82 FR 15404 - Consolidated Tape Association; Notice of Filing and Immediate Effectiveness of the Twenty-Second Charges Amendment to the Second Restatement of the CTA Plan and the Thirteenth Charges Amendment to the Restated CQ Plan
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 58 (March 28, 2017)
Federal Register Volume 82, Issue 58 (March 28, 2017)
| Page Range | 15404-15407 | |
| FR Document | 2017-06083 |
[Federal Register Volume 82, Number 58 (Tuesday, March 28, 2017)] [Notices] [Pages 15404-15407] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-06083] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80300; File No. SR-CTA/CQ-2017-02] Consolidated Tape Association; Notice of Filing and Immediate Effectiveness of the Twenty-Second Charges Amendment to the Second Restatement of the CTA Plan and the Thirteenth Charges Amendment to the Restated CQ Plan March 23, 2017. Pursuant to Section 11A of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 608 thereunder,\2\ notice is hereby given that on March 2, 2017, the Consolidated Tape Association (``CTA'') Plan participants (``Participants'') \3\ filed with the Securities and Exchange Commission (``Commission'') a proposal to amend the Second Restatement of the CTA Plan and the Restated Consolidated Quotation (``CQ'') Plan (``Plans'').\4\ These amendments represent the twenty- second Charges Amendment to the CTA Plan and the thirteenth Charges Amendment to the CQ Plan (``Amendments''). The Amendments seek to amend the Plans' fee schedule as well as the non-display use policy to clarify the applicability on the non-display fee, the device fee, and the access fee. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78k-1. \2\ 17 CFR 242.608. \3\ The Participants are: BATS Exchange, Inc., BATS-Y Exchange, Inc., Chicago Board Options Exchange, Inc., Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory Authority, Inc., International Securities Exchange, LLC, Investors' Exchange LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX, Inc., Nasdaq Stock Market LLC, National Stock Exchange, New York Stock Exchange LLC, NYSE MKT LLC, and NYSE Arca, Inc. \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. I. Rule 608(a) A. Purpose of the Amendments 1. Background In October 2014, the Participants amended the Plans' fee schedules to establish fees for non-display uses of data and to reduce the device fees assessed on professional subscribers.\5\ In so doing, the Participants determined that such a change provided an equitable allocation of fees to the industry that would reflect the value of non- display data usage (subject to the non-display fees) versus display data usage (subject to the lower device fees). At that time, non- display use was defined as consisting of accessing, processing, or consuming real-time Network A or Network B quotation information or last sale price information, whether delivered via direct and/or redistributor data feeds, for a purpose other than in support of a data recipient's display or further internal or external distribution. The Participants established three categories of non-display uses of market data: --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 73278 (October 1, 2014), 79 FR 60536 (October 7, 2014) (``October 2014 Non-Display Filing''). ---------------------------------------------------------------------------Category 1 applies when a data recipient makes non-display uses of real-time market data on its own behalf. Category 2 applies when a data recipient makes non-display uses of real-time market data on behalf of its clients. Category 3 applies when a data recipient makes non-display uses of real-time market data for the purpose of internally matching buy and sell orders within an organization. Data recipients can be charged for each of the three categories of non-display uses. Category 3 is the only non-display fee that can be charged multiple times; a data recipient would be charged for each ATS, exchange, or ECN operated by the data recipient. In the October 2014 Non-Display Filing, the Participants also provided the following non- exhaustive list of examples of non-display use: Any trading in any asset class; Automated order or quote generation and/or order pegging; Price referencing for algorithmic trading; Price referencing for smart order routing; Operations control programs; Investment analysis; Order verification; Surveillance programs; Risk management; Compliance; and Portfolio valuation. [[Page 15405]] The Participants propose to clarify that any use of data that does not make the data visibly available to the data recipient on a device should be considered non-display use. When a data recipient is using data solely for display purposes, the data recipient will only be charged the device fee.