Notice2023-18188
Joint Industry Plan; Notice of Filing of Amendment to the National Market System Plan Governing the Consolidated Audit Trail
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Published
August 24, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 163 (Thursday, August 24, 2023)</title>
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[Federal Register Volume 88, Number 163 (Thursday, August 24, 2023)]
[Notices]
[Pages 58012-58017]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-18188]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98165; File No. 4-698]
Joint Industry Plan; Notice of Filing of Amendment to the
National Market System Plan Governing the Consolidated Audit Trail
August 18, 2023.
I. Introduction
On August 2, 2023, the Operating Committee for Consolidated Audit
Trail, LLC (``CAT LLC''), on behalf of the following parties to the
National Market System Plan Governing the Consolidated Audit Trail (the
``CAT NMS Plan'' or ``Plan''):\1\ 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'' or ``SROs'') filed with the Securities and
Exchange Commission (``SEC'' or ``Commission'') pursuant to section
11A(a)(3) of the Securities Exchange Act of 1934 (``Exchange Act''),\2\
and Rule 608 thereunder,\3\ a proposed amendment to the CAT NMS Plan to
modify the current linkage timeline (``Current Linkage Timeline'') for
the consolidated audit trail (``CAT''), as contained in Appendix A,
attached hereto (``Revised Linkage Timeline''). The Commission is
publishing this notice to solicit comments from interested persons on
the amendment.\4\
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\1\ 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)
(``Order Approving CAT NMS Plan'').
\2\ 15 U.S.C 78k-1(a)(3).
\3\ 17 CFR 242.608.
\4\ 17 CFR 242.608.
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II. Description of the Plan
Set forth in this Section II is the statement of the purpose and
summary of the amendment, along with information required by Rule
608(a)(4) and (5) under the Exchange Act,\5\ as prepared and submitted
by the Participants to the Commission and reproduced below verbatim.\6\
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\5\ See 17 CFR 242.608(a)(4) and (a)(5).
\6\ See supra note 4. Unless otherwise defined herein,
capitalized terms used herein are defined as set forth in the CAT
NMS Plan.
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A. Description of the Proposed Amendments to the CAT NMS Plan
1. Current Linkage Timeline
The CAT NMS Plan requires that all CAT Data reported to the Central
Repository must be processed and assembled to create the complete
lifecycle of each Reportable Event.\7\ The Plan Processor uses a daisy
chain approach to link and create the order lifecycles. In the daisy
chain approach, a series of unique order identifiers, assigned to all
order events handled by CAT Reporters, are linked together by the
Central Repository and assigned a single CAT-generated CAT Order ID
that is associated with each individual order event and used to create
the complete lifecycle of an order.\8\ Under the Current Linkage
Timeline, the CAT provides a final CAT Order ID at T+5 at 8 a.m. ET
pursuant to the following timeline:
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\7\ Section 3 of Appendix D of the CAT NMS Plan at D-7.
\8\ Section 3 of Appendix D of the CAT NMS Plan at D-8.
T+1 @8 a.m.: Initial submissions due
T+1 @12 p.m.: Initial data validation, communication of errors to CAT
Reporters; unlinked data available to regulators
T+1 @9 p.m.: Interim CAT Order ID available \9\
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\9\ See supra nn.5-6.
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T+3 @8 a.m.: Resubmission of corrected data
[[Page 58013]]
T+4 @8 a.m.: Final lifecycle assembly begins, reprocessing of late
submissions and corrections
T+5 @8 a.m.: Corrected data available to Participant regulatory staff
and the SEC
2. Revised Linkage Timeline
With the Revised Linkage Timeline, the Participants propose to
clarify that the Plan does not require assignment of interim CAT Order
IDs and to provide a final CAT Order ID by T+3 at 8 a.m. ET, as opposed
to T+5 at 8 a.m. ET. With this proposal, the linkage timeline would be
revised to operate as follows:
T+1 @8 a.m.: Initial submissions due
T+1 @12 p.m.: Initial data validation, communication of errors to CAT
Reporters; unlinked data available to regulators
T+2 @8 a.m.: Final lifecycle assembly begins, reprocessing of late
submissions and corrections submitted prior to T+2 at 8am
T+3 @8 a.m.: Corrected data available to Participant regulatory staff
and the SEC, resubmission of corrected data
Weekend: Late submissions and corrections submitted after T+2 at 8 a.m.
