80 FR 27764 - Consolidated Tape Association; Notice of Filing of the Twenty Second Substantive Amendment to the Second Restatement of the CTA Plan and Sixteenth Substantive Amendment to the Restated CQ Plan
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 93 (May 14, 2015)
Federal Register Volume 80, Issue 93 (May 14, 2015)
| Page Range | 27764-27766 | |
| FR Document | 2015-11621 |
[Federal Register Volume 80, Number 93 (Thursday, May 14, 2015)] [Notices] [Pages 27764-27766] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-11621] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74909; File No. SR-CTA/CQ-2015-01] Consolidated Tape Association; Notice of Filing of the Twenty Second Substantive Amendment to the Second Restatement of the CTA Plan and Sixteenth Substantive Amendment to the Restated CQ Plan May 8, 2015. Pursuant to Section 11A of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 608 thereunder,\2\ notice is hereby given that on April 27, 2015, the Consolidated Tape Association (``CTA'') Plan and Consolidated Quotation (``CQ'') Plan participants (``Participants'') \3\ 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'').\4\ The amendments represent the 22nd Substantive Amendment to the CTA Plan and 16th Substantive Amendment to the CQ Plan (collectively ``the Amendments''). The Amendments propose to require the Participants to include timestamps in the trade-report and bid-and-offer information that they report to the Plans' processor. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78k-1. \2\ 17 CFR 242.608. \3\ Each participant executed the proposed Amendments. The Participants are: BATS Exchange, Inc. (``BATS''), BATS-Y Exchange, Inc. (BATS-Y), Chicago Board Options Exchange, Inc. (CBOE), EDGA Exchange, Inc. (``EDGA''), EDGX Exchange, Inc. (``EDGX''), Financial Industry Regulatory Authority, Inc. (``FINRA''), International Securities Exchange, LLC (``ISE''), NASDAQ OMX BX, Inc. (``Nasdaq BX''), NASDAQ OMX PHLX, Inc. (``Nasdaq PSX''), Nasdaq Stock Market LLC (``Nasdaq''), National Stock Exchange (``NSX''), New York Stock Exchange LLC (``NYSE''), NYSE MKT LLC (``NYSE MKT''), and NYSE Arca, Inc. (``NYSE Arca''). \4\ See Securities Exchange Act Release Nos. 10787 (May 10, 1974), 39 FR 17799 (May 20, 1974) (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 (January 28, 1980) (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 a ``national market system plan'' under Rule 608 under the Act, 17 CFR 242.608. --------------------------------------------------------------------------- The Commission is publishing this notice to solicit comments from interested persons on the proposed Amendments. [[Page 27765]] I. Rule 608(a) A. Purpose of the Amendments Section VI(c) of the CTA Plan specifies that the format for a trade's last sale price information that a Participant reports to the Processor under the CTA Plan shall include the stock symbol, the number of shares and the price of the transaction. Section VI(a) of the CQ Plan provides that each bid and offer that a Participant reports to the Processor under the CQ Plan shall be accompanied by the bid or offer's quotation size or aggregate quotation size. The Amendments propose to add to those requirements that Participants shall also include in reports to the Processor the time of the trade or the quotation. In the case of a Participant that is a national securities exchange, the time of the transaction or quotation is to be reported in microseconds as identified in the Participant's matching engine publication timestamp. In the case of FINRA, the time of a transaction shall be the time of execution that a FINRA member reports to a FINRA trade reporting facility and the time of a bid or offer shall be the quotation publication timestamp that the bidding or offering member reports to the FINRA quotation facility, all in accordance with FINRA rules. In addition, if the FINRA trade reporting facility or quotation facility provides a proprietary feed of trades or quotes reported by the facility to the Processor, then the FINRA facility shall also furnish the Processor with the time of the transmission as published on the facility's proprietary feed. FINRA shall convert times that its members report to it in seconds or milliseconds to microseconds and shall furnish such times to the Processor in microseconds. The Participants believe that adding timestamps to the elements that Participants must report in connection with trade reports and bids and offers will improve transparency regarding the latencies between