\6\ As a result, the Participants believe it would be beneficial to provide additional clarification regarding the definition of non-display use to resolve any ambiguity. --------------------------------------------------------------------------- \6\ A data recipient can be charged both the non-display fee and the device fee. For instance, a data recipient may be displaying data on a device and also using data to operate an ATS. In such instances, the data recipient would be charged both a device fee and a non-display fee (the data recipient would also be charged an access fee due to its non-display use, as described below). --------------------------------------------------------------------------- The Participants further propose to clarify that a data recipient is subject to the access fee when the data it is receiving is used for non-display, or can be manipulated and disseminated to other devices even if the data is also displayed on a device. As described below, the Participants are amending the Plans' fee schedules to clarify the applicability of the access fee. 2. Amended Definition of Non-Display Use The Participants are proposing to amend the definition of ``Non- Display Use'' in footnote eight of the Plans' fee schedules to explicitly state that any use of data that does not make data visibly available to a data recipient on a device is a Non-Display Use. The Participants are proposing to make a parallel amendment to footnote two of the Plans' fee schedules to state that the device fee will only be applicable where the data is visibly available to the data recipient; any other data use on a device will be considered Non-Display Use.\7\ --------------------------------------------------------------------------- \7\ In addition to the amendments outlined in this transmittal letter, the Participants are making non-substantive edits to correct capitalization in the Plans' fee schedules. --------------------------------------------------------------------------- In the October 2014 Non-Display Filing, the Participants recognized the relative values of non-display versus display data usage. With the proliferation of automated and algorithmic trading, non-display devices consume large amounts of data and are critical to a firm's businesses. The black boxes and application programming interfaces utilized by these firms process data far more quickly, and as a result, the relative value between non-display and display data usage is pronounced. The disparity in value between non-display and display data usage led the Participants to decrease the professional subscriber device charges in the October 2014 Non-Display Filing while establishing the non-display fees. However, if data is used for non- display purposes, but is subject to the device fee and not the non- display fee, such interpretation would disrupt the balance struck by the Participants in setting the fees. The Participants believe that amending the language of the fee schedule will create a clear understanding of when the non-display fee is applicable and therefore effectuate the change originally contemplated by the October 2014 Non-Display Filing. To notify data recipients of the amended definition, the Participants will be updating the CTA Market Data Non-Display Use Policy. The CTA Market Data Non- Display Use Policy describes the applicability of the non-display fee to specific uses of real-time Network A and Network B last sale information and quotation information. The CTA Market Data Non-Display Use Policy currently reflects the applicability of the non-display fee as established by the October 2014 Non-Display Filing. The Participants are amending this policy to include the updated definition of Non- Display Use as reflected in the Plans' amended fee schedules. The CTA Market Data Non-Display Use Policy is also being updated to specify that Redistributors that provide market data to their customers and/or data recipients who use the data for Non-Display Use must submit a data feed request to the administrator, and must require that the customers and data recipients of such market data complete the necessary documentation for the data feed request. The Participants are also amending footnote two and footnote eight of the Plans' fee schedules to make clear that the Participants reserve the right to make the sole determination as to whether a data recipient's use is subject to the non-display fee or the device fee and, if subject to the non-display fee, the category of such Non- Display Use. 3. Access Fee Applicability The Participants are amending footnote ten of the Plans' fee schedules to clarify when the access fee is applicable. Access fees are charged to those who obtain Network A and Network B data feeds. The Participants are not proposing to modify the current access fees. Instead, the Participants are proposing to clarify in the Plans' fee schedules that the access fee is applicable if: (1) The data recipient uses the data for non-display; or (2) the data recipient receives the data in such a manner that the data can be manipulated and disseminated to one or more devices, display or otherwise, regardless of encryption or instructions from the redistribution vendor regarding who has authorized access to the data. As discussed above, the device fee is applicable when data is displayed only. However, if the data is also used for non-display or can be