through T+4 at 8 a.m. would be processed over the weekend using the
late-to-lifecycle approach discussed below \10\
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\10\ This change would not impact how late submissions and
corrections received outside of the current T+5 processing window
are addressed.
3. Effect of Revised Linkage Timeline on CAT Data Processing and
Availability
The Revised Linkage Timeline would continue to provide regulators
with timely access to CAT Data. The following compares the processing
and availability of the CAT Data under the Current Linkage Timeline
versus the Revised Linkage Timeline in detail.\11\
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\11\ The Revised Linkage Timeline only addresses the processing
timeline for Reportable Events; it does not propose any changes with
regard to the Customer and account information in the CAT.
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a. No Changes to Submission Deadlines for CAT Reporters
The Revised Linkage Timeline will not change the reporting
deadlines for CAT Reporters. The deadlines for initial data submissions
and for error corrections will remain the same.
The CAT NMS Plan requires CAT Reporters to submit the required CAT
Data to the CAT by 8:00 a.m. on T+1. The Revised Linkage Timeline does
not change this reporting deadline. For example, Section 6.3(b)(ii) of
the CAT NMS Plan states that ``[e]ach Participant shall report
Participant Data to the Central Repository by 8:00 a.m. Eastern Time on
the Trading Day following the day the Participant records such
Participant Data.'' Similarly, Section 6.3(b)(ii) of the CAT NMS Plan
states that:
Consistent with Appendix D, Reporting and Linkage Requirements,
each Participant shall, through its Compliance Rule, require its
Industry Members to report: (A) Recorded Industry Member Data to the
Central Repository by 8:00 a.m. Eastern Time on the Trading Day
following the day the Industry Member records such Recorded Industry
Member Data; and (B) Received Industry Member Data to the Central
Repository by 8:00 a.m. Eastern Time on the Trading Day following
the day the Industry Member receives such Received Industry Member
Data.
The CAT NMS Plan also requires Participants and Industry Members to
submit corrected Participant Data and Industry Member Data,
respectively, to the Central Repository by 8:00 a.m. Eastern Time on
T+3.\12\ The Revised Linkage Timeline also does not change this
reporting deadline.
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\12\ See Section 6.1 of Appendix D of the CAT NMS Plan at D-18.
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b. Earlier Access to Final CAT Order ID
Under the Revised Linkage Timeline, regulators would have access to
the Final CAT Order ID and the finalized data set two full days earlier
than under the Current Linkage Timeline. Regulators would have access
to the final CAT Order ID on T+3 at 8 a.m., rather than on T+5 at 8
a.m. Unlike the interim CAT Order ID, the final CAT Order ID includes
the CCID and FDID enrichments (that is, the order and transaction data
has been enriched by the Firm Designated ID \13\ and CCIDs \14\).
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\13\ Section 1.1 of the CAT NMS Plan.
\14\ The CCID (also referred to as the ``CAT Customer-ID'')
means ``with respect to a customer, a code that uniquely and
consistently identifies such customer for purposes of providing data
to the central repository.''
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In connection with the earlier provision of the final CAT Order ID,
no interim CAT Order ID would be provided. The interim CAT Order ID
currently is available at T+1 at 9 p.m.\15\ Accordingly, regulators
would have access to the final CAT Order ID 35 hours (or approximately
one day and a half) later than they currently receive the interim CAT
Order ID but, with the accelerated final CAT Order ID, regulators would
have access to the CCID and FDID enrichments as well. As discussed
below, the proposed elimination of the interim CAT Order ID would save
100% of the costs related to the creation of the interim CAT Order ID.
