80 FR 9283 - Joint Industry Plan; Order Approving Amendment No. 34 to the Joint Self-Regulatory Organization Plan Governing the Collection, Consolidation and Dissemination of Quotation and Transaction Information for Nasdaq-Listed Securities Traded on Exchanges on an Unlisted Trading Privileges Basis Submitted by the BATS Exchange, Inc., BATS Y-Exchange, Inc., Chicago Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory Authority, Inc., International Securities Exchange LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX, Inc., Nasdaq Stock Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, NYSE MKT, LLC, and NYSE Arca, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 34 (February 20, 2015)

Page Range		9283-9283
FR Document		2015-03522

Federal Register, Volume 80 Issue 34 (Friday, February 20, 2015)

[Federal Register Volume 80, Number 34 (Friday, February 20, 2015)]
[Notices]
[Page 9283]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03522]



[[Page 9283]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74265; File No. S7-24-89]


Joint Industry Plan; Order Approving Amendment No. 34 to the 
Joint Self-Regulatory Organization Plan Governing the Collection, 
Consolidation and Dissemination of Quotation and Transaction 
Information for Nasdaq-Listed Securities Traded on Exchanges on an 
Unlisted Trading Privileges Basis Submitted by the BATS Exchange, Inc., 
BATS Y-Exchange, Inc., Chicago Board Options Exchange, Incorporated, 
Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., 
Financial Industry Regulatory Authority, Inc., International Securities 
Exchange LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX, Inc., Nasdaq Stock 
Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, 
NYSE MKT, LLC, and NYSE Arca, Inc.

February 12, 2015.

I. Introduction

    On December 24, 2014, the operating committee (``Operating 
Committee'' or ``Committee'') \1\ of the Joint Self-Regulatory 
Organization Plan Governing the Collection, Consolidation, and 
Dissemination of Quotation and Transaction Information for Nasdaq-
Listed Securities Traded on Exchanges on an Unlisted Trading Privileges 
Basis (``Nasdaq/UTP Plan'' or ``Plan'') filed with the Securities and 
Exchange Commission (``Commission'') pursuant to Section 11A of the 
Securities Exchange Act of 1934 (``Act''),\2\ and Rule 608 \3\ 
thereunder, a proposal to amend the Nasdaq/UTP Plan \4\ to shorten the 
maximum time within which Participants must report trades from 90 
seconds to 10 seconds, subject to the Participants' obligation to 
report trades as soon as practicable.
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    \1\ The Plan Participants (collectively, ``Participants'') are 
the: BATS Exchange, Inc. (``BATS''); BATS Y-Exchange, Inc.(``BATS 
Y''); Chicago Board Options Exchange, Incorporated (``CBOE''); 
Chicago Stock Exchange, Inc. (``CHX''); EDGA Exchange, Inc. 
(``EDGA''); EDGX Exchange, Inc.(``EDGX''); Financial Industry 
Regulatory Authority, Inc. (``FINRA''); International Securities 
Exchange LLC (``ISE''); NASDAQ OMX BX, Inc. (``BX''); NASDAQ OMX 
PHLX, Inc. (``PHLX''); Nasdaq Stock Market LLC (``Nasdaq''); 
National Stock Exchange, Inc. (``NSX''); New York Stock Exchange LLC 
(``NYSE''); NYSE MKT, LLC; and NYSE Arca, Inc. (``NYSE Arca'').
    \2\ 15 U.S.C. 78k-1.
    \3\ 17 CFR 240.608.
    \4\ The Plan governs the collection, processing, and 
dissemination on a consolidated basis of quotation information and 
transaction reports in Eligible Securities for each of its 
Participants. This consolidated information informs investors of the 
current quotation and recent trade prices of Nasdaq securities. It 
enables investors to ascertain from one data source the current 
prices in all the markets trading Nasdaq securities. The Plan serves 
as the required transaction reporting plan for its Participants, 
which is a prerequisite for their trading Eligible Securities. See 
Securities Exchange Act Release No. 55647 (April 19, 2007) 72 FR 
20891 (April 26, 2007).
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    The proposed amendment was published for comment in the Federal 
Register on January 7, 2015.\5\ No comment letters were received in 
response to the Notice. This order approves the proposal.
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    \5\ See Securities Exchange Act Release No. 73970 (December 31, 
2014), 80 FR 910 (``Notice'').
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II. Description of the Proposal