manipulated and disseminated, the data recipient is subject to the access fee. For example, a data recipient may be receiving data to display on a device. In addition to being displayed on the device, if the data recipient is also able to manipulate the data via a calculation to create additional data and distribute the end result data to other users in a display format or for non-display use, that data recipient should also be subject to the access fee. In such case, even if the data recipient is reporting use for display purposes and is subject to the device fee, if the data is being manipulated and disseminated, that data recipient should also be subject to an access fee and any applicable additional device fees or non-display use fee, as may be applicable for that data recipient's use of the data. As with the proposed amendments to the fee schedule described above, this proposed clarification to the access fee is designed to address that the manner by which a data recipient uses the data drives which fees apply. B. Governing or Constituent Documents Not applicable. C. Implementation of the Amendments Pursuant to Rule 608(b)(3)(i) under Regulation NMS, the Participants have designated the proposed clarification as establishing or changing fees and are submitting the amendment for immediate effectiveness. D. Development and Implementation Phases See Item C above. E. Analysis of Impact on Competition The Amendments proposed herein do not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Additionally, 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. The Participants have submitted this amendment to simply clarify the applicability of the non-display fees established in the October 2014 Non-Display Filing. The Amendments proposed herein will allow data recipients to understand whether a given use will be subject to the non-display fee, the device fee, or the access fee, or a combination of these fees. [[Page 15406]] As explained in the October 2014 Non-Display Filing, the non- display fees were established to comport with the proliferation of the use of data for dark pools and other non-display trading applications. In conjunction with the establishment of non-display fees, the Participants reduced the rates for professional subscriber devices in hopes of fostering the widespread availability of real-time market data. At the same time, the non-display fees allowed those who make non-display uses of data to make appropriate contributions to the costs of collecting, processing, and redistributing the data. The clarification proposed herein maintains the balance struck by the Participants in reducing the device fee while establishing the non- display fees. Additionally, the Participants believe that the Amendments will have a positive effect on competition because the Amendments will ensure that different vendors are classifying their customer's usage in the same manner. A vendor would gain a competitive advantage if they were willing to incorrectly classify a customer's use as subject to the lower device fee rather than the non-display fee. By eliminating the ambiguity in the Plans' fee schedules, the Participants believe that all vendors will be subjected to and subject their customers to the similar fees for similar uses of data. F. Written Understanding or Agreements Relating to Interpretation of, or Participation in, Plan As previously stated, the Participants have amended the CTA Market Data Non-Display Use Policy to implement the proposed Amendments. A copy of the changes to the Non-Display Use Policy is attached to the Amendment. G. Approval by Sponsors in Accordance With Plan Section XII (b)(iii) of the CTA Plan provides that ``[a]ny addition of any charge to . . . the charges set forth in Exhibit E . . . shall be effected by an amendment to this CTA Plan . . . that is approved by affirmative vote of not less than two-thirds of all of the then voting members of CTA. Any such amendment shall be executed on behalf of each Participant that appointed a voting member of CTA who approves such amendment and shall be filed with the SEC.'' Further, Section IX(b)(iii) of the CQ Plan provides that ``additions, deletions, or modifications to any charges under this CQ Plan shall be effected by an amendment . . . that is approved by affirmative vote of two-thirds of all the members of the Operating Committee.'' The Participants have executed this Amendment and represent not less than two-thirds of all of the parties to the Plan. That satisfies the Plans' Participant-approval requirements H. Description of Operation of Facility Contemplated by the Proposed Amendments Not applicable. I. Terms and Conditions of Access Not applicable. J. Method of Determination and Imposition, and Amount of, Fees and Charges The Participants believe that the proposed fee is fair and reasonable and provides for an equitable allocation of dues, fees, and other charges among vendors, data recipients and other persons. As previously stated, the Amendments proposed herein simply clarify the amendments to fees set forth in the October 2014 Non-Display Filing and ensure that the relative value of non-display versus display data usage is reflected in the fees charged for such uses. The Participants have consulted with members of the industry regarding the proposed fee amendments contained herein. 