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\15\ See supra nn.5-6.
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c. Reduction in Daily Linkage Processing Volume
The Revised Linkage Timeline would reduce the daily linkage
processing job from the processing of four days of data volume to two
days of volume. Under the Current Linkage Timeline, in addition to the
processing necessary for creating the interim CAT Order ID by T+1 at 9
a.m., the current linkage processing for the final CAT Order ID covers
data from four days, that is, data from T+1 at 8 a.m. through T+4 at 8
a.m. With the Revised Linkage Timeline, the linkage processing for the
final CAT Order ID covers data from two days, that is, data from T+1 at
8 a.m. through T+2 at 8 a.m. As discussed below, the proposed reduction
in daily linkage processing volume would save approximately 40% in
computational costs related to linkage in comparison to the existing
processes.
d. Efficient Handling of Lates/Repairs
The Revised Linkage Timeline would streamline the processing for
feedback to CAT Reporters. CAT Reporters currently receive feedback for
any data submission reported prior to 8 a.m. on T+4. With the Revised
Linkage Timeline, CAT Reporters would receive feedback for any data
submitted prior to T+2 at 8 a.m. Accordingly, under the Revised Linkage
Timeline, CAT Reporters would no longer receive feedback on data
reported after T+2 at 8 a.m. through T+4 at 8 a.m., as they do under
the current processing. Without a linkage error generated, the CAT
Reporter would not know they had a linkage error and would attempt no
further corrections. The error not generated under this proposal would
also not be counted in the compliance error rate. For example, if an
Industry Member submits a MEOR on T+2 at noon with an incorrect routed
OrderID, the Industry Member would not receive unlinked feedback and
the error would not be included in the Industry Member's compliance
rate. The record would, however, be included as a late submission in
the compliance rate calculation.
Limiting feedback to data submitted prior to T+2 at 8 a.m. would
capture 99.75% of all submissions to CAT for a given trade date based
on an analysis of data from a recent six-month period by the Plan
Processor. The significant cost savings realized by this proposal far
outweighs the less than 0.25% of data that would potentially not
generate a linkage error, but would otherwise be fully available in CAT
and subject to late to the lifecycle processing.
[[Page 58014]]
The remaining late events received after T+2 at 8 a.m. through T+4
at 8 a.m. would be processed over the weekend using late-to-lifecycle
processing, which provides substantial efficiency gains over the
current processes. Under this approach, late records may be associated
with more than one CAT Order ID. Specifically, a late record that is a
missing link between disjoined segments of an order lifecycle and is
not associated with a lifecycle in the processing prior to T+3 at 8
a.m. would be associated with both lifecycles and will include the date
of the correction. This means that the entire lifecycle would be
available through the linking of the disjoined segments, each with
their own CAT Order ID. The CAT LLC Operating Committee plans to
consider a Change Order that would enhance the current late-to-
lifecycle process to present data to users in a manner similar to how
it would be presented if the data were submitted on time.
4. Cost Savings of the Revised Linkage Timeline
CAT LLC estimates that the Revised Linkage Timeline would result in
annual savings of $9.8 million versus the Current Linkage Timeline. The
Revised Linkage Timeline addresses two primary cost drivers, each
responsible for approximately half of the $9.8 million in savings: (1)
the proposed elimination of the interim CAT Order ID would provide 100%
of savings versus the status quo of providing the interim CAT Order ID
by T+1 at 9 p.m.; and (2) reducing the daily linkage processing job
from the processing of four days of volume to two days of volume would
provide approximately 40% of savings versus the status quo.\16\
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\16\ CAT LLC notes that the estimated savings do not include
incremental cost of the larger late-to-lifecycle processing or the
build costs associated with the revised processing. CAT LLC does not
anticipate that such costs would be significant.