the CTA and CQ Plans' consolidated data feeds and industry proprietary feeds. Users of the consolidated feeds would be better able to monitor the latency of those feeds and to assess whether such feeds meet their trading and other requirements. B. Governing or Constituent Documents Not applicable. C. Implementation of the Amendments All of the Participants have manifested their approval of the proposed Amendments by means of their execution of the Amendments. The Plan Amendments would become operational upon approval by the Commission. D. Development and Implementation Phases Not applicable. E. Analysis of Impact on Competition The proposed Amendments do not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Exchange Act. They will improve transparency regarding the latencies between the CTA and CQ Plans' consolidated data feeds and industry proprietary feeds and will allow investors to monitor the latency of those feeds and to assess whether such feeds meet their trading and other requirements. 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 Exchange Act.\5\ --------------------------------------------------------------------------- \5\ 15 U.S.C. 78K-1(c)(1)(D). --------------------------------------------------------------------------- F. Written Understanding or Agreements Relating to Interpretation of, or Participation in, Plan Not applicable. G. Approval by Sponsors in Accordance With Plan See Item I.C above. H. Description of Operation of Facility Contemplated by the Proposed Amendments Not applicable. I. Terms and Conditions of Access See Item I.A above. J. Method of Determination and Imposition, and Amount of, Fees and Charges Not applicable. K. Method and Frequency of Processor Evaluation Not applicable. L. 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 See Item I.A above. C. Manner of Collecting, Processing, Sequencing, Making Available and Disseminating Last Sale Information See Item I.A above. D. Manner of Consolidation Not applicable. E. Standards and Methods Ensuring Promptness, Accuracy and Completeness of Transaction Reports The Amendments propose to add timestamps to Participant reports of trades. The addition of timestamps should provide investors with a more complete picture of trades, making those reports more complete and more accurate. F. Rules and Procedures Addressed to Fraudulent or Manipulative Dissemination Not applicable. G. Terms of Access to Transaction Reports Not applicable. H. Identification of Marketplace of Execution Not applicable. III. Solicitation of Comments The Commission seeks general comments on the Amendments. Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed Amendments are consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CTA/CQ-2015-01 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-CTA/CQ-2015-01. This file number should be included on the subject line if email 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 [[Page 27766]] 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 Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 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-2015-01 and should be submitted on or before June 4, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\6\ --------------------------------------------------------------------------- \6\ 17 CFR 200.30-3(a)(27). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-11621 Filed 5-13-15; 8:45 am] BILLING CODE 8011-01-P
![27764 Federal Register / Vol. 80, No. 93 / Thursday, May 14, 2015 / Notices
protection of investors or the public Electronic Comments SECURITIES AND EXCHANGE
interest; (ii) impose any significant COMMISSION
burden on competition; and (iii) become • Use the Commission’s Internet
operative for 30 days from the date on comment form (http://www.sec.gov/ [Release No. 34–74909; File No. SR–CTA/
which it was filed, or such shorter time rules/sro.shtml); or CQ–2015–01]
as the Commission may designate if • Send an email to rule-comments@
Consolidated Tape Association; Notice
consistent with the protection of sec.gov. Please include File Number SR–
of Filing of the Twenty Second
investors and the public interest, the NYSEArca–2015–41 on the subject line.
Substantive Amendment to the Second
proposed rule change has become Restatement of the CTA Plan and
Paper Comments
effective pursuant to Section 19(b)(3)(A) Sixteenth Substantive Amendment to
of the Act 26 and Rule 19b–4(f)(6) • Send paper comments in triplicate the Restated CQ Plan
thereunder.27 to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street May 8, 2015.