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 Not applicable. C. Manner of Collecting, Processing, Sequencing, Making Available and Disseminating Last Sale Information Not applicable. D. Manner of Consolidation Not applicable. 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 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 Comments Use 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-2017-02 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-2017-02. 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 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 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-2017-02 and should be submitted on or before April 18, 2017. [[Page 15407]] By the Commission. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-06083 Filed 3-27-17; 8:45 am] BILLING CODE 8011-01-P
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requirements.31 If a Fund is not in SECURITIES AND EXCHANGE I. Rule 608(a)
compliance with the applicable listing COMMISSION A. Purpose of the Amendments
requirements, the Exchange will
commence delisting procedures under [Release No. 34–80300; File No. SR–CTA/ 1. Background
NYSE Arca Equities Rule 5.5(m). CQ–2017–02] In October 2014, the Participants
This approval order is based on all of amended the Plans’ fee schedules to
the Exchange’s representations and Consolidated Tape Association; Notice establish fees for non-display uses of
description of the Funds, including of Filing and Immediate Effectiveness data and to reduce the device fees
those set forth above and in Amendment of the Twenty-Second Charges assessed on professional subscribers.5 In
Nos. 1, 3, and 4. The Commission notes Amendment to the Second so doing, the Participants determined
that the Shares must comply with the Restatement of the CTA Plan and the that such a change provided an
Thirteenth Charges Amendment to the equitable allocation of fees to the
requirements of NYSE Arca Equities
Restated CQ Plan industry that would reflect the value of
Rule 8.200 and Commentary .02 thereto
non-display data usage (subject to the
to be listed and traded on the Exchange March 23, 2017. non-display fees) versus display data
on an initial and continuing basis.
Pursuant to Section 11A of the usage (subject to the lower device fees).
For the foregoing reasons, the Securities Exchange Act of 1934 At that time, non-display use was
Commission finds that the proposed (‘‘Act’’),1 and Rule 608 thereunder,2 defined as consisting of accessing,
rule change, as modified by Amendment notice is hereby given that on March 2, processing, or consuming real-time
Nos. 1, 3, and 4 thereto, is consistent 2017, the Consolidated Tape Network A or Network B quotation
with Section 6(b)(5) of the Act 32 and the Association (‘‘CTA’’) Plan participants information or last sale price
rules and regulations thereunder (‘‘Participants’’) 3 filed with the information, whether delivered via
applicable to a national securities Securities and Exchange Commission direct and/or redistributor data feeds,
exchange. (‘‘Commission’’) a proposal to amend for a purpose other than in support of
the Second Restatement of the CTA Plan a data recipient’s display or further
IV. Conclusion and the Restated Consolidated internal or external distribution. The
It is therefore ordered, pursuant to Quotation (‘‘CQ’’) Plan (‘‘Plans’’).4 Participants established three categories
Section 19(b)(2) of the Exchange Act,33 These amendments represent the of non-display uses of market data:
twenty-second Charges Amendment to • Category 1 applies when a data
that the proposed rule change (SR–
the CTA Plan and the thirteenth Charges recipient makes non-display uses of
NYSEArca–2017–07), as modified by real-time market data on its own behalf.
Amendment Nos. 1, 3, and 4 thereto, be, Amendment to the CQ Plan
(‘‘Amendments’’). The Amendments • Category 2 applies when a data
and it hereby is, approved. recipient makes non-display uses of
seek to amend the Plans’ fee schedule as
For the Commission, by the Division of well as the non-display use policy to real-time market data on behalf of its
Trading and Markets, pursuant to delegated clarify the applicability on the non- clients.
authority.34 display fee, the device fee, and the • Category 3 applies when a data
Eduardo A. Aleman, access fee. recipient makes non-display uses of
Assistant Secretary.
real-time market data for the purpose of
The Commission is publishing this internally matching buy and sell orders
[FR Doc. 2017–06053 Filed 3–27–17; 8:45 am] notice to solicit comments from within an organization.
BILLING CODE 8011–01–P interested persons on the proposed Data recipients can be charged for
Amendments. each of the three categories of non-
display uses. Category 3 is the only non-
1 15 U.S.C. 78k–1. display fee that can be charged multiple
2 17 CFR 242.608.
