Notice2024-17286

Self-Regulatory Organizations; Financial Industry Regulatory Authority; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove Proposed Rule Change To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail

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
August 6, 2024

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 89 Issue 151 (Tuesday, August 6, 2024)</title>
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[Federal Register Volume 89, Number 151 (Tuesday, August 6, 2024)]
[Notices]
[Pages 64024-64025]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-17286]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-100627; File No. SR-FINRA-2024-003]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority; Notice of Designation of Longer Period for Commission Action 
on Proceedings To Determine Whether To Approve or Disapprove Proposed 
Rule Change To Establish Fees for Industry Members Related to Certain 
Historical Costs of the National Market System Plan Governing the 
Consolidated Audit Trail

July 31, 2024.
    On January 2, 2024, the Financial Industry Regulatory Authority 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change \3\ 
to establish fees for Industry Members \4\ related to certain 
historical costs of the National Market System Plan Governing the 
Consolidated Audit Trail (``CAT NMS Plan'').\5\ The proposed rule 
change was immediately effective upon filing with the Commission 
pursuant to Section 19(b)(3)(A) of the Act.\6\ On February 13, 2024, 
the proposed rule change was published in the Federal Register and the 
Commission temporarily suspended and instituted proceedings to 
determine whether to approve or disapprove the proposed rule change.\7\ 
The Commission received four comments on the proposed rule change.\8\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 99372 (January 17, 
2024), 89 FR 11153 (February 13, 2024).
    \4\ The CAT NMS Plan defines ``Industry Member'' as ``a member 
of a national securities exchange or a member of a national 
securities association.'' See CAT NMS Plan, infra note 10, at 
Section 1.1.
    \5\ Unless otherwise specified, capitalized terms used in this 
rule filing are defined as set forth in the CAT NMS Plan. 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 (November 
15, 2016), 81 FR 84696 (November 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. See Securities Exchange 
Act Release No. 87149 (September 27, 2019), 84 FR 52905 (October 3, 
2019).
    \6\ 15 U.S.C. 78s(b)(3)(A). A proposed rule change may take 
effect upon filing with the Commission if it is designated by the 
exchange as ``establishing or changing a due, fee, or other charge 
imposed by the self-regulatory organization on any person, whether 
or not the person is a member of the self-regulatory organization.'' 
15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ See supra note 3.
    \8\ See letters from: Howard Meyerson, Managing Director, 
Financial Information Forum, to Vanessa Countryman, Secretary, 
Commission, dated March 4, 2024; Thomas M. Merritt, Deputy General 
Counsel, Virtu Financial, Inc., to Vanessa Countryman, Secretary, 
Commission, dated March 5, 2024; Stephen John Berger, Managing 
Director, Global Head of Government & Regulatory Policy, Citadel 
Securities, to Vanessa Countryman, Secretary, Commission, dated 
March 5, 2024; and Joanna Mallers, Secretary, FIA Principal Traders 
Group, to Vanessa Countryman, Secretary, Commission, dated March 9, 
2024.
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    Section 19(b)(2) of the Act \9\ provides that, after instituting 
proceedings, the Commission shall issue an order approving or 
disapproving a proposed rule change not later than 180 days after the 
date of publication of notice of filing of the proposed rule 
change.\10\ The Commission may, however, extend the period for issuing 
an order approving or disapproving the proposed rule change by not more 
than 60 days if the Commission determines that a longer period is 
appropriate and publishes the reasons for such determination.\11\ The 
180th day for the proposed rule change is August 11, 2024.
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    \9\ 15 U.S.C. 78s(b)(2).
    \10\ 15 U.S.C. 78s(b)(2)(B)(ii)(I).
    \11\ 15 U.S.C. 78s(b)(2)(B)(ii)(II)(aa).
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    The Commission is extending the 180-day time period for Commission 
action on the proposed rule change. The

[[Page 64025]]

Commission finds it appropriate to designate a longer period within 
which to issue an order approving or disapproving the proposed rule 
change so that it has sufficient time to consider the proposed rule 
change.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\12\ designates October 10, 2024 as the date by which the 
Commission shall either approve or disapprove the proposed rule change 
(File No. SR-FINRA-2024-003).
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    \12\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(57).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-17286 Filed 8-5-24; 8:45 am]
BILLING CODE 8011-01-P


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Indexed from Federal Register on August 6, 2024.

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