[Federal Register Volume 71, Number 126 (Friday, June 30, 2006)]
[Notices]
[Pages 37624-37626]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-5905]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54038; File No. SR-CTA/CQ-2006-01]


Consolidated Tape Association; Notice of Filing and Immediate 
Effectiveness of the Eighth and Ninth Substantive Amendments to the 
Second Restatement of the Consolidated Tape Association Plan and the 
Sixth Substantive Amendment to the Restated Consolidated Quotation Plan

June 23, 2006.
    Pursuant to section 11A of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 608 thereunder,\2\ notice is hereby given that 
on June 16, 2006, the Consolidated Tape Association (``CTA'') Plan and 
Consolidated Quotation (``CQ'') Plan participants (``Participants'')\3\ 
submitted to the Securities and Exchange Commission (``Commission'') 
proposals to amend the CTA and CQ Plans (collectively, the 
``Plans'').\4\ The proposals represent the eighth substantive amendment 
made to the Second Restatement of the CTA Plan (``Eighth Amendment to 
the CTA Plan''), the ninth substantive Amendment to the Second 
Restatement of the CTA Plan (``Ninth Amendment to the CTA Plan'') and 
the sixth substantive amendment to the Restated CQ Plan (``Sixth 
Amendment to the CQ Plan''), and reflect changes unanimously adopted by 
the Participants. The Eighth Amendment to the CTA Plan would modify the 
procedures that apply to the Processor's recommencement of 
dissemination of the last sale price information in a security after 
the security's listing market declares the end to a regulatory halt in 
the security. The Ninth Amendment to the CTA Plan and the Sixth 
Amendment to the CQ Plan would add International Securities Exchange, 
Inc. (``ISE'') and the Nasdaq Stock Market LLC (``Nasdaq'') as new 
Participants to the Plans. In addition, these amendments would perform 
a ``housekeeping'' function of incorporating into the text of the Plans 
changes to the corporate names and addresses of some Participants.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ Each Participant executed the proposed amendments. The 
current Participants are the American Stock Exchange LLC (``Amex''); 
Boston Stock Exchange, Inc. (``BSE''); Chicago Board Options 
Exchange, Inc. (``CBOE''); Chicago Stock Exchange, Inc. (``CHX''); 
National Association of Securities Dealers, Inc. (``NASD''); 
National Stock Exchange (``NSX''); New York Stock Exchange, LLC. 
(``NYSE''); NYSE Arca, Inc. (``NYSE Arca''); and Philadelphia Stock 
Exchange, Inc. (``Phlx'').
    \4\ See Securities Exchange Act Release Nos. 10787 (May 10, 
1974), 39 FR 17799 (order approving CTA Plan); 15009 (July 28, 
1978), 43 FR 34851 (August 7, 1978) (order temporarily approving CQ 
Plan); and 16518 (January 22, 1980), 45 FR 6521 (order permanently 
approving CQ Plan). The most recent restatement of both Plans was in 
1995. The CTA Plan, pursuant to which markets collect and 
disseminate last sale price information for listed securities, is a 
``transaction reporting plan'' under Rule 601 under the Act, 17 CFR 
240.601, and a ``national market system plan'' under Rule 608 under 
the Act, 17 CFR 240.608. The CQ Plan, pursuant to which markets 
collect and disseminate bid/ask quotation information for listed 
securities, is also a ``national market system plan'' under Rule 608 
under the Act, 17 CFR 240.608.
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    Pursuant to Rule 608(b)(3)(ii) under the Act,\5\ the Participants 
designated the Eighth Amendment to the CTA Plan as concerned solely 
with technical or ministerial matters and designated the Ninth 
Amendment to the CTA Plan and the Sixth Amendment to the CQ Plan as 
concerned solely with the administration of the Plans. As a result, all 
three amendments have become effective upon filing with the Commission. 
At any time within 60 days of the filing of the amendments, the 
Commission may summarily abrogate the amendments and require that such 
amendments be refiled in accordance with paragraph (a)(1) of Rule 608 
and reviewed in accordance with paragraph (b)(2) of Rule 608, if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or the 
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. The Commission is publishing 
this notice to solicit comments from interested persons.
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    \5\ 17 CFR 242.608(b)(3)(ii).
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I. Description and Purpose of the Proposed Amendments