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CAT LLC believes that the substantial savings of approximately $9.8
million annually are readily justified given the minimal impact on
regulatory access to CAT Data.
5. Proposed Revisions to CAT NMS Plan
a. Clarification: No Interim CAT Order ID Available Prior to T+3 at 8
a.m.
To implement the Revised Linkage Timeline, CAT LLC proposes to
amend the CAT NMS Plan to clarify that there is no requirement to
provide an interim CAT Order ID.\17\ Accordingly, CAT LLC proposes to
remove any references to lifecycle linkages in the data processing
timeline described in the CAT NMS Plan.\18\ Specifically, CAT LLC
proposes to delete the phrase ``lifecycle linkages'' from the following
bullet in Section 6.1 of Appendix D of the CAT NMS Plan: ``Noon Eastern
Time T+1 (transaction date + one day)-Initial data validation,
lifecycle linkages and communication of errors to CAT Reporters.''
Similarly, CAT LLC proposes to delete the phrase ``Life Cycle Linkage''
from the second box in Figure A in Section 6.1 of Appendix D of the CAT
NMS Plan. The box currently states the following: ``12:00 p.m. ET T+1
Initial Validation, Life Cycle Linkage, Communication of Errors.'' With
the change, this box would state ``12:00 p.m. ET T+1 Initial
Validation, Communication of Errors.''
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\17\ CAT LLC notes that, at the discretion of the Operating
Committee, the Plan Processor could be directed to provide an
interim CAT Order ID prior to T+3 in the event of a market event.
\18\ The Commission interprets the phrase ``lifecycle linkages''
to require the assignment of an interim CAT Order ID. See July 2022
Order at 42251 and supra nn.5-6.
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b. Commencement of Final Lifecycle Assembly
CAT LLC also proposes to amend the CAT NMS Plan to require CAT LLC
to commence final lifecycle assembly by T+2 at 8 a.m. Accordingly, CAT
LLC proposes to add the following bullet to the data processing
timeline in Section 6.1 of Appendix D of the CAT NMS Plan:
<bullet> 8:00 a.m. Eastern Time T+2: (transaction date + two days)-
Final lifecycle assembly begins; deadline for late submissions and
corrections to be included in final CAT Order ID
Similarly, CAT LLC proposes to add a new third box to Figure A in
Section 6.1 of Appendix D of the CAT NMS Plan. The box would state the
following: ``Final Lifecycle Assembly Begins; Deadline for Late
Submissions and Corrections to be included in Final CAT Order ID.''
c. Final CAT Order ID Available at T+3 at 8 a.m.
CAT LLC also proposes to amend the CAT NMS Plan to require CAT LLC
to make the final CAT Order ID available and to make data ready for
regulatory by T+3 at 8 a.m. Specifically, CAT LLC proposes to revise
the following bullet in the data processing timeline in Section 6.1 of
Appendix D of the CAT NMS Plan to indicate that the final lifecycle
identifier must be available by T+3 at 8 a.m.: ``8:00 a.m. Eastern Time
T+3 (transaction date + three days)-Resubmission of corrected data.''
CAT LLC proposes to add the phrase ``and final CAT Order ID available
and data ready for regulators'' to this bullet. Similarly, CAT LLC
proposes to add the phrase ``and Final CAT Order ID Available and Data
Ready for Regulators'' to the third box in Figure A in Section 6.1 of
Appendix D of the CAT NMS Plan. The box currently states the following:
``8:00AM ET T+3 Resubmission of Errors Due.'' With this change, this
box would state ``8:00AM ET T+3 Resubmission of Errors Due and Final
CAT Order ID Available and Data Ready for Regulators.''
