[Federal Register Volume 60, Number 97 (Friday, May 19, 1995)]
[Notices]
[Pages 26910-26911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12311]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35715; File No. S7-27-93]
Consolidated Tape Association; Order Granting Approval of
Seventeenth Substantive Amendment to the Restated Consolidated Tape
Association Plan and Twenty-First Substantive Amendment to the
Consolidated Quotation Plan
May 12, 1995.
I. Introduction
On March 9, 1995, the Consolidated Tape Association (``CTA'') and
consolidated Quotation (``CQ'') Plan Participants filed with the
Securities and Exchange Commission (``Commission'' or ``SEC'')
amendments to the Restated CTA Plan and CQ Plan pursuant to Rule 11Aa3-
2 of the Securities Exchange Act of 1934 (``Act''). Notice of the
filing appeared in the Federal Register on April 3, 1994.\1\ No comment
letters were received in response to the Notice. For the reasons
discussed below, the Commission has determined to approve the filing.
\1\Securities Exchange Act Release No. 35543 (March 28, 1995),
60 FR 16901.
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II. Description
The amendments change the procedure for allocating high speed line
access fee revenues between ``Network A'' and ``Network B'' under each
plan. Under the new procedure,\2\ the participants will apply
``relative message usage percentages'' to the allocation of high speed
line revenues between networks retroactively, beginning with the period
commencing January 1, 1994.
\2\A description of the new procedure was included in the Notice
of Filing of Amendment (see, note 1, supra), and is incorporated by
reference herein.
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The amendments also eliminate the requirements that the
participants set the high speed line access fee at a level designed to
recover the costs of making the high speed line available, and set
indirect high speed line access fees at a level that equals one-half of
the direct [[Page 26911]] access fees. The actual fees currently in
effect, however, are not changed.
Prior to this amendment, the participants, under each plan, imposed
on subscribers, vendors, computer input users and others one combined
high speed line access fee for access to both Network A and Network B
market data. These amendments will change the current fee structure and
replace it with a more appropriate and equitable measure that reflects
each network's relative usage of the plans' systems.
Additionally, these amendments will eliminate the current
requirements to: (a) Set high speed line access fees at levels that
allow the participants to recover the operating expenses that the
Processor incurs in making the high speed line available, and (b) set
indirect high speed line access fees at a level that equals one-half of
the direct access fees. Those requirements were established over twenty
years ago. Today's digital data feed and other technologies make high
speed lines cheaper and easier to access necessitating a change in the
manner in which the participants determine high speed line access fees.
The actual fees, however, will not be amended at this time.
III. Discussion
The Commission has determined that the CTA/CQ Plan amendments are
consistent with the Act. Rule 11Aa3-2(c)(2) under the Act provides,
inter alia, that the Commission approve an amendment to an effective
National Market System plan if it finds that the amendment is necessary
or appropriate in the public interest, for the protection of investors
and 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. In making such a determination,
the Commission must examine Section 11A of the Act and Rule 11Aa3-
2(b)(5), promulgated thereunder. Rule 11Aa3-2(b)(5)(ii) provides that
every national market system plan, or any amendment thereto, shall
provide a description of the method by which any fees or charges
collected on behalf of all of the participants in connection with
access to, or use of, any facility contemplated by the plan or
amendment will be determined and imposed (including any provision for
distribution of any net proceeds from such fees or charges to the
participants) and the amount of such fees or charges.
The CTA and CQ Plan Participants have properly described the
determination, imposition and distribution of the fees and charges that
are the subject of the proposed amendments. Furthermore, the amendments
will remove impediments to and perfect the mechanisms of a National
Market System by instituting a more equitable line access fee that
reflects actual usage, and by removing certain requirements concerning
the calculation of line access fees that are no longer appropriate in
light of technological advances. Accordingly, the Commission finds that
the adoption of the delineated changes for allocating high speed line
access fees for both Plans, and the elimination of the above discussed
requirements concerning the recovery of costs for making high speed
line available, to be consistent with the Act and the Rules thereunder.
IV. Conclusion
For the reasons discussed above, the Commission finds that the
proposed amendments to the CTA and CQ Plans are consistent with the
Act, particularly Rules 11Aa3-2(c)(2) and 11Aa3-2(b)(5)(ii) thereunder.
It is therefore ordered, pursuant to Section 11A of the Act, that
the amendments to the CTA and CQ Plans be, and hereby are, approved.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\3\
\3\17 CFR 200.30-3(a)(27).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-12311 Filed 5-18-95; 8:45 am]
BILLING CODE 8010-01-M