A. Application of Listing Market Regulatory Halt Procedures

    The Eighth Amendment to the CTA Plan proposes to modify the 
procedures that apply to the Processor's recommencement of 
dissemination of last sale price information in a security after the 
security's listing market declares the end to a regulatory halt in the 
security.
    Currently, the CTA Plan prescribes procedures for re-opening 
trading in a security after the end of a regulatory trading halt. The 
Participants propose to remove those procedures from the CTA Plan and 
to replace them with a cross reference to the procedures governing the 
reopening of a security after a regulatory halt as set forth in the 
rules of the listing market for the security. Therefore, the reopening 
procedures set forth in the rules of the security's listing market, 
rather than the procedures set forth in the CTA Plan, would govern the 
security's reopening after a regulatory halt. In the case of a security 
that is listed simultaneously on more than one market, the reopening 
procedures of the market on which the security was first listed would 
apply.
    The Participants believe that the change is necessary because the 
reopening procedures of listing markets have come to diverge from one 
another and from those set forth in the CTA Plan. (See, e.g., NYSE Rule 
123D (``Openings and Halts in Trading'') and AMEX Rule 119 
(``Indications, Openings and Reopenings'')). The amendment removes any 
inconsistency between reopening procedures under the CTA Plan and 
reopening procedures under the rules of the listing market.
    The Participants also propose to replace references to primary 
market in Section XI(a) of the CTA Plan with references to listed 
market.

[[Page 37625]]

    Proposed deletions are in brackets, proposed new language is 
italicized:

Section XI. Operational Matters

* * * * *
    [Ten minutes after the primary market notification to the Processor 
of adequate publication or disclosure of information, provided that the 
primary market has during such 10 minute period caused the Processor to 
include on the consolidated tape an indication of interest relating to 
the affected Eligible Security, the Processor shall again commence to 
disseminate on a current and continuous basis the last sale price 
information received by it from any Participant or other reporting 
party after the passage of such 10 minute period.
    In the event that the primary market does not cause the Processor 
to include on the consolidated tape an indication of interest relating 
to the Eligible Security which is the subject of the Regulatory Halt 
during the 10 minute time period following the primary market's 
notification to the Processor of adequate publication or disclosure of 
information, then the primary market shall cause the Processor to 
include on the consolidated tape, within 5 minutes after the passage of 
such 10 minute time period, an administrative message. Such 
administrative message shall:
    (i) Signify a continuation of the Regulatory Halt (such an 
administrative message shall include the ticker symbol of the affected 
Eligible Security, the last sale price of such Security as most 
recently disseminated by the Processor prior to the commencement of the 
Regulatory Halt, and the reason for the continuation of the Regulatory 
Halt, such as, ``news pending'' or ``news dissemination''), or
    (ii) Announce that a market condition which relates to the trading 
of the affected Eligible Security in the primary market exists (e.g., a 
heavy influx or imbalance of orders), in which event the Regulatory 
Halt shall terminate 5 minutes after the printing of such 
administrative message on the consolidated tape and thereafter the 
Processor shall again commence to disseminate on a current and 
continuous basis last sale price information received by it from any 
Participant or other reporting party after the termination of the 
Regulatory Halt.]
    The Processor shall again commence to disseminate on a current and 
continuous basis the last sale price information received by it from 
any Participant or other reporting party in the affected Eligible 
Security in accordance with the re-opening procedures applicable to 
Regulatory Halts set forth in the rules of the Eligible Security's 
listing market. (See, for example, NYSE Rule 123D (``Openings and Halts 
in Trading'') and AMEX Rule 119 (``Indications, Openings and 
Reopenings'')).
* * * * *
    [For the purposes of this Section XI, the ``primary market'' for 
any Eligible Security shall be that exchange Participant in whose 
market the greatest number of transactions in such Eligible Security 
reported on the consolidated tape during the preceding six month period 
(or such shorter period as the Security has been reported on the 
consolidated tape if it has not been so reported for a full six month 
period) has taken place.]
    For the purposes of this Section XI, the ``listing market'' for any 
Eligible Security shall be that exchange Participant on which the 
Eligible Security is listed. If an Eligible Security is dually listed, 
``listing market'' shall be that exchange Participant on which the 
Eligible Security was originally listed.
* * * * *

