83 FR 48356 - Consolidated Tape Association; Notice of Filing and Immediate Effectiveness of the Twenty-Fourth Charges Amendment to the Second Restatement of the CTA Plan and the Fifteenth Charges Amendment to the Restated CQ Plan

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 185 (September 24, 2018)

[Federal Register Volume 83, Number 185 (Monday, September 24, 2018)]
[Notices]
[Pages 48356-48357]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20661]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84194; File No. SR-CTA/CQ-2018-03]


Consolidated Tape Association; Notice of Filing and Immediate 
Effectiveness of the Twenty-Fourth Charges Amendment to the Second 
Restatement of the CTA Plan and the Fifteenth Charges Amendment to the 
Restated CQ Plan

September 18, 2018.
    Pursuant to Section 11A of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 608 thereunder,\2\ notice is hereby given that 
on August 27, 2018, 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 CQ Plan (``Plans''). The 
amendment represents the twenty-fourth Charges Amendment to the CTA 
Plan and the fifteenth Charges Amendment to the CQ Plan 
(``Amendments''). The Participants seek to amend the Plans' fee 
schedules (applicable to Network A and Network B) to rescind the 
changes made to the Non-Display Use and the access fee schedules 
adopted pursuant to amendments filed in October 2017 (``2017 
Amendments'').\4\ As a result of the Participants' decision to rescind 
the 2017 Amendments, the Participants believe that the stay order 
issued by the Commission in connection with the 2017 Amendments and the 
briefing schedule set therein are now moot.\5\
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    \1\ 15 U.S.C. 78k-1.
    \2\ 17 CFR 242.608.
    \3\ The Participants are: Cboe BYX Exchange, Inc.; Cboe BZX 
Exchange, Inc.; Cboe EDGA Exchange, Inc.; Cboe EDGX Exchange, Inc.; 
Cboe Exchange, Inc.; Chicago Stock Exchange, Inc.; Financial 
Industry Regulatory Authority, Inc.; Investors' Exchange LLC; Nasdaq 
BX, Inc.; Nasdaq ISE, LLC; Nasdaq PHLX Inc.; The Nasdaq Stock Market 
LLC; New York Stock Exchange LLC; NYSE American LLC; NYSE Arca, 
Inc.; NYSE National, Inc.
    \4\ See Securities Exchange Act Release No. 82072 (November 14, 
2017), 82 FR 55137 (November 20, 2017).
    \5\ See Securities Exchange Act Release No. 83755 (July 31, 
2018) (``Stay Order'').
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    Pursuant to Rule 608(b)(3) under Regulation NMS,\6\ the 
Participants designate the Amendments as establishing or changing a fee 
or other charge collected on their behalf in connection with access to, 
or use of, the facilities contemplated by the Plans. As a result, the 
Amendments are effective upon filing with the Commission.
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    \6\ 17 CFR 242.608(b)(3)(i).
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    The Commission is publishing this notice to solicit comments from 
interested persons on the proposed Amendments. Set forth in Sections I 
and II is the statement of the purpose and summary of the Amendments, 
along with the information required by Rules 608(a) and 601(a) under 
the Act, prepared and submitted by the Participants to the Commission.

I. Rule 608(a)

A. Purpose of the Amendments

    As part of the 2017 Amendments, the Participants amended 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 would be a Non-
Display Use. The Participants also made a parallel amendment to 
footnote two of the Plans' fee schedules to state that the device fee 
would only be applicable where the data was visibly available to the 
data recipient; any other data use on a device would be considered Non-
Display Use. The Participants also amended footnote ten of the Plans' 
fee schedules to clarify when the access fee was applicable. In 
particular, the Participants amended footnote ten in the Plans' fee 
schedules to provide the access fee would be 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.

[[Page 48357]]

    Although the Participants believed that the 2017 Amendments would 
have a positive effect on competition, Bloomberg and SIFMA filed denial 
of access petitions with the Commission with respect to the 2017 
Amendments. On July 31, 2018, the Commission issued an order granting a 
motion made by Bloomberg to stay the 2017 Amendments. Having reviewed 
the Stay Order, the Participants have decided to rescind the 2017 
Amendments. The result of the Participants' decision is to revert the 
fee schedule to the form it had immediately prior to the 2017 
Amendments.

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 amendment 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 because the proposed amendments simply rescind the 
2017 Amendments and revert the fee schedule to the form it had 
immediately prior to the 2017 Amendments.

F. Written Understanding or Agreements Relating to Interpretation of, 
or Participation in, Plan

    Not applicable.

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

    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

    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 comment 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-2018-03 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-2018-03. 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 website (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 website 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. Persons 
submitting comments are cautioned that we do not redact or edit 
personal identifying information from comment submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-CTA/CQ-2018-03 and should be 
submitted on or before October 15, 2018.

    By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2018-20661 Filed 9-21-18; 8:45 am]
 BILLING CODE 8011-01-P