3 The Participants are: BATS Exchange, Inc.,
times; a data recipient would be charged
BATS–Y Exchange, Inc., Chicago Board Options for each ATS, exchange, or ECN
31 The Commission notes that certain other Exchange, Inc., Chicago Stock Exchange, Inc., operated by the data recipient. In the
proposals for the listing and trading of Managed
EDGA Exchange, Inc., EDGX Exchange, Inc., October 2014 Non-Display Filing, the
Financial Industry Regulatory Authority, Inc., Participants also provided the following
Fund Shares include a representation that the International Securities Exchange, LLC, Investors’
exchange will ‘‘surveil’’ for compliance with the Exchange LLC, NASDAQ OMX BX, Inc., NASDAQ non-exhaustive list of examples of non-
continued listing requirements. See, e.g., Securities OMX PHLX, Inc., Nasdaq Stock Market LLC, display use:
Exchange Act Release No. 77499 (April 1, 2016), 81 National Stock Exchange, New York Stock • Any trading in any asset class;
FR 20428 (April 7, 2016) (Notice of Filing of Exchange LLC, NYSE MKT LLC, and NYSE Arca, • Automated order or quote
Amendment No. 2, and Order Granting Accelerated Inc.
4 See Securities Exchange Act Release Nos. 10787
generation and/or order pegging;
Approval of a Proposed Rule Change, as Modified
(May 10, 1974), 39 FR 17799 (May 20, 1974)
• Price referencing for algorithmic
by Amendment No. 2, to List and Trade Shares of
(declaring the CTA Plan effective); 15009 (July 28, trading;
the SPDR DoubleLine Short Duration Total Return
Tactical ETF of the SSgA Active Trust), available 1978), 43 FR 34851 (August 7, 1978) (temporarily • Price referencing for smart order
authorizing the CQ Plan); and 16518 (January 22, routing;
at: http://www.sec.gov/rules/sro/bats/2016/34-
77499.pdf. In the context of this representation, it
1980), 45 FR 6521 (January 28, 1980) (permanently • Operations control programs;
authorizing the CQ Plan). The most recent
is the Commission’s view that ‘‘monitor’’ and restatement of both Plans was in 1995. The CTA • Investment analysis;
‘‘surveil’’ both mean ongoing oversight of the Plan, pursuant to which markets collect and • Order verification;
sradovich on DSK3GMQ082PROD with NOTICES
Fund’s compliance with the continued listing disseminate last sale price information for non- • Surveillance programs;
requirements. Therefore, the Commission does not NASDAQ listed securities, is a ‘‘transaction • Risk management;
view ‘‘monitor’’ as a more or less stringent reporting plan’’ under Rule 601 under the Act, 17 • Compliance; and
CFR 242.601, and a ‘‘national market system plan’’
obligation than ‘‘surveil’’ with respect to the
under Rule 608 under the Act, 17 CFR 242.608. The • Portfolio valuation.
continued listing requirements.
32 15 U.S.C. 78f(b)(5).
CQ Plan, pursuant to which markets collect and
disseminate bid/ask quotation information for listed 5 See Securities Exchange Act Release No. 73278
33 15 U.S.C. 78s(b)(2).
securities, is a ‘‘national market system plan’’ under (October 1, 2014), 79 FR 60536 (October 7, 2014)
34 17 CFR 200.30–3(a)(12). Rule 608 under the Act, 17 CFR 242.608. (‘‘October 2014 Non-Display Filing’’).
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As explained in the October 2014 The Participants have executed this G. Terms of Access to Transaction
Non-Display Filing, the non-display fees Amendment and represent not less than Reports
were established to comport with the two-thirds of all of the parties to the Not applicable.
proliferation of the use of data for dark Plan. That satisfies the Plans’
pools and other non-display trading Participant-approval requirements H. Identification of Marketplace of
applications. In conjunction with the Execution
establishment of non-display fees, the H. Description of Operation of Facility
Contemplated by the Proposed Not applicable.