B. Adding New Participants

    The Ninth Amendment to the CTA Plan and the Sixth Amendment to the 
CQ Plan propose to add the ISE and Nasdaq as new Participants to each 
Plan.

C. Name and Address Change

    The Ninth Amendment to the CTA Plan and the Sixth Amendment to the 
CQ Plan propose to reflect the name changes from the New York Stock 
Exchange, Inc. to New York Stock Exchange LLC and from Pacific 
Exchange, Inc. to NYSE Arca, Inc. In addition, these amendments propose 
to reflect changes to addresses of BSE and NYSE Arca.

D. Additional Information Required by Rule 608(a)

1. Governing or Constituent Documents
    Not applicable.
2. Implementation of Amendments
    The Participants have manifested their approval of the proposed 
amendments by means of their execution of the amendments. The 
amendments have become effective upon filing.\6\
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    \6\ See id.
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3. Development and Implementation Phases
    Not applicable.
4. 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 amendments introduce terms that are unreasonably 
discriminatory for the purposes of section 11A(c)(1)(D) of the Act.
5. Written Understanding or Agreements Relating to Interpretation of, 
or Participation in, Plan
    Not applicable.
6. Approval by Sponsors in Accordance With Plan
    Each of the Participants has approved the amendments in accordance 
with Section IV(b) of the CTA Plan and Section IV(c) of the CQ Plan, as 
applicable.
7. Description of Operation of Facility Contemplated by the Proposed 
Amendment
    Not applicable.
8. Terms and Conditions of Access
    Not applicable.
9. Method of Determination and Imposition, and Amount of, Fees and 
Charges
    Not applicable.
10. Method of Frequency of Processor Evaluation
    Not applicable.
11. Dispute Resolution
    Not applicable.

E. Additional Information Required by Rule 601(a) (Solely With Respect 
to the Amendments to the CTA Plan)

1. Reporting Requirements
    Not applicable.
2. Manner of Collecting, Processing, Sequencing, Making Available and 
Disseminating Last Sale Information
    Not applicable.
3. Manner of Consolidation
    Not applicable.
4. Standards and Methods Ensuring Promptness, Accuracy and Completeness 
of Transaction Reports
    Not applicable.
5. Rules and Procedures Addressed to Fraudulent or Manipulative 
Dissemination
    Not applicable.
6. Terms of Access to Transaction Reports
    Not applicable.

[[Page 37626]]

7. Identification of Marketplace of Execution
    Not Applicable.

II. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed 
Plans amendments are consistent with the Act. Comments may be submitted 
by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File No. SR-CTA/CQ-2006-01 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, Station Place, 100 F 
Street, NE., Washington, DC 20549-1090.

All submissions should refer to File No. SR-CTA/CQ-2006-01. 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, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed Plan amendment that are 
filed with the Commission, and all written communications relating to 
the proposed Plan amendment between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for inspection 
and copying in the Commission's Public Reference Room. Copies of the 
filing also will be available for inspection and copying at the 
principal office of the CTA. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File No. SR-CTA/CQ-2006-01 and should be submitted on or before July 
21, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(27).
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Nancy M. Morris,
Secretary.
[FR Doc. 06-5905 Filed 6-29-06; 8:45 am]
BILLING CODE 8010-01-P