Notice2023-01529
Joint Industry Plan; Notice of Designation of a Longer Period for Commission Action on a Proposed Amendment to the National Market System Plan Governing the Consolidated Audit Trail, as Modified by Partial Amendment No. 1
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 26, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 17 (Thursday, January 26, 2023)</title>
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[Federal Register Volume 88, Number 17 (Thursday, January 26, 2023)]
[Notices]
[Page 5059]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-01529]
[[Page 5059]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96725; File No. 4-698]
Joint Industry Plan; Notice of Designation of a Longer Period for
Commission Action on a Proposed Amendment to the National Market System
Plan Governing the Consolidated Audit Trail, as Modified by Partial
Amendment No. 1
January 20, 2023.
On May 13, 2022, the Operating Committee for Consolidated Audit
Trail, LLC (``CAT LLC''), on behalf of the Participants \1\ to the
National Market System Plan Governing the Consolidated Audit Trail (the
``CAT NMS Plan''),\2\ filed with the Securities and Exchange Commission
(``Commission''), pursuant to section 11A of the Securities Exchange
Act of 1934 (``Act'') \3\ and Rule 608 of Regulation National Market
System (``NMS'') thereunder,\4\ a proposed amendment to the CAT NMS
Plan (``Proposed Amendment'') to implement a revised funding model
(``Executed Share Model'') for the consolidated audit trail (``CAT'')
and to establish a fee schedule for Participant CAT fees in accordance
with the Executed Share Model.\5\ The Proposed Amendment was published
for comment in the Federal Register on June 1, 2022.\6\
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\1\ The Participants are: BOX Exchange LLC, Cboe BYX Exchange,
Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc., Cboe EDGX
Exchange, Inc., Cboe C2 Exchange, Inc., Cboe Exchange, Inc.,
Financial Industry Regulatory Authority, Inc., Investors Exchange
LLC, Long-Term Stock Exchange, Inc., MEMX LLC, Miami International
Securities Exchange, LLC, MIAX Emerald, LLC, MIAX PEARL, LLC, Nasdaq
BX, Inc., Nasdaq GEMX, LLC, Nasdaq ISE, LLC, Nasdaq MRX, LLC, Nasdaq
PHLX LLC, The Nasdaq Stock Market LLC, New York Stock Exchange LLC,
NYSE American LLC, NYSE Arca, Inc., NYSE Chicago, Inc., and NYSE
National, Inc. (collectively, the ``Participants'').
\2\ The CAT NMS Plan is a national market system plan approved
by the Commission pursuant to section 11A of the Act and the rules
and regulations thereunder. See Securities Exchange Act Release No.
79318 (Nov. 15, 2016), 81 FR 84696 (Nov. 23, 2016). The CAT NMS Plan
functions as the limited liability company agreement of the jointly
owned limited liability company formed under Delaware state law
through which the Participants conduct the activities of the CAT
(``Company''). On August 29, 2019, the Participants replaced the CAT
NMS Plan in its entirety with the limited liability company
agreement of a new limited liability company named Consolidated
Audit Trail, LLC, which became the Company. The latest version of
the CAT NMS Plan is available at <a href="https://catnmsplan.com/about-cat/cat-nms-plan">https://catnmsplan.com/about-cat/cat-nms-plan</a>.
\3\ 15 U.S.C 78k-1.
\4\ 17 CFR 242.608.
\5\ See Letter from Michael Simon, CAT NMS Plan Operating
Committee Chair, to Vanessa Countryman, Secretary, Commission (May
13, 2022).
\6\ See Securities Exchange Act Release No. 94984 (May 25,
2022), 87 FR 33226 (June 1, 2022) (``Notice''). Comments received in
response to the Notice can be found on the Commission's website at
<a href="https://www.sec.gov/comments/4-698/4-698-a.htm">https://www.sec.gov/comments/4-698/4-698-a.htm</a>.
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On August 30, 2022, the Commission instituted proceedings pursuant
to Rule 608(b)(2)(i) of Regulation NMS \7\ to determine whether to
approve or disapprove the Proposed Amendment with any changes or
subject to any conditions the Commission deems necessary or
appropriate.\8\ On November 15, 2022, CAT LLC submitted a letter to
propose a partial amendment of the Proposed Amendment (``Partial
Amendment No. 1'') and to respond to the Commission's solicitation of
comments in the OIP and comments received on the OIP.\9\ On November
23, 2022, pursuant to Rule 608(b)(2)(i) of Regulation NMS,\10\ the
Commission extended the period within which to conclude proceedings
regarding the Proposed Amendment to 240 days from the date of
publication of the Notice.\11\ Notice of the filing of Partial
Amendment No. 1 was published for comment in the Federal Register on
December 2, 2022.\12\
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\7\ 17 CFR 242.608(b)(2)(i).
\8\ See Securities Exchange Act Release No. 95634 (Aug. 30,
2022), 87 FR 54558 (Sept. 6, 2022) (``OIP''). Comments received in
response to the OIP can be found on the Commission's website at
<a href="https://www.sec.gov/comments/4-698/4-698-a.htm">https://www.sec.gov/comments/4-698/4-698-a.htm</a>.
\9\ See Letter from Michael Simon, CAT NMS Plan Operating
Committee Chair, to Vanessa Countryman, Secretary, Commission (Nov.
15, 2022).
\10\ See 17 CFR 242.608(b)(2)(i).
\11\ See Securities Exchange Act Release No. 96382 (Nov. 23,
2022), 87 FR 73366 (Nov. 29, 2022).
\12\ See Securities Exchange Act Release No. 96394 (Nov. 28,
2022), 87 FR 74183 (Dec. 2, 2022). Comments received in response to
Partial Amendment No. 1 can be found on the Commission's website at
<a href="https://www.sec.gov/comments/4-698/4-698-a.htm">https://www.sec.gov/comments/4-698/4-698-a.htm</a>.
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Rule 608(b)(2)(ii) of Regulation NMS provides that the time for
conclusion of proceedings to determine whether a national market system
plan or proposed amendment should be disapproved may be extended for an
additional period up to 60 days (up to 300 days from the date of notice
publication) if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination or the
plan participants consent to the longer period.\13\ The 240th day after
publication of the Notice for the Proposed Amendment is January 27,
2023. The Commission is extending this 240-day period.
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\13\ See 17 CFR 242.608(b)(2)(ii).
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The Commission finds that it is appropriate to designate a longer
period within which to conclude proceedings regarding the Proposed
Amendment, as modified by Partial Amendment No. 1, so that it has
sufficient time to consider the proposed modifications and the
justifications provided in support thereof, and the comments received.
Accordingly, pursuant to Rule 608(b)(2)(ii) of Regulation NMS,\14\ the
Commission designates March 28, 2023, as the date by which the
Commission shall conclude the proceedings to determine whether to
approve or disapprove the Proposed Amendment, as modified by Partial
Amendment No. 1 (File No. 4-698).
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\14\ Id.
By the Commission.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-01529 Filed 1-25-23; 8:45 am]
BILLING CODE 8011-01-P
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