In addition, CAT LLC proposes to amend the CAT NMS Plan to remove
the references to making corrected data available to Participant
regulatory staff and the SEC by T+5 at 8 a.m. As discussed above, data
would be ready for regulators on T+3 at 8 a.m. Specifically, CAT LLC
proposes to delete the following bullet from Section 6.1 of Appendix D
of the CAT NMS Plan: ``8:00 a.m. Eastern Time T+5 (transaction date +
five days)-Corrected data available to Participant regulatory staff and
the SEC.'' In addition, CAT LLC proposes to delete the fifth box in
Figure A in Section 6.1 of Appendix D of the CAT NMS Plan. This box
currently states ``T+5 Data Ready for Regulators.''
In light of the change from a T+5 conclusion in the Current Linkage
Timeline to the T+3 conclusion in the Revised Linkage Timeline, CAT LLC
proposes to amend Section 6.2 of Appendix D of the CAT NMS Plan to
replace the references to ``T+5'' with references to ``T+3'' in the
following statements:
<bullet> ``Between 12:00 p.m. Eastern Time on T+1 and T+5, access
to all iterations of processed data must be available to Participants'
regulatory staff and the SEC.''
<bullet> ``If any data remains un-linked after T+5, it must be
available and included with all linked data with an indication that the
data was not linked.''
<bullet> ``If corrections are received after T+5, Participants'
regulatory staff and the SEC must be notified and informed as to how
re-processing will be completed.''
Similarly, for the same reason, CAT LLC proposes to replace the
reference to a ``five-day'' process with a reference to a ``three-day''
process in the following sentence in Section 6.2 of Appendix D of the
CAT NMS Plan: ``The Plan Processor must provide reports and
notifications to Participant regulatory staff and the SEC regularly
during the [five-day] three-day process, indicating the completeness of
the data and errors.''
[[Page 58015]]
d. Late to the Lifecycle Processing for Corrections Submitted From T+2
at 8 a.m. through T+4 at 8 a.m.
CAT LLC proposes to amend the CAT NMS Plan to require late
submission and corrections submitted to the CAT after T+2 at 8 a.m.
through T+4 at 8 a.m. to be processed over the weekend. The weekend
processing would rely on the late-to-lifecycle processing, which
provides substantial efficiency gains over the current processes. CAT
LLC proposes to describe this process by adding the following bullet to
Section 6.1 of Appendix D of the CAT NMS Plan:
<bullet> Over Weekend--Late submissions and corrections submitted
after T+2 at 8:00 a.m. ET through T+4 at 8:00 a.m. ET for order events
that occurred within the past 18 months would be processed over the
weekend by 5:00 p.m. ET the next business day. Late to the lifecycle
processing for data older than 18 months would be processed on a
schedule as set forth by the Operating Committee.
Similarly, CAT LLC proposes to add the following description to the
Figure A in Section 6.1 of the CAT NMS Plan: ``Late submissions and
corrections submitted after T+2 at 8 a.m. ET through T+4 at 8 a.m. ET
for order events that occurred within the past 18 months would be
processed over the weekend by 5 p.m. ET the next business day. Late to
the lifecycle processing for data older than 18 months would be
processed on a schedule as set forth by the Operating Committee.''
In addition, CAT LLC proposes to revise the CAT NMS Plan to remove
references to the requirement to reprocess error corrections on T+4.
Under the Revised Linkage Timeline, as described above, late
submissions and corrections submitted prior to T+2 at 8 a.m. would be
used to assemble the final CAT Order ID on T+3, and late submissions
and corrections submitted after T+2 at 8 a.m. through T+4 at 8 a.m.
would be processed over the weekend using the late-to-lifecycle
approach. Accordingly, the requirement to reprocess error corrections
on T+4 would be no longer be applicable.
B. Governing or Constituent Documents
Not applicable.
C. Implementation of Amendment
The Participants propose to implement the proposal upon approval of
the proposed amendment to the CAT NMS Plan.
D. Development and Implementation Phases
Not applicable.