The Exchange has asked the
Commission to waive the 30-day NE., Washington, DC 20549–1090. Pursuant to Section 11A of the
operative delay so that the proposal may Securities Exchange Act of 1934
All submissions should refer to File (‘‘Act’’),1 and Rule 608 thereunder,2
become operative immediately upon Number SR–NYSEArca–2015–41. This notice is hereby given that on April 27,
filing. The Commission believes that file number should be included on the 2015, the Consolidated Tape
waiving the 30-day operative delay is subject line if email is used. To help the Association (‘‘CTA’’) Plan and
consistent with the protection of Commission process and review your Consolidated Quotation (‘‘CQ’’) Plan
investors and the public interest, as it comments more efficiently, please use participants (‘‘Participants’’) 3 filed with
will enable the Exchange to meet its only one method. The Commission will the Securities and Exchange
proposed implementation date of May 8, post all comments on the Commission’s Commission (‘‘Commission’’) a proposal
2015, which will help facilitate the Internet Web site (http://www.sec.gov/ to amend the Second Restatement of the
implementation of harmonized rules rules/sro.shtml). Copies of the CTA Plan and Restated CQ Plan
related to the adjustment and submission, all subsequent (collectively, the ‘‘Plans’’).4 The
nullification of erroneous options amendments, all written statements amendments represent the 22nd
transactions across the options with respect to the proposed rule Substantive Amendment to the CTA
exchanges. For this reason, the change that are filed with the Plan and 16th Substantive Amendment
Commission designates the proposed Commission, and all written to the CQ Plan (collectively ‘‘the
rule change to be operative upon communications relating to the Amendments’’). The Amendments
filing.28 proposed rule change between the propose to require the Participants to
At any time within 60 days of the Commission and any person, other than include timestamps in the trade-report
filing of the proposed rule change, the and bid-and-offer information that they
those that may be withheld from the
Commission summarily may report to the Plans’ processor.
public in accordance with the
temporarily suspend such rule change if The Commission is publishing this
provisions of 5 U.S.C. 552, will be
it appears to the Commission that such notice to solicit comments from
available for Web site viewing and interested persons on the proposed
action is necessary or appropriate in the printing in the Commission’s Public
public interest, for the protection of Amendments.
Reference Room, 100 F Street NE.,
investors, or otherwise in furtherance of Washington, DC 20549 on official 1 15 U.S.C. 78k–1.
the purposes of the Act. If the business days between the hours of 2 17 CFR 242.608.
Commission takes such action, the 10:00 a.m. and 3:00 p.m. Copies of such 3 Each participant executed the proposed
Commission shall institute proceedings filing also will be available for Amendments. The Participants are: BATS
to determine whether the proposed rule inspection and copying at the principal Exchange, Inc. (‘‘BATS’’), BATS–Y Exchange, Inc.
should be approved or disapproved. (BATS–Y), Chicago Board Options Exchange, Inc.
office of the Exchange. All comments (CBOE), EDGA Exchange, Inc. (‘‘EDGA’’), EDGX
IV. Solicitation of Comments received will be posted without change; Exchange, Inc. (‘‘EDGX’’), Financial Industry
the Commission does not edit personal Regulatory Authority, Inc. (‘‘FINRA’’), International
Securities Exchange, LLC (‘‘ISE’’), NASDAQ OMX
Interested persons are invited to identifying information from BX, Inc. (‘‘Nasdaq BX’’), NASDAQ OMX PHLX, Inc.
submit written data, views, and submissions. You should submit only (‘‘Nasdaq PSX’’), Nasdaq Stock Market LLC
arguments concerning the foregoing, information that you wish to make (‘‘Nasdaq’’), National Stock Exchange (‘‘NSX’’), New
including whether the proposed rule York Stock Exchange LLC (‘‘NYSE’’), NYSE MKT
available publicly. All submissions LLC (‘‘NYSE MKT’’), and NYSE Arca, Inc. (‘‘NYSE
change is consistent with the Act. should refer to File Number SR– Arca’’).