Participants reduced the rates for
professional subscriber devices in hopes Amendments III. Solicitation of Comments
of fostering the widespread availability Not applicable. The Commission seeks general
of real-time market data. At the same comments on the Amendments.
time, the non-display fees allowed those I. Terms and Conditions of Access Interested persons are invited to submit
who make non-display uses of data to Not applicable. written data, views, and arguments
make appropriate contributions to the concerning the foregoing, including
costs of collecting, processing, and J. Method of Determination and whether the proposed Amendments are
redistributing the data. The clarification Imposition, and Amount of, Fees and consistent with the Act. Comments may
proposed herein maintains the balance Charges be submitted by any of the following
struck by the Participants in reducing The Participants believe that the methods:
the device fee while establishing the proposed fee is fair and reasonable and Electronic Comments
non-display fees. provides for an equitable allocation of
Additionally, the Participants believe dues, fees, and other charges among • Use the Commission’s Internet
that the Amendments will have a vendors, data recipients and other comment form (http://www.sec.gov/
positive effect on competition because persons. As previously stated, the rules/sro.shtml); or
the Amendments will ensure that Amendments proposed herein simply • Send an email to rule-comments@
different vendors are classifying their clarify the amendments to fees set forth sec.gov. Please include File Number SR–
customer’s usage in the same manner. A in the October 2014 Non-Display Filing CTA/CQ–2017–02 on the subject line.
vendor would gain a competitive and ensure that the relative value of Paper Comments
advantage if they were willing to non-display versus display data usage is
incorrectly classify a customer’s use as • Send paper comments in triplicate
reflected in the fees charged for such to Brent J. Fields, Secretary, Securities
subject to the lower device fee rather uses.
than the non-display fee. By eliminating and Exchange Commission, 100 F Street
The Participants have consulted with NE., Washington, DC 20549–1090.
the ambiguity in the Plans’ fee members of the industry regarding the
schedules, the Participants believe that All submissions should refer to File
proposed fee amendments contained Number SR–CTA/CQ–2017–02. This file
all vendors will be subjected to and herein.
subject their customers to the similar number should be included on the
fees for similar uses of data. K. Method and Frequency of Processor subject line if email is used. To help the
Evaluation Commission process and review your
F. Written Understanding or Agreements comments more efficiently, please use
Relating to Interpretation of, or Not applicable. only one method. The Commission will
Participation in, Plan L. Dispute Resolution post all comments on the Commission’s
As previously stated, the Participants Internet Web site (http://www.sec.gov/
Not applicable. rules/sro.shtml). Copies of the
have amended the CTA Market Data
Non-Display Use Policy to implement II. Rule 601(a) submission, all subsequent
the proposed Amendments. A copy of amendments, all written statements
A. Equity Securities for Which with respect to the Amendments that
the changes to the Non-Display Use
Transaction Reports Shall Be Required are filed with the Commission, and all
Policy is attached to the Amendment.
by the Plan written communications relating to the
G. Approval by Sponsors in Accordance Amendments between the Commission
Not applicable.
With Plan and any person, other than those that
Section XII (b)(iii) of the CTA Plan B. Reporting Requirements may be withheld from the public in
provides that ‘‘[a]ny addition of any Not applicable. accordance with the provisions of 5
charge to . . . the charges set forth in U.S.C. 552, will be available for Web
Exhibit E . . . shall be effected by an C. Manner of Collecting, Processing, site viewing and printing in the
amendment to this CTA Plan . . . that Sequencing, Making Available and Commission’s Public Reference Room
is approved by affirmative vote of not Disseminating Last Sale Information on official business days between the
less than two-thirds of all of the then Not applicable. hours of 10:00 a.m. and 3:00 p.m.
voting members of CTA. Any such Copies of the Amendments also will be
amendment shall be executed on behalf D. Manner of Consolidation
available for inspection and copying at
of each Participant that appointed a Not applicable. the principal office of the CTA.