    Currently, Section VIII(B) (Transaction Reports) of the Nasdaq/UTP 
Plan provides that ``Each Participant shall, during the time it is open 
for trading, be responsible promptly to collect and transmit to the 
Processor Transaction Reports in Eligible Securities executed in its 
Market by means prescribed herein. . . . All such Transaction Reports 
shall be transmitted to the Processor within 90 seconds after the time 
of execution of the transaction. Transaction Reports transmitted beyond 
the 90-second period shall be designated as ``late'' by the appropriate 
code or message.''
    The amendment proposes to shorten the maximum time within which 
Participants must report trades from 90 seconds to 10 seconds, subject 
to the Participants' obligation to report trades as soon as 
practicable. It would now require the Participants to ``transmit all 
Transaction Reports as soon as practicable, but not later than 10 
seconds, after the time of execution.'' The amendment would also 
require each Participant to establish and maintain collection and 
reporting procedures and facilities reasonably designed to comply with 
the reporting requirement. This would harmonize the UTP Plan with the 
amended transaction reporting requirement under the CTA Plan.

III. Discussion

    After careful review, the Commission finds that the proposed 
amendment to the Plan is consistent with the requirements of the Act 
and the rules and regulations thereunder,\6\ and, in particular, 
Section 11A(a)(1) of the Act \7\ and Rule 608 thereunder \8\ in that it 
is necessary or appropriate in the public interest, for the protection 
of investors and the maintenance of fair and orderly markets, to remove 
impediments to, and perfect the mechanisms of, a national market 
system.
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    \6\ The Commission has considered the proposed amendment's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
    \7\ 15 U.S.C. 78k-1(a)(1).
    \8\ 17 CFR 240.608.
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    The proposal is consistent with Section 11A(a)(1)(C)(iii) of the 
Act,\9\ which sets forth Congress' finding that it is in the public 
interest and appropriate for the protection of investors and the 
maintenance of fair and orderly markets to assure the availability to 
brokers, dealers, and investors of information with respect to 
quotations and transactions in securities. These goals are furthered by 
the proposed amendment requiring that Participants report trades as 
soon as practicable, but no later than 10 seconds, following execution 
(or cancellation, as applicable) as they bring the trade reporting 
requirement more in line with current industry practice, as the markets 
have become more automated and more efficient. In addition, the change 
will make the trade reporting requirement consistent across the two 
transaction reporting plans for equity securities \10\ and FINRA.\11\
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    \9\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \10\ The participants of the Consolidated Tape Association 
(``CTA'') Plan also proposed to amend the trade reporting 
requirement under the CTA Plan to require that transactions be 
reported as soon as practicable, but no later than 10 seconds 
following execution. See Securities Exchange Act Release No. 73971 
(December 31, 2014), 80 FR 908 (January 7, 2015) (Notice of Filing 
of SR-CTA-2014-04).
    \11\ See Securities Exchange Act Release No. 69561 (May 13, 
2013), 78 FR 29190 (May 17, 2013) (File No. SR-FINRA-2013-013) 
(order approving FINRA rule to require FINRA members to report over-
the counter transactions in Eligible Securities to FINRA as soon as 
practicable, but no later than 10 seconds following execution).
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IV. Conclusion

    It Is Therefore Ordered, pursuant to Section 11A of the Act,\12\ 
and Rule 608 thereunder,\13\ that the proposed amendment to Nasdaq/UTP 
Plan (File No. S7-24-89) is approved.
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    \12\ 15 U.S.C. 78k-1.
    \13\ 17 CFR 240.608.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(27).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-03522 Filed 2-19-15; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 34 / Friday, February 20, 2015 / Notices 9283