Comments may be submitted by any of NYSEArca–2015–41, and should be 4 See Securities Exchange Act Release Nos. 10787
the following methods: submitted on or before June 4, 2015. (May 10, 1974), 39 FR 17799 (May 20, 1974)
(declaring the CTA Plan effective); 15009 (July 28,
26 15
For the Commission, by the Division of 1978), 43 FR 34851 (August 7, 1978) (temporarily
U.S.C. 78s(b)(3)(A). authorizing the CQ Plan); and 16518 (January 22,
27 17 CFR 240.19b–4(f)(6). As required under Rule
Trading and Markets, pursuant to delegated
1980), 45 FR 6521 (January 28, 1980) (permanently
19b–4(f)(6)(iii), the Exchange provided the authority.29 authorizing the CQ Plan). The most recent
Commission with written notice of its intent to file Robert W. Errett, restatement of both Plans was in 1995. The CTA
the proposed rule change, along with a brief Plan, pursuant to which markets collect and
description and the text of the proposed rule Deputy Secretary.
disseminate last sale price information for non-
tkelley on DSK3SPTVN1PROD with NOTICES
change, at least five business days prior to the date [FR Doc. 2015–11605 Filed 5–13–15; 8:45 am] NASDAQ listed securities, is a ‘‘transaction
of filing of the proposed rule change, or such BILLING CODE 8011–01–P reporting plan’’ under Rule 601 under the Act, 17
shorter time as designated by the Commission. CFR 242.601, and a ‘‘national market system plan’’
28 For purposes only of waiving the 30-day under Rule 608 under the Act, 17 CFR 242.608. The
operative delay, the Commission has also CQ Plan, pursuant to which markets collect and
considered the proposed rule’s impact on disseminate bid/ask quotation information for listed
efficiency, competition, and capital formation. See securities, is a ‘‘national market system plan’’ under
15 U.S.C. 78c(f). 29 17 CFR 200.30–3(a)(12). Rule 608 under the Act, 17 CFR 242.608.
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![27766 Federal Register / Vol. 80, No. 93 / Thursday, May 14, 2015 / Notices
are filed with the Commission, and all I. Self-Regulatory Organization’s erroneous options transactions.
written communications relating to the Statement of the Terms of the Substance Particularly, the proposed changes seek
Amendments between the Commission of the Proposed Rule Change to achieve consistent results for
and any person, other than those that The Exchange proposes to replace participants across U.S. options
may be withheld from the public in current Rule 1092 (‘‘Current Rule’’), exchanges while maintaining a fair and
accordance with the provisions of 5 entitled ‘‘Obvious Errors and orderly market, protecting investors and
U.S.C. 552, will be available for Web Catastrophic Errors,’’ with new Rule protecting the public interest.
site viewing and printing in the 1092 (‘‘Proposed Rule’’), entitled The Proposed Rule is the culmination
Commission’s Public Reference Room, ‘‘Nullification and Adjustment of of this coordinated effort and reflects
100 F Street NE., Washington, DC Options Transactions including Obvious discussions by the options exchanges to
20549, on official business days Errors.’’ Rule 1092 relates to the universally adopt: (1) Certain provisions
adjustment and nullification of already in place on one or more options
between the hours of 10:00 a.m. and
electronic options transactions that exchanges; and (2) new provisions that
3:00 p.m. Copies of the Amendments
occur on the Exchange.3 the options exchanges collectively
also will be available for inspection and
The text of the proposed rule change believe will improve the handling of
copying at the principal office of the
is available on the Exchange’s Web site erroneous options transactions. Thus,
CTA. although the Proposed Rule is in many
at http://
All comments received will be posted nasdaqomxphlx.cchwallstreet.com/, at ways similar to and based on the
without change; the Commission does the principal office of the Exchange, and Exchange’s Current Rule, the Exchange
not edit personal identifying at the Commission’s Public Reference is adopting various provisions to
information from submissions. You Room. conform with existing rules of one or
should submit only information that more options exchanges and also to
you wish to make available publicly. All II. Self-Regulatory Organization’s adopt rules that are not currently in
submissions should refer to File Statement of the Purpose of, and place on any options exchange. As
Number SR–CTA/CQ–2015–01 and Statutory Basis for, the Proposed Rule noted above, in order to adopt a rule
should be submitted on or before June Change that is similar in most material respects
4, 2015. In its filing with the Commission, the to the rules adopted by other options
Exchange included statements exchanges, the Exchange proposes to
For the Commission, by the Division of
concerning the purpose of and basis for delete the Current Rule in its entirety
Trading and Markets, pursuant to delegated
the proposed rule change and discussed and to replace it with the Proposed
authority.6
any comments it received on the Rule.