voting member of CTA who approves All comments received will be posted
such amendment and shall be filed with E. Standards and Methods Ensuring without change; the Commission does
the SEC.’’ Further, Section IX(b)(iii) of Promptness, Accuracy and not edit personal identifying
sradovich on DSK3GMQ082PROD with NOTICES
the CQ Plan provides that ‘‘additions, Completeness of Transaction Reports information from submissions. You
deletions, or modifications to any Not applicable should submit only information that
charges under this CQ Plan shall be you wish to make available publicly. All
F. Rules and Procedures Addressed to
effected by an amendment . . . that is submissions should refer to File
Fraudulent or Manipulative
approved by affirmative vote of two- Number SR–CTA/CQ–2017–02 and
Dissemination
thirds of all the members of the should be submitted on or before April
Operating Committee.’’ Not applicable. 18, 2017.
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By the Commission. registered under the Act as an open-end directly from other Funds to cover
Eduardo A. Aleman, or closed-end management investment unanticipated cash shortfalls, such as
Assistant Secretary. company,1 and AllianceBernstein L.P. unanticipated redemptions or trade
[FR Doc. 2017–06083 Filed 3–27–17; 8:45 am] (the ‘‘Adviser’’), a Delaware limited fails.2 The Funds will not borrow under
BILLING CODE 8011–01–P
partnership registered as an investment the facility for leverage purposes and
adviser under the Investment Advisers the loans’ duration will be no more than
Act of 1940. 7 days.3
SECURITIES AND EXCHANGE FILING DATES: The application was filed 2. Applicants anticipate that the
COMMISSION on July 22, 2016 and amended on proposed facility would provide a
January 11, 2017. borrowing Fund with a source of
[Investment Company Act Release No. liquidity at a rate lower than the bank
32540; File No. 812–14677] HEARING OR NOTIFICATION OF HEARING: An
borrowing rate at times when the cash
order granting the requested relief will position of the Fund is insufficient to
AB Bond Fund, Inc., et al. be issued unless the Commission orders meet temporary cash requirements. In
a hearing. Interested persons may addition, Funds making short-term cash
March 22, 2017.
request a hearing by writing to the loans directly to other Funds would
AGENCY: Securities and Exchange Commission’s Secretary and serving
Commission (‘‘Commission’’). earn interest at a rate higher than they
applicants with a copy of the request, otherwise could obtain from investing
ACTION: Notice. personally or by mail. Hearing requests their cash in repurchase agreements or
should be received by the Commission certain other short term money market
Notice of an application for an order by 5:30 p.m. on April 17, 2017 and
pursuant to: (a) Section 6(c) of the instruments. Thus, applicants assert that
should be accompanied by proof of the facility would benefit both
Investment Company Act of 1940 service on the applicants, in the form of
(‘‘Act’’) granting an exemption from borrowing and lending Funds.
an affidavit, or, for lawyers, a certificate 3. Applicants agree that any order
sections 18(f) and 21(b) of the Act; (b) of service. Pursuant to Rule 0–5 under
section 12(d)(1)(J) of the Act granting an granting the requested relief will be
the Act, hearing requests should state subject to the terms and conditions
exemption from section 12(d)(1) of the the nature of the writer’s interest, any
Act; (c) sections 6(c) and 17(b) of the stated in the application. Among others,
facts bearing upon the desirability of a the Adviser, through a designated
Act granting an exemption from sections hearing on the matter, the reason for the
17(a)(1), 17(a)(2) and 17(a)(3) of the Act; committee, would administer the
request, and the issues contested. facility as a disinterested fiduciary as
and (d) section 17(d) of the Act and rule Persons who wish to be notified of a
17d–1 under the Act to permit certain part of its duties under the investment
hearing may request notification by management and administrative
joint arrangements and transactions. writing to the Commission’s Secretary.
