[Federal Register: June 30, 2006 (Volume 71, Number 126)]
[Notices]
[Page 37624-37626]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30jn06-110]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54038; File No. SR-CTA/CQ-2006-01]
Consolidated Tape Association; Notice of Filing and Immediate
Effectiveness of the Eighth and Ninth Substantive Amendments to the
Second Restatement of the Consolidated Tape Association Plan and the
Sixth Substantive Amendment to the Restated Consolidated Quotation Plan
June 23, 2006.
Pursuant to section 11A of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 608 thereunder,\2\ notice is hereby given that
on June 16, 2006, the Consolidated Tape Association (``CTA'') Plan and
Consolidated Quotation (``CQ'') Plan participants (``Participants'')\3\
submitted to the Securities and Exchange Commission (``Commission'')
proposals to amend the CTA and CQ Plans (collectively, the
``Plans'').\4\ The proposals represent the eighth substantive amendment
made to the Second Restatement of the CTA Plan (``Eighth Amendment to
the CTA Plan''), the ninth substantive Amendment to the Second
Restatement of the CTA Plan (``Ninth Amendment to the CTA Plan'') and
the sixth substantive amendment to the Restated CQ Plan (``Sixth
Amendment to the CQ Plan''), and reflect changes unanimously adopted by
the Participants. The Eighth Amendment to the CTA Plan would modify the
procedures that apply to the Processor's recommencement of
dissemination of the last sale price information in a security after
the security's listing market declares the end to a regulatory halt in
the security. The Ninth Amendment to the CTA Plan and the Sixth
Amendment to the CQ Plan would add International Securities Exchange,
Inc. (``ISE'') and the Nasdaq Stock Market LLC (``Nasdaq'') as new
Participants to the Plans. In addition, these amendments would perform
a ``housekeeping'' function of incorporating into the text of the Plans
changes to the corporate names and addresses of some Participants.
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\1\ 15 U.S.C. 78k-1.
\2\ 17 CFR 242.608.
\3\ Each Participant executed the proposed amendments. The
current Participants are the American Stock Exchange LLC (``Amex'');
Boston Stock Exchange, Inc. (``BSE''); Chicago Board Options
Exchange, Inc. (``CBOE''); Chicago Stock Exchange, Inc. (``CHX'');
National Association of Securities Dealers, Inc. (``NASD'');
National Stock Exchange (``NSX''); New York Stock Exchange, LLC.
(``NYSE''); NYSE Arca, Inc. (``NYSE Arca''); and Philadelphia Stock
Exchange, Inc. (``Phlx'').
\4\ See Securities Exchange Act Release Nos. 10787 (May 10,
1974), 39 FR 17799 (order approving CTA Plan); 15009 (July 28,
1978), 43 FR 34851 (August 7, 1978) (order temporarily approving CQ
Plan); and 16518 (January 22, 1980), 45 FR 6521 (order permanently
approving 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 listed securities, is a
``transaction reporting plan'' under Rule 601 under the Act, 17 CFR
240.601, and a ``national market system plan'' under Rule 608 under
the Act, 17 CFR 240.608. The CQ Plan, pursuant to which markets
collect and disseminate bid/ask quotation information for listed
securities, is also a ``national market system plan'' under Rule 608
under the Act, 17 CFR 240.608.
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Pursuant to Rule 608(b)(3)(ii) under the Act,\5\ the Participants
designated the Eighth Amendment to the CTA Plan as concerned solely
with technical or ministerial matters and designated the Ninth
Amendment to the CTA Plan and the Sixth Amendment to the CQ Plan as
concerned solely with the administration of the Plans. As a result, all
three amendments have become effective upon filing with the Commission.
At any time within 60 days of the filing of the amendments, the
Commission may summarily abrogate the amendments and require that such
amendments be refiled in accordance with paragraph (a)(1) of Rule 608
and reviewed in accordance with paragraph (b)(2) of Rule 608, if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or the
maintenance of fair and orderly markets, to remove impediments to, and
perfect the mechanisms of, a national market system or otherwise in
furtherance of the purposes of the Act. The Commission is publishing
this notice to solicit comments from interested persons.
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\5\ 17 CFR 242.608(b)(3)(ii).
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I. Description and Purpose of the Proposed Amendments
A. Application of Listing Market Regulatory Halt Procedures
The Eighth Amendment to the CTA Plan proposes to modify the
procedures that apply to the Processor's recommencement of
dissemination of last sale price information in a security after the
security's listing market declares the end to a regulatory halt in the
security.
Currently, the CTA Plan prescribes procedures for re-opening
trading in a security after the end of a regulatory trading halt. The
Participants propose to remove those procedures from the CTA Plan and
to replace them with a cross reference to the procedures governing the
reopening of a security after a regulatory halt as set forth in the
rules of the listing market for the security. Therefore, the reopening
procedures set forth in the rules of the security's listing market,
rather than the procedures set forth in the CTA Plan, would govern the
security's reopening after a regulatory halt. In the case of a security
that is listed simultaneously on more than one market, the reopening
procedures of the market on which the security was first listed would
apply.
The Participants believe that the change is necessary because the
reopening procedures of listing markets have come to diverge from one
another and from those set forth in the CTA Plan. (See, e.g., NYSE Rule
123D (``Openings and Halts in Trading'') and AMEX Rule 119
(``Indications, Openings and Reopenings'')). The amendment removes any
inconsistency between reopening procedures under the CTA Plan and
reopening procedures under the rules of the listing market.
The Participants also propose to replace references to primary
market in Section XI(a) of the CTA Plan with references to listed
market.