Robert W. Errett, The Exchange notes that it has
proposed rule change. The text of these
Deputy Secretary. statements may be examined at the proposed additional objective standards
[FR Doc. 2015–11621 Filed 5–13–15; 8:45 am] places specified in Item IV below. The in the Proposed Rule as compared to the
BILLING CODE 8011–01–P Exchange has prepared summaries, set Current Rule. The Exchange also notes
forth in sections A, B, and C below, of that the Proposed Rule will ensure that
the most significant aspects of such the Exchange will have the same
SECURITIES AND EXCHANGE statements. standards as all other options
COMMISSION exchanges. However, there are still areas
A. Self-Regulatory Organization’s under the Proposed Rule where
Statement of the Purpose of, and subjective determinations need to be
[Release No. 34–74919; File No. SR–Phlx– Statutory Basis for, the Proposed Rule made by Exchange personnel with
2015–43] Change respect to the calculation of Theoretical
Self-Regulatory Organizations; 1. Purpose Price. The Exchange notes that the
Exchange and all other options
NASDAQ OMX PHLX LLC; Notice of Background exchanges have been working to further
Filing and Immediate Effectiveness of
For several months the Exchange has improve the review of potentially
Proposed Rule Change To Amend Rule
been working with other options erroneous transactions as well as their
1092 subsequent adjustment by creating an
exchanges to identify ways to improve
May 8, 2015. the process related to the adjustment objective and universal way to
and nullification of erroneous options determine Theoretical Price in the event
Pursuant to Section 19(b)(1) of the transactions. The goal of the process a reliable NBBO is not available. For
Securities Exchange Act of 1934 that the options exchanges have instance, the Exchange and all other
(‘‘Act’’) 1, and Rule 19b–4 thereunder,2 undertaken is to adopt harmonized rules options exchanges may utilize an
notice is hereby given that, on May 8, related to the adjustment and independent third party to calculate and
2015, NASDAQ OMX PHLX LLC nullification of erroneous options disseminate or make available
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the transactions as well as a specific Theoretical Price. However, this
Securities and Exchange Commission provision related to coordination in initiative requires additional exchange
(‘‘SEC’’ or ‘‘Commission’’) the proposed connection with large-scale events and industry discussion as well as
rule change as described in Items I and involving erroneous options additional time for development and
II below, which Items have been transactions. As described below, the implementation. The Exchange will
prepared by the Exchange. The Exchange believes that the changes the continue to work with other options
tkelley on DSK3SPTVN1PROD with NOTICES
Commission is publishing this notice to options exchanges and the Exchange exchanges and the options industry
solicit comments on the proposed rule have agreed to propose will provide towards the goal of additional
change from interested persons. transparency and finality with respect to objectivity and uniformity with respect
the adjustment and nullification of to the calculation of Theoretical Price.
6 17 CFR 200.30–3(a)(27). As additional background, the
1 15 U.S.C. 78s(b)(1). 3 Disputes regarding trades that occur on the Exchange believes that the Proposed
2 17 CFR 240.19b–4. options trading floor are addressed by Rule 124. Rule supports an approach consistent
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Document Created: 2015-12-15 15:33:19
Document Modified: 2015-12-15 15:33:19
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 27764 |
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