Notice2023-23051
Notice of the Text of the Amendment to the National Market System Plan Governing the Consolidated Audit Trail for Purposes of Short Sale-Related Data Collection
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
November 1, 2023
Effective
January 2, 2024
Issuing agencies
Securities and Exchange Commission
Abstract
The Securities and Exchange Commission ("Commission") is publishing notice of the text of the adopted amendment to the National Market System Plan Governing the Consolidated Audit Trail ("CAT NMS Plan") in connection with the Commission's issuance of Release No. 34- 98738, "Short Position and Short Activity Reporting by Institutional Investment Managers" ("Adopting Release"), published elsewhere in this issue of the Federal Register.
Full Text
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<title>Federal Register, Volume 88 Issue 210 (Wednesday, November 1, 2023)</title>
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[Federal Register Volume 88, Number 210 (Wednesday, November 1, 2023)]
[Notices]
[Pages 75079-75080]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-23051]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98739; File No. S7-08-22]
Notice of the Text of the Amendment to the National Market System
Plan Governing the Consolidated Audit Trail for Purposes of Short Sale-
Related Data Collection
AGENCY: Securities and Exchange Commission.
ACTION: Notice of the text of amendment to national market system plan.
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SUMMARY: The Securities and Exchange Commission (``Commission'') is
publishing notice of the text of the adopted amendment to the National
Market System Plan Governing the Consolidated Audit Trail (``CAT NMS
Plan'') in connection with the Commission's issuance of Release No. 34-
98738, ``Short Position and Short Activity Reporting by Institutional
Investment Managers'' (``Adopting Release''), published elsewhere in
this issue of the Federal Register.
DATES: The effective date for the amendment to the CAT NMS Plan is
January 2, 2024.
Compliance date: The compliance date for the amendment to the CAT
NMS Plan is July 1, 2025.
FOR FURTHER INFORMATION CONTACT: Timothy M. Riley, Branch Chief;
Patrice M. Pitts, Special Counsel; James R. Curley, Special Counsel;
Jessica Kloss, Attorney-Advisor; Brendan McLeod, Attorney-Advisor;
Roland Lindmayer, Attorney-Advisor; and Josephine Tao, Assistant
Director, Office of Trading Practices, Division of Trading and Markets,
Securities and Exchange Commission, 100 F Street NE, Washington, DC
20549, at (202) 551-5777.
SUPPLEMENTARY INFORMATION:
I. Background
In the Adopting Release, the Commission is adopting new 17 CFR
240.13f-2 (``Rule 13f-2'') and related Form SHO (referenced in 17 CFR
249.332) under the Securities Exchange Act of 1934 (``Exchange Act'').
Rule 13f-2 requires certain institutional investment managers to
report, on a monthly basis on new Form SHO, certain prescribed short
position data and short activity data for certain equity securities.
The Commission is not adopting the proposed amendment to the CAT NMS
Plan that would have required the reporting to the Consolidated Audit
Trail of ``buy to cover'' order marking. The Commission is adopting an
amendment to the CAT
[[Page 75080]]
NMS Plan, pursuant to 17 CFR 242.608(a)(2) and (b)(2), to require the
reporting to the Consolidated Audit Trail of reliance on the bona fide
market making exception in Regulation SHO, with some non-substantive,
technical changes with regard to the wording of the rule text.\1\ This
Notice is being given of the text of the adopted amendment to the CAT
NMS Plan. For a full discussion of the adopted amendment to the CAT NMS
Plan, see the Adopting Release.
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\1\ See Short Position and Short Activity Reporting by
Institutional Investment Managers, Exchange Act Release No. 34-98738
(Oct. 13, 2023), at n. 38 and accompanying text.
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II. Compliance Date
The Commission is setting a compliance date of 20 months from
publication in the Federal Register, which is 18 months after the
effective date of the Adopting Release.\2\
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\2\ Id. at 141 (discussing compliance date for amendment to the
CAT NMS Plan).
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III. Statutory Authority and Text of the Amendment to the CAT NMS Plan
Pursuant to the Exchange Act and, particularly, Sections 2, 3, 5,
6, 11A(a)(3)(B), 15, 15A, 17(a) and (b), 19, and 23(a) thereof, 15
U.S.C. 78b, 78c, 78e, 78f, 78k-1, 78o, 78o-3, 78q(a) and (b), 78s, and
78w(a), and pursuant to Rules 608(a)(2) and (b)(2) thereunder, the
Commission is amending the CAT NMS Plan in the manner set forth below.
Amend Section 6.4 of the CAT NMS Plan by modifying paragraphs
(d)(ii)(B) and (C) and adding paragraph (d)(ii)(D).
The revisions read as follows. Additions are italicized; deletions
are [bracketed].
* * * * *
Section 6.4 Data Reporting and Recording by Industry Members
* * * * *
(d) Required Industry Member Data
(i) No change.
(ii) No change.
(A) No change.
(1)-(3) No change.
(B) if the trade is cancelled, a cancelled trade indicator;
[and]
(C) for original receipt or origination of an order, the Firm
Designated ID for the relevant Customer, and in accordance with
Section 6.4(d)(iv), Customer Account Information and Customer
Identifying Information for the relevant Customer[.]; and
(D) for the original receipt or origination of an order to sell
an equity security, whether the order is for a short sale effected
by a market maker in connection with bona fide market making
activities in the security for which the exception in Rule
203(b)(2)(iii) of Regulation SHO is claimed.
By the Commission.
Dated: October 13, 2023.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-23051 Filed 10-31-23; 8:45 am]
BILLING CODE 8011-01-P
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