Notice2023-06784
Joint Industry Plan; Notice of Withdrawal of Proposed Amendment to the National Market System Plan Governing the Consolidated Audit Trail, as Modified by Partial Amendment Nos. 1 and 2
Primary source
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Published
April 3, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 63 (Monday, April 3, 2023)</title>
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[Federal Register Volume 88, Number 63 (Monday, April 3, 2023)]
[Notices]
[Page 19693]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-06784]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97212; File No. 4-698]
Joint Industry Plan; Notice of Withdrawal of Proposed Amendment
to the National Market System Plan Governing the Consolidated Audit
Trail, as Modified by Partial Amendment Nos. 1 and 2
March 28, 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
(``CAT NMS Plan''),\2\ filed with the Securities and Exchange
Commission (``Commission''), pursuant to Section 11A of the Securities
Exchange Act of 1934 (``Exchange Act''),\3\ and Rule 608 of Regulation
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. The Proposed Amendment was published for comment in the
Federal Register on June 1, 2022.\5\
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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 Exchange 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 Securities Exchange Act Release No. 94984 (May 25,
2022), 87 FR 33226 (June 1, 2022) (``Notice'').
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On August 30, 2022, the Commission instituted proceedings pursuant
to Rule 608(b)(2)(i) of Regulation NMS,\6\ to determine whether to
disapprove the Proposed Amendment or to approve the Proposed Amendment
with any changes or subject to any conditions the Commission deems
necessary or appropriate after considering public comment.\7\ 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.\8\ On November 23, 2022, pursuant to Rule
608(b)(2)(i) of Regulation NMS,\9\ 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.\10\ Notice of
the filing of Partial Amendment No. 1 was published for comment in the
Federal Register on December 2, 2022.\11\
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\6\ 17 CFR 242.608(b)(2)(i).
\7\ See Securities Exchange Act Release No. 95634 (Aug. 30,
2022), 87 FR 54558 (Sept. 6, 2022) (``OIP''). Comments received in
response to the OIP and 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>.
\8\ See Letter from Michael Simon, Chair, CAT NMS Plan Operating
Committee, to Vanessa Countryman, Secretary, Commission (Nov. 15,
2022).
\9\ See 17 CFR 242.608(b)(2)(i).
\10\ See Securities Exchange Act Release No. 96382 (Nov. 23,
2022), 87 FR 73366 (Nov. 29, 2022).
\11\ 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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On January 20, 2023, the Commission extended the period within
which to conclude proceedings regarding the Proposed Amendment to 300
days from the date of publication of the Notice.\12\ On February 15,
2023, CAT LLC submitted a letter to propose an additional partial
amendment to the Proposed Amendment (``Partial Amendment No. 2'') and
to respond to issues discussed in the comments on Partial Amendment No.
1.\13\ The Commission is publishing this notice to reflect that on
March 1, 2023, prior to the end of the 300-day period provided for in
Exchange Act Rule 608(b)(2)(ii),\14\ the Participants withdrew the
Proposed Amendment, as modified by Partial Amendment Nos. 1 and 2.\15\
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\12\ See Securities Exchange Act Release No. 96725 (Jan. 20,
2023), 88 FR 5059 (Jan. 26, 2023).
\13\ See Letter from Michael Simon, Chair Emeritus, CAT NMS Plan
Operating Committee, to Vanessa Countryman, Secretary, Commission
(Feb. 15, 2023), available 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>. Because CAT LLC withdrew the Proposed Amendment, as
modified by Partial Amendment Nos. 1 and 2, before the Commission's
15-day deadline in Rule 608(b)(1)(ii) of Regulation NMS to send
notice of the filing of a proposed amendment to any national market
system plan to the Federal Register, the Commission did not publish
notice of the filing of Partial Amendment No. 2. See 17 CFR
242.608(b)(1)(ii).
\14\ 17 CFR 242.608(b)(2)(ii).
\15\ See Letter from Brandon Becker, Chair, CAT NMS Plan
Operating Committee, to Vanessa Countryman, Secretary, Commission
(Mar. 1, 2023).
By the Commission.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-06784 Filed 3-31-23; 8:45 am]
BILLING CODE 8011-01-P
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