Applicants request an order that would agreements with the Funds and would
ADDRESSES: Secretary, U.S. Securities receive no additional fee as
permit certain registered open-end
management investment companies to and Exchange Commission, 100 F Street compensation for its services in
participate in a joint lending and NE., Washington, DC, 20549–1090; connection with the administration of
borrowing facility. Applicants: Emile D. Wrapp, the facility. The facility would be
AllianceBernstein L.P., 1345 Avenue of subject to oversight and certain
APPLICANTS: AB Bond Fund, Inc., AB
the Americas, New York, New York approvals by the Funds’ Board,
Cap Fund, Inc., AB Core Opportunities 10105 and Paul M. Miller, Seward & including, among others, approval of the
Fund, Inc., AB Corporate Shares, AB Kissel LLP, 901 K Street NW., Suite 800, interest rate formula and of the method
Discovery Growth Fund, Inc., AB Equity Washington, DC 20001. for allocating loans across Funds, as
Income Fund, Inc., AB Government
FOR FURTHER INFORMATION CONTACT: well as review of the process in place to
Exchange Reserves, AB Fixed-Income
Emerson S. Davis, Senior Counsel, at evaluate the liquidity implications for
Shares, Inc., AB Global Bond Fund, Inc.,
(202) 551–6868 or Nadya Roytblat, the Funds. A Fund’s aggregate
AB Global Real Estate Investment Fund,
Assistant Chief Counsel, at (202) 551– outstanding interfund loans will not
Inc., AB Global Risk Allocation Fund,
6823 (Division of Investment exceed 15% of its net assets, and the
Inc., AB Sustainable Global Thematic,
Management, Chief Counsel’s Office). Fund’s loans to any one Fund will not
Inc., AB Relative Value Fund, Inc., AB
SUPPLEMENTARY INFORMATION: The exceed 5% of the lending Fund’s net
High Income Fund, Inc., AB
following is a summary of the assets.4
Institutional Funds, Inc., AB
application. The complete application 4. Applicants assert that the facility
International Growth Fund, Inc., AB
may be obtained via the Commission’s does not raise the concerns underlying
Large Cap Growth Fund, Inc., AB
Municipal Income Fund, Inc., AB Web site by searching for the file 2 Applicants request that the order apply to the
Municipal Income Fund II, AB Trust, number, or an applicant using the applicants and to any existing or future registered
AB Unconstrained Bond Fund, Inc., AB Company name box, at http:// open-end or closed-end management investment
Variable Products Series Fund, Inc., www.sec.gov/search/search.htm or by company or series thereof for which the Adviser or
calling (202) 551–8090. any successor thereto or an investment adviser
Sanford C. Bernstein Fund, Inc., Sanford controlling, controlled by, or under common
C. Bernstein Fund II, Inc., Bernstein Summary of the Application control with the Adviser or any successor thereto
Fund, Inc., The AB Pooling Portfolios, serves as investment adviser (each a ‘‘Fund’’ and
The AB Portfolios, Alliance California 1. Applicants request an order that collectively the ‘‘Funds’’ and each such investment
Municipal Income Fund, Inc., Alliance would permit the applicants to adviser an ‘‘Adviser’’). For purposes of the
sradovich on DSK3GMQ082PROD with NOTICES
participate in an interfund lending requested order, ‘‘successor’’ is limited to any entity
Bernstein Global High Income Fund, that results from a reorganization into another
Inc., AllianceBernstein National facility where each Fund could lend jurisdiction or a change in the type of a business
Municipal Income Fund, Inc. and AB money directly to and borrow money organization.
3 Any Fund, however, will be able to call a loan
Multi-Manager Alternative Fund, each 1 The Funds (as defined below) that are closed- on one business day’s notice.
an investment company organized as a end management investment companies will not 4 Under certain circumstances, a borrowing Fund
Maryland corporation or a participate as borrowers in the interfund lending will be required to pledge collateral to secure the
Massachusetts business trust and facility. loan.
VerDate Sep<11>2014 17:14 Mar 27, 2017 Jkt 241001 PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 E:\FR\FM\28MRN1.SGM 28MRN1](https://thefederalregister.org/doc/82_FR_15462/page/4.svg)
Document Created: 2017-03-28 00:32:01
Document Modified: 2017-03-28 00:32:01
| 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 | 82 FR 15404 |
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