[Federal Register: December 31, 2003 (Volume 68, Number 250)]
[Notices]
[Page 75661-75662]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31de03-160]
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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: rule-comments@sec.gov. 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