E. Analysis of Impact on Competition
CAT LLC does not believe that the proposed amendment would result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Exchange Act. Indeed, CAT LLC
believes that the proposed amendments will have a positive impact on
competition, efficiency and capital formation. The proposed amendments
will provide substantial savings in CAT costs while providing minimal
impact on the regulatory use of CAT Data. Such substantial savings
would inure to the benefit of all participants in the markets for NMS
Securities and OTC Equity Securities, including Participants, Industry
Members, and most importantly, the investors.
F. Written Understanding or Agreements Relating to Interpretation of,
or Participation in, Plan
Not applicable.
G. Approval by Plan Sponsors in Accordance With Plan
Section 12.3 of the CAT NMS Plan states that, subject to certain
exceptions, the CAT NMS Plan may be amended from time to time only by a
written amendment, authorized by the affirmative vote of not less than
two-thirds of all of the Participants, that has been approved by the
SEC pursuant to Rule 608 of Regulation NMS under the Exchange Act or
has otherwise become effective under Rule 608 of Regulation NMS under
the Exchange Act. In addition, the proposed amendment was discussed
during Operating Committee meetings. The Participants, by a vote of the
Operating Committee taken on August 1, 2023, have authorized the filing
of this proposed amendment with the SEC in accordance with the Plan.
H. Description of Operation of Facility Contemplated by the Proposed
Amendment
Not applicable.
I. Terms and Conditions of Access
Not applicable.
J. Method of Determination and Imposition, and Amount of, Fees and
Charges
Not applicable.
K. Method and Frequency of Processor Evaluation
Not applicable.
L. Dispute Resolution
Not applicable.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed
amendment is consistent with the Act. Comments may be submitted by any
of the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#285a5d444d054b4745454d465c5b685b4d4b064f475e"><span class="__cf_email__" data-cfemail="0e7c7b626b236d6163636b607a7d4e7d6b6d20696178">[email protected]</span></a>. Please include
file number 4-698 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number 4-698. This file number
should be included on the subject line if email 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 website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed amendment that are filed with
the Commission, and all written communications relating to the proposed
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 website viewing and printing in the
Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10 a.m. and 3
p.m. Copies of the filing also will be available for inspection and
copying at the Participants' offices. Do not include personal
identifiable information in submissions; you should submit only
information that you wish to make available publicly. We may redact in
part or withhold entirely from publication submitted material that is
obscene or subject to copyright protection. All submissions should
refer to file number 4-698 and should be submitted on or before
September 14, 2023.
[[Page 58016]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(85).
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Sherry R. Haywood,
Assistant Secretary.
Appendix A
Proposed Revisions to CAT NMS Plan
Additions italicized; deletions [bracketed]
* * * * *
6.1 Data Processing
CAT order events must be processed within established timeframes
to ensure data can be made available to Participants' regulatory
staff and the SEC in a timely manner. The processing timelines start
on the day the order event is received by the Central Repository for
processing. Most events must be reported to the CAT by 8:00 a.m.
Eastern Time the Trading Day after the order event occurred
(referred to as transaction date). The processing timeframes below
are presented in this context. All events submitted after T+1
(either reported late or submitted later because not all of the
information was available) must be processed within these timeframes
based on the date they were received.
The Participants require the following timeframes (Figure A) for
the identification, communication and correction of errors from the
time an order event is received by the processor:
<bullet> Noon Eastern Time T+1 (transaction date + one day) -
Initial data validation[, lifecycle linkages] and communication of
errors to CAT Reporters;
<bullet> 8:00 a.m. Eastern Time T+2: (transaction date + two
days) - Final lifecycle assembly begins; deadline for late
submissions and corrections to be included in final CAT Order ID
<bullet> 8:00 a.m. Eastern Time T+3 (transaction date + three
days) - Resubmission of corrected data; and final CAT Order ID
available and data ready for regulators; and
<bullet> [8:00 a.m. Eastern Time T+5 (transaction date + five
days) - Corrected data available to Participant regulatory staff and
the SEC.]