SECURITIES AND EXCHANGE shorten the maximum time within and the maintenance of fair and orderly
COMMISSION which Participants must report trades markets, to remove impediments to, and
from 90 seconds to 10 seconds, subject perfect the mechanisms of, a national
[Release No. 34–74265; File No. S7–24–89] to the Participants’ obligation to report market system.
trades as soon as practicable. The proposal is consistent with
Joint Industry Plan; Order Approving The proposed amendment was Section 11A(a)(1)(C)(iii) of the Act,9
Amendment No. 34 to the Joint Self- published for comment in the Federal which sets forth Congress’ finding that
Regulatory Organization Plan Register on January 7, 2015.5 No it is in the public interest and
Governing the Collection, comment letters were received in appropriate for the protection of
Consolidation and Dissemination of response to the Notice. This order investors and the maintenance of fair
Quotation and Transaction Information approves the proposal. and orderly markets to assure the
for Nasdaq-Listed Securities Traded on availability to brokers, dealers, and
Exchanges on an Unlisted Trading II. Description of the Proposal
investors of information with respect to
Privileges Basis Submitted by the Currently, Section VIII(B) quotations and transactions in
BATS Exchange, Inc., BATS Y- (Transaction Reports) of the Nasdaq/ securities. These goals are furthered by
Exchange, Inc., Chicago Board UTP Plan provides that ‘‘Each the proposed amendment requiring that
Options Exchange, Incorporated, Participant shall, during the time it is Participants report trades as soon as
Chicago Stock Exchange, Inc., EDGA open for trading, be responsible practicable, but no later than 10
Exchange, Inc., EDGX Exchange, Inc., promptly to collect and transmit to the seconds, following execution (or
Financial Industry Regulatory Processor Transaction Reports in cancellation, as applicable) as they bring
Authority, Inc., International Securities Eligible Securities executed in its the trade reporting requirement more in
Exchange LLC, NASDAQ OMX BX, Inc., Market by means prescribed herein. . . . line with current industry practice, as
NASDAQ OMX PHLX, Inc., Nasdaq All such Transaction Reports shall be the markets have become more
Stock Market LLC, National Stock transmitted to the Processor within 90 automated and more efficient. In
Exchange, Inc., New York Stock seconds after the time of execution of addition, the change will make the trade
Exchange LLC, NYSE MKT, LLC, and the transaction. Transaction Reports reporting requirement consistent across
NYSE Arca, Inc. transmitted beyond the 90-second the two transaction reporting plans for
period shall be designated as ‘‘late’’ by equity securities 10 and FINRA.11
February 12, 2015. the appropriate code or message.’’
The amendment proposes to shorten IV. Conclusion
I. Introduction
the maximum time within which It Is Therefore Ordered, pursuant to
On December 24, 2014, the operating Participants must report trades from 90 Section 11A of the Act,12 and Rule 608
committee (‘‘Operating Committee’’ or seconds to 10 seconds, subject to the thereunder,13 that the proposed
‘‘Committee’’) 1 of the Joint Self- Participants’ obligation to report trades amendment to Nasdaq/UTP Plan (File
Regulatory Organization Plan Governing as soon as practicable. It would now No. S7–24–89) is approved.
the Collection, Consolidation, and require the Participants to ‘‘transmit all
Dissemination of Quotation and For the Commission, by the Division of
Transaction Reports as soon as Trading and Markets, pursuant to delegated
Transaction Information for Nasdaq- practicable, but not later than 10 authority.14
Listed Securities Traded on Exchanges seconds, after the time of execution.’’ Brent J. Fields,
