ Plan, and reflects several changes unanimously adopted by 
the Participants. The proposed amendments would separate the functions 
of administering the contracts into which vendors and others enter for 
the purpose of receiving and using market data. 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 (``Amex''); Boston 
Stock Exchange, Inc.; Chicago Board Options Exchange, Inc.; Chicago 
Stock Exchange, Inc.; Cincinnati Stock Exchange, Inc.; National 
Association of Securities Dealers, Inc.; New York Stock Exchange, 
Inc.; Pacific Exchange, Inc.; and Philadelphia Stock Exchange, Inc.
    \3\ See letter to Jonathan G. Katz, Secretary, Commission, from 
Thomas E. Haley, Vice President of Market Data, NYSE 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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    Since 1989, NYSE has performed certain administrative functions on 
behalf of the Network B Administrator.\5\ These functions include 
procuring and maintaining the contracts by which vendors and others 
receive and use the market data that both Network A and Network B make 
available.\6\ NYSE executes the Consolidated Vendor Form on behalf of 
itself, the Network B administrator and the other Plan Participants.
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    \5\ In 1989, the Participants introduced the Consolidated Vendor 
Form and that form of vendor agreement is still in use. See 
Securities Exchange Act Release No. 27498 (December 4, 1989), 54 FR 
50828 (December 11, 1989). The Consolidated Vendor Form applies to 
the receipt and use of Network B market data, as well as Network A 
market data. Pursuant to delegated authority, NYSE has administered 
that consolidated vendor form on behalf of the Network B 
Participants as well as on behalf of the Network A Participants. 
Prior to the introduction of that form of vendor agreement, NYSE 
administered the Network A vendor agreements on behalf of the 
Network A Participants and the Amex administered the Network B 
vendor agreements on behalf of the Network B Participants.
    \6\ The form of contract that is the subject of the proposal is 
the form of contract (the Consolidated Vendor Form) that the 
Participants require ``Customers'' to enter into for their receipt 
and use of the market data that the Participants make available 
under the Plans. ``Customers'' include (1) vendors, (2) internal and 
other data redistributors, and (3) those that internally use market 
data for the purposes that are subject to the Plans' program 
classification charges. The Consolidated Vendor Form constitutes 
Exhibit C to each Plan.
    End users that do not redistribute data and do not use it for 
the purposes that are the subject of the program classification 
charges receive the data pursuant to ``subscriber'' forms of 
agreement. NYSE, as the Network A administrator, currently 
administers the Network A form of that agreement. The Amex, as the 
Network B administrator, currently administers a Network B form of 
that agreement. The amendments do not propose any change to those 
subscriber forms.
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    The Participants propose to once again divide the contract-
administration function between the Network A administrator (NYSE) (for 
the receipt and use of Network A market data) and the Network B 
administrator (Amex) (for the receipt and use of Network B market 
data). To make the separation of contract functions possible, the 
amendments propose to replace the Consolidated Vendor Form with two new 
forms, a ``Network A Consolidated Vendor Form'' and a ``Network B 
Consolidated Vendor Form.''
    Under the proposal, the Amex would assume all contract-
administration functions for the Network B Consolidated Vendor Form and 
would execute those forms on behalf of itself and the other Network B 
Participants. The NYSE would continue to perform the contract-
administration functions for Network A and would execute the Network A 
Consolidated Vendor Form on behalf of itself and the other Network A 
Participants.
    In terms of substance, the Network A Consolidated Vendor Form and 
the Network B Consolidated Vendor Form would offer the same terms and 
conditions as does the Consolidated Vendor Form. The only difference 
would be that the Consolidated Vendor Form governs the receipt and use 
of both Network A and Network B market data, whereas the Network A 
Consolidated Vendor Form governs the receipt and use of Network A 
market data and the Network B Consolidated Vendor Form will govern the 
receipt and use of Network B market data.
    The Participants originally submitted the Consolidated Vendor Form 
to the Commission on October 16, 1989.\7\ They made certain revisions 
to the form in response to changes recommended by commenters and re-
filed the Consolidated Vendor Form for immediate effectiveness in 
August 1990.\8\ In conjunction with its submission of amended and 
restated CTA and CQ Plans in December 1995, the Participants submitted 
a revised version of the Consolidated Vendor Form to the Commission. 
That revised version made non-substantive changes to conform the form's 
language to the language in the Plans and to provide greater clarity 
and standardization in the definitions. The Commission approved the 
restated Plans, including the revised version of the Consolidated 
Vendor Form, in May 1996.\9\ The amendments propose the first changes 
to the Consolidated Vendor Form since then.
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    \7\ See Securities Exchange Act Release No. 27498 (December 4, 
1989), 54 FR 50828 (December 11, 1989).
    \8\ See Securities Exchange Act Release No. 28407 (September 6, 
1990), 55 FR 37276 (September 10, 1990).
    \9\ See Securities Exchange Act Release No. 37191 (May 9, 1996), 
61 FR 24842 (May 16, 1996).
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    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),\10\ 11A(a)(1)(D) \11\ and 11A(a)(3)(B) \12\ of the Act.
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    \10\ 15 U.S.C. 78k-l(a)(1)(C).
    \11\ 15 U.S.C. 78k-l(a)(1)(D).
    \12\ 15 U.S.C. 78k-l(a)(3)(B).
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B. Governing or Constituent Documents

    The proposed amendments would replace the Consolidated Vendor Form 
with a new Network A Consolidated Vendor Form and a new Consolidated 
Network B Vendor Form.

C. Development and Implementation of Amendments

    Under the proposal, the Amex would assume Network B contract-
administration functions within 90 days from the Commission's approval 
of these proposed amendments. The network administrators would commence 
to use the Network A Consolidated Vendor Form and the Network B 
Consolidated Vendor Form at that time. The Participants state that they 
intend to notify vendors and other interested parties, both in writing 
and through verbal contact, of the two new forms.

D. 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) of the Act.\13\
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    \13\ 15 U.S.C. 78k-l(c)(1)(D).
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E. 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.

[[Page 75664]]

F. 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 amendments.

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

    Not applicable.

H. Terms and Conditions of Access

    Because the two new forms make no changes in substance to the 
Consolidated Vendor Form, the amendments do not change the terms and 
conditions of access, other than that the Amex, rather than the NYSE, 
would now service those wishing to receive access to the Network B data 
feed.

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

    Not applicable.

J. Method and Frequency of Processor Evaluation

    Not applicable.

K. Dispute Resolution

    Not applicable.

II. Rule 11Aa3-1 \14\
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    \14\ 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

    Because the two new forms make no changes in substance to the 
Consolidated Vendor Form, the proposed amendments do not change the 
terms of access to transaction reports, other than that the Amex, 
rather than NYSE, would now service those wishing to receive access to 
the Network B data feed.

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 your 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-2003-02 and be submitted by January 
21, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(27).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-32182 Filed 12-30-03; 8:45 am]
BILLING CODE 8010-01-P