<bullet> Over Weekend--Late submissions and corrections
submitted after T+2 at 8:00 a.m. ET through T+4 at 8:00 a.m. ET for
order events that occurred within the past 18 months would be
processed over the weekend by 5:00 p.m. ET the next business day.
Late to the lifecycle processing for data older than 18 months would
be processed on a schedule as set forth by the Operating Committee.
Late submissions or re-submissions (after 8:00 a.m.) may be
considered to be processed that day if it falls within a given time
period after the cutoff. This threshold will be determined by the
Plan Processor and approved by the Operating Committee. In the event
that a significant portion of the data has not been received as
monitored by the Plan Processor, the Plan Processor may decide to
halt processing pending submission of that data.
[GRAPHIC] [TIFF OMITTED] TN24AU23.000
{changes to second box in chart: 12:00 p.m. ET T+1 Initial
Validation, [Life Cycle Linkage,] Communication of Errors{time}
{insert new third box: 8:00AM ET T+2 Final Lifecycle Assembly
Begins; Deadline for Late Submissions and Corrections to be included
in Final CAT Order ID{time}
{changes to third box in chart: 8:00AM ET T+3 Resubmission of Errors
Due and Final CAT Order ID Available and Data Ready for
Regulators{time}
{Delete fourth box in chart: [T+4 Reprocessing of Error
Corrections]{time}
{Delete fifth box in chart: [T+5 Data Ready for Regulators]{time}
Late submissions and corrections submitted after T+2 at 8:00AM ET
through T+4 at 8:00AM ET for order events that occurred within the
past 18 months would be processed over the weekend by 5:00PM ET the
next business day. Late to the lifecycle processing for data older
than 18 months would be processed on a schedule as set forth by the
Operating Committee.
6.2 Data Availability Requirements
Prior to 12:00 p.m. Eastern Time on T+1, raw unprocessed data
that has been ingested by the Plan Processor must be available to
Participants' regulatory staff and the SEC.
Between 12:00 p.m. Eastern Time on T+1 and [T+5] T+3, access to
all iterations of processed data must be available to Participants'
regulatory staff and the SEC.
The Plan Processor must provide reports and notifications to
Participant regulatory staff and the SEC regularly during the [five-
day] three-day process, indicating the completeness of the data and
errors. Notice of major errors or missing data must be reported as
early in the process as possible. If any data remains un-linked
after [T+5] T+3, it must be available and included with all linked
data with an indication that the data was not linked.
If corrections are received after [T+5] T+3, Participants'
regulatory staff and the SEC must be notified and informed as to how
re-processing will be completed. The Operating Committee will be
involved with decisions on how to re-process the data; however, this
does not relieve the Plan Processor of notifying the Participants'
regulatory staff and the SEC.
[[Page 58017]]
[GRAPHIC] [TIFF OMITTED] TN24AU23.001
CAT PII data must be processed within established timeframes to
ensure data can be made available to Participants' regulatory staff
and the SEC in a timely manner. Industry Members submitting new or
modified Customer information must provide it to the Central
Repository no later than 8:00 a.m. Eastern Time on T+1. The Central
Repository must validate the data and generate error reports no
later than 5:00 p.m. Eastern Time on T+1. The Central Repository
must process the resubmitted data no later than 5:00 p.m. Eastern
Time on T+4. Corrected data must be resubmitted no later than 5:00
p.m. Eastern Time on T+3. The Central Repository must process the
resubmitted data no later than 5:00 p.m. Eastern Time on T+4.
Corrected data must be available to regulators no later than 8:00
a.m. Eastern Time on T+5.
Customer information that includes PII data must be available to
regulators immediately upon receipt of initial data and corrected
data, pursuant to security policies for retrieving PII.
* * * * *
[FR Doc. 2023-18188 Filed 8-23-23; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on August 24, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.