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

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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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Indexed from Federal Register on January 26, 2023.

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