[Federal Register Volume 76, Number 19 (Friday, January 28, 2011)]
[Notices]
[Pages 5231-5232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-1857]
[[Page 5231]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63754; File No. S7-24-89]
Joint Industry Plan; Notice of Filing and Immediate Effectiveness
of Amendment No. 23 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., 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 Amex, Inc., and NYSE Arca, Inc.
January 21, 2011.
Pursuant to Rule 608 of the Securities Exchange Act of 1934 (the
``Act'') \1\ notice is hereby given that on December 15, 2010, the
operating committee (``Operating Committee'' or ``Committee'') \2\ 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 Privilege Basis (``Nasdaq/UTP Plan'' or ``Plan'')
filed with the Securities and Exchange Commission (``Commission'') an
amendment to the Plan.\3\ This amendment represents Amendment No. 23 to
the Plan and proposes to establish a broker-dealer enterprise maximum
(the ``Enterprise Maximum'') in respect of fees that the broker-dealer
is required to pay for distribution of UTP Level 1 Service to
nonprofessional subscribers that are brokerage account customers of the
broker/dealer. The Commission is publishing this notice to solicit
comments from interested persons on the proposed Amendment.
---------------------------------------------------------------------------
\1\ 17 CFR 242.608.
\2\ The Plan Participants (collectively, ``Participants'') are
the: BATS Exchange, Inc. (``BATS''); 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 Amex, Inc. (``NYSEAmex''); and
NYSE Arca, Inc. (``NYSEArca'').
\3\ 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).
---------------------------------------------------------------------------
I. Rule 608(a)
A. Purpose of the Amendments
The Participants propose to establish the Enterprise Maximum
mentioned above. The proposed Enterprise Maximum would apply in respect
of each entitlement system of an entity that is registered as a broker/
dealer under the Securities Exchange Act of 1934.
For each entitlement system, it would limit the monthly maximum
amount of fees that such a broker/dealer would be required to pay for
distribution of UTP Level 1 Service to nonprofessional subscribers that
are brokerage account customers of the broker/dealer.
Exhibit 2 to the Plan defines ``nonprofessional subscriber'' as a
natural person who is neither:
(A) registered or qualified in any capacity with the Commission,
the Commodities [sic] Futures Trading Commission, any state securities
agency, any securities exchange or association or any commodities or
futures contract market or association;
(B) engaged as an ``investment adviser'' as that term is defined in
Section 202(a)(11) of the Investment Advisors Act of 1940 (whether or
not registered or qualified under that Act); nor
(C) employed by a bank or other organization exempt from
registration under federal or state securities laws to perform
functions that would require registration or qualification if such
functions were performed for an organization not so exempt.
For calendar year 2010, the Participants propose to set the monthly
Enterprise Maximum at $600,000 per entitlement system. For each
subsequent calendar year, the Enterprise Maximum would increase by the
percentage increase in the annual composite share volume for the
preceding calendar year, subject to a maximum annual increase of five
percent. However, the amendment would allow the Participants to
determine to waive the increase for any calendar year.
The Enterprise Maximum would enable broker/dealers with significant
numbers of nonprofessional subscribers to limit their costs in respect
of their provision of Plan data to nonprofessional subscribers and
would facilitate their ability to budget their market data
expenditures.
B. Governing or Constituent Documents
Not applicable.
C. Implementation of Amendment
The Participants propose to apply the monthly Enterprise Maximum to
qualifying broker/dealers commencing with the month of January 2011.
D. Development and Implementation Phases
Not applicable.
E. Analysis of Impact on Competition
The proposed amendment does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Exchange Act. The Participants do not believe that the proposed
plan amendment introduces terms that are unreasonably discriminatory
for the purposes of Section 11A(c)(1)(D) of the Exchange Act.
F. Written Understanding or Agreements relating to Interpretation of,
or Participation in, Plan
The Participants have no written understandings or agreements
relating to interpretation of the Plan as a result of the amendment.
G. Approval by Sponsors in Accordance with Plan
Each of the Plan's Participants has executed a written amendment to
the Plan.
H. Description of Operation of Facility Contemplated by the Proposed
Amendment
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
The Participants believe that the level of the fee allows broker/
dealers to contribute an appropriate amount for the market data
services that they provide to nonprofessional subscribers. By capping
the monthly amount payable in respect of nonprofessional subscribers,
the Enterprise Maximum would both reduce the fees otherwise payable by
broker/dealers with significant numbers of nonprofessional subscribers
and enable those broker/dealers to forecast their market data
expenditures more efficiently.
[[Page 5232]]
The Participants believe that the proposed Enterprise Maximum is
fair and reasonable and provides for an equitable allocation of dues,
fees, and other charges among vendors, data recipients and other
persons using the Participants' facilities.
K. Method and Frequency of Processor Evaluation
Not applicable.
L. Dispute Resolution
Not applicable.
II. Rule 601(a)
A. Reporting Requirements
Not applicable.
B. Manner of Collecting, Processing, Sequencing, Making Available and
Disseminating Last Sale Information
Not applicable.
C. Manner of Consolidation
Not applicable.
D. Standards and Methods Ensuring Promptness, Accuracy and Completeness
of Transaction Reports
Not applicable.
E. Rules and Procedures Addressed to Fraudulent or Manipulative
Dissemination
Not applicable.
F. Terms of Access to Transaction Reports
Not applicable.
G. Identification of Marketplace of Execution
Not Applicable.
III. Solicitation of Comments
The Commission seeks general comments on Amendment No. 23.
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposal is
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 e-mail to [email protected]. Please include
File Number S7-24-89 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number S7-24-89. This file number
should be included on the subject line if e-mail 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 website (http://www.sec.gov/rules/sro.shtml). Copies of
the submission, all written statements with respect to the proposed
Plan amendment that are filed with the Commission, and all written
communications relating to the proposed Plan amendment 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 a.m.
and 3 p.m. Copies of the filing also will be available for website
viewing and printing at the Office of the Secretary of the Committee,
currently located at the CBOE, 400 S. LaSalle Street, Chicago, IL
60605. 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 S7-24-
89 and should be submitted on or before February 18, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\4\
---------------------------------------------------------------------------
\4\ 17 CFR 200.30-3(a)(27).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-1857 Filed 1-27-11; 8:45 am]
BILLING CODE 8011-01-P