[Federal Register Volume 74, Number 222 (Thursday, November 19, 2009)]
[Notices]
[Pages 59999-60001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-27745]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60985; File No. SR-CTA/CQ-2009-02]


Consolidated Tape Association; Notice of Filing of the Thirteenth 
Charges Amendment to the Second Restatement of the Consolidated Tape 
Association Plan and Seventh Charges Amendment to the Restated 
Consolidated Quotation Plan

November 10, 2009.
    Pursuant to Section 11A of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 608 thereunder,\2\ notice is hereby given that 
on October 19, 2009,\3\ the Consolidated Tape

[[Page 60000]]

Association (``CTA'') Plan and Consolidated Quotation (``CQ'') Plan 
participants (``Participants'') \4\ filed with the Securities and 
Exchange Commission (``Commission'') a proposal to amend the Second 
Restatement of the CTA Plan and Restated CQ Plan (collectively, the 
``Plans'').\5\ The proposal represents the thirteenth charges amendment 
to the CTA Plan (``Thirteenth Charges Amendment'') and the seventh 
charges amendment to the CQ Plan (``Seventh Charges Amendment''), and 
reflects changes unanimously adopted by the Participants. The 
Thirteenth Charges Amendment to the CTA Plan and the Seventh Charges 
Amendment to the CQ Plan (``Amendments'') would: (1) Delete all program 
classification charges from the schedules of Network A and Network B 
computer input charges; and (2) replace the current combined Network A/
Network B high speed line access charges with separate high speed line 
access charges for Network A and Network B. The Commission is 
publishing this notice to solicit comments from interested persons on 
the proposed Amendments.
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ On November 6, 2009, the Consolidated Tape Association sent 
a letter correcting the number of the proposed amendment.
    \4\ Each participant executed the proposed amendment. The 
Participants are: BATS Exchange, Inc.; Chicago Board Options 
Exchange, Inc.; Chicago Stock Exchange, Inc.; Financial Industry 
Regulatory Authority, Inc.; International Securities Exchange, LLC; 
NASDAQ OMX BX, Inc.; NASDAQ OMX PHLX, Inc.; The NASDAQ Stock Market 
LLC; National Stock Exchange, Inc.; New York Stock Exchange LLC; 
NYSE Amex LLC; and NYSE Arca, Inc.
    \5\ See Securities Exchange Act Release Nos. 10787 (May 10, 
1974), 39 FR 17799 (declaring the CTA Plan effective); 15009 (July 
28, 1978), 43 FR 34851 (August 7, 1978) (temporarily authorizing the 
CQ Plan); and 16518 (January 22, 1980), 45 FR 6521 (permanently 
authorizing the 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 non-NASDAQ listed 
securities, is a ``transaction reporting plan'' under Rule 601 under 
the Act, 17 CFR 242.601, and a ``national market system plan'' under 
Rule 608 under the Act, 17 CFR 242.608. 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 242.608.
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I. Rule 608(a)

A. Description and Purpose of the Amendments

    The Plans currently divide the different means of using market data 
into eight program classifications. The program classification fees 
payable by vendors and end-users depend on the category of use the 
vendor or end-user makes of the data and whether the vendor or end-user 
is using Network A market data or Network B market data, or both. 
Through the Amendments, the Participants propose to eliminate program 
classification charges and set separate fees for the receipt of Network 
A market data and Network B market data.
    Over time, new technologies and new and innovative notions on how 
to use market data have made it increasingly difficult to place data 
uses into the existing program classifications in a manner that is 
consistent and equitable for all. The Participants have come to believe 
that it is inherently more equitable for them to charge vendors and 
end-users for the method of access to the data and the quantity of 
usage, rather than for the specific purposes (i.e., by program 
classification) to which vendors and end-users put market data. The 
Participants believe that eliminating the manner-of-data-usage charges 
will modernize the CTA and CQ fee schedules and allow all vendors and 
users to use data as they see fit, without having to worry about 
whether a new usage would subject them to a new program classification 
fee. The elimination of program classification charges means that 
vendors will no longer need to provide detailed explanations of how 
they use the data or to update Exhibit A to their agreements with the 
Participants each time they put data to a new use.
    Additionally, the Participants propose to revise the access fees by 
setting separate fees for the receipt of Network A market data and 
Network B market data. Therefore, if a vendor or end-user wishes to 
receive Network A last sale prices (or quotation information), but not 
Network B last sale prices (or quotation information), the vendor or 
end-user would now be allowed it to pay only for Network A last sale 
prices, without also having to pay for Network B last sale prices and 
vice versa.
    In addition to establishing separate access fees for Network A and 
Network B, it is the intention of the Participants to set the new 
access fees at levels that will offset the revenues that the 
Participants anticipate they will lose as a result of eliminating the 
program classification fees. The Participants' goal is to eliminate the 
program classification fees and reset access fees in a revenue-neutral 
manner and simplify and modernize the fee schedule while offering 
vendors and end-users greater choice and flexibility in the receipt and 
use of market data.
    The text of the proposed Amendments is available on the CTA's Web 
site (http://www.nysedata.com/cta), at the principal office of the CTA, 
and at the Commission's Public Reference Room.

B. Additional Information Required by Rule 608(a)

1. Governing or Constituent Documents
    Not applicable.
2. Implementation of the Amendments
    The Participants have manifested their approval of the proposed 
amendments to the CTA and CQ rate schedule by means of their execution 
of the Amendments. The Participants propose to make the rate changes 
effective for calendar year 2010.
3. Development and Implementation Phases
    See Item I(B)(2) above.
4. Analysis of Impact on Competition
    The amendment will impose no burden on competition.
5. Written Understanding or Agreements relating to Interpretation of, 
or Participation in, Plan
    The Participants have no written understandings or agreements 
relating to interpretation of the CTA Plan and CQ Plan as a result of 
the Amendments.
6. Approval by Sponsors in Accordance With Plan
    In accordance with Section XII(b)(iii) of the CTA Plan and Section 
IX(b)(iii) of the CQ Plan, each of the Participants has approved the 
rate changes.
7. Description of Operation of Facility Contemplated by the Proposed 
Amendment
    a. Terms and Conditions of Access
    See Item I(A) above.
    b. Method of Determination and Imposition, and Amount of, Fees and 
Charges
    See Item I(A) above.
    c. Method of Frequency of Processor Evaluation
    Not applicable.
    d. Dispute Resolution
    Not applicable.

II. Rule 601(a)

A. Equity Securities for Which Transaction Reports Shall Be Required by 
the Plan

    Not applicable.

B. Reporting Requirements

    Not applicable.

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

    Not applicable.

D. Manner of Consolidation

    Not applicable.

[[Page 60001]]

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

    Not applicable.

F. Rules and Procedures Addressed to Fraudulent or Manipulative 
Dissemination

    Not applicable.

G. Terms of Access to Transaction Reports

    See Item I(A) above.

H. Identification of Marketplace 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 
Thirteenth Charges Amendment to the CTA Plan and the Seventh Charges 
Amendment to the CQ Plan 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 Number SR-CTA/CQ-2009-02 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CTA/CQ-2009-02. 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, 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 Amendments that are filed 
with the Commission, and all written communications relating to the 
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, 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 Amendments 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 Number SR-CTA/CQ-2009-02 and should be submitted 
on or before December 10, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(27).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-27745 Filed 11-18-09; 8:45 am]
BILLING CODE 8011-01-P