[[Page 37625]]
Proposed deletions are in brackets, proposed new language is
italicized:
Section XI. Operational Matters
* * * * *
[Ten minutes after the primary market notification to the Processor
of adequate publication or disclosure of information, provided that the
primary market has during such 10 minute period caused the Processor to
include on the consolidated tape an indication of interest relating to
the affected Eligible Security, the Processor shall again commence to
disseminate on a current and continuous basis the last sale price
information received by it from any Participant or other reporting
party after the passage of such 10 minute period.
In the event that the primary market does not cause the Processor
to include on the consolidated tape an indication of interest relating
to the Eligible Security which is the subject of the Regulatory Halt
during the 10 minute time period following the primary market's
notification to the Processor of adequate publication or disclosure of
information, then the primary market shall cause the Processor to
include on the consolidated tape, within 5 minutes after the passage of
such 10 minute time period, an administrative message. Such
administrative message shall:
(i) Signify a continuation of the Regulatory Halt (such an
administrative message shall include the ticker symbol of the affected
Eligible Security, the last sale price of such Security as most
recently disseminated by the Processor prior to the commencement of the
Regulatory Halt, and the reason for the continuation of the Regulatory
Halt, such as, ``news pending'' or ``news dissemination''), or
(ii) Announce that a market condition which relates to the trading
of the affected Eligible Security in the primary market exists (e.g., a
heavy influx or imbalance of orders), in which event the Regulatory
Halt shall terminate 5 minutes after the printing of such
administrative message on the consolidated tape and thereafter the
Processor shall again commence to disseminate on a current and
continuous basis last sale price information received by it from any
Participant or other reporting party after the termination of the
Regulatory Halt.]
The Processor shall again commence to disseminate on a current and
continuous basis the last sale price information received by it from
any Participant or other reporting party in the affected Eligible
Security in accordance with the re-opening procedures applicable to
Regulatory Halts set forth in the rules of the Eligible Security's
listing market. (See, for example, NYSE Rule 123D (``Openings and Halts
in Trading'') and AMEX Rule 119 (``Indications, Openings and
Reopenings'')).
* * * * *
[For the purposes of this Section XI, the ``primary market'' for
any Eligible Security shall be that exchange Participant in whose
market the greatest number of transactions in such Eligible Security
reported on the consolidated tape during the preceding six month period
(or such shorter period as the Security has been reported on the
consolidated tape if it has not been so reported for a full six month
period) has taken place.]
For the purposes of this Section XI, the ``listing market'' for any
Eligible Security shall be that exchange Participant on which the
Eligible Security is listed. If an Eligible Security is dually listed,
``listing market'' shall be that exchange Participant on which the
Eligible Security was originally listed.
* * * * *
B. Adding New Participants
The Ninth Amendment to the CTA Plan and the Sixth Amendment to the
CQ Plan propose to add the ISE and Nasdaq as new Participants to each
Plan.
C. Name and Address Change
The Ninth Amendment to the CTA Plan and the Sixth Amendment to the
CQ Plan propose to reflect the name changes from the New York Stock
Exchange, Inc. to New York Stock Exchange LLC and from Pacific
Exchange, Inc. to NYSE Arca, Inc. In addition, these amendments propose
to reflect changes to addresses of BSE and NYSE Arca.
D. Additional Information Required by Rule 608(a)
1. Governing or Constituent Documents
Not applicable.
2. Implementation of Amendments
The Participants have manifested their approval of the proposed
amendments by means of their execution of the amendments. The
amendments have become effective upon filing.\6\
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\6\ See id.
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3. Development and Implementation Phases
Not applicable.
4. Analysis of Impact on Competition
The Participants believe that the proposed amendments do not impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. 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.
5. Written Understanding or Agreements Relating to Interpretation of,
or Participation in, Plan
Not applicable.
6. Approval by Sponsors in Accordance With Plan
Each of the Participants has approved the amendments in accordance
with Section IV(b) of the CTA Plan and Section IV(c) of the CQ Plan, as
applicable.
7. Description of Operation of Facility Contemplated by the Proposed
Amendment
Not applicable.
8. Terms and Conditions of Access
Not applicable.
9. Method of Determination and Imposition, and Amount of, Fees and
Charges
Not applicable.
10. Method of Frequency of Processor Evaluation
Not applicable.
11. Dispute Resolution
Not applicable.
E. Additional Information Required by Rule 601(a) (Solely With Respect
to the Amendments to the CTA Plan)
1. Reporting Requirements
Not applicable.
2. Manner of Collecting, Processing, Sequencing, Making Available and
Disseminating Last Sale Information
Not applicable.
3. Manner of Consolidation
Not applicable.
4. Standards and Methods Ensuring Promptness, Accuracy and Completeness
of Transaction Reports
Not applicable.
5. Rules and Procedures Addressed to Fraudulent or Manipulative
Dissemination
Not applicable.
6. Terms of Access to Transaction Reports
Not applicable.
[[Page 37626]]
7. Identification of Marketplace of Execution
Not Applicable.
II. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed
Plans 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 e-mail to rule-comments@sec.gov. Please include
File No. SR-CTA/CQ-2006-01 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-CTA/CQ-2006-01. 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 Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, 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 inspection
and copying in the Commission's Public Reference Room. Copies of the
filing 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 No. SR-CTA/CQ-2006-01 and should be submitted on or before July
21, 2006.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(27).
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Nancy M. Morris,
Secretary.
[FR Doc. 06-5905 Filed 6-29-06; 8:45 am]
BILLING CODE 8010-01-P