on an Unlisted Trading Privileges Basis The amendment would also require
(‘‘Nasdaq/UTP Plan’’ or ‘‘Plan’’) filed Secretary.
each Participant to establish and [FR Doc. 2015–03522 Filed 2–19–15; 8:45 am]
with the Securities and Exchange maintain collection and reporting
Commission (‘‘Commission’’) pursuant procedures and facilities reasonably
BILLING CODE 8011–01–P
to Section 11A of the Securities designed to comply with the reporting
Exchange Act of 1934 (‘‘Act’’),2 and requirement. This would harmonize the
Rule 608 3 thereunder, a proposal to SECURITIES AND EXCHANGE
UTP Plan with the amended transaction COMMISSION
amend the Nasdaq/UTP Plan 4 to reporting requirement under the CTA
Plan. [Release No. 34–74277; File No. 4–681]
1 The Plan Participants (collectively,
‘‘Participants’’) are the: BATS Exchange, Inc. III. Discussion Proxy Voting Roundtable
(‘‘BATS’’); BATS Y-Exchange, Inc.(‘‘BATS Y’’);
Chicago Board Options Exchange, Incorporated After careful review, the Commission AGENCY:Securities and Exchange
(‘‘CBOE’’); Chicago Stock Exchange, Inc. (‘‘CHX’’); finds that the proposed amendment to Commission.
EDGA Exchange, Inc. (‘‘EDGA’’); EDGX Exchange, the Plan is consistent with the
Inc.(‘‘EDGX’’); Financial Industry Regulatory requirements of the Act and the rules 9 15 U.S.C. 78k–1(a)(1)(C)(iii).
Authority, Inc. (‘‘FINRA’’); International Securities
Exchange LLC (‘‘ISE’’); NASDAQ OMX BX, Inc. and regulations thereunder,6 and, in 10 The participants of the Consolidated Tape
(‘‘BX’’); NASDAQ OMX PHLX, Inc. (‘‘PHLX’’); particular, Section 11A(a)(1) of the Act 7 Association (‘‘CTA’’) Plan also proposed to amend
Nasdaq Stock Market LLC (‘‘Nasdaq’’); National and Rule 608 thereunder 8 in that it is the trade reporting requirement under the CTA Plan
Stock Exchange, Inc. (‘‘NSX’’); New York Stock to require that transactions be reported as soon as
necessary or appropriate in the public practicable, but no later than 10 seconds following
Exchange LLC (‘‘NYSE’’); NYSE MKT, LLC; and
NYSE Arca, Inc. (‘‘NYSE Arca’’).
interest, for the protection of investors execution. See Securities Exchange Act Release No.
2 15 U.S.C. 78k–1. 73971 (December 31, 2014), 80 FR 908 (January 7,
3 17 CFR 240.608. Participants, which is a prerequisite for their 2015) (Notice of Filing of SR–CTA–2014–04).
4 The Plan governs the collection, processing, and trading Eligible Securities. See Securities Exchange 11 See Securities Exchange Act Release No. 69561
TKELLEY on DSK3SPTVN1PROD with NOTICES

dissemination on a consolidated basis of quotation Act Release No. 55647 (April 19, 2007) 72 FR 20891 (May 13, 2013), 78 FR 29190 (May 17, 2013) (File
information and transaction reports in Eligible (April 26, 2007). No. SR–FINRA–2013–013) (order approving FINRA
Securities for each of its Participants. This
5 See Securities Exchange Act Release No. 73970 rule to require FINRA members to report over-the
consolidated information informs investors of the (December 31, 2014), 80 FR 910 (‘‘Notice’’). counter transactions in Eligible Securities to FINRA
current quotation and recent trade prices of Nasdaq
6 The Commission has considered the proposed as soon as practicable, but no later than 10 seconds
securities. It enables investors to ascertain from one amendment’s impact on efficiency, competition, following execution).
and capital formation. 15 U.S.C. 78c(f). 12 15 U.S.C. 78k–1.
data source the current prices in all the markets
7 15 U.S.C. 78k–1(a)(1). 13 17 CFR 240.608.
trading Nasdaq securities. The Plan serves as the
required transaction reporting plan for its 8 17 CFR 240.608. 14 17 CFR 200.30–3(a)(27).

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Document Created: 2015-12-18 13:02:05
Document Modified: 2015-12-18 13:02:05

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 9283